Aviation business to further open to foreign investors
f the Decree Draft on Aviation is passed, foreign investors can held a share of up to 49% in airlines transport joint ventures, 60% in other aviation joint ventures with local partners.
The Decree Draft is currently under compilation by the Ministry of Transport.
According to Mr. Lai Xuan Thanh, Deputy Director of the Civil Aviation Administration, the revised Civil Aviation Law, which has just passed by the National Assembly, allows the aviation industry is open to every organizations and individuals of all economic sectors but does not provide detailed rules about this.
However, the Decree Draft provides further guidelines on establishment of private aviation businesses.
Limits on share held by foreign investors in aviation companies remain a sensitive issue, not only in Vietnam but also many other countries in the world. However, the Draft Decree offers foreign firms with great chances, said the Deputy Director.
Currently, Vietnam allows foreign investors to hold a stake of 30% in a domestic airlines firm like the case of Pacific Airlines.
If the Draft is passed, the share limit will be increased to 49% in airlines transport company and 60% in other aviation businesses.
Recently, there has been many plans for establishment of private airlines companies submitted to the Civil Aviation Administration for approval but none of those have been carried out. In explaining this, the Deputy Director said the plan on establishment of private Mekong Air was passed but the initiator could not mobilize enough funds. Another one, the plan on establishment of Saigon Air, was considered not realistic.
He also expressed his confidence that upon on Vietnam’s accession to the WTO, the aviation market of Vietnam will be highly potential for investors, both local and foreigners.
Vietnam Economic Times - September 14, 2006.
|