Decree No. 102/2015/ND-CP dated October 20, 2015 of the Government on management and operation of airports and airfields

THE GOVERNMENT

Decree No. 102/2015/ND-CP dated October 20, 2015 of the Government on management and operation of airports and airfields

Pursuant to the Law on Government organization dated December 25, 2001;

Pursuant to the Law on Civil Aviation dated June 29, 2006 and the Law on amendment to the Law on Civil aviation dated November 21, 2014;

Pursuant to the Law on Land dated November 29, 2013;

Pursuant to the Law on Construction dated June 18, 2014;

At the request of the Minister of Transport,

The Government promulgates a Decree on management and operation of airports and airfields.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of adjustment and subject of application

1. This Decree deals with management and operation of airports/airfields in Vietnam, including: principles and responsibilities of agencies/units involved in management and operation of airports/airfields; airport/airfield planning and implementation thereof; procedures for opening, shutting down airports/airfields; operation of airports/airfields and the vicinity; airfields serving both civil and military purposes (hereinafter referred to as civil-military airfields); selling, mortgaging, leasing, contributing property on airport/airfield land; business operation at airports/airfields.

2. This Decree applies to Vietnamese and foreign entities involved in management and operation of airports and airfields in Vietnam.

Article 2. Interpretation of terms

1. Airport/airfield operator means the organization granted the license for airport/airfield operation.

2. Infrastructure of an airport includes:

a) Infrastructure of the airfield;

b) Works for provision of air navigation service;

c) Works for provision of security and emergency services

d) Perimeter fences; internal roads; power supply works, water supply and drainage works; lighting works;

dd) Passenger terminals and cargo terminals;

e) Works for provision of ground services; repair and maintenance services for aircraft and aviation equipment; technical aviation services; in-flight food and drink services; aviation fuel services.

3. Infrastructure of the airfield includes: runway, taxiway, aircraft stands, auxiliary works and areas of the airfield; fire safety works; airfield perimeter fences; internal roads of the airfield; environmental protection works, and other works in the air operations area.

4. Property on airport/airfield land means an infrastructural work of the airport/airfield which is built on its land.

5. Lease of airport/airfield infrastructure means the owner’s transferring the right to use an infrastructural works of the airport/airfield to the lessee for provision of corresponding aviation services and collect rents as prescribed by this Decree and relevant regulations of law.

6. Works invested by state budget are works that capital provided by state budget makes up at least 30% of total investment in which.

7. Works invested by other capital sources are works that are not invested by state budget.

Article 3. Rules for management and operation of airports/airfields

1. Ensure national defense and security; ensure aviation security and safety. Ensure close and effective cooperation between regulatory bodies of the airport/airfield; between civil and military aviation agencies/units and related to civil-military airfields.

2. Ensure the uniform, synchronous, continuous, and effective operation chain of the airport/airfield. Ensure healthy competition, civilization, and courteousness; facilitate civil aviation at the airport/airfield. Protect public order and interest, customers’ interest, and the environment.

3. Ensure comprehensive development of the system of airports/airfields, conformity with strategies and master plans for transport development, master plan for development of airports/airfields, local socio-economic development strategies, international tendency of civil aviation development, and satisfaction of demand for air transport in Vietnam.

4. If necessary for the purpose of national defense and security, search and rescue, disaster response, the Ministry of National Defense shall take charge and cooperate with the Ministry of Transport in requisitioning part of or the entire infrastructure of the airport/airfield and provide compensation as prescribed by law.

Article 4. Responsibility of airport/airfield operator

1. Maintain fulfillment of conditions for issuance of the license for airport operation; direct the assurance of service quality assurance at the airport/airfield.

2. Manage, make use of the infrastructure and equipment of the airport/airfield under their management in accordance with regulations of law, airport documents; maintain the operation of the airport/airfield in accordance with applied technical regulations and standards; cooperate in performance of national defense and security tasks or prevention of epidemics at the airport/airfield.

3. Sign airport/airfield operation contracts with enterprises granted licenses to provide corresponding aviation services at the airport/airfield by Civil Aviation Authority of Vietnam.

4. Maintain the infrastructure and equipment of the airport/airfield under their management.

5. Disseminate regulations of law on aviation security and safety.

Article 5. Responsibility of Civil Aviation Authority of Vietnam

1. Perform the duties and entitlements of aviation authorities to operation of airports/airfields as prescribed.

2. Launch and supervise implementation of airports/airfields planning approved by competent authorities. Formulate and submit detailed airport/airfield planning to the Minister of Transport for approval. Consider approving detailed plan for specialized areas of the airport/airfield. Announce levels and specifications of airports/airfields.

3. Perform the duties of regulatory bodies in the process of project approval, licensing construction of airport/airfields. Monitor adherence to regulations on environmental protection at airports/airfields.

4. Assigning backup airports/airfields. Provide guidance on management, operation, aviation security, safety, environmental protection of aviation activities at specialized airfields after the Ministry of National Defense grants permission. Announce the operation of specialized airfields on the aeronautical information system as prescribed.

5. Coordinate activities of regulatory bodies at the airport/airfield. Announce the capacity of airports/airfields; regulate take-off and landing time at airports/airfields.

