Decree No. 110/2011/ND-CP on managing activities of leasing, purchasing aircraft, engines, spare parts, materials, and maintenance and repair services for aircraft, engines, and spare parts.

 DECREE

On managing activities of leasing, purchasing aircraft, engines, spare parts and materials, and maintenance and repair services for aircraft, engines, and spare parts and materials

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Based on the Investment Law dated November 29, 2005;

Pursuant to the Enterprise Law dated November 29, 2005;

Pursuant to the Law Amending and Supplementing Certain Provisions of Laws Related to Investment in Construction Projects dated June 19, 2009;

Pursuant to the Civil Aviation Law of Vietnam dated June 29, 2006;

Considering the proposal of the Minister of Transport,

DECREE:

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates conditions, decision-making authority, and procedures for leasing, purchasing aircraft, engines, and spare parts and materials; maintenance and repair services for aircraft, engines, and spare parts and materials; spare parts and materials supply services for civil purposes for:

1. Projects using state capital at 30% or more to purchase aircraft and engines.

2. Activities not requiring investment project establishment including: leasing aircraft, engines, spare parts and materials, purchasing spare parts and materials, spare parts and materials supply services, maintenance and repair services for aircraft, engines, and spare parts and materials from Vietnamese enterprises with state ownership ratio of 30% or more.

Article 2. Applicability

This Decree applies to organizations and individuals, both domestic and foreign, related to activities of leasing, purchasing aircraft, engines, spare parts and materials, and maintenance and repair services for aircraft, engines, and spare parts and materials within the scope regulated under Article 1 of this Decree.

Article 3. Application of international treaties and agreements

For programs and projects using official development assistance (ODA), leasing, purchasing aircraft, engines, spare parts and materials, and maintenance and repair services for aircraft, engines, and spare parts and materials shall be carried out based on the content of international treaties to which the Socialist Republic of Vietnam is a member or international agreements signed by competent authorities of the Socialist Republic of Vietnam.

Article 4. Definitions

1. Aircraft documentation includes flight logs, aircraft records, user manuals, and other accompanying documents.

2. Civil aviation authority is the agency responsible for registering aircraft, issuing airworthiness certificates, and supervising aircraft operations. The Civil Aviation Administration of Vietnam is the civil aviation authority of Vietnam.

3. Spare parts and materials suppliers are manufacturers of spare parts and materials, aircraft manufacturers, engine manufacturers, distributors, service companies providing spare parts and materials, maintenance and repair facilities, airlines.

4. Maintenance and repair service providers are maintenance and repair facilities for aircraft, engines, and spare parts and materials, and airlines.

5. Aircraft engines are main engines installed on aircraft to provide primary propulsion.

6. Aircraft spare parts and materials include components of aircraft and engines, including auxiliary engines, landing gears, and specialized tools and equipment for operation, maintenance, and repair. The list of aircraft spare parts and materials is provided in documents issued by manufacturers.

7. Maintenance and repair services include work aimed at restoring and maintaining (including overall or partial technical management and direct maintenance on aircraft) aircraft, engines, equipment, and spare parts and materials in a condition suitable for flight.

8. Direct purchase form involves issuing orders directly to a supplier based on their quotation.

9. Competitive bidding involves selecting among suppliers based on comparing quotations according to approved criteria.

10. Maintenance and repair facility is an organization established and operating under the laws of the country where it is established, licensed by the civil aviation authority to perform maintenance and repair work on aircraft, engines, and spare parts and materials.

11. Spare parts and materials supply services include leasing, swapping, or providing full-package spare parts and materials services.

12. Full-package spare parts and materials services include supplying spare parts and materials, repairing spare parts and materials, spare parts and materials storage, and flight hour management program.

13. Flight hour management program includes maintenance and repair, general management applied to engines, landing gears, and spare parts and materials.

Article 5. Principles for managing aircraft leasing, purchasing, engine parts, aircraft spare parts, and maintenance and repair services for aircraft, engines, and aircraft spare parts

1. Ensuring compliance with Vietnamese laws on civil aviation activities.

2. Ensuring the implementation of the development plan targets for the civil aircraft fleet, prioritized and synchronized investments in accordance with business capabilities, financial capacity, operational and maintenance capabilities of the enterprise.

