Vietnam improves compliance score under Cape Town Convention in aviation

The Civil Aviation Authority of Vietnam (CAAV) said on October 29 that under the AWG’s latest assessment, the updated score placed Vietnam in the medium-performing group. The result reflects the country’s efforts to address practical obstacles to the exercise of creditors’ rights over aircraft, while continuing to improve its legal framework and inter-agency coordination procedures.

The improvement also points to progress in refining the legal framework, enhancing the implementation of international commitments and strengthening coordination among relevant agencies in the aviation sector.

Improving legislation, addressing implementation obstacles

In 2023, Vietnam was placed on the AWG’s watchlist following difficulties in practice with aircraft deregistration and export procedures under the Irrevocable De-registration and Export Request Authorisation (IDERA). These shortcomings caused Vietnam’s score in the CTC Compliance Index to fall from 71.5 to 62.5 points.

This situation highlighted the urgent need to improve legal regulations and strengthen coordination among competent State agencies to ensure that international commitments are implemented consistently, transparently and in a timely manner. In response, the CAAV worked with the Ministry of Construction and relevant agencies to review and improve regulations on aircraft registration, international interests in aircraft equipment, and procedures for implementing IDERAs under the Cape Town Convention and Protocol.

The issuance and improvement of civil aviation regulations, including the 2025 Law on Civil Aviation of Vietnam and Decree No. 223/2026/ND-CP, have helped strengthen the legal basis for implementing international commitments and provided a framework for addressing issues arising in practice.

Alongside these institutional improvements, the authority has carried out aircraft deregistration procedures on the basis of valid IDERAs, coordinated in the handling of aircraft handover and export requests, and provided confirmation that applicable aviation safety standards under its authority have been met.

These efforts have helped clarify the responsibilities of State management agencies in safeguarding creditors’ lawful rights and interests while maintaining compliance with aircraft operational safety requirements.

AWG recognises progress in implementing int'l commitments

In addition to improving the legal framework, the CAAV has maintained direct exchanges with the AWG, taken its recommendations into account and worked with the Ministry of Construction to explore solutions to outstanding issues concerning customs procedures, documentation requirements and coordination mechanisms among relevant agencies.

Stronger exchanges and dialogue with the AWG have helped improve transparency, consistency and predictability in the implementation of the Cape Town Convention, thereby facilitating the protection of the rights of parties involved in aircraft transactions.

According to the AWG’s scorecard updated on October 27, 2026, Vietnam scored 67.5 points, up five points from the previous 62.5. Among the individual criteria, legal implementation received 4.5 out of five points, while the mechanism for exchanges and dialogue with the AWG received the full five points.

The assessment indicates progress in improving legal regulations and maintaining dialogue with international organisations. However, the AWG continued to award criterion B only two out of five points due to outstanding issues concerning judicial precedents and implementation practices.

This shows that alongside further improvements to legal regulations, Vietnam needs to focus on strengthening implementation to ensure that aircraft deregistration and export procedures, as well as the exercise of creditors’ rights, are applied consistently, properly and in a timely manner in practice.

A CAAV representative said the authority would continue working with ministries, sectors and relevant agencies to improve inter-agency coordination procedures. It will also study and propose guidance on applying the Cape Town Convention in judicial proceedings and the enforcement of creditors’ rights, while stepping up exchanges with the AWG to address outstanding recommendations.

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