You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

April 23, 2025

Wider Skies: Vietnam Expands Aviation Market to More Aircraft Types

Subscribe to Updates

On April 13, 2025, the government of Vietnam issued Decree No. 89/2025/ND-CP to amend and supplement Decree No. 92/2016/ND-CP dated July 1, 2016, concerning conditional business lines within the civil aviation sector (“Decree 89”). This update was implemented through an expedited procedure with immediate effect and has drawn public attention as it broadens the types of aircraft eligible for import into Vietnam, thereby promising to inject greater diversity into the country’s aviation market.

What has changed?

Decree 89 expands the recognition of aircraft type certificates—documents ensuring that the design of the aircraft, aircraft engine, or propeller meet airworthiness standards—from two to seven foreign aviation authorities. While Vietnam previously only accepted type certificates from the U.S. Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA), the country now further accepts type certificates issued by five additional foreign aviation authorities:

  • National Civil Aviation Agency of Brazil (ANAC)
  • Transport Canada Civil Aviation (TCCA)
  • Federal Agency for Air Transport of the Russian Federation (Rosaviatsiya)
  • U.K. Civil Aviation Authority (UK CAA)
  • Civil Aviation Administration of China (CAAC)

Additionally, on April 14, 2025, Vietnam’s Ministry of Construction issued Circular No. 03/2025/TT-BXD (“Circular 03”) with immediate effect, amending and supplementing several articles under Circular No. 01/2011/TT-BGTVT previously issued by the Ministry of Transport (which was merged into the Ministry of Construction on March 1, 2025) in 2011 on the promulgation of the Civil Aviation Safety Regulations for aircraft and aircraft operations. Echoing Decree 89, Circular 03 allows the Civil Aviation Authority of Vietnam (CAAV) to issue or recognize Certificates of Airworthiness to aircraft that hold type certificates issued by the aviation authorities of Brazil, Canada, Russia, the United Kingdom, or China, in addition to those issued by the FAA or EASA.

Following the entry into force of Decree 89 and Circular 03, the first aircraft imported and approved for commercial flights under these expanded rules was a Chinese-made aircraft from the Commercial Aircraft Corporation of China, Ltd. (COMAC), holding a type certificate issued by the CAAC.

Why the change?

Decree 89 is expected to boost competition across the region and lower costs for Vietnamese airlines. This significant expansion appears to be driven by two main factors.

  • Vietnam has ambitious plans to expand its aviation infrastructure to accommodate rising passenger numbers. Under Vietnam’s near-term master plan for the development of national airports through 2030 and its long-term vision to 2050, the country aims to expand its airport network to 30 airports by 2030 (14 international and 16 domestic), up from the current total of 22. The long-term vision for 2050 includes further upgrades and development to increase annual passenger capacity by more than 80%. By recognizing more aircraft types from additional countries, Vietnam is providing local airlines with greater flexibility and more options when purchasing or leasing aircraft that are safe, cost-effective, and suited to their needs.
  • Over the past three years, Vietnam has strengthened relationships with countries such as Brazil, Canada, Russia, the U.K., and China through high-level diplomatic and regulatory cooperation. Vietnam has hosted state-level visits or held meetings with leaders and envoys of these nations, fostering closer ties and paving the way for mutual recognition in civil aviation matters.

What’s next?

Looking ahead, the government of Vietnam is taking further steps to support this growth in air travel. It is in the process of updating Decree No. 68/2015/ND-CP on registration of nationality and rights to aircraft to streamline aircraft registration and align with international standards under the Cape Town Convention and Protocol.