3. Ensuring flight and operational safety standards for aircraft in compliance with the provisions of the Civil Aviation Law of Vietnam, relevant regulatory legal documents, and international civil aviation treaties to which the Socialist Republic of Vietnam is a member.

4. Ensuring effective leasing and purchasing of aircraft using state capital, avoiding losses and wastage.

Article 6. Authority to decide on leasing, purchasing aircraft, engines, aircraft spare parts, and maintenance and repair services for aircraft, engines, and aircraft spare parts

1. For projects to purchase aircraft and engines using state budget funds:

The Minister of Transport decides on investment for projects to purchase engines and aircraft spare parts using state budget funds. In cases of purchasing aircraft, the Minister of Transport decides on investment after obtaining the Prime Minister's approval on the policy direction.

2. For projects to purchase aircraft and engines within the scope regulated under Clause 1 of Article 1 but not using state budget funds:

The Board of Directors (Board of Members) of the enterprise or the General Director, Director of enterprises (in cases where the enterprise does not have a Board of Directors (Board of Members)) decides on investment. In cases of purchasing aircraft, the enterprise head makes the investment decision after obtaining the Prime Minister's approval on the policy direction.

3. For leasing aircraft, engines, aircraft spare parts, purchasing aircraft spare parts, spare parts services, and maintenance and repair services for aircraft, engines, and aircraft spare parts within the scope regulated under Clause 2 of Article 1;

The Board of Directors (Board of Members) of the enterprise or the General Director, Director of enterprises in cases where the enterprise does not have a Board of Directors (Board of Members) decides.

4. The Board of Directors (Board of Members) authorized or delegated to decide on matters within their authority.

Article 7. Requirements for lessors with flight crews, lessors without flight crews, providers of aircraft spare parts, and maintenance and repair services

1. Lessors with flight crews, lessors without flight crews, providers of aircraft spare parts, and maintenance and repair services must be legally established and operating enterprises according to the laws of the country where they have their headquarters.

2. In addition to the provisions of Clause 1 of this Article, lessors with flight crews must have an aircraft operator certificate; providers of aircraft maintenance and repair services must have a certificate of qualification for aircraft maintenance and repair issued by the aviation authority of the registration country and recognized by the Vietnamese aviation authority.

Article 8. Requirements for aircraft, engines, and aircraft spare parts

1. The age of leased or purchased aircraft shall be applied according to the provisions stipulated in Clause 2, Article 6 of Decree No. 76/2007/NĐ-CP dated May 9, 2007 of the Government on commercial air transport business and general aviation activities.

2. Aircraft engines and spare parts must be included in the list issued by the aircraft manufacturer and the aircraft engine manufacturer.

Chapter II
LEASING OF AIRCRAFT

Article 9. Forms and methods of selecting contractors for leasing aircraft

1. Form:

a) The selection of contractors for leasing aircraft is carried out through competitive bidding.

b) In cases where the type of aircraft needed for leasing is scarce, if the contractor for leasing aircraft requests to participate in an auction, the authorized person of the enterprise decides on participation in the auction based on information about the aircraft and market prices.

2. Method:

The method of selecting contractors for leasing aircraft through competitive bidding is a single-envelope method. Contractors for leasing aircraft submit proposals including technical and financial proposals as required by the request document.

Article 10. Procedure for conducting competitive bidding

1. Establishing the need for leasing aircraft, including the following main contents:

a) Basis for developing the leasing plan;

b) Determining the leasing needs: number of aircraft, types, delivery time of aircraft, leasing period, leasing form;

c) Exploitation plan: planned routes;

d) Plan to ensure operational capacity;

đ) Operational efficiency;

e) Leasing market situation;

g) Recommendation on the form of contractor selection;

In cases where aircraft are needed to replace special mission aircraft or requisitioned for state purposes, to replace aircraft undergoing maintenance, to replace aircraft involved in accidents or technical malfunctions, or suddenly withdrawn from operation due to force majeure, to lease without a crew for seasonal service, the leasing needs only include the following contents: leasing needs, exploitation plan, leasing market situation.

