Passenger or cargo transport contract applied from April 01, 2020 in Vietnam

Specifically, according to Clause 1 Article 15 of the Decree No. 10/2020/NĐ-CP of Vietnam’s Government:

A physical or electronic transport contract is an agreement between contract parties according to which the transport business will transport passengers, luggage or cargo to an agreed-upon location in exchange for reward payable to the passengers or the automobile renter.

Previously, transport contracts were regulated in Section 10, Chapter XVI of the Civil Code 2015 of Vietnam, which specified the rights and obligations of the parties but did not specify the content of the contract.

However, from April 01, 2020, when the Decree No. 10/2020/NĐ-CP takes effect, in addition to the provisions of Civil Code 2015 of Vietnam, this Decree also requires that the passenger or cargo transport contract must have all of the following basic information:

- Information on the contracting transport business, including its name, address, phone number, tax identification number and the representative signing the contract;

- Information on the driver, including full name and phone number;

- Information on the passengers or automobile renter (organization or individual), including name, phone number and tax identification (if any);

- Information on the automobile, including its registration plate number and payload;

- Information on contract execution, including start and end of the contract (date and time); addresses of first stop, last stop, pick-up points and drop-off points (or loading and unloading points) on the journey; journey’s length (km); and number of passengers (or weight of cargo);

- Information on the contract’s value and payment method;

- Regulations on responsibilities of contract parties for contract execution, which specifies fulfillment of tax obligations to the state; rights and obligations of the transporting party, passengers or the renter; phone number for receipt and settlement of complaints and denunciations from passengers; commitment to contract execution and indemnity paid to the renter and/or passengers.

Thus, from April 01, 2020, the passenger or cargo transport contract must contain the above provisions. Basic information in passenger or cargo transport contracts may be used for the purpose of state management of transport; or may be provided for competent authorities, price management authorities, tax authorities, and the police force and/or transport inspectors upon request.

Le Hai

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