Logistics Services is one of the industries highly appreciated for its development potential and international integration. So, how are Logistic Services and business conditions for this service regulated by law? This article shares the legal regulations surrounding Logistics services according to the 2005 Commercial Law and other detailed guiding documents.

CSPL: Article 233 of the 2005 Commercial Law

            Articles 3, 4, 5 of Decree 163/2017/ND-CP regulating logistics service business

1. What is Logistics Service?

Logistics service is a commercial activity whereby traders organize to perform one or more tasks including receiving goods, transporting, warehousing, warehousing, customs clearance, other paperwork, customer consulting, packaging, marking, delivery or other services related to goods as agreed with customers to receive remuneration. Logistics services are transliterated in Vietnamese as logistics services.

2. Classification of logistics services

Logistics services provided include:

– Container loading and unloading services, except services provided at airports.

– Container warehousing services belong to maritime transport support services.

– Warehousing services belong to services supporting all modes of transport. loading.

– Delivery services.

– Freight transport agency services.

– Customs clearance agency services (including customs clearance services).

– Other services, including the following activities: Checking bills of lading, freight brokerage services, goods inspection, services Sampling and weight determination; goods receiving and acceptance services; Transportation document preparation services.

– Wholesale and retail support services including inventory management, collection, gathering, classification of goods and delivery.

– Freight transportation services belong to marine transportation services.

– Freight transportation services belong to inland waterway transportation services.

– Freight transport services belong to rail transport services.

– Cargo transport services belong to road transport services.

– Air transport services.

– Multimodal transport services.

– Technical analysis and inspection services technical.

– Other transportation support services.

– Other services agreed upon by logistics service traders and customers in accordance with the basic principles of Commercial Law.

3. Conditions for doing business in logistics services

(1) Traders providing specific services under logistics services must meet the investment and business conditions prescribed by law for that service.

(2) Traders who conduct part or all of logistics business activities by electronic means connected to the Internet, mobile telecommunications networks or other open networks, in addition to meeting the provisions of law for specific services, must also comply with regulations on e-commerce.

– Conditions for foreign investors doing business in logistics services:

In addition to meeting the conditions specified in (1) and (2), foreign investors belonging to countries and territories that are members of the World Trade Organization are allowed to provide logistics services under the following conditions:

+ In case of cargo transportation services belonging to maritime transportation services (except domestic transportation):

• Can establish companies operating fleets flying the Vietnamese flag or contribute capital, buy shares, or capital contributions in the enterprise, in which The capital contribution ratio of foreign investors must not exceed 49%. The total number of foreign seafarers working on ships flying the Vietnamese flag (or registered in Vietnam) owned by these companies in Vietnam is not more than 1/3 of the ship’s capital. The captain or first mate must be a Vietnamese citizen.
• Foreign shipping companies are allowed to establish businesses or contribute capital, buy shares, or contribute capital in the business.

+ In case of container handling service business belonging to maritime transport support services (some areas may be reserved to provide services or apply licensing procedures in these areas), it is possible to establish a business or contribute capital, buy shares, or contribute capital in the business, in which the capital contribution ratio of foreign investors does not exceed 50%. Foreign investors are allowed to establish a commercial presence in Vietnam in the form of business cooperation contracts.

+ In case of container handling service business belonging to services supporting all modes of transport, except services provided at airports, they are allowed to establish businesses or contribute capital, buy shares, or capital contributions in the enterprise, in which the capital contribution ratio of foreign investors does not exceed 50%.

+ In case of customs clearance service business belonging to maritime transport support services, you are allowed to establish a business or contribute capital, buy shares, or contribute capital in the enterprise, including capital contributed by domestic investors. Foreign investors are allowed to establish a commercial presence in Vietnam in the form of business cooperation contracts.

+ In case of trading in other services, including the following activities: Checking bills of lading, freight brokerage services, goods inspection, sampling and weight determination services; goods receiving and acceptance services; transport document preparation services, to establish a business or contribute capital, buy shares, capital contribution in the enterprise, including capital contribution of domestic investors.

+ In case of freight transport service business under inland waterway transport service, freight transport service under railway transport service, to establish an enterprise or contribute capital, purchase shares, capital contribution in the enterprise, including the capital contribution ratio of the investor Foreign investment must not exceed 49%.

+ In case of freight transport service business belonging to road transport services, carried out through a business cooperation contract or establishing an enterprise or contributing capital, buying shares, or capital contribution in the enterprise, in which the capital contribution ratio of foreign investors must not exceed 51%. 100% of the company’s drivers must be Vietnamese citizens.

+ In case of air transport service business, it must comply with the provisions of aviation law.

+ In case of business in technical analysis and inspection services

• For services provided to exercise the Government’s authority that are carried out in the form of an enterprise with capital contributions from domestic investors after three years or in the form of an enterprise with no restrictions on capital contributions from foreign investors after five years, from the time the private service provider is allowed to do business in those services.
• Do not conduct business of inspection and certification services for means of transport.
• The implementation of technical analysis and inspection services is limited to operating in geographical areas determined by competent authorities for reasons of national security and defense.

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

4. Limitation of liability

–  Limitation of liability is the maximum limit to which a trader providing logistics services is responsible for compensating customers for losses arising during the process of organizing and performing logistics services according to the provisions of this Decree.

–  In case the relevant law has provisions on the limitation of liability of traders providing logistics services, it shall comply with the provisions of law. related.

–  In case the relevant law does not stipulate liability limits, the liability limits of traders providing logistics services shall be agreed upon by the parties. In case the parties do not have an agreement, it will be done as follows:

+ In case the customer does not have prior notice of the value of the goods, the maximum liability limit is 500 million VND for each compensation claim.

+ In case the customer has given advance notice of the value of the goods and has been confirmed by the logistics service trader, the liability limit will not exceed the value of the goods. that.

– Limitation of liability in cases where traders providing logistics services organize the implementation of multiple stages with different liability limits is the liability limit of the stage with the highest liability limit.