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Vietnam plans to allow 49 percent foreign stake in airlines

Vietnam plans to allow 49 percent foreign stake in airlines

Vietnam is expected to issue new regulations allowing foreigners to own up to 49 percent of local airlines, an industry official said Thursday.
In May last year, the legislature passed an Aviation Law which allows locals and foreigners to participate in air transport operations in the country.
"To implement the law, the country will need to issue a new decree, which is expected to be approved by the prime minister later this year, to provide detailed guidelines on foreign ownership in any domestic aviation activities," an official at the Civil Aviation Administration of Vietnam told Dow Jones Newswires.
Vietnamese law currently allows foreigners to own a maximum 30 percent stake in a domestic airline. So far, Pacific Airlines is the only local airline which has sold a stake to a foreign company _ in this case, Australia's Qantas.
"In the future, foreigners will be able to own up to 49 percent of air transport carriers or 60 percent stakes of carriers that focus on the agriculture sectors," said the official, who declined to give his name, citing policy.
The law will also permit locals to set up an airline with a minimum capital of 80 billion dong (US$5 million;


Updated : 2021-02-28 09:31 GMT+08:00