2. The authorized person of the enterprise decides on the form of inviting competitive bids with the basic contents prescribed in Clause 3 of this Article, in one of the following forms:

a) Publishing a broad announcement requesting the leasing of aircraft on various mass media. The publication of the announcement must be done for at least three consecutive issues in a Vietnamese newspaper and one issue in an English newspaper;

b) Sending direct invitations for competitive bidding to contractors. The minimum number of contractors invited for competitive bidding: three contractors.

3. Basic contents of the request document:

a) Aircraft: type, year of manufacture (for used aircraft, information on serial number, engine type, seat configuration, entertainment equipment must also be provided);

b) Leasing form;

c) Leasing period;

d) Registration place during the leasing period;

đ) Aircraft leasing price;

e) Major overhaul fund for aircraft;

g) Deposit or guarantee;

h) Insurance related to aircraft and aircraft operators;

i) Validity period of the proposal;

k) Tax obligations under Vietnamese law;

l) Accompanying documents (applicable to used aircraft): technical specifications of the aircraft, including information on the fuselage, engines; cabin configuration; seat configuration; kitchen standards on board.

4. The time from the announcement of the invitation for competitive bidding to the issuance of the request document shall be a minimum of five days, starting from the first day of publishing the announcement for competitive bidding. The preparation time for the proposal: a minimum of five days from the date of issuance of the request document.

5. Form of submitting the proposal: contractors participating may submit proposals directly, by mail, fax, or email, but must ensure that it bears the signature of the legal representative. For contractors who are Vietnamese individuals or organizations, the proposal must also bear a confirmation stamp. If the proposal is submitted electronically, it must comply with the regulations on electronic transactions.

6. Organizing the evaluation of proposals and selecting a shortlist of contractors whose aircraft meet the requirements.

7. Conducting direct negotiations with contractors on the shortlist and selecting the winning contractor based on the results of direct negotiations.

Article 11. Method for evaluating tender documents for aircraft leasing

1. The method for evaluating tender documents for aircraft leasing is a synthesis of results based on legal, technical, commercial, and financial evaluations.

a) Legal aspect: examining the lawful rights of the aircraft lessor over the leased aircraft and the legal requirements stipulated in Article 7 of this Decree;

b) Technical aspect: examining whether the leased aircraft meets the requirements regarding age, technical condition, configuration, and relevant legal certificates. The tender document must be assessed as meeting the technical requirements before further evaluation can proceed;

c) Commercial aspect: examining whether the leased aircraft meets the requirements regarding seat configuration, kitchen, entertainment program, reconfiguration capability to meet operational needs of the enterprise, and delivery schedule;

d) Financial aspect: assessing the overall cost, maintenance fund, reconfiguration costs, insurance, and other expenses.

2. The evaluation of direct negotiation results also follows the above criteria. The successful bidder is the bidder with the best overall assessment result.

Article 12. Aircraft Leasing Contract

1. Except in cases provided for in Clause 2 of this Article, the aircraft leasing contract with foreign partners shall only take effect after approval by the Board of Directors (Board of Members) or, where there is no Board of Directors (Board of Members), by the General Director or Director of the enterprise, and after obtaining written approval from the Director of the Civil Aviation Administration of Vietnam for the aircraft leasing.

The Minister of Transport shall issue a Circular guiding the procedures for approving aircraft leasing.

2. In cases of leasing aircraft for a period not exceeding seven consecutive days to replace another aircraft for special mission purposes or state public service purposes, to replace aircraft involved in accidents or technical malfunctions, or to replace aircraft that cannot be operated due to force majeure, the enterprise must notify the Civil Aviation Administration of Vietnam in writing about the lessor having a Certificate of Suitable Operator.

3. For cases of leasing aircraft with flight crews, the aircraft leasing contract includes both the leasing service contract and/or maintenance repair contract, regardless of whether these contracts are part of the aircraft leasing contract or separate contracts, with the same contractor or different contractors.

