Conditions for establishing a logistics services foreign capital company in Vietnam

Legal bases:

• WTO, AFAS, VJEPA, VKFTA, EVFTA, CPTPP;
• Decree No. 163/2017/ND-CP dated 30/12/2017 regulating logistics service business;
• Decree No. 37/2017ND-CP dated April 04, 2017 on conditions for seaport operation business;
• Decree No. 147/2018/ND-CP dated 24/10/2018 amending and supplementing a number of articles of Decrees regulating business conditions in the maritime sector.

Business lines related to logistics service for foreign investors in Vietnam

• Container handling services, except those provided at airports (part of CPC 7411) under the Service support all modes of transport.
• Customs clearance agency services (including customs clearance services)
• Other services: Bill of lading inspection, freight brokerage services, cargo inspection, sampling and weight determination services; services for receiving and accepting goods; transportation document preparation services (Part CPC 749)
• Multimodal transport services.

Conditions for establishing a a logistics services foreign capital company in Vietnam

Conditions for container handling services, except for services provided at airports (part of CPC 7411) under Services supporting all modes of transport:

• It is allowed to provide services through joint ventures with Vietnamese partners, in which the capital contribution ratio of the foreign side does not exceed 50%
• Particularly, VJEPA, VKFTA, EVFTA add additional regulations: Some areas can be dedicated to providing public services or applying licensing procedures in these areas

Conditions for customs clearance agency services (including customs clearance services)

Conditions on foreign investor capital ratio:

• Customs clearance services” (or “customs brokerage services”: the establishment of joint ventures without restriction on foreign ownership
• In case of business in customs clearance services under sea transport support services, to establish an company or contribute capital, purchase shares or contributed capital in the company, including capital contributed by domestic investors. Foreign investors are allowed to establish a commercial presence in Vietnam in the form of business cooperation contracts.

Conditions for other logistics 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 (Part CPC 749).

Allow the establishment of joint ventures without restricting the foreign ownership.

Conditions for multimodal transport services

• Vietnamese companies, cooperatives and foreign companies investing in Vietnam may only do international multimodal transport business after obtaining an international multimodal transport business license on the basis of satisfying all the following conditions: Maintain assets equivalent to at least SDR 80,000 or have equivalent guarantees or have alternative financing plans so in accordance with the law (SDR is an international monetary unit issued by the International Monetary Fund ).
• Company of countries that are members of the ASEAN Framework Agreement on Multimodal Transport or companies of countries that have signed international agreements with Vietnam on multimodal transport may only do international multimodal transport business after obtaining Vietnam’s International Multimodal Transport Business License on the basis of satisfying The following conditions:
  • Possess an international practical multimodal transport business registration certificate or equivalent document issued by a competent authority of that country;
  • Have multimodal transport professional liability insurance or have equivalent guarantees.

If you want to establish a foreign capital company, please contact Viet An Law Firm for the fastest and best support!