The Ministry of Transport requests the Government to license IPP Cargo

The Ministry of Transport (MOT) has just sent a written request to the Government to allow the Ministry of Transport to grant a business license to transport goods for IPP Air Cargo.

According to this agency, in the past 30 years, Vietnamese aviation enterprises have only focused on transporting passengers, leaving the goods market open for foreign operators to exploit. The ministry considers that the current development of air cargo transportation is essential, especially to seize opportunities from the post-COVID-19 period.

“It is appropriate to consider approving a license for Vietnamese enterprises to establish a new cargo airline this year,” the document from the Ministry of Transport stated.

Previously, the Ministry of Transport had also sent a report to the Prime Minister on the proposal to license this airline. According to the Ministry of Transport, the cargo airline will contribute to promoting the freight transport of Vietnamese airlines to grow by 10-15% per year.

“It is expected that the volume of air cargo transportation of IPP Air Cargo Joint Stock Company will increase gradually over the years, with an expected average annual growth rate of 18%-20%”, the ministry’s document said. Transport mentioned.

According to the Civil Aviation Authority of Vietnam, the application for a license for air transportation of goods by IPP Air Cargo Joint Stock Company has ensured the conditions for granting a license for air transportation of goods as prescribed. defined in Articles 5, 6, 7, 8, 9 of Decree No. 92/2016/ND-CP dated December 11, 2016 of the Government providing for conditional business lines in the aviation sector.

The dossier also ensures the procedures for granting a license for the air cargo transportation business as specified in Article 10 of the Government’s Decree No. 92/2016/ND-CP dated December 11, 2016 on industries. , conditional business in the field of aviation. The Civil Aviation Authority of Vietnam assessed that the dossier of IPP Air Cargo Joint Stock Company was complete and valid according to the provisions of Clause 7, Article 1 of Decree No. 89/2019/ND-CP.

IPP Air Cargo Joint Stock Company has a business registration certificate issued by the Department of Planning and Investment of Ho Chi Minh City for the first time on March 10, 2021, with the main business being air freight. IPP Air Cargo has a minimum capital of 300 billion VND.

This airline is contributed capital by 4 shareholders: Lien Thai Binh Duong Import-Export Company Limited (represented by Mr. Nguyen Hanh), Duy Anh Trading Company Limited (represented by Mr. Nguyen Phi Long), Ms. Le Hong. Thuy Tien, and Mr. Nguyen William Hieu.

The two capital-contributing enterprises have 100% capital from Vietnamese investors and two shareholders are Vietnamese citizens, so IPP Air Cargo is a 100% Vietnamese-owned enterprise, without foreign investment.

According to the project to establish a cargo airline IPP Air Cargo submitted to the competent authority, IPP Air Cargo is expected to operate with Boeing 737, Boeing 777, Airbus A330 aircraft with 5 of the first 5 to operate and increase gradually to 10 units in the next 5 years.

In the first 5 years, each aircraft will be parked overnight at Noi Bai, Tan Son Nhat, Da Nang, Cam Ranh and Can Tho airports.

According to Nguyen Tham