Vietnam to Raise Foreign Ownership Cap for Airlines

Vietnam's government will raise the foreign ownership cap for its airlines to 35% from the current 30%, according to a government directive reported on Wednesday. The decision requires carriers to further adjust their operations and ownership structures to comply with the new limit.

Officials instructed airlines to complete the necessary changes in line with the updated regulations. The move comes as Vietnam seeks to attract additional international investment into its aviation sector. Higher foreign ownership could provide airlines with greater access to capital for fleet expansion and operational improvements.

Carriers must review their current shareholder compositions and make adjustments where foreign holdings exceed the previous threshold. The government has set a timeline for compliance, though specific deadlines were not detailed in the announcement.

This adjustment follows earlier reforms in Vietnam's aviation policy. The sector has experienced rapid growth in both domestic and international routes over recent years.

Vietnam operates a mix of state-linked and private airlines serving millions of passengers annually. The increased ownership cap is expected to facilitate partnerships with foreign carriers and investors. The directive applies to all commercial passenger and cargo airlines registered in the country.

Airlines will report their updated ownership structures to aviation authorities once changes are finalized. The government has previously adjusted foreign ownership limits in other industries to encourage economic development while maintaining oversight of strategic sectors.