Aircraft Ownership Registration in Vietnam

In connection with Vietravel Airlines officially receiving its first Airbus A320 aircraft owned by the airline , the process of registering ownership and rights to aircraft prior to operation is a crucial legal procedure for all owners and stakeholders in Vietnam’s aviation industry. This article provides a comprehensive overview of the process, legal requirements, and key considerations for aircraft registration in Vietnam.

I. Overview of Aircraft Ownership Registration
Aircraft ownership registration is a mandatory legal procedure to formally establish ownership rights over an aircraft in Vietnam. This process not only protects the interests of the owner but also ensures transparency in aviation transactions and compliance with international regulations.

Role of the Civil Aviation Authority of Vietnam (CAAV)
CAAV is the sole authorized authority responsible for managing and issuing aircraft registration certificates in Vietnam. All procedures related to ownership registration, mortgages, and leases must be processed and approved by CAAV.

Legal basis for aircraft registration

• Vietnam Civil Aviation Law: Establishes the basic principles for aircraft registration
• Decree 68/2015/NĐ-CP (as amended by Decree 64/2022/NĐ-CP): Provides detailed regulations on aircraft registration and management
• Circular 03/2016/TT-BGTVT amending the Civil Aviation Safety Regulations for Aircraft
• Chicago Convention 1944 – Convention on International Civil Aviation: International Regulations on Aircraft Nationality Registration
• The Cape Town Convention 2001 (Cape Town Convention) is an important international treaty on international interests in mobile equipment, including aircraft.
  For further information on international compliance in air transport, please visit: https://luatminhnguyen.com/doanh-nghiep/nganh-nghe-kinh-doanh-vi/hang-khong/tuan-thu-quoc-te-trong-van-tai-hang-khong/

II. Detailed procedure for registering aircraft ownership
Prerequisites
Before proceeding with aircraft ownership registration, the following conditions must be met:

• The aircraft must meet the technical standards specified by the Civil Aviation Authority of Vietnam (CAAV)
• The owner must have legal capacity in accordance with Vietnamese law
• The aircraft must be free from any prior ownership registration abroad (if applicable)

Step-by-step registration process
Step 1: Prepare the registration documents

• Registration application form in accordance with CAAV’s prescribed format
• Legal documents proving the legal status of the registrant (individual/organization)
• Aircraft ownership documents: purchase contract, payment invoice, transfer deed
• Consular legalization documents for documents issued by foreign authorities
• Documents proving the ownership of the previous owner (if applicable)
• Valid airworthiness certificate
• Evidence of insurance coverage in accordance with regulations

Step 2: Submit the application and pay the fees

The application can be submitted directly at the CAAV headquarters or through the online public service portal. The registration fee for aircraft ownership is specified in the Circular of the Ministry of Finance and depends on the type of aircraft.

Step 3: Review of the application

CAAV will review the validity and completeness of the application. The review period is typically 15 working days from the date of receipt of a complete and valid application.

Step 4: On-site inspection of the aircraft (if required)

In certain cases, CAAV may require an on-site inspection of the aircraft to verify technical information and registration numbers.

Step 5: Issuance of the Aircraft Ownership Registration Certificate

After completing the review process, CAAV will issue the official aircraft ownership registration certificate to the owner.

Timeframe and costs
The processing time for aircraft ownership registration typically ranges from 15 to 30 working days, depending on the complexity of the application and the type of aircraft. Registration costs include administrative fees and certificate issuance fees, ranging from 10 to 50 million VND depending on the aircraft’s weight and type.

III. Relationship with international registration
The Cape Town Convention and its impact on Vietnam
Vietnam has joined the Cape Town Convention on International Interests in Mobile Equipment, providing a legal framework for protecting the interests of parties involved in international transactions related to aircraft. This Convention helps:

• Minimize risks for international investors and lenders
• Facilitate financing for the purchase and lease of aircraft
• Establish a transparent international registration system
• Register in the International Registry

Owners and interested parties should consider registering their interests at both the national level (CAAV) and the international level (International Registry) to ensure maximum protection under international conventions. The international registration process includes:

• Registering as an Approved User at the International Registry
• Submitting information on international interests in aircraft
• Completing confirmation steps with relevant parties
• Paying the international registration fees
• Practical scenarios and lessons learned
• Case of Vietnam Airlines’ new aircraft registration
  Vietnam Airlines imported new Airbus A350 aircraft directly from the manufacturer. The registration process was conducted concurrently with the aircraft handover, with close coordination between the manufacturer, CAAV, and relevant parties. The procedure was completed approximately 2–3 weeks after the aircraft arrived in Vietnam.

