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Vietnam Air Traffic Management Corporation Faces Multiple Violations

Vietnam Air Traffic Management Corporation Faces Multiple Violations

The Vietnam Air Traffic Management Corporation (VATM) has come under scrutiny following an audit by the Government Inspectorate, which uncovered multiple violations in the management and utilization of its capital and assets. Established in 2010, VATM operates under a parent-subsidiary model, with the government holding 100% of its charter capital.

According to the report signed by Deputy Chief Inspector Le Sy Bay, VATM has improperly accounted for the costs of purchasing and upgrading fixed assets, failing to correctly record asset values. Additionally, its subsidiary, the Air Traffic Management Technical Company (Attech), has not properly allocated and remitted profits to VATM, which is required to contribute to the state budget.

From 2023 until November 30, 2025, VATM and its dependent units have made cash payments totaling over 319 billion VND for salaries, bonuses, and other regular expenses, violating anti-corruption laws by not using cashless payment methods. Furthermore, VATM has been found to lease public assets, including sports facilities, for purposes not aligned with their intended use, accumulating over 3 billion VND in revenue from these activities.

The audit also revealed deficiencies in project reports, which lacked financial analysis and risk assessments. Notably, the Southern Air Traffic Control Center project has undergone three adjustments since its approval, primarily extending timelines without valid justification.

Moreover, VATM has used expired planning permits to approve projects, contravening regulations. Despite a directive from the Prime Minister in 2018 to invest in a backup facility for the Hanoi Air Traffic Control Center by 2020, VATM has yet to fulfill this requirement.

The Government Inspectorate highlighted that VATM's procurement processes have been flawed, utilizing outdated quotes and failing to select appropriate pricing, which breaches construction laws. The discrepancies in cost estimates for specialized air traffic management equipment have also led to significant adjustments post-tendering.

In light of these findings, the Government Inspectorate has urged the Ministry of Construction and VATM to clarify the extent, consequences, and responsibilities of involved parties. Should sufficient evidence be found, strict disciplinary actions are recommended against those responsible.

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