Vietnam seeks to raise airline foreign ownership limits to 49%

The Vietnam government has proposed raising foreign ownership limits in a domestic airline from 30% to 49%, while still ensuring that a Vietnamese individual or legal entity remains the major shareholder. The government also plans to double minimum capital requirements for establishing an airline operating up to 10 aircraft from VND300b ($13m) to VND700b. For an airline startup with 11-to-30 aircraft, the capital requirement would increase from VND600b to VND1t. For fleets with more than 30 aircraft, the value would rise from VND700b to VND1.3t. This law would now apply to both local and foreign startups. In addition, starting and maintaining an airport enterprise would require a minimum capital of VND200m, for both domestic and international airports, compared to the previous VND100m for domestic. This move is likely to encourage the growth and quality of international airports in the country to ease pressure on major hubs. <br/>