FOREIGN CONTRIBUTED CAPITAL CONDITIONS OF INVESTORS ENGAGING IN LOGISTICS SERVICES

25/01/2019, 10:05 AM

Pursuant to Law on Investment, “Logistics Services” are conditional business lines. Thus, foreign investors conducting those services must meet the corresponding conditions of the applicable laws of Vietnam.

One of the prerequisites for foreign investors accessing the Vietnamese market in logistics services is the equity ratio of foreign investors in this sector.

Pursuant to Schedule of Specific Commitments in Services – WTO (“WTO Commitments”), Vietnam committed 03 main catalogues of services: (i) Transportation services; (ii) Services auxiliary to transport; and (iii) Other services with different conditions for foreign contributed capital

Decree 163/2017/ND-CP on provision of logistics services coming into effect from 28 February 2018 also specified the foreign contributed capital of foreign investors in this business line.

The below table lists the foreign contributed capital in the above-mentioned services based on WTO Commitments and Decree 163/2017/ND-CP.

Note:

  • In addition to the foreign contributed capital, the foreign investors must meet other conditions when providing those services respectively;
  • The ratio as below means “not exceeding”.

No.

Services

WTO

Decree 163/2017/NĐ-CP

I.

Transportation services

  1.  

Freight transportation less cabotage, of maritime transport services (CPC 7212)

 

Establishment of registered companies for the purpose of operating a fleet under the national flag of Viet Nam: 49%

Other: No regulations

  1.  

Freight transportation, of internal waterways transport (CPC 7222)

49%

49%

  1.  

Freight transportation, of rail transport services (CPC 7112)

 

49%

49%

  1.  

Freight transportation, of road transport services (CPC 7123);

 

49%, up to 51% depending on market’s demand

51%

  1.  

Sales and marketing air products services

Not specified

30%

Computer reservation services

 

Unlimited

Maintenance and repair of aircraft (CPC 8868**)

Unlimited

II.

Services auxiliary to transportation

  1.  

Container handling services, of maritime auxiliary services (CPC 7411)

50%

50%

  1.  

Container handling services, of services auxiliary to all modes of transport (part of CPC 7411)

  1.  

Container Station and Depot Services

Unlimited

No regulations

III.

Other services

  1.  

Courier services (CPC 7512**)

Unlimited

No regulations

  1.  

Freight transport agency services (CPC 748)

Unlimited

No regulations

  1.  

Customs Clearance Services

Joint venture shall be established, there is no limitation to the foreign contributed capital

  1.  

Other services, including: bill auditing; freight brokerage services; freight inspection, weighing and sampling services; freight receiving and acceptance services; transportation document preparation services

Joint venture shall be established, there is no limitation to the foreign contributed capital

  1.  

Technical testing and analysis services (CPC 8676, excluding conformity testing of transport vehicles and certification of transport vehicles)

Unlimited

Unlimited

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