DECREE

ON MANAGEMENT AND OPERATION OF AIRPORTS AND AIRFIELDS

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 29, 2006 Law on Civil Aviation of Vietnam;

At the proposal of the Minister of Transport,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- Scope of regulation and subjects of application

1. This Decree provides in detail the management and use of land of airports and airfields; conditions, order and procedures for opening and closure of airports and airfields; management of activities at airports and airfields; management of areas adjacent to airports and airfields; the list of aviation services at airports and airfields; use of airfields for joint civil and military purposes.

2. This Decree applies to all organizations and individuals related to airports and airfields.

Article 2.- Principles for management and operation of airports and airfields

1. Ensuring the comprehensive development of the system of airports and airfields and its conformity with transport development strategies, planning and plans, airport and airfield development planning and plans, regional and local socio-economic develop-ment strategies and planning, and the international civil aviation development trend; meeting the air transportation development requirements.

2. Maintaining aviation security and safety; assuring uniform, synchronous, continuous and efficient operation at airports and airfields; ensuring civilized and courteous manners and facilitating civil aviation activities at airports and airfields; ensuring competitiveness of Vietnamese airports and airfields; protecting public order and interest and customers' benefits; protecting the environment.

3. Ensuring the performance of national defense and security tasks; assuring the close and synchronous coordination among concerned civil and military aviation units in using airfields for joint civil and military purposes, and among state management bodies at airports and airfields.

Chapter II

MANAGEMENT AND USE OF LAND OF AIRPORTS AND AIRFIELDS

Article 3.- Classification of land in service of civil aviation activities at airports and airfields

1. Land for construction of airport and airfield infrastructure works, including runways, taxiways, apron stages, air traffic control towers and other auxiliary works and areas of airfields.

2. Land for building of aviation service establishments and works, including passenger terminals, cargo terminals and warehouses; establishments providing flight assurance services; establishments providing ground technical services; areas supplying in-flight meals; aircraft maintenance service areas; aviation security units; and aviation petrol and oil depots.

3. Land for building of offices of state management authorities regularly operating at airports and airfields.

4. Land for building of hotels, restaurants and other service works.

Article 4.- Forms of land allocation or lease at airports and airfields

1. Land allocated without collection of land use levy includes:

a/ Land for building of airport and airfield infrastructure works;

b/ Land for building of offices of state management authorities with regular activities at airports and airfields.

2. Land leased with collection of rents includes types of land at airports and airfields not specified in Clause 1 of this Article.

3. Land rents shall be collected in accordance with the provisions of law on land rents.

Article 5.- Land allocation or lease term

1. Construction land specified in Clauses 1, 2 and 3, Article 3 of this Decree may be allocated or leased permanently.

2. Land for building works specified in Clause 4, Article 3 of this Decree may be leased for a term not exceeding 50 years to investment projects or land lessees after those projects or applications of those lessees are examined. The lease term may be extended after the land use needs and the law observance in the course of land use are reviewed.

Article 6.- Procedures for land reallocation or land lease

1. Airport authorities shall organize the elaboration of detailed planning and plans on use of airport and airfield land and submit them to competent state agencies for approval. A detailed land use planning must clearly indicate public land areas used for non-business purposes and for business purposes.

2. Organizations and individuals that need to use airport and airfield land shall send dossiers of request for land reallocation or lease to airport authorities.

3. A dossier of request for land reallocation or lease comprises:

a/ A written request for land reallocation or lease, stating the name and address of the requesting organization or individual; land use purpose and area; planned land use duration;

b/ Copies of the following papers: the establishment decision, for agencies with the state management function; the airport business license or aviation service provision license or business registration certificate, for organizations or individuals conducting business activities at airports and airfields.

c/ Proposed land use plan;

d/ An investment project formulated according to the law on investment.

4. Within 90 days after receiving complete and valid dossiers, airport authorities shall examine and report those dossiers to the Civil Aviation Administration of Vietnam, then issue land allocation decisions or enter into land lease contracts with land-leasing organizations or individuals and proceed with the land handover.

