Hanoi (VNS/VNA) - A governmental decree drafted by the transport ministryto simplify business conditions for potential investors in the aviation sectorhas been sent to Prime Minister Nguyen Xuan Phuc for approval.

Ministerof Transport Nguyen Van The said the draft decree was revised and supplementedfor the second time in the past three months after it received ideas fromGovernment officials and aviation businesses. It is expected to enhanceaviation services including aviation transport businesses, airports andaviation service supply.

Underthe draft, the investors need to meet conditions such as having aircraft,operational organisation, capital, a business plan and product developmentstrategies to obtain an air transport licence.

Aregulation previously requiring the businesses’ plan to suit the aviationtransport development plan has been removed from the new draft.

Inaddition, the minimum capital needed to establish and maintain the businesses’operation was adjusted to ease the burden on investors. As proposed by thetransport ministry, an airline operating up to 10 aircraft will need a minimumof 300 billion VND (12.83 million USD), from 11 to 30 aircraft will need 600billion VND, and 30 aircraft and more will need 700 billion VND.

Theseamounts have been cut by more than half compared with the previous draftdecision.

Anothernew point in the second draft decree is that the ministry proposed to raiseownership for foreign investors in the field of aviation transport.

Foreign-investedenterprises must satisfy the following conditions: foreign ownership will notoccupy more than 34 percent of charter capital; at least one Vietnameseindividual or legal entity must hold the largest charter capital. In case theVietnamese person has foreign owned capital that is the largest charter capitalamount, the foreign capital contribution shall not exceed 49 percent of theVietnamese person’s own.

“Thelimitation of the foreign investors’ contribution capital not exceeding 34 percentof charter capital was aimed to harmonise the attraction of foreign investmentcapital, but still ensure the rights and interests of domestic investors,” saidThe.

Inthe new draft decree, the ministry also kept the age of aircraft as stipulatedin the Government Decree No 92/2016/NĐ-CP at 20 years of operation forpassenger transport aircraft and 25 years for cargo aircraft.

Accordingto The, the age of the airline fleet was a sensitive issue that needs to becarefully assessed. The ministry had received comments from Deputy PrimeMinister and Minister of Foreign Affairs Pham Binh Minh, Minister of PublicSecurity To Lam and opinions of experts. It would not adjust the regulation onthe age of airline fleet immediately, but continue to study and evaluate morecarefully and propose revisions at an appropriate time.

Upto September this year, the number of civil aircraft registered with Vietnamesenationality was 175 aircraft, up 18 units over the same period last year, ofwhich Vietnam Airlines has 89 aircraft and Vietjet has 56.-VNS/VNA