Conditions for setting up a company in Vietnam for express delivery service in Vietnam

The express delivery service industry is a sector with huge development potential in the current open and integrated economy. Express delivery services help businesses save time and costs and create conditions for business activities to take place favorably and quickly. However, because express delivery services involve valuable assets and goods of businesses, the law requires express delivery business entities to meet certain conditions. So what do the conditions for conditions for setting up a company in Vietnam for express delivery service include? In the article below, Viet An Law will help you answer these questions.

Market access conditions for express delivery services

According to Vietnam’s commitments in the WTO, Vietnam opens the market to foreign investors for express delivery services in Vietnam.

Express delivery service is a service including: collection, sorting, transport, and delivery, either domestically or internationally.

Vietnam commits to no restrictions on express delivery services, except for the commercial presence method which must ensure:

• Capital contribution ratio: Not exceeding 51%.
• 5 years after accession: Allow the establishment of 100% foreign-invested companies.

Conditions for setting up a company in Vietnam for express delivery service

Conditions for setting up a company in Vietnam for express delivery service

Based on Clause 3, Article 3 of the Law on Post 2010, it is stipulated: “Postal services are services of accepting, transporting, and delivering postal items by methods from the sender’s location to the receiver’s location via the postal network, excluding electronic methods”.

Thus, in legal language, express delivery service is understood as a postal service.

Conditions for setting up a company in Vietnam for express delivery service include:

• First, have a business registration certificate for postal activities or an investment certificate in the postal sector;
• Second, have financial and personnel capabilities suitable for the business plan according to the content requested for licensing:
  • For cases of providing postal services within a province or inter-provincially, the enterprise must have a minimum capital of 02 billion Vietnamese Dong;
  • For cases of providing international postal services, the enterprise must have a minimum capital of 5 billion Vietnamese Dong (The minimum capital level must be shown in the business registration certificate for postal activities or the investment certificate for postal activities in Vietnam of the enterprise).
• Third, have a feasible business plan consistent with regulations on tariffs and postal service quality.
• Fourth, have measures to ensure information security and safety for people, postal items, and the postal network.

Preparing the dossier for requesting a postal license for an international express delivery company

Based on Clause 4, Article 1 and Clause 2, Article 2 of Decree No. 25/2022/ND-CP amending and supplementing Article 6 of Decree 47/2011/ND-CP, the dossier for requesting a postal license is made in 1 original set.

It includes:

• Request for postal license issuance (according to the form in Appendix I);
• Copy of the company registration certificate. Company Charter (if any); Business plan;
• Sample contract for the supply and use of postal services consistent with the provisions of the law on post.
• Sample of logo, brand, specific symbols, or elements of the enterprise’s identity system displayed on postal items (if any).
• Table of postal service tariffs consistent with the provisions of the law on post.
• Published postal service quality standards consistent with the provisions of the law on post.
• Regulations on the liability limit for compensation for damages in case damages arise, the process for resolving customer complaints, and the time limit for resolving complaints consistent with the provisions of the law on post;
• Agreements with other enterprises or foreign partners in Vietnamese, for cases of cooperating to provide one, several, or all stages of the postal service requested for licensing;
• Documents on the legal status of foreign partners that have been consularly legalized.
• Franchise contract with an enterprise currently providing postal services (if any).

The express delivery company must be self-responsible for the legality, accuracy, and truthfulness of the dossier and declared information.

When the dossier is fully prepared, the business entity submits the dossier via the online public service system to the competent state agency on post.

Within 20 days from the date of receiving the dossier, the competent state agency verifies and issues the postal license to the company.

Procedure for granting postal license to international express delivery company

Procedure for granting postal license

Based on Clause 6, Article 1 of Decree 25/2022/ND-CP amending and supplementing Article 8 of Decree 47/2011/ND-CP regulating the order and procedures for granting postal licenses and written confirmations of postal activity notification:

• Enterprises and organizations requesting postal licenses or written confirmations of postal activity notification submit dossiers via the online public service system to the competent state agency on post specified in Article 9 and are responsible for the legality, accuracy, and truthfulness of the dossier.
• The notification of postal activities is performed no later than 07 working days, from the first day of postal operations.
• Within 03 working days from the date of receiving the dossier, the competent state agency on post refuses to grant the postal license or written confirmation of postal activity notification for cases of incorrect jurisdiction and clearly states the reason.
• From the date of receiving the dossier, the granting of postal licenses and written confirmations of postal activity notification is carried out within the following time limits:
  • 20 days for the verification and granting of postal licenses;
  • 10 working days for the verification and granting of written confirmations of postal activity notification.
• During the above specified period, if the dossier does not meet regulations, the competent state agency on post must notify the enterprise or organization about the contents needing amendment or supplementation.
• Within 15 working days from the date of notification, the enterprise or organization is responsible for amending or supplementing the dossier as requested.
• In case the enterprise or organization does not amend or supplement the dossier as requested or has amended/supplemented but it does not meet requirements, the competent state agency on post notifies the refusal to grant the postal license or written confirmation of postal activity notification and clearly states the reason.
• The notification by the competent state agency on post prescribed according to the timelines mentioned above is performed in writing via the online public service system.
• The result of resolving the procedure for granting postal licenses or written confirmations of postal activity notification is returned directly or via the public postal service.

The above is the advice of Viet An Law regarding the conditions for setting up a company in Vietnam for express delivery service. Customers wishing for advice on related procedures, please contact Viet An Law Firm for the best support!