(+84) 96 167 55 66
info@vietanlaw.com

Foreign investment in vietnam’s transport service company

Transport services are rapidly increasing due to the process of globalization today. Therefore, the demand for investment in transportation companies of both domestic and foreign investors continously rises. The following article will clarify the procedures for foreign investors to contribute capital to a transportation company in Vietnam through the regulations of the Law on Investment 2014, Law on Enterprise 2014, law related to transportation (waterway, railway, road, aviation) and the WTO Protocol of Accession.

Foreign investment in vietnam’s transport service company

The conditions that foreign investors have to fulfill:

  • The form of investment, operating scope, Vietnamese partners, and other aspects are conformable with the international agreements to which the Socialist Republic of Vietnam is a signatory:
    • On the form of investment: Investor can choose to contribute capital; buy shares, or buy capital contributions of transport services company, depending on the type of that company;
  • The investor’s charter capital:
    • Railway transport services: joint ventures with Vietnamese partners in which the capital contribution of foreign side not exceeding 49% of the total legal capital;
    • Road transport services: must joint ventures with Vietnamese partners in which the capital contribution of foreign side not exceeding 51% of the total legal capital;
    • Maritime transport services: For cargo and passenger transport services: joint ventures with Vietnamese partners capital contribution of foreign side not exceeding 49%; For services related to international transport: can establish a foreign-invested enterprise from January 11, 2012;
    • Internal waterways transport services: joint ventures with Vietnamese partners in which the capital contribution of foreign side not exceeding 49% of the total legal capital;
    • Air transport services: Carriage of passengers or goods shall comply with the Vietnamese Law on aviation, in which the proportion of foreign capital contribution shall not exceed 30%; For aircraft repair and maintenance services: the capital contribution of foreign side is no limit.
    • Other transport auxiliary services: For container handling services (except for services provided at airports): joint ventures with Vietnamese partners in which capital contribute of foreign side not exceeding 50%; For Storage and warehouse service and Freight transport agency services, capital contributed by foreign investors are currently not limited…

Procedures for making investment by contributing capital, buying shares, or buying capital contributions

Due to the fact that transport services are conditional business lines, foreign investors have to register the capital contribution or purchase of shares/capital contribution:

An application for registration of capital contribution or purchase of shares/capital contribution:

  • A written for registration of capital contribution or purchase of shares/capital contributions, which specify information about the business organization to which investment is made; the holding of the foreign investor after making investment;
  • A copy of the ID card or passport (if the investor is an individual); a copy of the Certificate of establishment or an equivalent paper that certifies the legal status of the investor (if the investor is an organization);
  • A procuration or service contract in case the investor does not directly file and receive the result of this procedure.

Procedures for registration of capital contribution or purchase of shares/capital contributions:

  • The investor shall submit the application prescribed above at the Service of Planning and Investment of the province where the headquarter of the business organization is situated;
  • If the contribution of capital, purchase of shares/capital contributions satisfies the conditions in the Law on Enterprise, the Service of Planning and Investment shall send a written notification to the investor within 15 days from the day on which the satisfactory application is received. If conditions are not satisfied, the Service of Planning and Investment shall notify the investor in writing and provide explanation.

After receiving permit from the Service of Planning and Investment, foreign investor can contribute capital in transport services company. That company will do the formalities to change members/shareholders described by law.

Investing in the form of capital contribution to an operating transport services company will be easier for the investor than the form of investment to establish a company in Vietnam. As a matter of fact, when establishing a company, foreign investors must seek Vietnamese partners to establish joint ventures, carry out procedures to aplly for Business Registration Certificate and other types of sub-license. To get a better understanding of the conditions and formalities, investors should contact an liable law firm.

Table of contents

Hide

    Related Acticle

    Establish foreign-owned construction design companies in Vietnam

    Establish foreign-owned construction design companies in Vietnam

    Currently, the real-estate market in Vietnam is growing rapidly leading to the development of relating services, one of which is construction design service. The laws of Vietnam do not contain…
    Legal representative of foreign-owned companies in Vietnam

    Legal representative of foreign-owned companies in Vietnam

    During operation in Vietnam, many foreign-owned companies need to appoint foreigners as the legal representatives of the companies. This is a necessary need as the legal representative shall act on…
    The legal procedure for opening a milk tea shop in Vietnam.

    The legal procedure for opening a milk tea shop in Vietnam.

    In recent years, the milk tea shop business has been a potential business model and has been paid more attention. Customers are in need of a milk tea shop business,…
    Investment projects of foreign-owned companies in Vietnam

    Investment projects of foreign-owned companies in Vietnam

    Foreign-owned companies (often called as FDI companies) in Vietnam can invest in new project during their operation, for example: contribute capital to establish a new company; purchase shares, capital contributions…
    Disputes arising during investment process in Vietnam

    Disputes arising during investment process in Vietnam

    During investment process in Vietnam, investors may face some troubles slowing down investment schedule or affecting their business. These disputes may appear in different aspects. In order to give investors…
    do thi thu ha lawyer

    Hanoi Head-office

    #3rd Floor, 125 Hoang Ngan, Hoang Ngan Plaza, Trung Hoa, Cau Giay, Hanoi, Vietnam

    info@vietanlaw.com

    Foreign investment in vietnam’s transport service company

    dong van thuc legal consultant

    Ho Chi Minh city office

    Room 04.68, 4th Floor, River Gate Residence, 151 – 155 Ben Van Don Street, District 4, HCM, Viet Nam

    hcm@vietanlaw.com

    Foreign investment in vietnam’s transport service company

    SPEAK TO OUR LEGAL CONSULTANTS

    English speaking: (+84) 9 61 67 55 66 (Zalo, Viber, Whatsapp)

    Vietnamese speaking: (+84) 9 33 11 33 66 (Ms.Thu Ha) (Zalo, Viber, Whatsapp)