A proposal from Bamboo Airways to increase the foreign ownership limit in airlines in Vietnam to 49 percent from 34 percent has been rejected by the Ministry of Planning and Investment. The ministry has argued that there is “no legal basis to consider Bamboo Airways’ proposal”, though it’s not clear exactly what that means.
The Vietnam airline industry has been struggling broadly as a result of government regulated ticket prices, increasing fuel costs, and a debt hangover from the COVID-19 pandemic when the industry more-or-less ground to a halt.
Bamboo Airways, in particular, only took to the skies in 2019 the year before the pandemic broke out. It also started life as a subsidiary of FLC Group which has been heavily mired in controversy after its leader was arrested back in 2022. This saw the airline spun off but the new independent entity has never had much success and has repeatedly downsized its fleet and the number of routes it offers.
Foreign investment, ergo may be needed to save the airline, however, Bamboo Airways has noted that the current 34 percent limit does not provide foreign investors with enough voting rights and this makes investing in airlines in Vietnam too risky.