Foreign
investors could promote and participate in aviation and aviation related
services in Vietnam through setting up
representative office, setting up company, engaged in business
cooperation contract or joint venture.
Civil aviation
industry in Vietnam has really developed in the last 20 years. Until now, many
Vietnam domestic airlines provide aviation services such as Vietnam Airline,
Vietjet Air, Jetstar Pacific, etc that brings more choices to customers as well
as business and investment opportunities to Vietnam and foreign investors.
Aviation
and Aviation Support Service in Vietnam
The foundation of
aviation and aviation support services are governed under Civil Aviation Act
2006 which was amended in 2014.
The differences of aviation and aviation
support service?
Most of us are
aware of aviation throughout use them for our demand to travel or transport
goods. Air transport operations include two type of air transportation
business and general aviation business. In detail, air transport business is
the transportation of passengers, baggage, cargo and postal items by air for
the purpose of profit, and general aviation business is general aviation
activities. Air transport service business is conditional business activity
that requires plans to ensure availability of aircraft for operations,
organizational apparatus, business plans, development strategies and capital
requirements. Depending on the scale of business operation of air transport
enterprise, capital requirements is significant. Because of the typical
elements of aviation especially air transport service, participants in the air
transportation business have to sufficient financial resources as well as
capacity management and administration.On the other hand, aviation support
service include air navigation service business; airport service business;
aviation staff training, coaching and mentoring service business; services
relating to design, manufacture, maintenance, testing of aircraft, engines,
propellers and equipment thereof within Vietnam and so on. Those are also the
conditional business activities depending on the type of service that requires
different conditions for the strategic plan, organizational structure, capital
requirement or foreign ownership of the charter capital. For example aviation
staff training, coaching and mentoring service business requires investor to
ensure requirements concerning the facilities, equipment, components and
lecturers as well as about training courses, training or coaching materials.
Opportunities of aviation and aviation
support service?
As a country with
over 90 million people like Vietnam along with the development of economy and
the increasing of Vietnamese’s life quality, the aviation service business is
growing because of demand hence aviation support service business is also
developing in natural way. Vietnam has increasingly created favorable
conditions for not only organizations and individuals of Vietnam but also
foreign investors to cooperate and invest in civil aviation.
The aviation
support services have been fairly common in the world, but not really developed
in Vietnam especially services relating to design, manufacture, maintenance
aircraft therefore when domestic enterprises have demand, they frequently hire
service abroad. Besides, aviation staff training, coaching and mentoring
service requires foreign experts. There are significant opportunities for
foreign investors who have knowledge, skill and experience in this field to
access and provide aviation support services to domestic and international
airlines in Vietnam.
Vietnam has been
investing heavily in airport infrastructures expansion preparing for growing of
airlines fleets and frequency which means more opportunities for aviation and
aviation related services are opening. The law in aviation and aviation
related services are continuously changing. ANT Lawyers in Hanoi, Da Nang
and Ho Chi Minh City continue to follow and provide update to its clients
in legal aspect of aviation and aviation related services in particular and
transportation in general in Vietnam for the legal understanding, compliance
and business cooperation and investment purpose in regulatory and policy
research, contract review, dispute in transactions or employment matters,
incorporation.
Source: Antlawyers.vn