5. The decision on land reallocation or lease must be approved in writing by the Civil Aviation Administration of Vietnam. For areas used for joint civil and military purposes, land reallocation and lease must be approved by the Ministry of Defense.

6. The procedures for extending the land lease term specified in Clause 4, Article 3 of this Decree shall be carried out under the provisions on land lease procedures.

Article 7.- Order and procedures for approval of sale, lease out or mortgage of, guarantee or capital contribution with assets attached to leased land

1. Organizations and individuals that lease land and wish to mortgage or guarantee with their own assets attached to the leased land at credit organizations licensed to operate in Vietnam shall send dossiers of request to the Civil Aviation Administration of Vietnam. A dossier of request comprises the following documents:

a/ A written request stating the name and address of the requesting organization or individual; name of the airport or airfield; location of assets attached to the leased land;

b/ A copy of the land lease contract;

c/ The mortgage or guarantee contract;

d/ An extract of the cadastral map.

2. Organizations and individuals that lease land and wish to sell, lease out or contribute capital with their own assets attached to the leased land must obtain approval of the Civil Aviation Administration of Vietnam. A dossier of request comprises:

a/ Documents specified at Points a, b, c and d, Clause 1of this Article;

b/ The relevant aviation service license of the organization or individual that undertakes to sell or lease the assets or receives the contributed capital.

3. Within 15 days after receiving complete dossiers, the Civil Aviation Administration of Vietnam shall examine them and related assets and consider and approve the mortgage, sale or lease out of, guarantee or capital contribution with assets, or notify in writing reasons for refusal for disapproval. Mortgage, guarantee, sale, lease out or capital contribution contracts become valid only after they are approved in writing by the Civil Aviation Administration of Vietnam.

Article 8.- Recovery of land

1. Reallocated or leased land shall be recovered in the following cases:

a/ There is a change in the airport or airfield planning under a decision of a competent state agency;

b/ The land lease term expires without extension;

c/ The contract on provision of services at the airport or airfield terminates;

d/ The land is used for improper purposes;

e/ The service provision license is revoked;

f/ The land recovery is decided by the Prime Minister;

g/ The land allocated or leased by the State for execution of an investment project has not been used for twelve consecutive months or its use is delayed twenty four months behind the land use schedule stated in the investment project counting from the date of on-site land handover without permission of the state agency competent to decide on the land allocation or lease;

h/ The land user commits an illegal act specified in the Land Law.

2. The airport authority shall notify the organization or individual that has its/his/her land recovered at least 180 days before the land is recovered of the reason for the recovery, the relocation time and plan, compensation and ground clearance plan.

Chapter III

OPENING AND CLOSURE OF AIRPORTS AND AIRFIELDS

Article 9.- Order and procedures for opening of airports and airfields

1. Persons who have been granted airport or airfield operation certificates and wish to open airports or airfields shall send dossiers of request to the Civil Aviation Administration of Vietnam.

2. A dossier of request for opening of an airport or airfield comprises:

a/ A written request for opening of an airport or airfield, stating the name of the airport or airfield; location, size and type of the airport or airfield; class of the airfield;

b/ A copy of the airport or airfield operation certificate.

3. Within 30 days after receiving a complete dossier, the Civil Aviation Administration of Vietnam shall examine it and report examination results to the Minister of Transport.

4. Within 5 working days after receiving examination results, the Minister of Transport shall propose the Prime Minister to decide on the opening of an airport or airfield.

Article 10.- Order and procedures for reopening of airports or airfields

1. Persons who have been granted airport or airfield operation certificates and wish to reopen airports or airfield shall send dossiers of request to the Civil Aviation Administration of Vietnam, except when the reopening of airports or airfields falls under the competence of directors of airport authorities defined in Clause 4, Article 49 of the Law on Civil Aviation of Vietnam.

2. A dossier of request for reopening of an airport or airfield comprises:

a/ A written request for reopening of an airport or airfield, stating the name of the airport or airfield; location, size and type of the airport or airfield; class of the airfield;

b/ A copy of the airport or airfield operation certificate;

c/ Documents proving that the reason for closure of the airport or airfield has been remedied or done away with;

d/ A written record of the completion, takeover and putting into use of the work in case of renovation, expansion or repair of the airport or airfield.