Article 13. Provisions on Extending Aircraft Leases

1. An extension of the validity of the aircraft leasing contract shall only take effect after written approval by the Director of the Civil Aviation Administration of Vietnam.

2. The Minister of Transport shall issue a Circular guiding the procedures for approving the extension of the validity of the aircraft leasing contract.

Chapter III
PURCHASE OF AIRCRAFT AND AIRCRAFT ENGINES

Section 1

PURCHASE OF AIRCRAFT

Article 14. Investment Procedures

1. The establishment, submission, review, approval of investment projects, and implementation of aircraft investment projects shall be carried out in accordance with current investment regulations.

2. In exceptional cases with the Prime Minister's consent, enterprises may simultaneously develop investment projects and negotiate with aircraft manufacturers.

Article 15. Forms and methods of selecting contractors to provide aircraft

1. Form:

a) Open tendering form;

b) Restricted tendering form;

c) Direct negotiation form for contractor designation.

The direct negotiation form for contractor designation shall be applied when the supplier is the aircraft manufacturer. The application of this form must be approved by the Prime Minister before implementation.

2. Method of selection:

The method of selecting contractors to provide aircraft is a single envelope method. Contractors submit a proposal including technical and financial proposals according to the request documentation requirements.

Article 16. Procedure for implementing the selection of contractors to provide aircraft through direct negotiation form

1. Inviting participation in contractor designation:

a) Aircraft purchase will be directly purchased from the aircraft manufacturer. Depending on each type or model of aircraft to be purchased, the invitation letter and request documentation will be sent directly to the manufacturer of the aircraft expected to participate in the contractor designation;

b) For cases stipulated in Clause 2, Article 14 of this Decree, enterprises directly purchase from the aircraft manufacturer without sending out tender invitation letters and issuing request documentation.

2. Basic contents of the request documentation:

a) Aircraft: type of aircraft, engine, aircraft configuration (for used aircraft, information about year of manufacture, serial number, engine type, aircraft configuration is required);

b) Purchase form;

c) Delivery time of the aircraft;

d) Aircraft price;

đ) Aircraft overhaul fund (applicable for used aircraft);

e) Deposit;

g) Insurance related to the aircraft and its operator (applicable for used aircraft);

h) Validity period of the proposal;

i) Accompanying documents (applicable for used aircraft): technical specifications of the aircraft, including information about the fuselage, engines; cabin configuration; seat configuration; kitchen standards on board the aircraft.

3. Time to prepare the proposal: at least 15 days from the date of issuance of the request documentation, invited contractors prepare their proposals including technical and financial-commercial proposals.

4. Form of submitting the proposal: participating contractors may submit their proposals by direct delivery, postal service, fax, or email, but must ensure the signature of the legal representative. For Vietnamese individuals and organizations as contractors, the proposal must also have a confirmation stamp. In case the proposal is submitted electronically, it must comply with the regulations on electronic transactions.

5. The inviting party invites contractors to negotiate the contract, clarify, modify, or supplement necessary information in the proposal to demonstrate compliance with the request documentation requirements.

6. Review, audit, and approve the results of contractor designation: based on the report of the contractor designation results, the audit report, the authorized investment decision maker approves the results of the contractor designation.

7. Negotiate, finalize, and sign the contract:

Based on the approval decision of the contractor designation results, the enterprise conducts negotiations, finalizes the contract with the designated contractor to sign the contract. The contract only becomes effective after being approved by the authorized investment decision maker.

The procedure for approving the results of contractor designation is carried out in accordance with the Bidding Law.

8. In special cases permitted by the Prime Minister, enterprises can place a refundable deposit to secure the aircraft schedule and other benefits before establishing a project or signing the aircraft purchase contract.

Article 17. Procedure for selecting contractors to supply aircraft through open tendering and restricted tendering

The procedure and process for selecting contractors to supply aircraft through open tendering and restricted tendering shall be carried out in accordance with current regulations on tendering.

Article 18. Tender guarantee and performance guarantee

In cases where direct negotiation is applied to designate the contractor, the contractor may not be required to submit a tender guarantee and a performance guarantee.

