VIETNAM Law and Practice Contributed by: Chuyen Hong Huu Le, Tan Nhat Truong Phan and Tu Anh Tran, Tilleke & Gibbins
2.9.7 Imposition of Moratoria in Connection with Insolvency Proceedings must be lifted and the condi - tions stated in 2.9.8 Liquidation of Domestic Lessees must be met as well. 2.9.10 Impact of Domestic Lessees’ Winding-Up The impact of a domestic lessee’s winding-up is as follows. • Aircraft: as the aircraft is not the lessee’s asset, it will not be sold at a public auction. • Lease rentals: the lessor has to submit a debt repayment application to the official receiver requesting the outstanding debts, which includes rent. • Lease security deposit: the lessor has to fulfil simi - lar requirements to lease rentals. • Maintenance reserves: the lessor has to fulfil simi - lar requirements to lease rentals. 2.10 Cape Town Convention and Others 2.10.1 Conventions in Force The Convention on International Interests in Mobile Equipment and the related Protocol on Matters spe - cific to Aircraft Equipment took effect in Vietnam on 1 January 2015. Vietnam has elected to implement authorising entry point (AEP) codes. It is therefore necessary to obtain an AEP code before making a registration application for an airframe or helicopter to the International Reg - istry. Lessors should therefore apply for the required AEP codes at CAAV and then make the Cape Town filings on an airframe or helicopter. An AEP code will be issued by CAAV within three working days of the date of receiving a proper application. 2.10.2 Declarations Made Concerning Conventions Vietnam has made declarations in line with Articles 39 (1)(a)-(b), 40, 53 and 54 (2) of the Convention on International Interests in Mobile Equipment (the “Con - vention”) and Articles XIX(1), XXX(1),(2),(3) of the Pro - tocol on Matters specific to Aircraft Equipment (the ”Protocol”).
2.10.3 Application of Article XIII of the Protocol on Matters Specific to Aircraft Equipment Article XIII of the Protocol is incorporated into Vietnam - ese domestic law under Decree No 68/2015/ND-CP (as amended). An owner or applicant for registration of an aircraft can submit a registration application of the IDERA to CAAV. The application mainly includes: • a pro forma application form; • documents proving the legal status of the appli - cant; and • documents proving international interests of the authorised party of the Vietnamese nationality aircraft. CAAV will grant the confirmation for the registration of the IDERA within five working days of the date of receipt of a valid application. If the application is incomplete, CAAV will provide a guideline document within one working day of receiv - ing the application to assist the applicant in finalising it and if it is refused, CAAV will respond to the applicant
in writing and clearly state the reason. 2.10.4 Enforcement of Conventions
There is at least one case before the Vietnamese courts in relation to parties enforcing the Convention and the Protocol, particularly with regard to aircraft
deregistration and export. 2.10.5 Other Conventions
Vietnam has been a party to the 1948 Geneva Con - vention on the International Recognition of Rights in Aircraft since 1997. However, it is not a party to the 1933 Rome Convention on the Unification of Certain Rules relating to the Precautionary Arrest of Aircraft. 3. Aircraft Debt Finance 3.1 Structuring 3.1.1 Restrictions on Lending and Borrowing Subject to complying with the applicable laws, there are no restrictions on foreign lenders financing an air - craft locally or on borrowers using the loan proceeds.
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