Aviation and Aviation Support Service in Vietnam

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.

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.