Enterprises shall base their decision on the nature, scale, and specific capacity of the contractor to determine whether to allow the contractor to forego submitting a tender guarantee and a performance guarantee.

Article 19. Contract forms

1. Lump-sum form: the contract price remains unchanged throughout the contract period.

2. Adjustable-price form: the contract price is calculated based on the fixed base price and the sliding formula specified in the contract. The base price remains fixed throughout the contract period.

Section 2

PURCHASE OF AIRCRAFT ENGINES

Article 20. Forms and methods for selecting suppliers of aircraft engines

1. Forms and methods for selecting suppliers of aircraft engines

a) For initial investment or leasing of aircraft: the selection of engine suppliers for the aircraft and spare engines accompanying the aircraft investment project and leased aircraft that the buyer has the right to choose shall be conducted through competitive bidding in accordance with the procedures stipulated in Article 21 of this Decree;

b) For additional investment or leasing of the same type of aircraft: the selection of engine suppliers for the aircraft and spare engines accompanying the aircraft investment project and leased aircraft that the buyer has the right to choose shall be conducted through direct negotiation in accordance with the procedures stipulated in Article 16 of this Decree;

c) For aircraft types for which the aircraft manufacturer designates only one type of engine: the selection of engine suppliers shall be conducted through direct negotiation in accordance with the procedures stipulated in Article 16 of this Decree;

d) Spare aircraft engines: the selection of engine suppliers shall be conducted through competitive bidding or applying the direct purchase method from the selected engine manufacturer.

2. Bids shall be accepted in the form of direct submission, postal mail, fax, or email but must ensure the signature of the legal representative. For bids from Vietnamese individuals or organizations, the bid must also include a confirmation stamp. In cases where bids are submitted electronically, they must comply with the provisions of the law on electronic transactions.

3. Enterprises shall base their decision on the nature, scale, and specific capacity of the contractor to determine whether to allow the contractor to forego submitting a tender guarantee and a performance guarantee.

Article 21. Procurement process for aircraft engines through competitive bidding

1. Organizing the first round of competitive bidding:

a) Step 1: prepare the first request for proposal in accordance with Clause 3 of this Article.

b) Step 2: invite participation in competitive bidding.

The authorized person of the enterprise decides on the form of invitation for competitive bidding according to the forms prescribed in Clause 4 of this Article.

c) Step 3: clarify the proposal.

Based on the first proposal of the aircraft engine suppliers, the enterprise organizes direct discussions with the contractors to clarify the first proposal including post-sale support, warranty conditions, training, evaluation criteria for selecting engines, and unify the evaluation criteria.

The maximum time for implementation is 30 days.

2. Organizing the second round of competitive bidding:

a) Prepare the second request for proposal with contents similar to the first request for proposal on the principle of fixing post-sale support, mandatory requirements, and technical specifications of the engine based on the first proposal;

b) Send the second request for proposal to the aircraft engine suppliers who participated in the first round of competitive bidding. The minimum preparation time for the second proposal is 10 days;

c) Evaluate the second proposals, select the type of aircraft engine and supplier based on the lowest evaluated price proposal and submit it for approval by the competent authority.

The maximum time for implementation is 60 days.

3. Basic contents of the first request for proposal:

a) Provide transaction address and contact point;

b) Provide information to the aircraft engine supplier about the type of aircraft, number of aircraft, delivery schedule, number of engines required (engines installed on wings, spare engines), delivery schedule, maximum take-off weight, average flight duration, annual flight frequency, runway time, and other related parameters;

c) Require the engine supplier to provide information related to the engine such as reliability in operation, operational features, maintenance requirements, transportation features;

d) Information on post-sale support such as warranty terms, training, technical support experts, technical documentation, and other supports if any; market situation for this type of engine and other relevant information (if any);

đ) Require the engine supplier to quote prices for engines, spare engines, discount policies;

e) Payment method.

4. Forms of invitation for competitive bidding:

a) Publish announcements requesting the purchase of aircraft engines on mass media. The announcement publication must be done for at least three consecutive issues in a Vietnamese newspaper, one issue in an English newspaper;

b) Directly send invitation letters for bidding to engine suppliers approved by the aircraft manufacturer.

