1. Concept of Logistics

Article 233 of the 2005 Commercial Law provides for logistics services as follows:

“Logistics service is a commercial activity whereby traders organize to perform one or more jobs including receiving goods, transporting, storing, storing, customs clearance, other paperwork, etc. Customer consulting, packaging, marking, delivery or other services related to goods as agreed with the customer for remuneration. logical service.”

Logistics is one of the commercial activities that still have many opportunities for development in Vietnam for foreign investors. However, to participate in the Logistics market in Vietnam, investors will have to meet a lot of business conditions.

2. Conditions for doing business in Logistics services of foreign investors in Vietnam

The above business conditions are specified in Clause 3, Article 4 of Decree No. 163/2017/ND-CP dated December 30, 2017 of the Government on logistics service business as follows:

– In case of trading in freight transport services of sea transport services (except for domestic transportation):

To establish companies operating fleets of ships flying the Vietnamese flag or to contribute capital, purchase shares or capital contributions in enterprises, in which the capital contribution ratio of foreign investors does not exceed 49%. The total number of foreign crew members working on ships flying the Vietnamese flag (or registered in Vietnam) owned by these companies in Vietnam does not exceed one third of the vessel’s manning. The captain or first mate must be a Vietnamese citizen.
A foreign shipping company may establish an enterprise or contribute capital, purchase shares or contributed capital in an enterprise.

– In case the business of container handling services belongs to sea transport support services (may be reserved for some areas to provide services or apply licensing procedures in these areas), established establish an enterprise or contribute capital, purchase shares or contributed capital in an enterprise, in which the capital contribution ratio of foreign investors does not exceed 50%. Foreign investors are allowed to establish a commercial presence in Vietnam in the form of a business cooperation contract.

– In case of business in container handling services belonging to services supporting all modes of transport, except for services provided at airports, it is possible to establish an enterprise or contribute capital, purchase shares, or contribute capital in the business. enterprises, in which the capital contribution ratio of foreign investors does not exceed 50%.

– In case of trading in customs clearance services under sea transport support services, they are allowed to establish an enterprise or contribute capital, purchase shares or contributed capital in an enterprise, including capital contributed by domestic investors. Foreign investors are allowed to establish a commercial presence in Vietnam in the form of a business cooperation contract.

– Business case of other services, including the following activities: Bill of lading checking, freight brokerage services, goods inspection, sampling and weight determination services; receiving and accepting services; services of preparing transport documents, establishing an enterprise or contributing capital, buying shares or contributed capital in an enterprise, including capital contributed by domestic investors.

– In case of business in freight transport services of inland waterway transport services, freight transport services of railway transport services, may establish an enterprise or contribute capital, purchase shares, share capital; contribution in the enterprise, in which the capital contribution ratio of foreign investors does not exceed 49%.

– In case the business of freight transport services belongs to the road transport service, it is done through the form of a business cooperation contract or is allowed to set up an enterprise or contribute capital, buy shares, or contribute capital in the enterprise. enterprises, in which the capital contribution ratio of foreign investors does not exceed 51%. 100% of business drivers must be Vietnamese citizens.

– In case of business in air transport services, comply with the provisions of aviation law.

– Business case for technical analysis and verification services

• For services provided to exercise the authority of the Government carried out in the form of an enterprise in which the investor’s capital is contributed in after three years or in the form of an enterprise in which there is no restriction on capital contribution by foreign investors after five years, from the time when a private service provider is allowed to provide such services.< /li>
• Not allowed to provide inspection and certification services for means of transport.
• Performance of technical analysis and verification services is restricted to geographical areas identified by the competent authority for reasons national security.

A foreign shipping company may establish an enterprise or contribute capital, purchase shares or contributed capital in an enterprise.

– In case the business of container handling services belongs to sea transport support services (may be reserved for some areas to provide services or apply licensing procedures in these areas), established establish an enterprise or contribute capital, purchase shares or contributed capital in an enterprise, in which the capital contribution ratio of foreign investors does not exceed 50%. Foreign investors are allowed to establish a commercial presence in Vietnam in the form of a business cooperation contract.

– In case of business in container handling services belonging to services supporting all modes of transport, except for services provided at airports, it is possible to establish an enterprise or contribute capital, purchase shares, or contribute capital in the business. enterprises, in which the capital contribution ratio of foreign investors does not exceed 50%.

– In case of trading in customs clearance services under sea transport support services, they are allowed to establish an enterprise or contribute capital, purchase shares or contributed capital in an enterprise, including capital contributed by domestic investors. Foreign investors are allowed to establish a commercial presence in Vietnam in the form of a business cooperation contract.

– Business case of other services, including the following activities: Bill of lading checking, freight brokerage services, goods inspection, sampling and weight determination services; receiving and accepting services; services of preparing transport documents, establishing an enterprise or contributing capital, buying shares or contributed capital in an enterprise, including capital contributed by domestic investors.

– In case of business in freight transport services of inland waterway transport services, freight transport services of railway transport services, may establish an enterprise or contribute capital, purchase shares, share capital; contribution in the enterprise, in which the capital contribution ratio of foreign investors does not exceed 49%.

– In case the business of freight transport services belongs to the road transport service, it is done through the form of a business cooperation contract or is allowed to set up an enterprise or contribute capital, buy shares, or contribute capital in the enterprise. enterprises, in which the capital contribution ratio of foreign investors does not exceed 51%. 100% of business drivers must be Vietnamese citizens.

– In case of business in air transport services, comply with the provisions of aviation law.

– Business case for technical analysis and verification services

– For services provided to exercise the authority of the Government performed in the form of enterprises in which capital is contributed by domestic investors after three years or in the form of enterprises in which there is no limitation capital contributed by foreign investors after five years from the time the private service provider is allowed to trade in such services.

– Not allowed to do business in inspection and certification services for means of transport.

– The performance of technical analysis and verification services is restricted to geographical areas identified by competent authorities for reasons of national security.

The above are the conditions for foreign investors to access the potential logistics market in Vietnam. Hopefully with the above article, Khoa Tin has contributed to helping customers who are foreign investors have an overview of logistics business conditions to have a plan to implement investment projects in Vietnam.

In case customers have unclear problems or need to discuss further, please call us immediately at 0983.533.005 for a free consultation.

Best regards./.