Logistics business conditions according to the law

Logistics business conditions? Rights and obligations when participating in business in the logistics industry.

1. What are the logistics business conditions?

Pursuant to Article 4 of Decree 163/2017/ND-CP regulating logistics business conditions as follows:

“1. Traders providing specific services under logistics services specified in Article 3 of this Decree must meet the investment and business conditions prescribed by law for services that.

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 specified in Article 3 of this Decree, must also comply with regulations on e-commerce.

3. Conditions for foreign investors doing business logistics services:

In addition to meeting the conditions and provisions in Clauses 1 and 2 of this Article, 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:

a) In case of goods transportation services business belonging to maritime transportation services (except domestic transportation Location):

– To establish companies operating fleets flying the Vietnamese flag or to contribute capital, buy shares, or contribute capital in enterprises, 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 must not exceed 1/3 of the ship’s capital are Vietnamese citizens.

– Foreign shipping companies are allowed to establish businesses or contribute capital, buy shares, or contribute capital in the business.

b) 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.

c) 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%.

d) 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.

dd) In case of other services business, including the following activities: Bill of lading inspection, freight brokerage services, goods inspection, sampling and weight determination services; goods receiving and acceptance services; transport document preparation services, are allowed to establish a business or contribute capital, buy shares, or capital contributions in the enterprise, including capital contributions from domestic investors.

e) In case of freight transport services under inland waterway transport services, freight transport services under railway transport services, are allowed to establish businesses or contribute capital, buy shares, capital contributions in the enterprise, in which the capital contribution ratio of the investor is Foreign investment must not exceed 49%.

g) 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 does not exceed 51%. 100% of the company’s drivers must be Vietnamese citizens.

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

i) Business case of 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 contribution from domestic investors after three years or in the form of an enterprise with no restriction on capital contribution from foreign investors after five years, since the private service provider is allowed to do business in the services that.

– Do not conduct business in inspection and certification services for means of transport.

– The performance of technical analysis and inspection services is limited to operating in geographical areas determined by competent authorities for national security and defense reasons.

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

So, you see that according to the law, when doing logistics business, you must be a trader to be able to do business in the logistics field as stipulated in Article 3 of this Decree and must also comply regulations on e-commerce.

2. Which agency to register business in the logistics field?

Pursuant to Article 14 of Decree 01/2021/ND-CP regulating business registration as follows:

“1. Business registration agencies are organized in provinces and centrally run cities (hereinafter collectively referred to as provincial level) and in districts, towns and provincial cities (hereinafter collectively referred to as district level), including:

a) At the provincial level: Business Registration Office under the Department of Planning and Investment (hereinafter collectively referred to as Business Registration Office).

Business Registration Office can organize points to receive documents and return results under the Business Registration Office at different locations in the province;

b) At the district level: Finance – Planning Department under the District People’s Committee (hereinafter referred to as the District Business Registration Office).

2. The business registration authority has its own account and seal.”

So, you did not specify where you want to do business in the logistics field, so according to the regulations, if you are in the province, at this point of registration, you will contact the Business Registration Office under the Department of Planning and Investment (hereinafter referred to as the Business Registration Office) to carry out logistics business procedures.

Similarly if you are in a district, the Finance – Accounting Department planning under the district-level People’s Committee (hereinafter referred to as the district-level business registration authority). Carry out the registration for you and one more detail is that you must have a business registration with your own account and seal. If you want to have your own account and seal, you must definitely register to establish a business.

3. Rights and obligations of traders in the field of logistics?

Pursuant to Article 235 of the 2005 Commercial Law, which stipulates the rights and obligations of traders in the field of logistics as follows:

“1. Unless otherwise agreed, traders providing logistics services have the following rights and obligations:

a) Receive service remunerations services and other reasonable costs;

b) During the contract implementation process, if there is a legitimate reason for the customer’s benefit, the logistics service trader may perform differently from the customer’s instructions, but must immediately notify the customer;

c) When a situation occurs that may lead to the failure to carry out part or all of the customer’s instructions, the customer must immediately notify the customer. goods to ask for instructions;

d) In case there is no agreement on a specific time limit for performing obligations with the customer, they must perform their obligations within a reasonable period of time.

2. When transporting goods, traders providing logistics services must comply with the provisions of law and transportation practices.”

So, you see that except in cases where If there is another agreement between the parties. Merchants providing logistics services have rights and obligations such as: receiving service remuneration and other reasonable expenses.

In cases where during the performance of the contract an incident occurs that is detrimental to the interests of the customer, the merchant providing logistic services must immediately notify the customer or can follow the customer’s instructions.

In case of failure to perform part or all of the contract, the customer must immediately notify the customer for instructions. When transporting goods, traders providing logistics services must comply with the provisions of law and transport practices.