Written by Foreign Counsel, Vaibhav Saxena

Vietnam is undertaking a major legislative push to revise its legal framework for civil aviation via the draft of the Law on Civil Aviation (Vietnam) (originally adopted in 2006). The draft amendment is presently under scrutiny by relevant parliamentary bodies, and stakeholders are watching closely to determine whether it will be formally passed after the plenary consideration in the ongoing term.

Scope of the draft law

The latest draft amendment is structured into 11 chapters and 109 articles, representing a reduction of roughly 93 articles compared with the current law. Key elements of the draft include:

• Airport investment and operations reform: The draft allows for broader participation of non-state capital in airport development and operation under contractual models, while maintaining state ownership of critical aviation infrastructure.
• Market-based airfare management: The draft moves away from rigid administrative fare ceilings and proposes a regulated market-based mechanism in which airlines disclose “all-in” pricing and the regulator intervenes when abnormal price behaviours occur.
• Expanding regulatory scope: It clarifies the scope of civil aviation including activities of state agencies and the armed forces in absence of separate regulation; it also addresses unmanned aerial vehicles (drones), low-altitude aviation, helipads and general aviation.
• Legal coherence and international alignment: The drafting body has been instructed to ensure coordination with other laws (Land Law, Investment Law, Public Property Law etc..) and consistency with international treaties to avoid overlap or gaps with the Law on People’s Air Defence of Vietnam.

Current legislative status

• On 5 September 2025, the National Assembly Standing Committee of Vietnam reviewed the draft during its 49th session, requesting that the drafting agency refine definitions (particularly of unmanned and other flying vehicles), and deepen coordination across ministries and agencies.
• A governmental notice issued on 15 July 2025 emphasised the urgency of completing the draft law, noting that the current 2006 law had been long in need of revision (the last major amendment being in 2014).
• The 9th session of the 15th National Assembly took place from 5 May and concluded on 27 June 2025, where 34 laws and 14 resolutions were adopted – the largest legislative workload in the term to that point.
• Further, the government’s legislative programme for 2025 states that the draft law makes it to the agenda of the 15th National Assembly that convened its 10th session in Hanoi on October 20.

Implications of the draft law

• For private investors and airport operators: If adopted, the reform could unlock clearer legal pathways for non-state investment in airports and related infrastructure, enhance flexibility in airport operations and accelerate capacity expansion – critical as aviation demand in Vietnam continues to deepen.
• For airlines and consumers: The transition toward a market-based airfare regime may increase transparency and competition, but the real impact will depend on how infrastructure cost, airport fees and regulatory oversight evolve.
• For regulatory authorities: The expanded scope to include emerging aviation services (including UAVs, low-altitude aviation) and the need to calibrate state oversight, security, land-use and property rights will pose implementation challenges. Ensuring consistent legal treatment across sectors might be the key.
• For the State: Balancing socio-economic growth, national defence/security concerns and international obligations (for example, the Chicago Convention and Cape Town Convention) is revealing of the broader institutional reform agenda in Vietnam’s aviation sector.

The direction of reform is, however, clear. Vietnam aims to balance market liberalisation with strategic state control over critical aviation assets, and to prepare for a new era of aviation services — from unmanned aircraft to digitalised safety management systems. The law, once enacted, will redefine the investment and operational environment for airports, airlines, and related stakeholders. Providing open grounds for the guiding regulations to follow, and prepare for an implementation framework that will reshape Vietnam’s aviation landscape in the years ahead.