Contents
I. General rules on business conditions
Pursuant to the provisions of Article 233 of the Commercial Law 2005, Logistics service is a type of service in which one party who is a trader organizes one or more activities including goods receipt, transportation, storage, warehousing, and execution of customs formalities, other legal proceedings, customer consultation, packaging, packaging, marking, delivery, or other service activities related to the agreed goods for remuneration. from customers.
General conditions on perform Logistics service
According to Article 4 of Decree 163/2017/ND-CP, in order for a trader to be able to provide logistics services, a trader must satisfy the following conditions:
– Regarding investment and business conditions according to the provisions of law for such services;
– If a trader conducts part or all of its logistics business electronically shall connect to the internet, mobile telecommunications network, or other open networks, it must comply with the law on e-commerce …
Can foreign investors do Logistics business?
In accordance with Vietnam’s Service Commitment No. 318/WTO/CK with the WTO and the Investment Law 2020 along with relevant legal regulations, Vietnam allows foreign investors to do logistics services with certain mandatory conditions.
II. Specific conditions for doing logistics business for foreign investors
Pursuant to Section 11 Service Commitment No. 318/WTO/CK and Clause 3, Article 4 of Decree No. 163/2017/ND-CP, in addition to meeting the conditions for investment and electronic means, Foreign investors in countries or territories that are members of the World Trade Organization may provide logistics services under the following conditions:
a. For cargo transport services classified as sea transport services (except for inland transport):
– The foreign investor may establish companies operating ships flying the Vietnamese flag or contribute capital, purchase shares or stakes in another enterprise, provided the holding of the foreign investor in such company does not exceed 49%. The total number of foreign seafarers working on the ship flying the Vietnamese flag (or registered in Vietnam) under the ownership of these companies in Vietnam shall not exceed 1/3 of the ship’s personnel. The captain or first mate must be a Vietnamese citizen.
– The foreign sea transport company may establish an enterprise or contribute capital, purchase shares or stakes in another enterprise.
b. For container handling services classified as auxiliary services for sea transport
Some areas may be used exclusively for the provision of services or procedures for issuance of licenses may be completed in these areas, the foreign investor may establish an enterprise or contribute capital, purchase shares or stakes in another enterprise, provided the holding of the foreign investor in such company does not exceed 50%. The foreign investor may establish a commercial presence in Vietnam under a business cooperation agreement.
c. For container handling services classified as auxiliary services for multimodal transport, except for services provided at airports
The foreign investor may establish an enterprise or contribute capital or purchase shares or stakes in another enterprise, provided the holding of the foreign investor in such company does not exceed 50%.
d. For customs clearance services classified as auxiliary services for sea transport
The foreign investor may establish an enterprise or contribute capital or purchase shares or stakes in another enterprise that is invested in by a domestic investor. The foreign investor may establish a commercial presence in Vietnam under a business cooperation agreement.
đ. For other services
Including bills of lading inspection, cargo brokerage, cargo inspection, sampling and weighing services; goods receipt and acceptance services; and preparation of transport documents, the foreign investor may establish an enterprise or contribute capital or purchase shares or stakes in another enterprise which is invested in by a domestic investor.
e. For cargo transport services classified as inland waterway transport services or cargo transport services classified as rail transport services
The foreign investor may establish an enterprise or contribute capital or purchase shares or stakes in another enterprise, provided the holding of the foreign investor in such company does not exceed 49%.
g. For cargo transport services classified as road transport services
The foreign investor may provide such services under a business cooperation agreement or establish an enterprise or contribute capital, or purchase shares or stakes in another enterprise, provided the holding of the foreign investor in such company does not exceed 51%. All drivers of the enterprise must be Vietnamese citizens.
h. In case of business in air transport services, the provisions of the law on aviation shall be complied with.
i. For technical inspection and analysis services
– Regarding the services provided to exercise the authority of the Government, they may be provided by an enterprise that is invested in by a domestic investor after three years or by an enterprise in which foreign investment is not limited after five years from the date on which the private service provider is allowed to provide such services.
– It is not allowed to provide vehicle inspection services and issue certificates to such vehicles.
– The provision of technical analysis and inspection is limited in the areas determined by the competent authority for national defense and security reasons.
Notes: In case an international treaty governs otherwise, the international treaty shall apply.
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