Transport of goods and passengers by rail, air, road, river, sea, pipeline

INDUSTRY, SUB-SECTOR

LEGAL GROUNDS

Transport of goods and passengers by rail, air, road, river, sea, pipeline.

a)  Passenger transport (CPC 7111)

Cargo  (CPC 7112)

Uncommitted, except: foreign service providers are allowed to provide freight services through the establishment of joint ventures with Vietnamese partners in which the foreign capital contribution cannot exceed 49% total legal capital.

Particularly AFAS:

The foreign capital contribution is allowed not to exceed 70% of the total legal capital.

At the same time, adding the towing and towing service (CPC 7113): establishing a joint venture with a Vietnamese partner in which the foreign capital contribution cannot exceed 70% of the total legal capital.

1. CPTPP :

a) Appendix NCM I-VN-37: Air transport, including international and domestic air transport services:

The total capital contribution or shares held by foreign countries is limited to less than 30% of the total charter capital or shares of a Vietnamese airline. A Vietnamese individual or Vietnamese legal entity that is not a foreign-invested enterprise must hold the largest share of charter capital or shares in that airline.

At least 2/3 of the total number of members of the Executive Board of a foreign-invested airline must be Vietnamese. The general director (or director) and legal representative of a foreign-invested airline established in Vietnam must be Vietnamese.

b) Appendix NCM II-VN-7: Services related to air transport

Vietnam reserves the right to maintain or adopt any measure relating to:

– Special flight services (except for commercial flight training);

– Ground operations;

– Airport operation service.

1. Law of Vietnam:

Foreign-invested air transport enterprises must satisfy the following conditions:

a) Foreign investors account for no more than 34% of charter capital

b) There must be at least one Vietnamese individual or one Vietnamese legal entity holding the largest share of charter capital;

c) In case a Vietnamese legal entity has foreign investment capital contributing capital, the foreign capital contribution shall not exceed 49% of the legal entity’s charter capital.

– Decree No. 163/2017/ND-CP dated December 30, 2017 of the Government regulating the business of logistics services.

(a)  Sales and marketing services of aviation products

(b)  Reservation and reservation service by computer

(c) Aircraft maintenance and repair services (CPC 8868**)

– Aviation product sales and marketing services: Foreign airlines are allowed to provide services in Vietnam through their ticketing offices or agents in Vietnam.

– Reservation and reservation service by computer: No restrictions, except for the measure mentioned in Mode 1 (Mode 1: No restrictions, except foreign service providers must use public telecommunications networks under the management of the Vietnamese telecommunications authorities.)

– Aircraft maintenance and repair services  (CPC 8868**):

WTO, VJFTA: allow the establishment of joint ventures in which the foreign capital contribution cannot exceed 51%. After 5 years from the date of accession, allow the establishment of business  100% foreign investment.

VKFTA, EVFTA: allow the establishment of enterprises with 100% foreign investment capital.

– Decree No. 30/2013/ND-CP dated April 8, 2013 of the Government on air transportation business and general aviation activities.

– Decree No. 92/2016/ND-CP dated July 1, 2016 regulating conditional business lines in the field of civil aviation.

– Decree 89/2019/ND-CP dated November 15, 2019 of the Government amending Decree No. 92/2016/ND-CP stipulating conditional business lines in the field of civil aviation.

a)  Passenger transport (CPC 7121 + 7122)

b)  Cargo (CPC 7123)

Foreign investors are provided with freight and passenger transport services through business cooperation contracts or joint ventures in which the foreign capital contribution ratio does not exceed 49%.

– Depending on market demand (among the criteria for consideration, the following criteria can be used: ability to create jobs; ability to generate foreign currency; ability to apply advanced technology, including management skills; ability to reduce industrial pollution; vocational training for Vietnamese workers; etc.), joint ventures in which foreign capital contribution does not exceed 51% are allowed to be established to provide transport services goods. 100% of joint venture drivers must be Vietnamese citizens.

Particularly AFAS: To provide freight transport services through a joint venture in which the foreign capital contribution ratio does not exceed 70%.

– Decree No. 10/2020/ND-CP dated January 17, 2020 of the Government regulating business and conditions for transport business by car.

a)  Passenger transport (CPC 7221)

b)  Cargo (CPC 7222)

Foreign investors are allowed to provide services through the establishment of joint ventures with Vietnamese partners in which the foreign capital contribution cannot exceed 49% of the total legal capital.

Particularly AFAS: It is allowed to provide services through the establishment of a joint venture with a Vietnamese partner in which the foreign capital contribution cannot exceed 51% of the total legal capital.

– Decree No. 163/2017/ND-CP dated December 30, 2017 of the Government regulating the business of logistics services.

a)  Passenger transport, excluding domestic transport (CPC 7211)

b)  Cargo, except Inland transportation (CPC .) 7212)

a) Establishment of companies operating fleets of ships flying the Vietnamese flag:

It is allowed to establish a joint venture in which the foreign capital contribution does not exceed 49% of the legal capital of the joint venture. Foreign seafarers are allowed to work on ships flying the Vietnamese flag (or registered in Vietnam) owned by joint venture enterprises in Vietnam but the total number does not exceed one third of the vessel’s manning. . The captain or first mate must be a Vietnamese citizen.

Particularly for EVFTA: Foreign service suppliers are allowed to establish joint ventures in which the foreign capital contribution does not exceed 70% of the legal capital of the joint venture.

Particularly AFAS: Transport of goods, except for domestic transportation (CPC 7212): It is allowed to establish a joint venture in which the capital contribution of the foreign side does not exceed 70% of the legal capital of the joint venture.

b) Other forms of commercial presence to provide international shipping services[1]: Foreign shipping companies can establish 100% foreign-invested enterprises:

c) Foreign-invested enterprises may only conduct activities as described below:

– Selling and marketing ocean freight services through direct dealings with customers, from listing prices to preparing documents;

– Representing the goods owner;

– Provide business information according request;

– Prepare documents or transport documents including customs documents and other documents related to the origin and characteristics of the goods transport;

– Providing sea transportation services including internal transportation services by ships flying the Vietnamese flag to provide transportation services [throughout].

– On behalf of the company to organize the ship to enter the port or receive goods when required.

– Negotiate and sign contracts for road, rail, and inland water transportation related to goods transported by the company.

International sea freight service providers are entitled to use the following services at ports on reasonable and non-discriminatory terms:

1. Navigator;

2. Hybrid;

3. Supply food, natural food materials and water;

4. Collecting of waste water and ballast water;

5. Services of the port authority;

6. Signal buoys;

7. Onshore services required for operation ship movements, including communications, electricity and water supply;

8. Emergency repair equipment;

9. Anchor, mooring and mooring services  ship;

10. Access to marine agency services.[ 2]

– Decree No. 160/2016/ND-CP dated November 29, 2016 of the Government on conditions for shipping business, shipping agency services and towing services.

– Decree No. 163/2017/ND-CP dated December 30, 2017 of the Government regulating the business of logistics services.

– Decree No. 147/2018/ND-CP dated October 24, 2018 of the Government amending and supplementing a number of articles of the Decrees regulating business conditions in the maritime sector.

Vietnam reserves the right to adopt and maintain any measure relating to the  above mentioned industry