Foreign Investment in Logistics Sector in Vietnam

Nội dung bài viết

Logistic services under Vietnamese law, are the commercial activities whereby traders/enterprises organize the performance of one or many jobs including reception, transportation, warehousing, yard storage of cargos, completion of customs procedures and other formalities and paperwork, provision of consultancy to customers, services of packaging, marking, delivery of goods or other services related to goods according to agreements with customers in order to enjoy service charges.

The enterprise operating in logistic services must have lawful business registration in accordance with the law of Vietnam and must have adequate facilities, equipment and working facilities and personnel.

A foreign investor cannot incorporate a wholly foreign invested company operating in the logistics sector but only a Joint Venture Company can only be formed with a Vietnamese party.

The proportion of foreign investment shall vary according to the services provided by the logistic service provider. Furthermore, if a foreign investor wishes to invest and own more than 49% of the capital then such legal entity can be formed only on submission of an Investment Project with the concerned authorities.

The capital contribution ratio of the foreign investor shall be as follows:

Type of Operations

Allowed Foreign Investment
Services of arranging pickup and loading of goods (into containers) Up to 50%
Goods warehousing and storage services Up to 50%
Transportation agency services Up to 51% (lifted from 2014)
Other subsidiary services including Up to 51% (lifted from 2014)
Maritime transportation services Up to 49%
Internal waterway carriage services Up to 51% (lifted from 2012)
Aviation carriage services Law on Civil Aviation is applicable
Rail carriage services Up to 49%
Road carriage services Up to 51%
Pipeline Conduit services Not permitted unless provided in the treaty to which Vietnam is also a party.


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