Conditions for Foreign Investors to Engage in Logistics Services Business in Vietnam

1. In case of engaging in freight transportation services under maritime transport services (excluding domestic transportation):

- The establishment of companies operating fleets registered in Vietnam or contributing capital, purchasing shares, or capital contributions in enterprises is permitted, in which the foreign investor's capital contribution ratio does not exceed 49%. The total number of foreign seafarers working on ships registered under Vietnamese nationality (or registered in Vietnam) owned by these companies in Vietnam must not exceed 1/3 of the ship's crew. The captain or first mate must be a Vietnamese citizen.- Foreign maritime transport companies are allowed to establish enterprises or contribute capital, purchase shares, or capital contributions in enterprises.

2. In case of engaging in container handling services under maritime transport support services (specific areas may be reserved for service provision or licensing procedures applied in these areas), the establishment of enterprises or capital contribution, purchase of shares, or capital contributions in enterprises is permitted, in which the foreign investor's capital contribution ratio must not exceed 50%. Foreign investors are allowed to establish a commercial presence in Vietnam in the form of business cooperation contracts.

3. In case of engaging in container handling services under support services for all modes of transport, excluding services provided at airports, the establishment of enterprises or capital contribution, purchase of shares, or capital contributions in enterprises is permitted, in which the foreign investor's capital contribution ratio must not exceed 50%.

4. In case of engaging in customs clearance services under maritime transport support services, the establishment of enterprises or capital contribution, purchase of shares, or capital contributions in enterprises is permitted, with the presence of domestic investors' capital. Foreign investors are allowed to establish a commercial presence in Vietnam in the form of business cooperation contracts.

5. In case of engaging in other services, including the following activities: Bill of lading inspection, freight forwarding brokerage services, goods inspection, sampling and weight determination services; acceptance and acceptance services; transportation documentation preparation services, the establishment of enterprises or capital contribution, purchase of shares, or capital contributions in enterprises is permitted, with the presence of domestic investors' capital.

6. In case of engaging in freight transportation services under inland waterway transportation services and freight transportation services under railway transportation services, the establishment of enterprises or capital contribution, purchase of shares, or capital contributions in enterprises is permitted, in which the foreign investor's capital contribution ratio must not exceed 49%.

7. In case of engaging in freight transportation services under road transportation services, it is carried out through business cooperation contracts or the establishment of enterprises or capital contribution, purchase of shares, or capital contributions in enterprises, in which the foreign investor's capital contribution ratio must not exceed 51%. 100% of the drivers of the enterprise must be Vietnamese citizens.

8. In case of engaging in air cargo transportation services, it is carried out according to the legal regulations on aviation.

9. In case of engaging in technical analysis and inspection services:

- For services provided to exercise the authority of the Government of Vietnam, they are carried out in the form of enterprises with domestic investors' capital after three years or in the form of enterprises without restrictions on foreign investors' capital contributions after five years, from when private service providers are allowed to conduct these services.- Inspection and certification services on transportation means are not allowed.- The execution of technical analysis and inspection services is restricted to geographical areas determined by competent authorities for national security reasons.

See more at Decree 163/2017/ND-CP effective from February 20, 2018.

- Ngoc Duyen -

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