The Government Office has just begun to collect comments from the Government members on the Draft Decree amending and supplementing a number of articles in Decree No. 92/2016/ND-CP dated July 1, 2016 of the Government regulating on conditional business lines in the field of civil aviation and the Government's Decree No. 30/2013/ND-CP dated April 8, 2013 on air transportation business and general aviation activities .
Government members have just over 1 day to complete the opinion form for the Government Office to summarize and report to the Prime Minister. The 27 members of the Government will raise their opinions whether they agree or disagree with the proposal of the Ministry of Transport and Communications (MOT) regarding the application to keep the provisions of Clauses 2 and 4, Article 6, Decree No. 92/2016/ ND-CP on the content of age management of used aircraft imported into Vietnam.
This is one of the last two bottlenecks for the Draft Decree regulating business activities of 68 international airlines and 5 domestic airlines signed and promulgated by the Prime Minister after more than a year of drafting.
During the consultation with members of the Government in September 2018, regarding the age of used aircraft, the Ministry of Transport proposed two options. In option 1, the age of aircraft imported into Vietnam for aircraft carrying passengers will be extended from 20 years to 25 years from the date of manufacture to the end of the lease contract and for aircraft. transportation of goods, mail, parcels, general aviation business from 25 years to 30 years from the date of shipment to the end of the lease contract.
With option 2 - the option proposed by the Ministry of Transport, the age of the aircraft will be kept as specified in Clauses 2 and 4, Article 6, Decree No. 92/2016/ND-CP.
Clause 2, Decree No. 92 stipulates that the age of used aircraft imported into Vietnam for passenger transport will not exceed 10 years from the date of ex-works to the time of importation into Vietnam under the contract. co-purchase, hire-purchase; no more than 20 years from the date of shipment to the end of the lease contract. For aircraft transporting goods, mail, parcels, general aviation business, the age of the aircraft must not exceed 15 years from the date of manufacture to the time of importation under the purchase, lease-purchase contract and not more than 25 years. from the date of shipment to the end of the lease contract.
Clause 4, Article 6, Decree 92 stipulates the types of aircraft that are issued with type certificates by the US Federal Aviation Administration (FAA) or the European Aviation Safety Agency (EASA) or the Vietnamese aviation authorities. Airplane.
It is worth mentioning that, during the consultation of members of the Government in September 2019, up to 19 members chose option 1; 5 opinions agree with option 2; 2 comments suggest further research.
Loosen the room for foreign investors to 34%
There are many reasons why the Ministry of Transport, in its role as a drafting agency, strongly reserves the right to maintain the regulation on the age of used aircraft. According to Minister of Transport Nguyen Van The, this regulation aims to improve the quality of passenger transport activities; reduce maintenance costs; increased reliability for aircraft; suitable resources for aircraft maintenance, inspection, monitoring and operation at that time and encouraging airlines to use and master products with advanced technology.
After more than 12 years of implementation, the regulation on the age of aircraft imported into Vietnam has proved the appropriateness between the safety factor and the business opportunity for airlines. Vietnamese airlines are operating a fleet of aircraft with a low average age (about 5 years old) invested by airlines in the form of sale and leaseback (lease without crew).
Besides, compared with the data on the average age of aircraft taken out of operation in the world (25.1 years old for passenger ships and 32.5 years old for cargo ships), Vietnam's regulations for chartered aircraft to ensure an aviation safety corridor for business activities and public interests.
“The rapid increase in the number of aircraft also puts great pressure on the aviation quality supervision capacity of the Civil Aviation Authority of Vietnam, and more synchronous solutions are needed to ensure the safety supervision capacity before taking into account the aviation quality control. increase the allowable age for imported aircraft", the leader of the Ministry of Transport explained.
Previously, in Notice No. 214/TB - VCPP on the conclusions of Prime Minister Nguyen Xuan Phuc at the Government Standing meeting on June 17, 2019 on the Draft Decree amending and supplementing a number of articles of the Government. Decree. Decree No. 92 and Decree No. 30/2013/ND-CP, in order to ensure strict management of imported aircraft and ensure absolute safety, the Government Standing Committee assigned the Ministry of Transport to report and explain before members of the Government. at the regular Government meeting in June 2019.
Regarding the capital contribution rate of foreign investors specified in the Draft Decree amending Decree No. 92/2016/ND-CP, the Government Standing Committee agreed on the plan approved by the majority of the Government members. through.
Specifically, the plan approved by 24/26 members of the Government is also the proposal of the Ministry of Transport in Report No. 9055/TTr-BGTVT dated August 15, 2018, to increase the capital contribution ratio of foreign investors. outside. from 30% to 34%.
Previously, Decree No. 92/2016/ND-CP stipulates that the capital contribution ceiling of foreign investors in air transport enterprises is 30%. In the Draft Decree submitted for comments in August and November 2018, although in favor of the capital contribution ceiling of foreign investors not exceeding 34% of the charter capital, the Ministry of Transport still mentioned the capital level plan. contribute. contribute no more than 49% as proposed by Vietjet Aviation Joint Stock Company.
“The reason why the Ministry of Transport limits the amount of capital contributed by foreign investors to no more than 34% of the charter capital is to ensure harmony between the attraction of foreign investment capital into enterprises, while ensuring the interests of investors. domestic investment," said Minister Nguyen Van The.
The Prime Minister assigned the Ministry of Transport to coordinate with the Ministry of Industry and Trade, the Committee for the Management of State Capital at Enterprises and relevant agencies and units to continue to actively work with industries, especially the units with a large volume of import and export goods to exchange and agree on specific measures to prioritize and create favorable conditions for domestic shipping enterprises to increase their market share in exporting and importing goods. Exports under the direction of the Prime Minister in Document No. 118/VPCP-KTN dated January 7, 2014 of the Government Office.
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