These include a proposal to exempt 100% of the environmental protection tax on aviation fuel until the end of May this year, and to add aviation fuel to the list of goods eligible for a reduced value-added tax (VAT) from 10% to a lower appropriate rate. The authority also proposed allowing airlines to apply a fuel surcharge on domestic airfares, with a flexible adjustment mechanism based on fluctuations in Jet A-1 fuel prices. Alongside policy measures, CAAV suggested establishing high-level discussions with countries that are currently restricting fuel exports, such as Thailand and China. The aim is to facilitate Vietnamese companies in fulfilling existing Jet A-1 fuel contracts and securing new supply sources. In addition, CAAV proposed that the Ministry of Industry and Trade expand fuel supply sources and direct domestic refineries such as Dung Quat Refinery and Nghi Son Refinery to maximise Jet A-1 production capacity./.

Source: VietNamNet News March 11, 2026 18:24 UTC