Vietnam is contemplating a proposal to raise the foreign ownership limit in its aviation industry, specifically in domestic carriers. The draft decree under the Law on Civil Aviation suggests increasing the cap from 34 percent to 49 percent, aiming to facilitate airline expansion, attract investment, and access international expertise.
The proposed change seeks to balance the need for capital with national control, emphasizing that higher foreign ownership would not undermine domestic decision-making. Experts, however, express concerns about potential risks to sovereignty, security, and control over critical infrastructure, considering aviation as a strategic sector.
Vietnam's current regulations align with international standards, with models seen in the United States and the European Union, where ownership and control are carefully managed. During restructuring processes, some domestic carriers, such as Bamboo Airways, have pushed for increased foreign investment, citing that current limits restrict strategic participation.
Officials highlight the importance of a regulatory framework that ensures economic competitiveness while safeguarding national interests. As Vietnam looks to modernize its aviation sector, policymakers are debating a cautious approach, involving increasing foreign access coupled with stronger oversight, governance, and legal safeguards.