5. The time from issuing the invitation for competitive bidding to releasing the request for proposal is a minimum of five days, starting from the first day of announcement publication or sending the request for proposal. The minimum preparation time for the first proposal is ten days from the release date of the first request for proposal.

6. Form of submission of proposal files: suppliers participating in the bidding for aircraft engines may submit their proposal files through direct delivery, postal service, fax, or email, but must ensure that they bear the signature of the legal representative. For Vietnamese individuals or organizations acting as contractors, the proposal files must also include an official stamp of confirmation. In cases where the proposal files are submitted electronically, compliance with relevant laws on electronic transactions shall be observed.

Article 22. Method of selecting aircraft engine suppliers

1. The method of selecting aircraft engine suppliers involves a comprehensive evaluation based on legal, technical, commercial, and financial assessments:

a) Legal assessment: consideration of the seller's lawful rights to the aircraft engines and legal requirements stipulated in Article 7 of this Decree;

b) Technical assessment: examination of the engine's compliance with requirements regarding condition, characteristics, technical configuration, and related legal certificates. Proposal files must meet technical requirements before further evaluation can proceed.

c) Commercial assessment: consideration of the engine's compliance with operational requirements of the enterprise, delivery schedules;

d) Financial assessment: overall evaluation of price, investment operation costs, insurance, and other expenses.

2. The evaluation of direct negotiation results also follows the above criteria. The successful bidder is the bidder with the best overall assessment result.

Chapter IV
PURCHASE OF AIRCRAFT PARTS AND MATERIALS

Article 23. Classification of aircraft parts and materials

Based on procurement methods, aircraft parts and materials are classified as follows:

1. Aircraft parts and materials provided by the buyer: a list of materials and parts approved by the aircraft manufacturer or the lessor, which are supplied by the buyer.

2. Aircraft parts and materials provided by the seller: a list of materials and parts determined according to the technical standards of the aircraft manufacturer and supplied by the manufacturer.

3. Initial purchase of aircraft parts and materials: a list of parts and materials established based on a project or an overall plan prior to the operation of a new type of aircraft or when there is a significant adjustment in the number of aircraft in operation.

4. Regular purchase of aircraft parts and materials: parts and materials purchased annually to adjust reserve levels or to meet maintenance and repair requirements during operation, including regular orders, normal orders, potential emergency orders, and emergency orders.

Article 24. Forms of organizing selection of aircraft parts and materials suppliers

Depending on the circumstances, the selection of aircraft parts and materials suppliers is carried out in the following forms:

1. For initial investment or leasing of aircraft: for parts and materials provided by the buyer and those provided by the seller accompanying the aircraft investment project and leased aircraft parts that the buyer has the right to choose, the selection of suppliers is conducted through competitive bidding in accordance with the procedures specified in Articles 25 and 26 of this Decree.

2. For additional investment or leasing of the same type of aircraft: for parts and materials provided by the buyer and those provided by the seller accompanying the aircraft investment project and leased aircraft parts that the buyer has the right to choose, the selection of suppliers is conducted through direct negotiation tendering in accordance with the procedures specified in Article 16 of this Decree.

3. For initial purchase of parts and materials and regular purchase of parts and materials: the selection of suppliers is conducted through competitive bidding. If there is only one supplier or if the supplier is the aircraft or engine manufacturer with preferential pricing policies and post-sales support, the enterprise is permitted to purchase directly from the manufacturer or authorized distributor.

4. Competitive bids may be submitted directly or via postal service, fax, or email, but must bear the signature of the legal representative. For Vietnamese individuals or organizations acting as contractors, the competitive bid must also include an official stamp of confirmation. In cases where the competitive bid is submitted electronically, compliance with relevant laws on electronic transactions shall be observed.

5. In urgent situations, such as when an aircraft is grounded or affected by an accident impacting operations: the selection of suppliers for aircraft parts and materials is based on the fastest supply option through direct purchase.

6. Enterprises base their decision on whether to exempt contractors from submitting bid bonds and performance bonds on the nature, scale, and specific capacity of the contractor.

