HA NOI (VNS) — Viet Nam wants to accept the Cape Town Convention and Aircraft Protocol, an international convention that enables nations to access low-cost finance to develop its aviation.
At yesterday's session of the National Assembly Standing Committee meeting, Transport Minister Dinh La Thang said the move would enable Viet Nam's growing aviation industry to access cheaper finance to buy or rent aircraft.
The convention is a private legal agreement supported by the International Civil Aviation Organisation (ICAO), he said.
It promotes the stan-dardisation of sales and leasing contracts as well as legal remedies in case of default by either side.
The Aircraft Protocol supplements and modifies the convention to meet the particular requirements of the financing arrangement.
This gives organisations involved in aircraft financing more confidence. The resulting reduction in risk enables finance costs to be discounted.
Debtors are in turn protected from unwarranted seizure of assets by creditors, provided they have maintained their financial obligations.
After examining Government proposal over the accession to the convention, the NA Committee for External Affairs emphasised the benefits that the convention could bring.
These include preferential interest rates, absence of deposits when buying planes and reduced risks for creditors.
The arrangement also helps the country's legal system draw closer to international trade laws, especially when Viet Nam integrates into the global economy, according to the committee's report.
NA Vice Chairman Uong Chu Luu asked the Government to further study the advantages and disadvantages of the deal.
At yesterday's session, lawmakers also discussed the ratification of the United Nations Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment.
They were told the move would give legal impetus to the protection of human rights in the country. — VNS