Vietnam ditching expensive air fares for investors

HANOI, Vietnam (Reuters) -- If international investors present special certificates showing they are doing business in Vietnam, they will be exempt from paying double airfares for domestic flights, officials said.

An official of the national flag carrier Vietnam Airlines said the measure took effect in September. Those wishing to take advantage of it must obtain the certificates from their local municipal authorities, or People's Committees.

Charging non-nationals double to take flights on the two domestic carriers, Vietnam Airlines and Pacific Airlines, has been a major irritant for overseas investors, other international residents and tourists in Vietnam.

It has meant ticket prices of 3.6 million Vietnamese dong (US $255) for a round-trip flight between the national capital Hanoi and Ho Chi Minh City.

It was not clear if the new rule would apply to all non-Vietnamese residents or just those working for firms investing in Vietnam.

An official from Hanoi's People Committee said although it had been notified of the decision it would need formal guidance from various ministries to implement the new rules.

Overseas investment in Vietnam has plunged since peaks in the mid-1990s, due to excessive red tape, vague laws and the double-pricing system, which also applies to utilities.

Copyright 2000 Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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