Article 25. Procurement Process for Aircraft Spare Parts and Materials Supplied by the Buyer

1. Prepare a competitive bidding request file, submit it to the competent authority for approval, and send the bidding request file to the aircraft spare parts and materials suppliers. The competitive bidding request file is based on the list of aircraft spare parts and materials supplied by the buyer, which has been approved by the aircraft manufacturer or the aircraft lessor, along with a list of spare parts and materials suppliers.

2. Receive, clarify the proposal files, and determine the post-sale support items provided by the aircraft spare parts and materials suppliers:

a) Determine post-sale support items such as training, equipment and tools for operation and maintenance, warranty, and other support items. Fix these support items to require the supplier to quote a final price as a basis for comparison at the same level.

b) Confirm with the aircraft spare parts and materials supplier and notify the aircraft manufacturer about the fixed support items, policies, equipment requirements of the buyer, and conditions binding when implementing the contract.

3. Conduct an overall evaluation, select the equipment and aircraft spare parts and materials suppliers based on the final bid price after fixing the support conditions and credit support. The overall evaluation includes assessing the quoted price, transportation costs, various delivery fees, consignment fees (if applicable), delivery time, payment terms, supply capacity, post-sale assistance, transaction processes during supply, and other factors arising.

4. Submit the selection results to the competent authority for approval.

5. Issue a notification letter to the aircraft manufacturer regarding the selection results and implement them.

Article 26. Procurement Process for Aircraft Spare Parts and Materials Supplied by the Seller

1. Prepare a list of aircraft spare parts and materials, submit it to the competent authority for approval, and send a request to the aircraft spare parts and materials suppliers. The list of aircraft spare parts and materials is based on the announcement by the aircraft manufacturer regarding the list of spare parts and materials supplied by the manufacturer, along with a list of spare parts and materials suppliers.

2. Receive information from the aircraft spare parts and materials suppliers, determine and clarify the support items provided by the aircraft spare parts and materials suppliers:

a) Determine post-sale support items such as training, warranty, and other support items;

b) Notify and confirm with the aircraft spare parts and materials supplier about the fixed support items, policies, and equipment requirements.

3. Evaluate and select the type of aircraft spare parts and materials and the supplier based on the support items, submit the selection results to the competent authority for approval.

4. Notify the aircraft manufacturer of the list of selected aircraft spare parts and materials suppliers.

Article 27. Procurement Process for Initial Aircraft Spare Parts and Materials

1. Determine the necessary operational parameters and data as the basis for building the list according to the recommendations of the aircraft manufacturer and engine manufacturer, then submit it to the competent authority for approval before providing it to the aircraft manufacturer and engine manufacturer.

2. Select and submit the list of aircraft spare parts and materials to the competent authority for approval based on the recommended purchase list of the aircraft manufacturer and engine manufacturer, actual capabilities, and financial balance.

3. Select the aircraft spare parts and materials supplier through competitive bidding. In cases where there is only one aircraft spare parts and materials supplier or the supplier is the aircraft manufacturer, engine manufacturer, or spare parts and materials supplier with favorable pricing and post-sale support policies, the enterprise is permitted to purchase directly from the manufacturer or authorized distributor.

4. Submit the supply plan and aircraft spare parts and materials supplier to the competent authorities for approval.

5. Issue orders and implement them.

Article 28. Procurement Process for Regular Aircraft Spare Parts and Materials

1. Determine the spare parts and materials codes for aircraft based on operational requirements, replenishment levels, maintenance, and repair needs, and according to technical documents provided by the manufacturer.

2. Select suppliers of aircraft spare parts and materials through direct purchase or competitive bidding.

3. Submit orders for approval according to分级制度。

4. Issue orders and implement them.

Article 29. Procurement Process for Selecting Suppliers of Full Package Aircraft Spare Parts and Materials Services

1. Based on the type of aircraft, aircraft model numbers, engine types, and aircraft configurations, prepare tender documents for competitive bidding, submit them for approval by competent authorities, and send requests to suppliers.

