Airport and aerodrome business means the exploitation of airport infrastructure and other works of airport infrastructure under the management of an airport enterprise for the purpose of making a profit.
Legal basis
– International treaties: WTO; Vietnam – Japan BIT Agreement
– Civil Aviation Law 2014
– Decree 89/2019/ND-CP
Conditions for investment and business in airport and airfield
Vietnam’s commitment schedule when joining the WTO does not commit to open the market for foreign investors to operate airports and airfields. Therefore, Vietnam has not opened the market for foreign investors to invest in and operate airports and airfields. But according to the BIT Agreement, Japanese investors are allowed to invest in the form of a joint venture to operate river ports, seaports and airports.
Conditions for investment and business in airports and airfields are as follows:
– The policy is approved by the Minister of Transport in the following cases: Establishment of an airport enterprise; transfer shares and contributed capital of airport enterprises to foreign investors.
– Licensed to operate airports and airfields.
– Foreign investors account for no more than 34% of charter capital
Conditions for granting an airport business license
Having a business plan and development strategy of the enterprise including the following contents:
a) The organizational apparatus and employees are granted appropriate licenses and certificates, meeting the requirements for expertise in airport operation in accordance with the law on civil aviation;
b) The system of equipment and necessary conditions to ensure aviation safety and security in accordance with the provisions of the law on civil aviation.
The capital requirements are as follows:
a) Minimum capital to establish and maintain a general aviation business: VND 100 billion.
b) Foreign-invested air transport enterprises must satisfy the following conditions:
+ Foreign investors account for no more than 34% of charter capital;
+ There must be at least one Vietnamese individual or one Vietnamese legal entity holding the largest share of charter capital;
+ In case a Vietnamese legal entity has foreign investment capital contributing capital, the foreign capital contribution shall not exceed 49% of the legal entity’s charter capital.”
Procedures and records in airport and airfield
If foreign investors want to conduct airport business in Vietnam, they will need to provide the following documents:
– Registering a company: Investors need to provide an investment license and business registration documents to set up a company in Vietnam. This includes a notarized copy of the English translation of the Enterprise Investment Contract, Business Address Registration, Legal Representative Registration Form and related documents.
– Investment capital: Investors need to provide documents related to their investment capital, including bank accounts, copies of documents certifying investment capital and other relevant documents.
– Certificate of airport and airfield operation
+ Dossier of application for an airport or aerodrome operation certificate
- Airport operating documents.
- An application form for an airport or aerodrome operation certificate, made according to Form No. 03 specified in the Appendix issued together with Decree 02/2021/ND-CP;
+ Method and place of submission: send in person or by post or electronically or by other suitable means to the Civil Aviation Authority of Vietnam.
+ Time limit for settlement: the total time is 25 days, the Civil Aviation Administration of Vietnam issues the certificate of airport or aerodrome operation.
In addition, foreign investors need to learn in detail the legal regulations and administrative procedures to ensure that their investment activities at the airport are effective and safe.
HMLF is proud to be a law firm operating in many fields, of which aviation investment is one of our core areas of activity. With a team of professional, dedicated and experienced legal experts in the field of aviation investment, HMLF is confident to help business solve legal problems in the investment field.
Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: 0937215585
Website: hmlf.vn
