PRESS RELEASE

The United States Government is Providing $1.4 million to Aid Vietnam in its Efforts to Launch Direct Air Service to the United States

January 24, 2008

The United States welcomes Vietnam Airlines' recent filing for a foreign air carrier permit with the U.S. Department of Transportation.  The permit would allow for direct service between Ho Chi Minh City and Los Angeles via Osaka, Japan.  With Vietnam’s recent accession to the World Trade Organization, direct air service between the United States and Vietnam offers opportunities for increased bilateral trade and tourism, thereby enhancing Vietnam’s participation in the global economy.

Vietnam is working on upgrading its safety oversight capacity, which is a requirement of the approval process.  Under the International Aviation Safety Oversight Assessment Program (IASA), the U.S. Federal Aviation Administration assesses all foreign civil aviation authorities whose air carriers serve the United States in order to ascertain compliance with internationally agreed minimum standards for air safety oversight established by the International Civil Aviation Organization.  In addition, the U.S. Transportation Security Administration must determine that foreign airports used by foreign air carriers for direct service to the United States meet minimum international standards for aviation security.

While the process for compliance can be lengthy, it is a straightforward and transparent.  The United States stands ready to help the CAAV and Vietnam Airlines upgrade its safety capacity and looks forward to the opening of direct air service to the United States.  In order to aid Vietnam in its efforts, the U.S. Trade and Development Agency is providing $1.4 million for a three-phase project to upgrade Vietnam’s safety oversight capability to international standards.  The Civil Aviation Administration of Vietnam (CAAV) has now completed the first phase of this project.