2. Identify support items such as training, technical notifications, other support items, and policies for aircraft spare parts and materials. Standardize these support items for comparison purposes. Negotiate with contractors to clarify bids.

3. Conduct an overall evaluation and submit the selection results for approval by competent authorities.

4. Organize negotiations, submit for approval, and sign contracts.

Chapter V
AIRCRAFT MAINTENANCE AND REPAIR SERVICES, AIRCRAFT ENGINE MAINTENANCE AND REPAIR SERVICES, AIRCRAFT SPARE PARTS AND MATERIALS LEASING

Article 30. Forms of Organization for Selecting Maintenance and Repair Service Providers for Aircraft and Aircraft Engines

1. The selection of providers for aircraft and aircraft engine maintenance and repair services shall be conducted through competitive bidding as stipulated in Article 31 of this Decree, or through direct negotiation procurement as stipulated in Article 16 of this Decree.

In cases where there are fewer than three maintenance and repair service providers, direct negotiations shall be conducted with those providers.

2. The selection of providers for engine maintenance management programs based on flight hours shall be conducted through competitive bidding as stipulated in Article 31 of this Decree, or through direct negotiation procurement with engine manufacturers and aircraft landing gear manufacturers as stipulated in Article 16 of this Decree.

In special circumstances such as technical failures or accidents, direct procurement may be applied to request maintenance and repair services in the shortest time possible.

3. Method of submitting proposal documents: service providers participating in the bid may submit proposal documents directly, via postal mail, fax, or email but must include the signature of the legal representative. For Vietnamese individual or organizational contractors, proposal documents must also bear a confirmation stamp. If proposal documents are submitted electronically, they must comply with laws governing electronic transactions.

4. Enterprises base their decision on whether to exempt contractors from tender and performance bond deposits on the nature, scale, and specific capabilities of the contractor.

Article 31. Procurement Process for Selecting Maintenance and Repair Service Providers for Aircraft and Aircraft Engines

1. Based on the type of aircraft and aircraft configuration, prepare tender documents for competitive bidding, submit them for approval by competent authorities, and send them to service providers for aircraft maintenance and repair.

2. Evaluate proposal documents according to approved criteria.

3. Submit the evaluation results for approval by competent authorities. Organize negotiations, submit for approval, and sign contracts.

4. After signing the contract, the enterprise is responsible for reporting relevant information about the contract to the Civil Aviation Administration of Vietnam: name, nationality, legal status of the maintenance provider, responsibilities and rights of each party, date of contract signing and expiration. Failure to report relevant contract information to the Civil Aviation Administration of Vietnam will result in administrative penalties under Government Decree No. 91/2007/NĐ-CP dated June 1, 2007 regarding administrative penalties in the civil aviation sector.

Article 32. Procurement Process for Aircraft Spare Parts Maintenance and Repair Facilities

1. For aircraft spare parts with framework contracts:

a) Based on the list of aircraft spare parts, select a list and sign framework contracts with maintenance and repair facilities for aircraft spare parts;

b) When there is a need for repairs, based on the specific repair work required, select a maintenance and repair facility from the list of facilities that have signed framework contracts. The selection is based on the evaluation of repair costs and turnaround time for repairs;

c) Issue repair orders.

2. For aircraft spare parts without framework contracts, directly issue repair orders to the spare parts manufacturers.

Article 33. Leasing and Swapping of Aircraft Engines and Spare Parts

1. Based on the requirements of business operations, enterprises choose leasing and swapping forms of aircraft engines and spare parts from approved partners.

2. The selection of partners for leasing and swapping aircraft engines and spare parts is carried out through competitive bidding or direct purchases from manufacturers.

3. Enterprises shall base their decision on the nature, scale, and specific capacity of the contractor to determine whether to allow the contractor to forego submitting a tender guarantee and a performance guarantee.

Chapter VI
IMPLEMENTING PROVISIONS

Article 34. Effective Date

This Decree takes effect from February 1, 2012.

Article 35. Implementation

1. The Ministry of Transport is responsible for implementing this Decree.

2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, and related organizations and individuals are responsible for enforcing this Decree./.