In recent years, Vietnam’s civil aviation industry has recorded remarkable growth, emerging as one of the most promising sectors for economic development. According to Pháp luật Newspaper, the total number of passengers through Vietnamese airports in 2024 surged by approximately 27% compared to 2023.

This rapid development necessitates a modern legal framework capable of regulating aviation activities in the new context while ensuring transparency, stability, and compliance with international standards. In this context, the Law on Civil Aviation of Vietnam 2006, as amended and supplemented in 2023 (hereinafter “Civil Aviation Law 2023”), was enacted to institutionalize regulatory principles aligned with integration, sustainability, and global best practices—particularly those established by the International Civil Aviation Organization (ICAO).

For further insight into the sector’s investment potential, consider related articles such as Airport Infrastructure Development: A Magnet for Foreign Investment and Promising Sectors for Foreign Direct Investment in Vietnam.

1. Overview of the Legal Framework for Civil Aviation

The primary legal instruments governing civil aviation in Vietnam include the Law on Civil Aviation 2006 (as amended in 2023) and Decree No. 125/2015/ND-CP. These not only regulate air transport but also encompass aviation infrastructure, technical operations, safety, and security management.

1.1 Scope of Regulation

Pursuant to Article 1 of the Civil Aviation Law 2006, as amended in 2023, and Article 1 of Decree No. 125/2015/ND-CP

• Civil flight activities within Vietnam’s territory: This includes domestic, international, non-commercial, and general aviation flights.
• Management and operation of aviation infrastructure and airport activities: Airports, terminals, air traffic control towers, navigation and surveillance systems, etc.
• Commercial air transport services: Passenger, cargo, and mail transportation.
• Aviation safety and security: Technical and legal measures to prevent and address threats to flight safety.
• State aircraft are excluded unless used for civil purposes.

2. Licensing Requirements for Air Transport Operations

Licensing and certification in the aviation sector are subject to strict regulatory oversight to ensure service quality and flight safety. Businesses intending to engage in commercial air transport must meet the following key legal requirements:

• Minimum Charter Capital: Pursuant to Clause 5, Article 1 of Decree No. 89/2019/ND-CP
  
  • Up to 10 aircraft: VND 300 billion
  • From 11 to 30 aircraft: VND 600 billion
  • More than 30 aircraft: VND 700 billion
• Aircraft Technical Compliance
  (Articles 20 and 21, Civil Aviation Law 2023):
  Aircraft must be registered, inspected, and maintained in accordance with Vietnamese and international technical standards.
• Qualified Personnel
  (Articles 69 and 70, Civil Aviation Law 2023):
  Pilots, technicians, and operational staff must hold valid certificates and licenses issued by competent authorities.
• Feasible Business Plan
  (Article 110, Civil Aviation Law 2023):
  Enterprises must submit a business plan aligned with market demand and the government’s aviation development strategy, including financial projections, route network, and liability insurance arrangements.

3. Safety and Technical Standards

Safety is paramount in the aviation sector, demonstrated by stringent requirements for:

• Aircraft Maintenance and Inspection
  Regular inspections must be carried out in accordance with ICAO standards and Vietnamese regulatory guidance.
• Training and Certification of Maintenance Personnel
  (Articles 60 and 70, Civil Aviation Law; Circular No. 10/2018/TT-BGTVT):
  All technical staff must receive professional training and hold valid certifications.
• Standard Operating Procedures (SOPs)
  Operations must follow standardized procedures to reduce risks and improve efficiency.
• Safety Management Systems (SMS)
  (ICAO Annex 19 and Circular No. 29/2021/TT-BGTVT):
  Organizations must establish and maintain a Safety Management System compliant with ICAO standards.
• Civil Aviation Safety Regulations on Aircraft and Operations
  (Circular No. 01/2011/TT-BGTVT): Covers flight conditions, aircraft operations, aviation personnel qualifications, and medical certification requirements.

For a more detailed overview, refer to: Mandatory Aviation Safety Standards for Businesses in Vietnam.

4. Licensing Procedures

4.1 Administrative Timeline

(Article 10, Decree No. 92/2016/ND-CP, as amended by Clause 7, Article 1 of Decree No. 89/2019/ND-CP):

• Within 3 working days: Vietnam Civil Aviation Authority (CAAV) must notify the applicant of any deficiencies in the application and provide instructions for completion.
• Within 20 working days: Upon receipt of a complete application, CAAV must evaluate and report the results to the Ministry of Transport.
• Within 15 days: The Ministry must review the report and submit it to the Prime Minister. If rejected, reasons must be provided in writing to CAAV.
• Within 10 days: The Prime Minister decides whether to approve the issuance of a license.
• Within 5 working days: The Ministry of Transport must issue the license or notify the applicant of the Prime Minister’s refusal.

Licensing Process

4.2 Required Documentation

• Application letter for the license
• Report demonstrating compliance with licensing requirements;
• Original capital verification document;
• Certified copies or authenticated duplicates of key legal and corporate documents;
• Aircraft purchase/lease agreements;
• Corporate charter;
• List of shareholders or members at the time of application.

5. Alignment with International Standards

One of the highlights of the 2023 amendments is the harmonization of Vietnam’s aviation legislation with global standards, particularly:

• ICAO Standards:
  All 19 Annexes covering areas such as safety, security, training, maintenance, and technical operations are referenced and progressively integrated into domestic law.
• Bilateral and Multilateral Air Services Agreements:
  Vietnam has signed numerous agreements with other nations to promote international air transport cooperation, such as the Vietnam–U.S. Air Transport Agreement and the Vietnam–Turkey Air Services Agreement.

6. Conclusion

The Civil Aviation Law of Vietnam 2006 (as amended in 2023) provides a strong legal foundation for the sustainable, professional, and internationally integrated development of Vietnam’s aviation industry. With a strategic focus on expanding market access, improving service quality, and strengthening global cooperation, this legal framework is crucial to achieving Vietnam’s long-term aviation ambitions.

To ensure legal compliance and mitigate operational risks, businesses are advised to build a sound legal strategy and consult experienced aviation law professionals.

Recommended Reading:
Requirements and Procedures for Obtaining an Air Transport Business License in Vietnam

Harley Miller Law Firm is ready to support your aviation business with tailored legal solutions and regulatory expertise.

Harley Miller Law Firm

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