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Conditions for establishing a logistics company in Vietnam

Conditions for establishing a logistics company include conditions such as regular company establishment and specific conditions for logistics service enterprises. For each  different logistics service, the conditions for establishing a company are also different.

Conditions for establishing a logistics company in Vietnam

Legal basis

  • Enterprise Law 2020
  • Decree 163/2017/ND-CP regulating logistics service business
  • WTO

Logistics services provided include:

  • Container handling services, except those provided at airports.
  • Container warehousing services belong to sea transport support services.
  • Warehousing services support all modes of transportation.
  • Delivery service.
  • Freight agency services.
  • Customs clearance agency services (including customs clearance services).
  • Other services, including the following activities: Bill of lading inspection, freight brokerage services, cargo inspection, sampling and weight determination services; services for receiving and accepting goods; transportation document preparation services.
  • Wholesale and retail support services including inventory management, collection, aggregation, sorting and delivery.
  • Freight services belong to sea transport services.
  • Freight services belong to inland waterway transport services.
  • Freight services belong to rail transport services.
  • Freight services belong to road transport services.
  • Air freight services.
  • Multimodal transport services.
  • Technical testing and analysis services.
  • Other transportation support services.
  • Other services shall be agreed upon by logistics traders and customers in accordance with the basic principles of the Commercial Law.

Conditions for logistics service business in Vietnam

  • Traders providing specific services under logistics services specified in For traders providing specific services in the above 17 types of logistics services, they must satisfy the conditions for investment and business as prescribed by law for such services.
  • For traders doing part or all of logistics business by electronic means connected to the internet, mobile telecommunications networks or other open networks, in addition to satisfying the provisions of law for the above-mentioned specific services, must also comply with regulations on e-commerce.

Conditions for foreign investors to access Vietnam market

Conditions for investors: Must be a person with full capacity for civil acts, if it is an organization, it must have a business registration certificate  certified by a consular office.

Capital conditions: Currently, the law does not stipulate a minimum capital level to establish a  logistics company with foreign capital. Depending on the type of service, investors can invest 100% or enter into joint ventures with domestic investors according to a certain rate schedule. For foreign investors in countries or territories that are members of the World Trade Organization providing logistics services, foreign investors will be entitled to buy shares and contributed capital in enterprises at the rate when providing transportation-related logistics services.

Some logistics industries that foreign-invested companies are allowed to provide and the corresponding proportion of contributed capital

Business line Business code Forms of investment Maximum capital contribution ratio of foreign investors
Freight services under sea transport services (except inland transport) CPC 7211, 7212 To establish companies operating fleets flying the Vietnamese flag or contribute capital, purchase shares or contributed capital in Vietnamese capital enterprises 49%
Container handling service (ocean freight support) CPC 7411 Establish a joint venture enterprise with Vietnamese investors or contribute capital, purchase shares or contributed capital in Vietnamese capital enterprises 50%
Container handling services belong to services that support all modes of transportation, except those provided at airports Establish a joint venture enterprise with Vietnamese investors or contribute capital, purchase shares or contributed capital in Vietnamese capital enterprises 50%
Customs clearance services under shipping support services Establish a joint venture enterprise with Vietnamese investors or contribute capital, purchase shares or contributed capital in Vietnamese capital enterprises No rate restrictions
Bill of Lading inspection services, freight brokerage services, cargo inspection, sampling and weight determination services; services for receiving and accepting goods; Transportation document preparation services Establish a joint venture enterprise with Vietnamese investors or contribute capital, purchase shares or contributed capital in Vietnamese capital enterprises No rate restrictions
Freight services (inland waterways) CPC 7222 Establish a joint venture enterprise with Vietnamese investors or contribute capital, purchase shares or contributed capital in Vietnamese capital enterprises 49%
Freight services (rail) CPC 7112 Establish a joint venture enterprise with Vietnamese investors or contribute capital, purchase shares or contributed capital in Vietnamese capital enterprises 49%
Freight services (road) CPC 7123 Establish a joint venture enterprise with Vietnamese investors or contribute capital, purchase shares or contributed capital in Vietnamese capital enterprises 51%
Warehousing Services CPC 742 Establishment of enterprises with 100% foreign capital or joint venture or capital contribution, purchase of shares or contributed capital in Vietnamese capital enterprises 100%
Freight agency services CPC 748 Establishment of 100% foreign capital or joint venture or capital contribution, purchase of shares or contributed capital in Vietnamese capital enterprises 100%
Delivery services CPC 7512 Establishment of 100% foreign capital or joint venture or capital contribution, purchase of shares or contributed capital in Vietnamese capital enterprises 100%

If you want to establish a logistics company with foreign capital, please contact Viet An Law Firm for detailed support!

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