Accordingly, transportation is now on a high demand level, which explain why the industry is growing constantly in Vietnam. Following this trend, there are many new types of transportation businesses appear on the market. But, granting for a transportation business licenses is uneasy; because investors must fulfill some conditions. So, what is the regulation on granting transportation business licenses in Vietnam? Let’s find out with LSX!
- 2008 Law on Road Traffic
- Decree 10/2020/ND-CP
What is transportation business?
Hence the regulation in Article 64 of the Law on Road Traffic; transport activities include non-commercial transport activities and transport business activities; and transportation business is a conditional business line following the law. Thus, transportation business includes passenger transport business, freight transport business, transport of goods and passengers on roads, railways, airways, waterways, etc. to make a profit.
Conditions for granting transportation business
- Must belong to legal ownership or right to use following a written vehicle rental contract of a passenger transport business; unit by car with an organization or individual or a business cooperation contract following the provisions of law
- In case a registered vehicle is owned by a member of a cooperative, there must be a service contract between the member and the cooperative; because which stipulates that the cooperative has the rights, responsibilities and obligations to manage, use and control the vehicle operating automobile
Conditions for car transportation business
- Register for transportation business
- Ensure the quantity, quality and useful life of the vehicles are suitable for the business form
- Ensure that the number of drivers and service personnel on the vehicle is consistent with the business plan and must have a written labor contract; service personnel on the vehicle must attend for training in transport business and traffic safety
- Persons directly managing transport activities of enterprises or cooperatives must have professional qualifications in transport
- Having a parking space suitable to the size of the enterprise, cooperative or business household, ensuring the requirements for order, safety, fire prevention and fighting and environmental sanitation
- Having a department to manage traffic safety conditions
- Register the quality standards of passenger transport services with the competent authorities and publicly post them.
Dossier for granting transportation business license
In order to register for transportation business license, the applicant must prepare a dossier as follow:
- An application for a business license
- Copies of diplomas and certificates of the person directly managing transport activities
- A copy or original of the decision on establishment and regulations on functions and duties of the department managing and monitoring traffic safety conditions
Procedure for granting transportation business license
Firstly, the applicant shall submit 01 application for a transport business license to the transport business license-issuing agency. In case the dossier needs to be amended or supplemented, the transport business license-issuing agency shall notify directly or in writing; otherwise via the online public service the contents that need to be supplemented to the application within 03 working days from the date of receiving the dossier.
Secondly, within 05 working days from the date of receipt of complete dossiers as prescribed, the transport business license-issuing agency shall appraise the dossiers and grant transport business licenses. In case of refusal to issue a transport business license, the transport business license-issuing agency must reply in writing or notify it through the online public service system, clearly stating the reason.
The transportation business license is valid for the duration of business operations.
The competent agency for granting transportation business license is the Department of Transport of the provinces and centrally-run cities.
Accordingly, enterprises, cooperatives, household business could apply for transportation business licenses.