Conditions of Operating in Logistics Services
Please let us about conditions of operating in logistics services and limitation on liability regarding trader doing busineess in logistics services?
On 05 September 2007, the Government issued Decree No140/2007/ND-CP (the “Decree”) on detailing Commercial Law on conditions of operating in logistics services and limitation on liability regarding trader doing busineess in logistics services.
Accordingly, trader operating in logistics services business shall be enterprises duly registered in accordance with Vietnamese laws; having sufficient means, equipments and tools which fully meet safety and technical standards and qualified staffs.
Regarding foreign trader operating in logistic services business, besides these above mentioned conditions of material facilities, they shall have to meet these following conditions:
(i) for traders operating in the field of loading and unloading cargo, they shall be entitled to establish Joint Venture Company (“JVC”) with the limited contributed capital ratio of not exceeding 50% for foreign investor;
(ii) for traders operating in the field of storage and transportation agent services, they shall be entitled to establish JVC with the limited contributed capital ratio of not exceeding 51% for foreign investor, such limitation shall be lifted in 2014;
(iii) for traders operating in other supplementary services, they shall be entitled to establish JVC with the limited contributed capital ratio of not exceeding 49% for foreign investor, such limitation shall be increased to 51% from 2010 and shall be lifted in 2014.
---------------------------------
Consulted by InvestConsult Group
Tel: (84.4) 5373262
Fax: (84.4) 5373283
Vietnamese
