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Conditions for doing business in logistics services in Vietnam

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Does Vietnam’s law stipulate any conditions for doing business in logistics services? Enterprises that want to provide logistics services need to pay attention to what issues? Let’s find out more about this topic with Lawyer X through the following article:

Commercial Law 2005

Concept

According to the law of Vietnam, “Logistics service is a commercial activity whereby a trader organizes to perform one or more jobs including receiving goods, transporting, storing, warehousing, customs clearance, other paperwork, customer consultation, packaging, marking, delivery or other services related to goods as agreed with the customer for remuneration. Therefore, logistics services are transliterated in Vietnamese as logical services”.

Characteristics of logistics services

– Subjects participating in logistics services include: traders providing logistics services and customers.

– Logistics services provided by traders providing logistics services must fully satisfy the conditions on means of transport; technical and staff to meet the requirements.

– Traders dealing in logistics services may undertake one or part; or all stages in the logistics chain.

– Particularly, traders dealing in logistics services can build logistics chains based on systematically setting up resources; its technology with other merchants.

– A customer is an organization or individual who needs to use goods delivery and delivery services. Customers in logistics services can be traders; or not a trader.

– Besides, customers of logistics services can be owners of goods; or not the owner of the goods.

Conditions for logistics service business

General conditions of traders providing logistics services are specified in Article 234 of the Commercial Law 2005. Specifically:

Firstly, the condition of subject status

Traders providing logistics services must have a legal business registration as prescribed by law.

Accordingly, traders providing logistics services must operate under the model of a private enterprise; a two-member limited liability company or a joint-stock company.

Secondly, is the condition of technical standards.

Many types of services are required for traders when conducting business activities; must prepare adequate means; equipment and tools to ensure safety and technical standards when conducting business activities.

– Various standard conditions; complex. Some conditions can be mentioned such as conditions on warehousing; machinery, packaging lines, infrastructure, etc.

– Traders provide logistics services before carrying out business activities; procedures must be carried out to demonstrate that the requirements for technical standards are met.

Thirdly, conditions of professional qualifications.

– Traders dealing in logistics services must have a staff of qualified staff. Staff must be properly trained; have the right specialty, the right field; Ability to perform tasks in the logistics service chain as assigned.

– For some service areas requiring professional responsibility; employees participating in service provision must have practice certificates granted by competent state agencies.

– However, depending on the service area; So, the law stipulates that a trader must have several employees meeting the requirements for professional qualifications.

Related article

Responsibilities of traders providing logistics services in Vietnam

Industrial property rights in Vietnam

Frequently asked questions

What are the obligations of customers in logistics services?

According to the provisions of Article 236 of the Commercial Law and 2005; Unless otherwise agreed, customers have the following rights and obligations:
+ Guide, inspect, and supervise the contract performance;
+ Provide full instructions for traders providing logistics services;
+ Detailed, complete, accurate, and timely information about goods for traders providing logistics services;

How is the limitation of liability in logistics services regulated?

According to the provisions of Article 238 of the 2005 Commercial Law, the limits of liability are specified as follows:
+ Unless otherwise agreed, the full liability of the trader providing logistics services shall not exceed the limit of liability for loss of the entire cargo.
+ The Government shall detail the limitation of liability for traders providing logistics services by the provisions of international laws and practices.
+ A trader providing logistics services is not entitled to limit liability to compensate for damage if the person with related rights and interests can prove the loss or damage; or late delivery of goods is because the trader providing logistics services intentionally acts or fails to act to cause loss, damage, delay or has acted or failed to act in a risky manner knowing that the loss Cooling, damage, delay that inevitably happens.

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