Lessons Learned from Aircraft Ownership Disputes
In some cases, failure to fully register ownership or mortgage aircraft has led to complex legal disputes. Key lessons learned include:

• Ensure all legal documents are fully completed before proceeding with the transaction
• Register ownership and related rights promptly at both the national and international levels
• Engage aviation-specialized legal counsel to assist throughout the transaction
• Conduct thorough due diligence on the aircraft and its legal history

IV. Frequently Asked Questions about Aircraft Registration
1. Who is eligible to register aircraft ownership in Vietnam?Vietnamese citizens, organizations established under Vietnamese law, and foreign individuals/organizations permitted to own aircraft under Vietnamese law are entitled to register aircraft ownership.
2. What is the validity period of the aircraft ownership registration certificate? The aircraft ownership registration certificate remains valid until it is revoked or amended. However, the owner must periodically confirm its validity in accordance with CAAV regulations.
3. Can the ownership of an aircraft that is pledged abroad be registered? Yes, but written consent from the mortgagee is required, and the mortgage must be registered with the CAAV. This registration must comply with the provisions of the Cape Town Convention if applicable.
4. What are the costs for registering aircraft ownership? Registration costs depend on the type and weight of the aircraft, ranging from 10 to 50 million VND, including administrative fees and certificate issuance fees. Specific fee levels are specified in the Circular of the Ministry of Finance.
5. What law governs international aircraft lease agreements? International aircraft lease contracts are typically governed by the law chosen by the parties (usually English law or New York law). Vietnamese law recognizes the choice of foreign law in international transactions, unless such law conflicts with the fundamental principles of Vietnamese law.

Conclusion
Registering ownership and rights to aircraft is a complex but necessary legal process in the Vietnamese aviation industry. Compliance with the correct procedures and legal requirements not only protects the interests of the parties involved but also ensures the transparency and safety of the aviation industry.

To save time, costs, and avoid unnecessary legal risks during transactions, aircraft owners and relevant parties should seek professional legal consultation services.

Harley Miller’s Aviation Legal Consulting Services
To address these needs, Harley Miller offers specialized legal consulting services in the aviation sector, particularly regarding aircraft registration and management procedures in Vietnam. With a team of experienced and highly skilled aviation lawyers, we assist clients throughout every stage of the aircraft registration process.

Comprehensive Aircraft Registration Services
Harley Miller offers comprehensive aircraft registration services, including:

• Preliminary consultation and feasibility assessment of the registration application
• Preparation and review of all registration documents in accordance with CAAV requirements
• Representing clients in direct communication and collaboration with CAAV
• Monitoring the progress of the application process and resolving any issues that arise
• Assistance during aircraft technical inspections (if required)
• Tax and financial obligation consulting
• Aircraft transaction consulting services

We assist clients in aircraft purchase, lease, and mortgage transactions:

• Drafting and negotiating aircraft purchase, lease, and sale contracts
• Advising on the optimal legal and tax structure for transactions
• Conducting legal due diligence on aircraft
• Advising on security measures and mortgage registration
• Assisting with registration of transactions in the International Registry under the Cape Town Convention
• Aviation compliance consulting services

Harley Miller provides consulting services to help clients comply with aviation regulations:

• Advising on technical and safety requirements for aircraft
• Assistance in obtaining and renewing aviation licenses and certificates
• Consulting on environmental and noise regulations
• Representing clients during inspections and audits by regulatory authorities
• Advantages of using Harley Miller’s services

When choosing Harley Miller’s consulting services, clients benefit from:

• A team of aviation-specialized lawyers with extensive experience handling complex cases
• Continuous updates on changes to Vietnamese and international aviation regulations
• Multilingual services (Vietnamese, English, French) to meet the needs of international clients
• Transparent workflow with regular progress reports

For more information about Harley Miller’s aviation legal consulting services, please contact us via email: info@luatminhnguyen.com or hotline: 093 7215585