Cap on foreign ownership of domestic Vietnamese airlines to be lifted to 49%

The Vietnamese government issued a draft proposal to lift the cap of foreign ownership of domestic Vietnamese airlines from the current 30% to 49%.

The draft only applies to local airlines with at least 10 aircraft and a capitalization of US$30 million.

The new draft provisions also require all operators with a fleet of 30 or more aircraft to have a minimal capitalization of $43.5 million. Currently, only international operators with 11 to 30 aircraft apply.

Airlines with 30 or more aircraft will be provided to have minimum capitalization of $56.6 million, under the new rules.

The Ministry of Transport must approve the draft decree before becoming law.