Conditions for foreign investors providing logistics services

by DungTran

Conditions for foreign investors providing logistics services. Limitation of liability for traders providing logistics services. Let us learn about this topic with LSX Law firm below:

– Decree 163/2017/ND-CP

Conditions for foreign investors providing logistics services

According to Decree 163/2017/ND-CP, conditions for a logistics service business are as follows:

Conditions for logistics service business for investors

Article 4 provides:

Firstly, traders dealing in specific logistics services specified in Article 3 of this Decree must satisfy the investment and business conditions prescribed by law for such services.

Besides, traders conduct part or all logistics business activities by electronic means connected to the Internet; mobile telecommunications networks, or other open networks; in addition to meeting the requirements of the law for specific services specified in Article 3 of this Decree, they must also comply with regulations on e-commerce. 

Conditions for foreign investors providing logistics services:

In addition to meeting the conditions specified in Article 4; foreign investors belong to countries or territories that are members of the World Trade Organization; be provided with logistics services under the following conditions:

a) Providing freight transport services undersea transport services (except for inland transportation):

Firstly, to establish companies operating fleets of ships flying the Vietnamese flag or 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 ship’s manning. The captain or first mate must be a Vietnamese citizen.

Secondly, a foreign shipping company may establish an enterprise or contribute capital, purchase shares or contribute capital in an enterprise. 

b) Container handling services in support of sea transport services

In this case, conditions for foreign investors providing logistics services (may reserved for some areas to provide services or apply licensing procedures in these areas); there may 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 can establish a commercial presence in Vietnam in the form of a business cooperation contract. 

c) The business of container handling services belongs to services supporting all modes of transport

In this case, except for services provided at airports; it may establish an enterprise or contribute capital, purchase shares in enterprises. The capital contribution ratio of foreign investors does not exceed 50%. 

d) Providing customs clearance services in the maritime transport support service

In this case, may 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.

đ) In case of providing 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 

e) Another cases about Conditions for foreign investors providing logistics services

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

Moreover, in case the business of freight transport services belongs to the road transport service; it is carried out in the form of a business cooperation contract or is allowed to establish an enterprise or contribute capital; purchase shares or contributed capital; in enterprises, in which the capital contribution ratio of foreign investors does not exceed 51%. 100% of business drivers must be Vietnamese citizens.

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

Finally, business case of technical analysis and verification services

In case, for services provided to exercise the authority of the Government carried out in the form of enterprises in which domestic investors contribute capital after three years; or in the form of enterprises in which there is no limitation contributed capital by foreign investors after five years from the time the private service provider is allowed to provide such services.

Also, 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 the competent authority for national security reasons. 

Besdies, in case a foreign investor is subject to the application of international treaties with different provisions on logistics service business conditions; the investor may choose to apply the investment conditions specified in those treaties.” 

See more:

What are the Conditions for establishing foreign language centers with foreign elements?

Conditions for foreigners to become lawyers in Vietnam

Limitation of liability for traders providing logistics services:

“Article 5. Limitation of Liability

Firstly, limit of liability is the maximum limit that a logistics service trader is responsible for indemnifying customers for losses incurred in providing logistics services in this Decree.

Secondly, In cases where relevant laws provide for the limitation of liability of traders providing logistics services, the provisions of relevant laws shall apply.

Moreover, if the relevant law does not provide for limitation of liability, the liability of the trader providing logistics services shall be agreed upon by the parties. If the parties do not reach an agreement, the following shall be done:

a) If the customer does not have prior notice of the value of the goods; the maximum liability limit is VND 500 million for each claim.

b) Where the customer has given advance notice of the value of the goods; and is certified by the trader providing logistics services, the limit of liability shall not exceed the value of such goods.

Finally, limitation of liability for the case where a trader providing logistics services organizes the performance of many stages with different regulations on liability limitation; which is the limit of liability of the stage with the highest limit of liability.” 

Hope this article about conditions for foreign investors providing logistics services is helpful for you!

If you have any questions; please contact Lawyer X for quick and best legal services: 0833102102.

Related questions

What is logistics?

“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, customer consultation, packaging, marking, delivery or other services related to goods as agreed with the customer for remuneration.”

What is an enterprise?

“Enterprise” is understood as an organization established under the provisions of law for the purpose of doing business. This organization not only has its own name, has its own assets, but also has a transaction office to serve business purposes.

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