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Vietnam considers rising foreign ownership cap in aviation
April 30th 2026
Vietnam is weighing a proposal to raise the foreign ownership cap in its aviation sector, the local media reported. Read More » Under a draft decree guiding implementation of the Law on Civil Aviation, the Ministry of Construction has proposed lifting the cap on foreign ownership in domestic carriers from the current 34% to 49%. According to the ministry, the proposal is intended to help airlines expand, mobilize additional capital, and access international management expertise, while remaining in line with global market-opening commitments. It said the higher ceiling would not undermine effective domestic control, ensuring Vietnamese stakeholders retain decision-making authority, particularly in exceptional circumstances. In the past, some domestic carriers have proposed raising foreign ownership. During its restructuring in 2024, Bamboo Airways proposed increasing the foreign ownership cap to 49%, arguing that the current limit discourages investors due to restricted participation in decision-making. At that time, the Ministry of Planning and Investment, now the Ministry of Finance, urged caution, noting Vietnam previously allowed a 49% cap before reducing it to 30% in 2016 and later increasing it to 34% in 2020. Any adjustment could affect domestic carriers’ market share, it said. The ministry also emphasized that, under its commitments to the World Trade Organization, Vietnam had not committed to opening its domestic air transport market, but only to allowing foreign airlines to provide services through ticket offices or agents in Vietnam.
