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Australian Journal of Asian Law

Abstract from Volume 11 No 2 (2009)

Challenges and Strategies for Liberalising Vietnamís Airline Industry

Alan Khee-Jin Tan LLB (NUS), LLM, JSD (Yale), Professor, Faculty of Law, National University of Singapore (NUS).

Vietnam’s air transport sector has undergone significant liberalisation in recent years. For instance, more liberal bilateral air services agreements have been signed with other countries. As a result, foreign carriers now enjoy greater access into Vietnam, while Vietnamese carriers have secured reciprocal rights to fly to more overseas destinations. More domestic carriers have also been allowed to operate, with foreign minority ownership being approved for the first time in the form of the Qantas Group’s stake in Jetstar Pacific. All these developments are occurring in the midst of impending liberalisation at the regional ASEAN level. The ongoing challenge for aviation policy in Vietnam is to balance the protection of local carriers’ interests with the greater competition and liberalisation that will inevitably accompany the ASEAN Single Aviation Market. At the same time, there will be new market opportunities for Vietnamese carriers as these seek to match up to their bigger competitors. From a broader perspective, there is also the need to achieve substantial intra-ASEAN liberalisation to improve the ASEAN carriers’ collective competitive position vis-à-vis carriers from unified markets such as China and India.

(2009) 11(2) Asian Law 218

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