Related Professionals

Industries

Aviation

Location

RELATED INSIGHTS​ 

April 2, 2024
Aircraft lease agreements are commonly governed by the law of England and Wales, New York, or another common-law jurisdiction. This article examines the challenges of applying these and other foreign laws to an aircraft lease dispute in Thailand. The applicability of foreign law in Thailand is subject to the Conflict of Laws Act B.E. 2481 (1938). Section 8 of the Conflict of Laws Act states, “Whenever the law of a foreign country which is to govern is not proved to the satisfaction of the court, the internal law of Thailand shall apply.” According to this section, the burden of proof is on the party that claims the foreign law. The claiming party must prove to the court the existence of the foreign law and how the law applies. However, in aircraft lease disputes, especially those that involve seizing or repossessing aircraft, generally only Thai law will apply. Seizing or repossessing an aircraft involves Thai government authorities such as the Civil Aviation Authority of Thailand (CAAT) and the Airports of Thailand (AOT), among others, and these authorities will only comply with Thai law. Moreover, foreign court judgments are not enforceable in Thailand. This means that any action to seize or repossess an aircraft in Thailand must be initiated in Thailand and using Thai law. Foreign court judgments, however, can be used as evidence and may be helpful in convincing the CAAT or court that the lessor is entitled to repossess an aircraft, and in proving damages. The Thai laws relevant in a hostile repossession or seizure action include the Air Navigation Act, the Civil and Commercial Code (CCC), and the Civil Proceedings Code (CPC). The CCC provides guidelines on contract termination and the rights of parties in lease agreements. Specifically, it outlines the conditions under which a lessor can terminate
Read More
December 15, 2023
As part of its membership in Lex Mundi, Tilleke & Gibbins has published an updated edition of its Guide to Doing Business in Thailand for 2023. This guide outlines the key factors for starting and operating a business in the Thai market. Issues covered include: Investment incentives Financial facilities Exchange controls Import and export regulations Structures for doing business Requirements for the Establishment of a Business Operation of the Business Cessation or Termination of the Business Labor legislation, relations, and supply Tax Immigration requirements This publication is part of Lex Mundi’s Country Guides series prepared by member firms in more than 100 jurisdictions worldwide. The guides serve as a useful resource for planning international business strategy and researching new markets. The full Guide to Doing Business in Thailand is available through the button below.
Read More
October 25, 2023
Sale and leaseback structures and pledges of an aircraft are primary tools in Thailand for lenders to secure aircraft financing. However, these prevalent approaches come with certain limitations. Sale and leaseback structures usually require lots of documentation, while the use of pledges requires delivery of the pledged property to the pledgee and the pledged property must always remain in the possession of the pledgee or a third-party custodian as agreed to by the parties, because the pledge will be legally discharged if the pledged property is returned into the possession of the pledgor. Since 2015, there has been another alternative for securing aircraft financing in Thailand. This came with the introduction of the Business Security Act B.E. 2558 (“BSA”). The BSA allows creation of a security interest over movable property (including aircraft) as collateral to secure debt repayment or other obligations without having to deliver the property to the secured party. Therefore, it is now possible for a security interest to be created over an aircraft on a non-possessory basis. To realize this type of security interest, the BSA requires that a business security agreement be made in writing and registered with the Business Security Registration Office. Unless the parties agree otherwise, the security providers still retain the right to transfer or dispose of the secured property. However, the BSA prohibits the security providers from transferring or selling the secured property when there is a cause for enforcement of the secured property and the security receivers have notified the security providers about this cause in writing. According to the BSA, entities that are eligible to be a security holder and take business security as a secured creditor include financial institutions and other persons prescribed in ministerial regulations issued by the Ministry of Commerce or the Ministry of Finance. However,
Read More
August 17, 2023
Attorneys from Tilleke & Gibbins’ offices in Vietnam have provided the Vietnam chapter for the Aviation Finance & Leasing 2023 guide from Chambers and Partners. The guide covers the most important legal developments affecting aircraft lessors, lessees, and financiers in 32 jurisdictions worldwide. In addition to the Vietnam chapter, Tilleke & Gibbins also contributed the Thailand chapter for Aviation Finance & Leasing 2023. Each chapter provides in-depth details on the legal regimes affecting all aspects of aircraft sale and purchase, aircraft and engine leasing, and aircraft debt finance, including sale and lease agreement terms; taxation; lease registration and enforcement; lease assignment/novation; insurance and reinsurance; debt structuring; securities; liens; and many others that affect the day-to-day operations of leading players in the aviation industry. Chambers and Partners’ Global Practice Guides provide in-house counsel with expert legal commentary focusing on practical legal issues affecting business, enabling readers to compare legislation and relevant procedures across a range of key jurisdictions. The Vietnam chapter of Aviation Finance & Leasing 2023 is available as a PDF through the button below, courtesy of Chambers and Partners. The full guide is accessible for free on the Chambers and Partners website.
Read More