Vietnam wants to accept the Cape Town Convention and Aircraft Protocol, an international convention that enables nations to access low-cost finance to develop its aviation, state-run Vietnam News Agency reported Wednesday.

The report quoted Vietnamese Transport Minister Dinh La Thang as saying at the on-going National Assembly Standing Committee's meeting in capital Hanoi, who added that the move would enable Vietnam's growing aviation industry to access cheaper finance to buy or rent aircraft.

The convention is a private legal agreement supported by the International Civil Aviation Organisation (ICAO). It promotes the standardization of sales and leasing contracts as well as legal remedies in case of default by either side, according to the transport minister.

The Aircraft Protocol supplements and modifies the convention to meet the particular requirements of the financing arrangement. This gives organizations involved in aircraft financing more confidence. The resulting reduction in risk enables finance costs to be discounted.

Debtors are in turn protected from unwarranted seizure of assets by creditors, provided they have maintained their financial obligations.

Vietnam expected to enjoy benefits that the convention could bring, including preferential interest rates, absence of deposits when buying planes and reduced risks for creditors, said the report.