Proposal for pilot decentralization of Cat Bi airport Administration for Hai Phong city People’s committee

This is one of the remarkable new points in the Project "Orientation to mobilize capital for investment in airport infrastructure" that the Ministry of Transport is asking for comments with relevant agencies and units.

Accordingly, the Ministry of Transport proposed to divide the airports in Vietnam into 3 groups to implement the decentralization of management.

In detail, for group 1 - important national and regional international airports including Noi Bai, Da Nang, Cam Ranh, Tan Son Nhat, Phu Quoc, Long Thanh, the Government will approve the Ministry of Transport and Commission for the Managenment of State Capital at Enterprises continuing to own and assign the State-owned enterprises, and the Airports Corporation of Vietnam of managing, exploiting and mobilizing resources for investment.

For group 2 - The airports operating botth civil and military aviation with an important military role including Tho Xuan, Chu Lai, Phu Cat, Tuy Hoa, the Government will adopt the Ministry of Transport and Commission for the Managenment of State Capital at Enterprises and Ministry of Defense to continue ownìng and assigning the state-owned enterprises as ACV to manage, exploit and mobilize resources for investment.

For group 3 - remaining airports including Dien Bien, Na San, Cat Bi, Vinh, Phu Bai, Dong Hoi, Pleiku, Buon Ma Thuot, Lien Khuong, Can Tho, Rach Gia, Ca Mau, Con Dao are planned to decentralize for People's Committees of provinces to approve through the transfer of land use rights and ownership of works at airports from the central authority for the People's Committees of provinces with airports in the local area in order to promote the autonomy and self-responsibility of local authorities in exploiting to the fullest the potential, advantages and resources of localities to invest in developing airport.

The Ministry of Transport said that the decentralization of local management for airports in the group has not been regulated in the Civil Aviation Law of Vietnam. In the spirit of the Prime Minister's direction (problems that have not been regulated or exceeded regulations, practical problems that need time to verify and create consensus, dare to pilot, both doing and learning from experience, gradually expanding, no need of perfection and no need of urgency), the Ministry of Transport proposed pilot decentralization of Cat Bi international airport Administration for Hai Phong City People's Committee.

“Cat Bi International Airport’s current operation hasn’t gained profit but it is having great potentialities to develop, serving practically for the economic and social development of Hai Phong City. Besides, Hai Phong city also has had economic potential and experiences in supporting the construction of runways and taxiways at Cat Bi airport,” explained the Ministry of Transport.

This transfer will be implemented through 2 steps. Step 1 - The Committee for Management of State Capital at Enterprises directs ACV to establish a subsidiary to manage Cat Bi International Airport and conduct independent accounting. Step 2 - The Committee for Management of State Capital at Enterprises and ACV transfer the owner representative of Cat Bi International Airport Management Company to Hai Phong City People's Committee; at the same time, the Ministry of Transport transfers the assets of the airport (old runways, taxiways, etc.) to the Hai Phong city People's Committee. In parallel with the above processes, the Ministry of Defense carried out procedures for transferring land planned for civil aviation and shared land to Hai Phong City People's Committee.

Cat Bi International Airport is one of the 21 civil airports being managed by ACV. At the time before the outbreak of the Covid-19 epidemic, on average, the airport operated daily about 70 air transport movements with more than 12,000 passengers passing through.