The former head of Jetstar Pacific has been cleared of criminal activity after a nine month investigation into allegations of gross mismanagment.
The Ministry of Public Security's inspectors have also suspended their investigation.
Investigators said they made the move after Qantas Airlines, which holds a financial stake in the carrier, asked the government to drop criminal charges against a pair of Australian Deputy General Directors.
Qantas also promised to cover the case's losses, they said.
According investigators, Luong Hoai Nam and his subordinat Tristan Feeman and Daniela Marcilli are responsible for Jetstar Pacific's loss of US$31.2 related to fuel hedging activities between July 2008 and May 2009.
Nam, who was taken into police custody on January 7, was the only person to be arrested in the case.
He was released last month, but placed under house arrest pending a trial that never came.
He submitted his resignation in September 2009 and was relieved of his post two months later.
After working at Vietnam Airlines for 11 years, Nam joined the low-cost carrier in 2004.