Foreign investors can, under Vietnam's draft decree on air transport business, hold up to 49 percent of stakes in a new local airline, compared with 30 percent as currently, local newspaper Pioneer reported Thursday.

If the airline is established to serve agriculture and forestry purposes, foreign investors can contribute up to 60 percent of its registered capital.

Under the draft decree expected to be passed by the Vietnamese government in the near future, individuals and organizations who have at least one aircraft and capital of 80 billion Vietnamese dong (five million U.S. dollars) upwards can establish an airline.

Late last month, Australian airline Qantas inked a 50-million dollar deal to purchase a 30-percent stake in Vietnam's Pacific Airlines, becoming the first foreign firm investing in Vietnam's civil aviation industry. The state will continue to hold 62 percent of the local joint stock airline following the deal.

The aviation industry of Vietnam, home to two air carriers: Pacific Airlines and national flag carrier Vietnam Airlines, served over 2.9 million domestic and foreign passengers and 42,600 tons of cargoes in the first four months this year, registering year-on-year rises of 15.4 percent and 0.5 percent, respectively, according to the country's General Statistics Office.

Source: Xinhua