On November 15, 2019, the Government issued Decree No. 89/2019 / ND-CP amending Decree 92/2016 / ND-CP providing for conditional business lines and trades in the field of civil aviation. and Decree 30/2013 / ND-CP on air transport business and general aviation activities. This Decree takes effect from January 1, 2019.
Accordingly, Decree No. 89/2019 / ND-CP stipulates the capital conditions for air transport business enterprises as follows:
Minimum capital (including equity and loans) to establish and maintain air transport business enterprises:
Operate up to 10 aircraft: VND 300 billion;
Operate from 11 to 30 aircraft: 600 billion Vietnam dong;
Operate over 30 aircraft: 700 billion Vietnam dong.
Minimum capital to establish and maintain a common aviation business: VND 100 billion.
Foreign-invested air transport business enterprises must meet the following conditions:
Foreign investors account for no more than 34% of the charter capital;
There must be at least one Vietnamese individual or a Vietnamese legal entity holding the largest charter capital;
In case a Vietnamese legal entity with foreign owned capital contributes capital, the foreign capital contribution shall not exceed 49% of the legal capital of the legal entity.
As can be seen, the Decree 89/2019 / ND-CP issued has created favorable conditions for air transport business enterprises to meet capital requirements. Thereby, increasing competitiveness and opening up opportunities for businesses planning to conduct this business in the future.