6. Direct the establishment, protection, maintenance of the information system serving operation of airport/airfield; connection of data network, cooperation of regulatory bodies at airports/airfields. Manage statistics about quantity of flights, passengers, and cargo at airports/airfields.

7. Arrange workplaces for regulatory bodies at the airport/airfield. Direct airport authorities to perform their regulatory tasks at the airports/airfields.

8. Disseminate regulations of law on assurance of aviation security and safety, and environmental protection at airports/airfields.

9. Perform other tasks given by the Minister of Transport.

Article 6. Responsibility of airport authority

1. Perform the duties and entitlements prescribed by the Law on Civil aviation.

2. Cooperate with local governments in determining and protecting boundaries of the airport/airfield and its vicinity.

3. Cooperate with relevant agencies/units and local governments in disseminating regulations of law on assurance of aviation security and safety at the airport/airfield.

4. Inspect, supervise provision of aviation and non-aviation services at the airport/airfield.

5. Perform the duties and entitlements prescribed by Director of Civil Aviation Authority of Vietnam.

Article 7. Responsibility of the People’s Committees of areas having airports/airfields

1. Cooperate in planning, determining and protecting boundaries of the airport/airfield and its vicinity.

2. Reserve land, conduct land clearance to develop the system of airports/airfields according to planning approved by competent authorities.

3. Manage the use of land, ensure aviation security and safety in the vicinity of the airport/airfield. Cooperate in airport emergency tasks, response to illegal interference in civil aviation operation as prescribed by law.

4. Take actions against violations against regulations on aviation security and safety in the vicinity of the airport/airfield. Take charge and cooperate with competent authorities in enforcing penalties for administrative violations against regulations on civil aviation.

5. Disseminate regulations of law on aviation security and safety.

Chapter II

AIRPORT/AIRFIELD PLANNING AND IMPLEMENTATION THEREOF, EXCEPT FOR SPECIALIZED AIRFIELDS

Article 8. General provisions on airport/airfield planning

1. Airport/airfield planning includes:

a) Master plan for development of the national airport/airfield system;

b) Detailed airport/airfield planning;

c) Detailed planning for construction of specialized areas of the airport/airfield.

2. Airport/airfield planning must:

a) Conform to development strategy, planning of the sector or national, local socio-economic development plans;

b) Meet requirements for assurance of national defense and security;

c) Meet demand for development of Vietnam’s aviation industry and development tendency of international civil aviation;

d) Meet requirements in terms of geography, population, local development; policies on use of agricultural land; sustainable environmental protection;

dd) Ensure safe and effective operation of the airport/airfield.

3. Funding for airport/airfield planning is provided by state budget, sponsorships of domestic and overseas entities, and other lawful sources.

4. The Minister of Transport shall specify economic – technical norms for making and announcing airport/airfield planning.

Article 9. Master plan for development of the national airport/airfield system

1. Contents of a master plan for development of the national airport/airfield system:

a) Demand for civil aviation transport, assurance of national defense and security, national socio-economic development, local economic development;

b) Scale, flight routes of the airport/airfield system;

c) Development plan for each airport/airfield, including: type, roles, location, scale; intended flight routes; land use demand; estimated costs, list of airports/airfields to be given priority, and resources;

d) Strategic environment assessment.

2. The master plan for development of the national airport/airfield system shall be made on a scale of 1:1,000,000 or over.

3. An application for approval of the master plan for development of the national airport/airfield system consists of:

a) The written request for approval for the master plan;

b) Planning documents;

c) Opinions of relevant agencies/units;

d) Responses to opinions of relevant agencies/units.

4. The Ministry of Transport has the responsibility to make and submit the master plan for development of the national airport/airfield system to the Prime Minister for approval.

Article 10. Detailed airport/airfield planning

1. Contents of a detailed airport/airfield planning:

a) Detailed boundaries of national defense units, shared area; civil aviation area; land use demand, public land areas not used for commercial purposes, and public land area used for commercial purposes;

b) Obstacle limitation surface, noise map;

c) Locations, area of specialized areas of the airport/airfield;

d) Locations, system of works in the air operations area; coordinates of the runway;

dd) Location, system of air navigation works; aviation industrial facilities, aircraft repair and maintenance facilities;

e) Locations of office buildings of agencies/units in the airport/airfield; area for construction of works for provision of aviation and non-aviation services; quarantine area (for international airports); advertisement works;

g) Network of internal roads in the airport/airfield; roads connected to public roads;

h) Shared water supply system; water supply for firefighting, aircraft; wastewater drainage system; underground works;

i) Locations, scales of power supply works; power supply sources;

k) Location and scale of the fuel supply system;

l) Location and scale of the emergency and rescue system;

m) Planning for the airspace, flight routes, and flight approach serving operation of the airfield;

n) Locations and scale of terminals, technical services areas, car parking lot;

o) Locations and scale of infrastructural works serving security of the airport/airfield;

p) Area for gathering and treating wastes to reduce environmental pollution;

q) Tree planning;

r) Strategic environment assessment;

s) Overall cost estimate and construction stages.

