Vietnam opens airport investment

HANOI  Vietnam’s government will allow private and foreign investors to provide services at Vietnamese airports for the first time this December.
Thanh Nien News reported that new legislation, which will take effect 12 December, will allow private investors to purchase rights to manage airports and provide some ground services such as fuel supply, flight information, and airfield operations.
Only Vietnamese businesses are eligible, but foreign investors can join them, with the maximum stake capped at 30%, the report said.
The government will hold at least a 65% stake in service providing companies that it deems important or strategic. Air traffic control, research and rescue services will be strictly off-limits to private and foreign investors.
inside no 6Those providing aviation services at international airports must have a minimum capital of USD9 million and USD4.5 million for domestic airports.
In February, Ministry of Transport announced a plan to sell the rights to operate airport services in order to raise funds for local infrastructure projects.
The plan has since drawn interests from several foreign investors, but local investors will be given first option.
Low-cost Vietjet Air wants to invest in a domestic terminal at Hanoi’s Noi Bai International Airport as one example of the diversification.
Jetstar Pacific, another budget carrier, has offered to buy rights to operate a terminal in Danang International Airport, while T&T Group, a real estate company based in Hanoi, is interested in managing the airport on Phu Quoc island in Kien Giang province.
The new decree will let airlines invest in new airport related ventures, but their stake must be limited to 30%, the report added.

sourced:ttrweekly.com