3. Within 30 days after receiving a complete dossier, the Civil Aviation Administration of Vietnam shall examine it and report examination results to the Minister of Transport.

4. Within 5 working days after receiving examination results, the Minister of Transport shall:

a/ Propose the Prime Minister to decide on reopening of the airport or airfield previously closed under a decision of the Prime Minister;

b/ Decide on reopening of the airport or airfield which was closed under his/her decision.

Article 11.- Announcement of opening, closure or reopening of airports or airfields

1. The Civil Aviation Administration of Vietnam shall announce through the aviation information system and notify to concerned agencies the following:

a/ Opening of airports or airfields;

b/ Closure of airports or airfields under decisions of the Prime Minister or the Minister of Transport;

c/ Reopening of airports or airfields under decisions of the Prime Minister or the Minister of Transport.

2. Airport authorities shall notify concerned agencies, organizations or individuals at airports or airfields of the following:

a/ Closure of airports or airfields;

b/ Reopening of airports or airfields.

Chapter IV

MANAGEMENT OF OPERATION AT AIRPORTS, AIRFIELDS AND THEIR VICINITIES

Article 12.- Responsibilities of agencies, organizations and individuals operating at airports and airfields

1. Agencies performing the function of state management at airports, airfields, airport enterprises, aviation service enterprises, and other service-providing organizations and individuals at airports and airfields shall serve and provide services to ensure safe, convenient and swift flights.

2. Airport enterprises, enterprises providing flight assurance services shall pay to airport authorities a fee for transfer of airport and airfield development rights according to the Ministry of Finance's regulations.

3. Enterprises providing aviation services other than those specified in Clause 2 of this Article at airports or airfields shall pay to airport enterprises a fee for transfer of development rights according to the Ministry of Finance's regulations.

4. Air transportation enterprises, airport enterprises, aviation service enterprises and other service-providing organizations and individuals shall supply information and documents to airport authorities at their request.

Article 13.- Building, renovation, upgrading and repair of works, installation of equipment and facilities at airports and airfields

1. The building, renovation, upgrading and repair of works, installation of equipment and facilities within airports and airfields must be in line with the use purposes and approved airport and airfield plannings.

2. The building, renovation, upgrading, maintenance and repair of works, installation of equipment and facilities conducted by aviation service establishments at airports and airfields, which may postpone the provision of services by these establishments for more than 24 hours, must be approved by the Civil Aviation Administration of Vietnam.

3. The building, renovation, upgrading and repair of works, installation of equipment and facilities of airports and airfields other than those specified in Clause 2 of this Article must be notified to airport authorities.

Article 14.- Submission of flight documents

Aircraft operators shall submit the load sheet, general declaration, passenger list and cargo manifest of each flight to the airport authorities within one hour after the takeoff or landing of the aircraft.

Article 15.- Process of carrying out procedures at airports and airfields

1. The Civil Aviation Administration of Vietnam shall promulgate the process of carrying out procedures for passengers, luggage, cargoes, postal parcels and items and mails at airports and airfields after reaching agreement with the concerned specialized state management agencies.

2. The Civil Aviation Administration of Vietnam shall assume the prime responsibility for convening annual inter-branch conferences or extraordinary conferences when necessary to organize the implementation of the process specified in Clause 1 of this Article.

Article 16.- Control of activities at airports and airfields

1. People, articles and vehicles entering, leaving and operating in restricted areas of airports and airfields are subject to aviation security and safety control and supervision.

2. When entering restricted areas of terminals or airfields to perform their duties, staffs of agencies and organizations shall wear aviation security control cards issued by the Civil Aviation Administration of Vietnam or concerned airport authorities.

3. Vehicles operating in restricted areas of airports and airfields must have permits issued by concerned airport authorities.