2. The detailed map of the airport/airfield is drawn to a scale of 1:2,000 or over.

3. The Minister of Transport shall provide specific regulations on procedures for formulating, appraising, approving, and announcing detailed airport/airfield planning.

Article 11. Detailed planning for construction of specialized areas of the airport/airfield

1. Contents of detailed planning for construction of specialized areas of an airport/airfield:

a) A system of construction and technical works: construction area; density, quantity, height, and elevation of construction works; land use coefficient;

b) Traffic system: Scale, level, height limits, typical cross sections;

c) Overall cost estimate and construction stages.

2. The detailed map of specialized areas the airport/airfield is drawn to a scale of 1:500 or over.

3. The Minister of Transport shall provide specific regulations on procedures for formulating, appraising, and approving, detailed planning for construction of specialized areas of airports/airfields.

Article 12. Investment in construction of airports/airfields

1. Investment in construction of an airport/airfield must:

a) Conform to the approved airport/airfield planning;

b) Meet technical regulations promulgated by the Ministry of Transport, standards of ICAO, and internal civil aviation standards;

c) Agreed by the Ministry of Transport and the Ministry of National Defense;

d) Comply with regulations of law on investment, construction, and environmental protection.

2. Foreign organizations and individuals are not permitted to contribute capital that exceeds 30% of charter capital or total capital of investors to construction of the airport/airfield.

3. Investors may commence the construction of the airport/airfield after land is allocated or leased as prescribed by law.

Article 13. Management boundaries and fences of airport/airfield

1. The airport authority shall cooperate with the People’s Committee of the administrative division in which the airport/airfield is located to determine boundaries of the airport/airfield and its vicinity on the cadastral map and in reality.

2. The People’s Committee of the district shall cooperate with the airport authority in announcing, protecting boundaries of the airport/airfield and its vicinity.

3. The airport/airfield operator and units using allocated/leased land have the responsibility to manage, protect, and maintain the boundaries and fences of their land areas.

4. The costs of determining, marking, and managing boundaries of airports/airfields are covered by state budget.

5. The airport/airfield operator shall cover the cost of building the security perimeter system, unless it is covered by state budget.

Chapter III

OPENING, SHUTTING DOWN AIRPORT/AIRFIELD, EXCEPT FOR SPECIALIZED AIRFIELDS

Article 14. Opening airport/airfield

1. Conditions for opening an airport/airfield:

a) The airport/airfield satisfies all requirements in Clause 1 and Clause 2 Article 12 of this Decree;

b) The airport/airfield is granted a certificate of registration, license for airport operation as prescribed;

c) The airspace, flight routes, and flight approach of the airport/airfield have been approved by competent authorities.

2. The airport/airfield operator shall send 08 sets of the application for opening the airport/airfield to the Ministry of Transport, whether directly or by post or another appropriate manner. The application consists of:

a) An application form that contains: name of the airport/airfield; location, scale, type, and level of the airport/airfield;

b) Written explanation and evidence for fulfillment of conditions for opening the airport/airfield prescribed in Clause 1 of this Article.

Within 15 days from the day on which the sufficient documents are received, the Ministry of Transport shall carry out appraisal and request the Prime Minister to decide whether to permit the opening of the airport/airfield. If the application is rejected, the Ministry of Transport shall send a written notification to the applicant and provide explanation.

4. The Ministry of Transport shall announce the opening of airport/airfields under the Prime Minister’s decisions; conversion of domestic airports into international airports according to the master plan for development of the national airport/airfield system.

Article 15. Shutdown of airport/airfield

1. An airport/airfield shall be shut down in the following manners:

a) Termination of the operation of the airport/airfield;

b) Termination of activities serving international air transport (for international airports).

2. The Ministry of Transport shall request the Prime Minister to decide the shutdown of an airport/airfield in the following cases:

a) For national defense and security purposes;

b) For socio-economic reasons.

3. An application for shutdown of an airport/airfield consists of:

a) A written request for shutdown of the airport/airfield that contains: name of the airport/airfield; location, scale, type, and level of the airport/airfield; reasons and time for shutting down the airport/airfield;

b) Overall plans for resolving the issues related to the shutdown of the airport/airfield;

c) Documents related to the request for shutdown of the airport/airfield.

4. The Ministry of Transport shall announce the shutdown of airports/airfields; cooperate with local governments and relevant agency/unit in implementing remedial measures.

Article 16. Suspension of airport/airfield

1. Part or the entire infrastructure of an airport/airfield shall be suspended in the following cases:

a) The renovation, extension, or repair requires suspension of the airport/airfield;

b) The license for airport operation of the airport/airfield is suspended or revoked;

c) A natural disaster, epidemic, environmental pollution, aviation accident, or unexpected situation occurs and threatens aviation safety and security.

2. Civil Aviation Authority of Vietnam shall request the Ministry of Transport to decide suspension of airports/airfields in the cases mentioned in Clause 1 of this Article.

3. At the request of the airport/airfield operator, Director of the airport authority shall decide suspension of the airport/airfield within 24 hours from the occurrence of the unexpected event or adverse weather conditions in order to ensure aviation security and safety, and immediately report to Civil Aviation Authority of Vietnam.

