The air transport sector is identified as a strategic industry for Vietnam’s socio-economic development and international integration. It not only contributes to promoting trade and tourism but also enhances the nation’s capacity for global engagement. In the context of globalization and increasing competition in the aviation market, a comprehensive understanding and strict compliance with the relevant legal provisions—especially licensing requirements—are not only legal obligations but also essential factors ensuring effective, stable, and sustainable participation by stakeholders.
1. Overview of Air Transport Business Licensing
1.1. Legal Framework
Air transport business activities in Vietnam are governed by the Law on Civil Aviation of Vietnam (2006), as amended and supplemented in 2014, along with a system of implementing legal documents including Government decrees, circulars issued by the Ministry of Transport, and other relevant regulations. This legal framework establishes a comprehensive regulatory foundation for all activities within the civil aviation sector, including specific provisions on the conditions, order, and procedures for the issuance of air transport business licenses.
Key legal instruments include:
- Decree No. 30/2013/ND-CP on air transport and general aviation activities;
- Decree No. 89/2019/ND-CP, amending and supplementing several provisions of Decree No. 92/2016/ND-CP and Decree No. 30/2013/ND-CP;
- Circular No. 29/2021/TT-BGTVT, guiding the implementation of regulations on the issuance of air transport business licenses.
The establishment and improvement of this legal framework aim to ensure transparency, consistency, and feasibility in the assessment, licensing, and supervision of enterprises operating in the aviation market. At the same time, it serves as a foundation for harmonizing domestic regulations with international standards and practices, thereby enhancing competitiveness and facilitating Vietnam’s aviation sector integration into regional and global markets.
1.2. Importance of the Air Transport Business License
The air transport business license is not merely a compulsory legal requirement but also a crucial legal tool for state management of the aviation sector. From a legal perspective, the license confirms that an enterprise has satisfied all conditions regarding financial capacity, technical infrastructure, personnel, and operational safety as required by law.
From a regulatory standpoint, the license functions as a market entry control mechanism, ensuring that only qualified enterprises are permitted to operate air transport services. Thus, the licensing system contributes to maintaining aviation safety, service quality, and fair competition, while also protecting passenger rights and national interests in the aviation domain.
2. Licensing Conditions for Air Transport Business
2.1. Capital Requirements
Pursuant to Clause 5, Article 1 of Decree No. 89/2019/ND-CP, the minimum charter capital is specified as follows:
- For operations with up to 10 aircraft: VND 300 billion;
- For operations with 11 to 30 aircraft: VND 600 billion;
- For operations with more than 30 aircraft: VND 700 billion.
In addition, enterprises must:
- Demonstrate financial capacity via audited financial statements and confirmation documents from credit institutions;
- Comply with capital ownership regulations concerning foreign investors:
- Foreign ownership is capped at 34% of charter capital;
- A Vietnamese individual or legal entity must hold the largest share of capital;
- If the Vietnamese legal entity includes foreign capital, the foreign share must not exceed 49%.
2.2. Personnel Requirements
According to Articles 69 and 70 of the Law on Civil Aviation of Vietnam, qualified personnel are a decisive factor for quality and safety in air transport operations. Enterprises must prove that they have adequate management and operational staff with professional qualifications and relevant experience, as required by the competent authorities.
Specifically, pilots, technical staff, and other specialized positions must hold valid professional licenses or certificates issued by competent domestic or international authorities. This ensures that the workforce possesses the required competencies to operate aircraft safely and efficiently.
2.3. Infrastructure Requirements
- Aircraft fleet compliance: Enterprises must own or lease aircraft consistent with their approved business plan, and all aircraft must meet technical standards.
- Maintenance and repair facilities: Under Clause 2, Article 7 of the amended Law on Civil Aviation, enterprises must have technical infrastructure such as maintenance areas and aviation support systems licensed by the Ministry of Transport.
- Safety management system: A mandatory requirement aimed at preventing risks and promptly responding to incidents during flight operations. This is a critical factor in promoting aviation safety for all civil aviation participants at airports and airfields in Vietnam.
3. Application Dossier and Appraisal Procedure
3.1. Application Preparation
Under Clause 7, Article 1 of Decree No. 89/2019/ND-CP, the application dossier for an air transport business license must include:
a) A written request for license issuance;
b) A report (with supporting documentation) demonstrating compliance with business conditions;
c) The original capital confirmation document;
d) Copies (with originals for comparison) of the following: appointment decisions, labor contracts, degrees, and professional certificates of responsible persons;
đ) A memorandum of understanding or preliminary agreement on the purchase, lease-purchase, or lease of aircraft;
e) A copy of the enterprise’s charter;
g) A list of members or shareholders at the time of application submission.
Thorough preparation from the outset will help enterprises shorten the appraisal process and minimize the risk of license rejection due to incomplete or incorrect documentation.
3.2. Appraisal Process
The license appraisal process is detailed and publicly available on the national public service portal. It is conducted strictly in accordance with the following order:
4. Post-Licensing Obligations and Responsibilities
4.1. Maintenance of Operational Conditions
After being licensed, the enterprise must maintain the conditions committed to throughout its operation, including:
- Maintaining the minimum charter capital and financial stability;
- Complying with technical and operational safety standards;
- Submitting periodic reports on business performance, financial status, and flight safety, as required by regulatory authorities.
Ensuring these conditions are maintained is essential to uphold the legality and sustainability of the enterprise’s business operations.
4.2. Supervision and Inspection
Pursuant to Article 60 of the Law on Civil Aviation, regulatory authorities are responsible for conducting regular or ad hoc inspections and supervision of licensed enterprises. Inspection contents include:
- Compliance with applicable laws and regulations;
- Operational efficiency and safety assurance;
- Handling of violations (if any) in accordance with legal provisions.
In cases of violations, enterprises may face administrative penalties, operational suspension, or license revocation.
5. Recommendations for Enterprises
Strict compliance with all licensing conditions and procedures for air transport business operations is not only a legal requirement but also the foundation for sustainable development in the aviation industry. To ensure a smooth and efficient licensing process, enterprises intending to enter the air transport market should:
- Thoroughly study the applicable legal framework and stay updated on changes in conditions and procedures;
- Prepare adequate resources, particularly financial capacity, human resources, and infrastructure aligned with the business model;
- Seek advice from legal experts and aviation industry specialists to ensure the application dossier and business plan meet appraisal requirements;
- Develop a long-term, sustainable development strategy to establish credibility and trust with regulatory authorities and customers.
For further insights on aviation investment and airport operations, please refer to Investment in Aviation and Airport Operations in Vietnam.
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