Article 17.- Coordination of landing or takeoff time at airports and airfields

1. The Civil Aviation Administration of Vietnam shall survey and announce airports and airfields subject to the landing and takeoff time coordination and their operation limits for scheduled flights on the basis of the following elements:

a/ Operation conditions;

b/ Infrastructure, equipment and facilities;

c/ Service provision capacity.

2. The Civil Aviation Administration of Vietnam shall coordinate the landing and takeoff time at airports and airfields on the basis of the announced operation limits as specified in Clause 1 of this Article.

Article 18.- Determination of boundaries of areas adjacent to airports and airfields

1. Airport authorities shall coordinate with People's Committees at all levels of localities where airports and airfields are located in determining the boundaries of these areas on cadastral maps.

2. People's Committees at all levels shall announce the boundaries of areas adjacent to airports and airfields in the localities under their management.

Chapter V

AIRFIELDS USED FOR JOINT CIVIL AND MILITARY PURPOSES

Article 19.- Determination of areas under management at airfields used for joint civil and military purposes

1. Airfield used for joint civil and military purposes means an airfield that serves both civil and military activities.

2. An airfield used for joint civil and military purposes covers the following areas:

a/ Area exclusively used for military activities;

b/ Area used for civil activities;

c/ Area commonly used for civil and military activities.

Article 20.- Responsibilities to manage airfields used for joint civil and military purposes

1. The Ministry of Defense shall manage areas exclusively used for military activities.

2. The Ministry of Transport shall manage areas used for civil activities and areas commonly used for civil and military purposes.

3. Airport authorities shall assume the prime responsibility for, and coordinate with airport enterprises and army units in airports and airfields in, issuing documents on coordinated management and operation of airfields used for joint civil and military purposes. A document on coordinated management and operation must define the following:

a/ Management and operation of areas used for joint civil and military purposes;

b/ Coordination of the building, renovation, upgrading, repair or operation of infrastructure works, equipment and facilities in areas exclusively used for the military purpose, which may affect activities in areas used for civil purpose or vice versa;

c/ Coordination of the use of grounds, equipment, facilities and services exclusively used for civil or military activities in case of necessity.

Chapter VI

AVIATION SERVICES AT AIRPORTS AND AIRFIELDS

Article 21.- List of aviation services at airports and airfields

Aviation services at airports and airfields are services directly related to the operation of aircraft, air transportation and flight activities, including:

1. Service of passenger terminal operation;

2. Service of cargo terminal and warehouse operation;

3. Service of flight zone operation;

4. Service of flight assurance;

5. Service of aviation security assurance;

6. Logistics support service;

7. Service of aircraft repair and maintenance;

8. Service of aviation equipment and facility repair and maintenance;

9. Aviation technical service;

10. Service of in-flight meal supply;

11. Service of aviation petrol and oil supply.

Article 22.- Legal capital of airport enterprises and aviation service enterprises

1. For airport enterprises:

a/ Those conducting business at international airports: VND 100 billion;

b/ Those conducting business at domestic airports: VND 30 billion.

2. For aviation service enterprises other than airport enterprises:

a/ Those conducting business at international airports: VND 30 billion;

b/ Those conducting business at domestic airports: VND 10 billion.

Article 23.- Control of charge rates of non-aviation services at airports and airfields

1. Organizations and individuals that provide non-aviation services at airports and airfields shall guarantee the quality of services and products sold.

2. Airport enterprises shall help organizations and individuals conducting business at airports and airfields reach agreement on non-aviation service charge rates in order to ensure uniform prices or charge rates for each type of product or service, protect customers' benefits and ensure their suitability with market prices and compliance with the law on prices.

3. Non-aviation service charge rates must be publicly posted up.

Chapter VII

IMPLEMENTATION PROVISIONS

Article 24.- Effect

This Decree takes effect 15 days after its publication in "CONG BAO" and annuls the Government's Decree No. 29/CP of April 2, 1997, promulgating the Regulation on coordination of activities of state management agencies at airports and airfields.

Article 25.- Organization of implementation

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial/municipal People's Committees, and concerned agencies shall implement this Decree.