4. Civil Aviation Authority of Vietnam ( in the case mentioned in Clause 2 of this Article), airport authority (in the case mentioned in Clause 3 of this Article) shall announce the suspension of airports/airfields on the aeronautical information system as prescribed, notify local governments, relevant agency/unit; direct the implementation of remedial measures and resolution of relevant issues.

5. The agency that decides the suspension of an airport/airfield shall decide resumption of the airport/airfield operation after the causes of suspension are eliminated.

6. The Ministry of Transport shall provide specific regulations on procedures for airport/airfield suspension.

Chapter IV

MANAGEMENT OF OPERATION OF AIRPORTS/AIRFIELDS, EXCEPT FOR SPECIALIZED AIRFIELDS

Article 17. Responsibility of the agencies, organizations, and individuals (hereinafter referred to as entities) operating at airport/airfield

1. Regulatory bodies at the airport/airfield; airport/airfield operator; providers of aviation services, providers of other services at the airport/airfield have the responsibility to cooperate in providing and maintaining provision of services for the flights in accordance with applied technical regulations and standards, ensuring aviation security and safety, and environmental safety.

2. The airport/airfield operator; providers of aviation services have the responsibility to maintain the fulfillment of conditions for using equipment of the airport/airfield; provide aviation services in accordance with applied technical regulations and standards; immediate report accidents or malfunctions that threaten aviation security and safety or environmental safety to the airport authority and take remedial measures.

3. The airport/airfield operator and providers of air navigation services shall pay franchise fees to airport authority according to regulations of the Ministry of Finance.

4. Providers of aviation services at the airport/airfield other than air navigation services or air transport services shall pay franchise fees to the airport/airfield operator according to regulations of the Ministry of Finance.

5. The airport/airfield operator, providers of aviation services have the responsibility to provide information and documents about implementation of planning, construction, installation of equipment at the airport/airfield, assurance of aviation security and safety, and environmental safety for the airport authority on request.

6. Aircraft operators must inform the airport authority and airport/airfield operator of changes to the flight plans, delayed and cancelled flights.

7. Every aircraft operator must submit the payload balancing statement, general statement, manifest of passengers and cargo of each flight to the airport authority within 5 hours after the aircraft takes off or lands, or at the request of the airport authority. Documents shall be sent directly, by post, or another appropriate manner. The airport authority shall retain flight documents for 2 years from the day on which they are received.

The flight might be suspended if the aircraft operator violates regulations on submission of flight documents.

8. Entities doing business at the airport/airfield shall comply with regulations on pricing. The airport authority is entitled to suspend the flight if the aircraft operator deliberately evades the obligation to pay for the aviation services provided.

Article 18. Construction, renovation, upgrade, maintenance, repair of works; installation, maintenance, repair, use of the equipment at airport/airfield

1. The construction, renovation, upgrade, of works, installation of the equipment at airport/airfield must be suitable for their purposes, airport/airfield planning, and detailed land use plan approved by competent authorities.

2. Operators of works and equipment at the airport/airfield have the responsibility to maintain and repair them in accordance with applied technical regulations and standards and regulations of law.

3. The construction, renovation, upgrade, maintenance, repair of construction works; installation, maintenance, repair of the equipment by service providers at airport/airfield in the following cases are subject to approval by Civil Aviation Authority of Vietnam:

s) Construction, renovation, upgrade of construction works;

b) Maintenance, repair of construction works, installation, maintenance, repair of equipment that suspend the operation of the construction work or aviation service provision for over 24 hours, except for urgent cases that threaten aviation security and safety and need to be resolved immediately or the suspended works/equipment do not serve any flight for 30 consecutive days or longer according to continuous flight plan.

4. In the following cases of maintenance, repair of construction works or installation, maintenance, repair of the equipment of the airport/airfield by service providers at airport/airfield, the plan for construction and assurance of safety at the airport/airfield and flights must be sent to airport authority in advance:

a) The aviation service facility is suspended for less than 24 hours;

b) The aviation service facility is suspended for more than 24 hours in urgent cases that threaten aviation security and safety and need to be resolved immediately or the suspended works/equipment do not serve any flight for less than 30 consecutive days according to continuous flight plan.

5. The construction, renovation, upgrade, maintenance, repair of construction works; installation, maintenance, repair of the equipment by service providers at airport/airfield that affect the flight must be announced in accordance with regulations on provision of aeronautical information.

6. The following aviation equipment must be licensed by Civil Aviation Authority of Vietnam before being put into operation:

a) Air navigation equipment;

b) Equipment installed, operated in the air operations area.

7. The effective period of the license mentioned in Clause 6 of this Article shall not exceed 02 years.

8. The Ministry of Transport shall provide specific regulations on procedures for granting approval for construction, renovation, upgrade, maintenance, repair of construction works; installation, maintenance, repair, use of the equipment at airport/airfield; unit prices for maintenance and repair of airports/airfields; procedures for issuance and revocation of licenses to use aviation equipment.

Article 19. Inauguration, shut down of construction works at airport/airfield

1. Construction works must satisfy all conditions and standards before inauguration as prescribed.

2. The shutdown of a construction work at the airport/airfield must ensure normal operation of the airport/airfield, unless the airport/airfield has to be suspended as prescribed.

