Vietnamese businessmen rushing to purchase private aircrafts

It seems that big Vietnamese big stock millionaires now not only vying with each other in the amounts of shares they hold, but they also are rushing to purchase private aircrafts to serve their traveling demands.

The helicopter worth nearly $5 million owned by the big stock millionaire Tran Dinh Long has arrived in Vietnam three months after the purchase deal was kicked off. Long, the owner of the helicopter, who is also the owner of Hoa Phat Group is completing necessary procedures regarding technical certificates and safety standards in order to make the aircraft ready to take off.

Long is the second Vietnamese person who owns private air transport. The first person is the President of Hoang Anh Gia Lai Group Doan Nguyen Duc.

The first private air in Vietnam was carried to Vietnam in late 2008. The post-tax value of the aircraft is seven million dollars. Duc said after one year of using the private aircraft, he can save much time and can increase his productivity. When Duc purchased the first private aircraft, many experts guessed that Duc’s case will pave the way for many other big businessmen to carry out similar purchase deals.

According to VnExpress newspaper, Duc did not have to pay the luxury tax, because under the old laws, the luxury tax rate on aircraft was zero percent. However, since April 1, 2009, the new law stipulates that the luxury tax rate on aircrafts is 30 percent.

VnExpress quoted its sources from the Civil Aviation Administration of Vietnam (CAAV) as saying that many big businessmen have expressed their willingness to purchase private aircrafts and have asked CAAV consult on the procedures to take off and land. Besides Duc and Long, another “big guy” in the financial sector in Hanoi is completing necessary procedures to bring another helicopter to Vietnam.

Late last year, a businessman in HCM City also revealed a plan to buy a private aircraft. He is the owner of a food company, who was named in the list of the 100 top Vietnamese stock millionaires for three consecutive years announced by VnExpress. The sources close to the “big guy” have revealed that the aircraft the businessman plans to purchase is worth 12 million dollars. However, the plan to carry the aircraft to Vietnam remains a secret.

At this moment, people are whispering in each other’s ears that the deputy chairman of the founding council of the Asia Commercial Bank (ACB) Nguyen Duc Kien is also intending to purchase a private aircraft. However, Kien told VnExpress he still does not think of buying an airplane.

An official from CAAV said the current laws do not prohibit individuals to own private aircrafts, provided that the individuals can meet the requirements on safety and technique.

Owning private aircrafts is a trend that can be seen in many other countries in the world. China, a neighboring country, has dozens of private aircraft. Meanwhile, in Vietnam, only a few of businessmen dare purchase private airplanes.

Under the Vietnam’s Civil Aviation Law, airplanes belong to Vietnamese citizens who have permanent residence in Vietnam, and belong to Vietnamese legal entities which have head offices in Vietnam, are allowed to register in Vietnam

VnExpress

Tags: private aircrafts