Set up A Logistics Company in Vietnam
Setting up a logistics company in Vietnam can be a lucrative opportunity, thanks to the country's growing economy and expanding trade. However, navigating the regulations and requirements can be complex.
Table of contents:
I. Overview of Logistics in Vietnam
According to Article 3 of Decree No. 163/2017/ND-CP dated December 28, 2017, of the Government, the types of logistics services allowed to operate in Vietnam include:
1. Container loading and unloading services, excluding services provided at airports.
2. Container warehousing and storage services, which are maritime transport support services.
3. Warehousing and storage services, which are support services for all modes of transport.
4. Courier services.
5. Freight transport agency services.
6. Customs brokerage services (including customs clearance services).
7. Other services, including the following activities: Checking bills of lading, freight forwarding services, goods inspection, sampling and weighing services; receiving and accepting goods services; transport document preparation services.
8. Wholesale and retail support services, including warehouse management, collection, consolidation, sorting of goods, and delivery.
9. Freight transport services, which are maritime transport services.
10. Freight transport services, which are inland waterway transport services.
11. Freight transport services, which are rail transport services.
12. Freight transport services, which are road transport services.
13. Air transport services.
14. Multimodal transport services.
15. Technical inspection and analysis services.
16. Other transport support services.
17. Other services as agreed by traders in logistics services and customers in accordance with the basic principles of the Commercial Law.
II. Conditions for Providing Logistics Services in Vietnam
To provide logistics services in Vietnam, businesses need to meet the following general conditions:
- Have a valid business registration.
- Have facilities and technical capabilities suitable for the type of service provided.
- Have a team of personnel with professional qualifications and expertise.
- Comply with the provisions of law on logistics business.
In addition, for foreign investors, there are specific conditions for each type of service:
1 |
Container loading and unloading services, excluding services provided at airports. |
In the case of container loading and unloading services belonging to support services for all modes of transport, excluding services provided at airports, enterprises are allowed to be established or to contribute capital, purchase shares, or capital contributions in enterprises, in which the foreign investor's capital contribution ratio does not exceed 50%. In the case of container loading and unloading services belonging to maritime transport support services (certain areas may be reserved for providing services or applying licensing procedures in these areas), enterprises are allowed to be established or to contribute capital, purchase shares, or capital contributions in enterprises, in which the foreign investor's capital contribution ratio does not exceed 50%. Foreign investors are permitted to establish a commercial presence in Vietnam in the form of a business cooperation contract.
|
2 |
Container warehousing and storage services, which are maritime transport support services. |
100% foreign capital. |
3 |
Warehousing and storage services, which are support services for all modes of transport. |
100% foreign capital. |
4 |
Courier services. |
100% foreign capital. |
5 |
Freight transport agency services. |
100% foreign capital. |
6 |
Customs brokerage services (including customs clearance services). |
In the case of customs clearance services belonging to maritime transport support services, enterprises are allowed to be established or to contribute capital, purchase shares, or capital contributions in enterprises, in which there is a capital contribution from a domestic investor. Foreign investors are permitted to establish a commercial presence in Vietnam in the form of a business cooperation contract. |
7 |
Other services, including the following activities: Checking bills of lading, freight forwarding services, goods inspection, sampling and weighing services; receiving and accepting goods services; transport document preparation services. |
In the case of other services, including the following activities: Checking bills of lading, freight forwarding services, goods inspection, sampling and weighing services; receiving and accepting goods services; transport document preparation services, enterprises are allowed to be established or to contribute capital, purchase shares, or capital contributions in enterprises, in which there is a capital contribution from a domestic investor. |
8 |
Wholesale and retail support services, including warehouse management, collection, consolidation, sorting of goods, and delivery. |
100% foreign capital. |
9 |
Freight transport services, which are maritime transport services. |
In the case of freight transport services that are maritime transport services (excluding domestic transport): - Enterprises are allowed to establish companies operating fleets flying the Vietnamese flag or to contribute capital, purchase shares, or capital contributions in enterprises, in which the foreign investor's capital contribution ratio 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 1/3 of the ship's crew. The captain or first officer must be a Vietnamese citizen. - Foreign shipping companies are allowed to establish enterprises or to contribute capital, purchase shares, or capital contributions in enterprises.
|
10 |
Freight transport services, which are inland waterway transport services. |
In the case of freight transport services that are inland waterway transport services or rail transport services, enterprises are allowed to be established or to contribute capital, purchase shares, or capital contributions in enterprises, in which the foreign investor's capital contribution ratio does not exceed 49%. |
11 |
Freight transport services, which are rail transport services. |
In the case of freight transport services that are inland waterway transport services or rail transport services, enterprises are allowed to be established or to contribute capital, purchase shares, or capital contributions in enterprises, in which the foreign investor's capital contribution ratio does not exceed 49%. |
12 |
Freight transport services, which are road transport services. |
In the case of freight transport services that are road transport services, business is conducted through the form of a business cooperation contract or enterprises are allowed to be established or to contribute capital, purchase shares, or capital contributions in enterprises, in which the foreign investor's capital contribution ratio does not exceed 51%. 100% of the enterprise's drivers must be Vietnamese citizens. |
13 |
Air transport services. |
In the case of air transport services, business is conducted in accordance with the provisions of aviation law. |
14 |
Multimodal transport services. |
|
15 |
Technical analysis and testing services. |
In the case of technical analysis and testing services: * For services provided to exercise the authority of the Government, business is conducted in the form of an enterprise in which there is a capital contribution from a domestic investor after three years or in the form of an enterprise in which there is no limit on the capital contribution of a foreign investor after five years from the time private service providers are permitted to trade in such services. * Trading in testing services and issuing certificates for means of transport is not permitted. * The provision of technical analysis and testing services is restricted in geographical areas designated by competent authorities for national defense and security reasons. |
16 |
Other transport support services. |
100% foreign capital. |
17 |
Other services as agreed by traders in logistics services and customers in accordance with the basic principles of the Commercial Law. |
100% foreign capital. |
III. Conclusion
Vietnam encourages domestic and foreign businesses to invest in and develop logistics services. Businesses need to thoroughly understand the provisions of Law to ensure effective and compliant business operations.
This information contained herein is of a general nature and is intended to provide updates on the Laws for information purposes only. DB Legal shall not be liable for any use or application of the information for any business purpose.
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