3. The Ministry of Transport shall provide specific conditions and procedures for inauguration and shut down of construction works at airports/airfields.

Article 20. Cooperation of regulatory bodies at airports/airfields

1. Civil Aviation Authority of Vietnam shall provide guidance on procedures for aircraft, passenger, luggage, cargo, postal packages by reaching a consensus among relevant specialized authorities.

2. Civil Aviation Authority of Vietnam shall hold annual conventions with other regulatory bodies on cooperation and resolution of issues to operation of airports/airfields.

3. Airport authorities shall provide, update airport/airfield maps for relevant regulatory bodies at airports/airfields; hold monthly or extraordinary meetings to solve issues to operation of airports/airfields.

Article 21. Controlling activities at airport/airfield

1. People, items, vehicles entering, leaving, operating within the restricted area of the airport/airfield shall be monitored to ensure aviation security and safety, and environmental protection as prescribed by law.

2. Civil Aviation Authority of Vietnam shall organize and supervise registration of specialized vehicles operating at airports/airfields.

3. Airport authorities shall issue and revoke license plates of specialized vehicles operating at airports/airfields.

Article 22. Regulating take-off and landing times

1. Civil Aviation Authority of Vietnam shall survey and announce the capacity of airports/airfields with regard to regular flights based on:

a) The condition of the airport/airfield;

b) Infrastructure and equipment of the airport/airfield;

c) Capacity of aviation services at the airport/airfield;

d) Airspace capacity of the airport/airfield.

2. Civil Aviation Authority of Vietnam shall regulate take-off and landing times, use aircraft stands according to the announced limits mentioned in Clause 1 of this Article; announce peak hours and mechanism for management, arrangement of take-off and landing times during peak hours at regulated airports/airfields.

Chapter V

CIVIL-MILITARY AIRFIELDS

Article 23. Determination of management area in civil-military airfield

1. Civil-military airfields are those that serve both civil and military activities.

2. A civil-military airfield consists of:

a) Area dedicated to military activities;

b) Area dedicated to civil activities;

c) Area serving both civil and military activities (shared area).

Article 24. Management of civil-military airfields

1. Responsibility for management of civil-military airfields:

a) The Ministry of National Defense is responsible for management of the area dedicated to military activities;

b) The Ministry of Transport is responsible for management of the area dedicated to civil activities;

c) The Ministry of Transport shall cooperate with the Ministry of National Defense in determining responsibility for management of the area serving both civil and military activities.

2. The Ministry of Transport shall cooperate with the Ministry of National Defense in determining the boundaries of civil area, military area, and shared area.

3. Management and operation of a civil-military airfield must be made into a written agreement. The airport/airfield operator shall cooperate with providers of air navigation services and military units in the airport/airfield in drafting the agreement, which consists of;

a) The areas and infrastructure under the management of each party; responsibility for management, operation, inspection of the shared area; priority of each area and infrastructure in unexpected or special situations;

b) Cooperation in provision of air navigation and security services in the air operations area; responsibility of parties in an emergency where military aircraft are used.

c) Necessary equipment and personnel for dispatch of civil and military aircraft; cooperation in management and operation of area, equipment, services dedicated to civil or military purposes where necessary; personnel of air traffic control tower in case of cooperative flights.

d) Responsibility to notify civil and military flight plans to relevant units; exchange of information; uniform measures for aviation security and safety;

dd) Special requirements of each party for night flights, limited visibility of civil aircraft;

e) Cooperation in construction, renovation, upgrade, repair, operation of infrastructure and equipment in areas dedicated to military and civil activities that might affect each other.

Chapter VI

SELLING, MORTGAGING, LEASING, CONTRIBUTING PROPERTY ON AIRPORT/AIRFIELD LAND AS CAPITAL, EXCEPT FOR SPECIALIZED AIRFIELDS

Article 25. Cases in which property on airport/airfield land may be sold, mortgaged, leased out, contributed as capital

1. Property on leased land at the airport/airfield invested by state budget and other capital sources may be leased out.

2. Property on leased land at the airport/airfield invested by state budget and other capital sources may be mortgaged.

3. Property on leased land at the airport/airfield invested by capital sources other than state budget may be sold.

4. Property on leased land at the airport/airfield invested by capital sources other than state budget may be contributed as capital.

Article 26. Cases in which property on airport/airfield land must not be sold, mortgaged, leased out, or contributed as capital

1. Infrastructure of the airfield must not be sold, mortgaged, leased out, or contributed as capital.

2. Construction works serving provision of air traffic control services, aeronautical information notification, search and rescue, aviation security must not be sold, mortgaged, leased out, or contributed as capital.

3. Infrastructure of an airport invested by state budget must not be sold or contributed as capital.

Article 27. Rules for selling, mortgaging, leasing, contributing property on airport/airfield land as capital

1. The sale, mortgage, lease, contribution of property on land mentioned in Article 25 of this Decree may only be done within the right to property and right to do business of the seller/mortgagor/lessor/contributor, and must not change the functions of the construction works according to the approved airport/airfield planning or land use purpose, not interrupt or affect the operation of the airport/airfield; not affect the right to use and do business of other enterprises as prescribed by law.

2. The buyer/lessee/recipient of the property must be able to maintain the operation of the construction work, provide services consistently with functions of the construction work, satisfy requirements in terms of aviation security and safety, environmental safety, conform with the plan for upgrade, extension of the airport/airfield as prescribed by law; comply with regulations of law on aviation service pricing. Do not take advantage of the monopoly to exercise unhealthy competition.

3. The seller/lessor/contributor must maintain the provision of aviation services until the buyer/lessee/recipient of the property is capable of operating the construction work and granted the license to provide corresponding aviation services as prescribed by law.

4. The seller/lessor/contributor shall send the concluded contract to Civil Aviation Authority of Vietnam within 03 working days from the conclusion date.

5. The sale, lease out, contribution of property on airport/airfield land shall comply with this Decree and relevant regulations of law. In case the buyer/lessee/recipient of the property fails to satisfy the requirements, the Ministry of Public Security shall consider dismiss such entity from management and operation of the construction work in order to rearrange the management and operation of the construction work as prescribed. The decision of the Ministry of Transport is the basis for the parties to conclude and finalize the contract as prescribed by law.

Article 28. Criteria for selecting buyer/lessee/recipient of leased land at the airport/airfield

The buyer/lessee/recipient of leased land at the airport/airfield must:

1. Be an enterprise that has a legal status as prescribed by law.

2. Have financial capacity suitable for the provision of corresponding aviation services.

3. Have a plan that meets requirements for management, operation of the construction work, and provision of corresponding aviation services.

Article 29. Plan for leasing out property on leased land at the airport/airfield invested by state budget

1. The person assigned by the State to manage property shall make a plan for property lease and submit it to the Ministry of Transport for appraisal.

2. Contents of the plan for property lease:

a) Name of the lessor;

b) List and technical characteristics of the construction work;

c) Value of the construction work;

d) Lease duration;

dd) Rent;

e) Conditions for leasing;

g) Ability to recoup investment;

h) Rights and obligations of the lessor and the lessee;

i) Conditions and methods for selection of lessee;

k) Time for selection of lessee;

l) Plan for maintaining operation of the construction work and provision of corresponding aviation services;

m) Roadmap for renovation, upgrade of the construction work.

Article 30. Procedures for approving the plan for leasing out property on leased land at the airport/airfield invested by state budget

1. An application for approval of the plan for property lease consists of:

a) A written request for approval that contains name, address of the applying organization, Name of the airport/airfield; name and location of the construction work;

b) The leasing plan.

2. The lessor shall send 08 sets of the application to the Ministry of Transport, whether directly or by post or another appropriate manner.

3. Within 45 days from the day on which the satisfactory application is received, the Ministry of Transport shall cooperate with the Ministry of National Defense, the Ministry of Planning and Investment, and the Ministry of Finance in appraising, and request the Prime Minister to decide.

If the application is not satisfactory, the Ministry of Transport shall send a written notification and instruct the applicant to complete it.

Article 31. Rents for property on leased land at the airport/airfield invested by state budget

1. The rents shall be determined in accordance with this Decree and regulations of law on pricing;

2. Rents include:

a) Fixed rent which is calculated according to annual depreciation of the construction work, loan repayment plus interest (if any), cost of management and operation of the construction work, and other costs as prescribed;

b) Variable rent is a percentage of annual revenue from the operation of the construction work.

3. Rent is determined according to:

a) Value of the construction work;

b) Functions and technical characteristics of the construction work;

c) Conditions for leasing;

d) Rights and obligations of the parties;

dd) Other conditions.

4. The rent on the lease contract must not fall below the approved pricing scheme.

5. The rent in the lease contract may be adjusted:

a) every five years;

b) when the inflation rate of Vietnam exceeds 15% per year;

c) Other cases proposed by the parties and accepted by the regulatory body that approved the pricing scheme.

6. The Ministry of Finance shall consider approving rents and rent adjustment at the request of the Ministry of Transport.

Article 32. Procedures for selecting the lessee of property on leased land at the airport/airfield invested by state budget

1. The lessor shall send 08 sets of the application for approval of the bidding documents sent to lessees to the Ministry of Transport, whether directly or by post or another appropriate manner.

2. The application consists of:

a) A written request for approval that contains name, address of the applying organization, Name of the airport/airfield; name and location of the construction work;

b) The bidding documents according to the template provided by the Minister of Transport.

3. Within 45 days from the day on which the satisfactory application is received, the Ministry of Transport shall approve the bidding documents.

If the application is rejected, the Ministry of Transport shall send a written notification to the applicant and provide explanation.

4. The lessee shall be selected in accordance with this Decree and relevant regulations of law on bidding.

5. The lessee must follow procedures for issuance of the license to provide aviation services as prescribed.

Article 33. Contract for lease of property on leased land at the airport/airfield invested by state budget

1. The lease contract is conclude and executed on the basis of the plan for leasing and result of lessee selection.

2. Main content of the lease contract:

a) Names, addresses, account numbers of the parties;

b) The rent;

c) Conditions and methods of payment;

d) List of construction works;

dd) Rights and obligations of the parties;

e) Conditions and procedures for contract revision;

g) Regulations that the plan for leasing approved by competent authorities is an integral part of the contract;

h) Effective date and duration of the contract;

i) Dispute settlement.

3. The duration of a lease contract shall not exceed 30 years and may be extended for up to 20 more years by the Minister of Transport.

4. Revenue from the lease shall be used for the following purposes:

a) Construction, maintenance, repair, upgrade, extension of infrastructure of the airport/airfield;

b) Covering the cost of making and executing the plan for leasing.

5. The Ministry of Transport shall decide the plan for collecting, transferring, the using the revenue from lease of property on leased land at the airport/airfield invested by state budget after reaching an agreement with the Ministry of Finance.

Article 34. Mortgaging property on leased land at the airport/airfield invested by state budget

1. The person assigned as property manager by the State shall send 08 sets of the application for approval of the mortgaging plan to the Ministry of Transport, whether directly or by post or another appropriate manner.

2. The application consists of:

a) A written request for approval that contains name, address of the applying organization, Name of the airport/airfield; technical characteristics of the construction work;

b) A written explanation for: value of the construction work, conditions and method for selection of the credit institution that receives the mortgage; mortgaging duration; reasons for mortgaging; conditions for mortgaging, rights and obligations of the mortgagor and mortgagee; plan for maintenance of the operation of the construction work and provision of corresponding aviation services; roadmap for renovation, upgrade, and extension of the construction work.

3. Within 45 days from the day on which the satisfactory application is received, the Ministry of Transport shall approve the plan.

If the application is rejected, the Ministry of Transport shall send a written notification to the applicant and provide explanation.

4. According to the approved mortgaging plan, the property manage shall take the mortgage as prescribed by relevant regulations of law. The content of the mortgaging contract must not contravene the approved mortgaging plan and regulations of this Decree.

Article 35. Selling, mortgaging, leasing out, contributing property on leased land at the airport/airfield invested by capital sources other than state budget

1. The property owner shall send 08 sets of the application for approval for the selling, mortgaging, leasing, contribution plan to the Ministry of Transport, whether directly or by post or another appropriate manner.

2. The application consists of:

a) A written request for approval that contains name, address of the applying organization, Name of the airport/airfield; technical characteristics of the construction work;

b) A written explanation and evidence for fulfillment of conditions prescribed in Article 27, Article 28, and Article 37 of this Decree.

3. Within 45 days from the day on which the satisfactory application is received, the Ministry of Transport shall approve the plan.

If the application is rejected, the Ministry of Transport shall send a written notification to the applicant and provide explanation.

4. According to the approval by the Ministry of Transport, the property owner shall sell, mortgage, lease out, contribute the property as prescribed by relevant regulations of law. The content of the contract for sale, mortgage, lease, contribution of property must not contravene regulations of this Decree.

5. The buyer/lessee/recipient of property shall follow procedures for issuance of the license to provide aviation services as prescribed.

Chapter VII

BUSINESS OPERATION AT AIRPORTS/AIRFIELDS, EXCEPT FOR SPECIALIZED AIRFIELDS

Article 36. List of aviation services at airport/airfield

1. Aviation services at the airport/airfield are those directly related to aircraft, operation and maintenance of aircraft, aviation equipment, air transport, and flights.

2. List of aviation services at the airport/airfield:

a) Passenger terminal operation services;

b) Air operations area services;

c) Cargo terminal and depot operation services;

d) Air navigation services, including air traffic control services, aeronautical information, guiding, supervision services; aviation meteorology services, aeronautical information services; search and rescue services;

dd) Aviation fuel supply services;

e) Ground services;

g) Aircraft repair and maintenance services;

h) In-flight food and drink services;

i) Aviation equipment repair and maintenance services;

k) Technical aviation services;

l) Aviation security services.

Article 37. Minimum capital for establishment and operation of airport enterprises, enterprises providing aviation services at the airport/airfield

1. For enterprises operating at the airport (hereinafter referred to as airport enterprises):

a) Enterprises operating at international airports: VND 200 billion;

b) Enterprises operating at domestic airports: VND 100 billion;

2. For enterprises providing aviation services mentioned in Point a through h Clause 2 Article 36 of this Decree: VND 30 billion.

3. For enterprises providing aviation services mentioned in Point i through l Clause 2 Article 36 of this Decree: VND 10 billion.

4. In case an enterprise provides various aviation services, the highest minimum capital prescribed in Clause 1, Clause 2, and Clause 3 of this Article shall apply.

5. Airport enterprises and enterprises providing aviation services at the airport/airfield must be Vietnamese legal entities.

6. Enterprises providing air traffic control services, aeronautical information services, search and rescue services must be wholly state-owned enterprises.

7. For airport enterprises and enterprises providing air operations area services, information, guiding, supervision services, and aviation meteorology services:

a) The ratio of state capital to charter capital must not fall below 65%;

b) The ratio of foreign capital to charter capital must not exceed 30%.

8. For enterprises providing passenger/cargo terminal operation services, aviation fuel supply services, ground services, ratio of foreign capital to charter capital must not exceed 30%.

9. The ratio of capital of airlines to charter capital in the following enterprises must not exceed 30%:

a) Airport enterprises;

b) Enterprises providing passenger/cargo terminal operation services.

10. The enterprises mentioned in Clause 7 and Clause 8 of this Article must register the change of shareholders that hold 5% charter capital or more (if any) at Civil Aviation Authority of Vietnam within 30 days from the change.

11. Certification of capital for issuance of the license for airport operation, license to provide aviation services at the airport/airfield:

a) For contributed capital in VND and convertible foreign currencies: Certification issued by a credit institution of the applicant’s frozen deposit in the credit institution; the deposit at the credit institution shall only be unfrozen after the applicant receives the license or a notice of rejection;

b) For property, real estate contributed as capital: Certification issued by a valuation organization of the monetary value of the property, real estate;

c) The entity that issues the enterprise’s capital is responsible for the accuracy and truthfulness of the information;

d) The airport enterprise or provider of aviation services that wishes to provide additional aviation services may use the balance sheet of the financial statement within the last 03 months before the application date or the bank guarantee as the capital certification;

dd) Airport enterprises and enterprises providing aviation services are responsible for maintaining the minimum capital as prescribed.

12. Civil Aviation Authority of Vietnam shall inspect adherence to regulations on enterprises’ capital; suspend or revoke the licenses for airport operation and licenses to provide aviation services of enterprises that violating such regulations.

Article 38. Operation of airport enterprises

1. Operation of airport enterprises is conditional.

2. The airport enterprise shall decide whether to lease out the area under their management to other entities for provision of non-aviation services.

3. The airport enterprises shall conclude contracts with the enterprise granted the license to provide aviation services at airports/airfields by Civil Aviation Authority of Vietnam within 30 days from the receipt of the proposal from the service provider.

Article 39. Provision of aviation services at airport/airfield

1. Provision of aviation services at airports/airfields is conditional. The license to provide aviation services at airports/airfields is granted according to the airport/airfield planning, regulations of law on corresponding services, capacity of infrastructure and capacity of existing service providers at the airport/airfield, except for the case in Clause 2 of this Article.

2. The license to operate air navigation service facility of the provider of air navigation services is considered the license to provide aviation services at airports/airfields.

3. Providers of aviation services at airports/airfields shall provide services within the scope of the license; are permitted to allocate or lease out land, make investment in construction works serving the process of service provision as prescribed by law, sign operation contract with the airport/airfield operator.

4. Every provider of aviation services at airports/airfields must have a backup plan for ensuring continuous service provision without interrupting the aviation activities, and is permitted to decide and take responsibility for suspension of service provision according to the contract and regulations of law. An advance notice of the unilaterally suspension of service provision must be must be sent to Civil Aviation Authority of Vietnam and relevant partners at least 7 working days before the intended date of suspension. Explanation must be provided.

5. Depending on the condition of the airport/airfield, Civil Aviation Authority of Vietnam shall direct the provision of aviation services at the airport/airfield to satisfy demands and ensure healthy competition; conclusion of contracts between providers of aviation services and the airport/airfield operator, price inspection where necessary; suspension or revocation of the licenses to provide aviation services of organizations that seriously violate regulations of law.

6. Providers of aviation services at airports/airfields must comply with regulations on aviation security and safety, fire safety, environmental safety, service prices, and assurance of service quality.

7. The Ministry of Transport shall promulgate specific regulations on provision of aviation services at airports/airfields and procedures for issuance of licenses to provide aviation services at airports/airfields.

Article 40. Provision of non-aviation services at airport/airfield

1. The provision of non-aviation services at an airport must not affect the provision and quality of air transport services. The area for provision of non-aviation services in the terminal must comply with documents about operation of the airport. Do not provide non-aviation services in the air operations area, except for essential services such as grass trimming, installation, cleaning, repair, maintenance of aviation works and equipment.

2. Non-aviation services at the airport/airfield must be provided at reasonable prices, satisfy demands for services, suit the characteristics, scale, and condition of the airport infrastructure. The selection of providers of non-aviation services at the airport shall be covered by state budget and carried out through competitive bidding.

3. Civil Aviation Authority of Vietnam shall supervise the provision of non-aviation services to satisfy demands at airports; inspect pricing elements, impose prices of price brackets where necessary; suspend or terminate contracts to provide non-aviation services with entities that violate regulations of law.

4. Providers of non-aviation services at airports/airfields must comply with regulations on aviation security and safety, fire safety, environmental safety, food safety, service pricing, ensure quality of sold animal products; fix prices; ensure courteousness.

5. The Ministry of Transport shall promulgate specific regulations on provision of non-aviation services at airports.

Chapter VIII

IMPLEMENTATION PROVISIONS

Article 41. Implementation effect

This Decree takes effect on December 12, 2015 and replaces the Government s Decree No. 83/2007/ND-CP dated May 25, 2007 on management and operation of airports and airfields.

Article 42. Implementation organization

Ministers, Heads of ministerial agencies, Heads of Governmental agencies, Presidents of the People’s Committees of provinces, and relevant agencies are responsible for the implementation of this Decree./.

For the Government

The Prime Minister

Nguyen Tan Dung