You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

January 17, 2018

New Decree on Logistics Services Opens Up Opportunities for Foreign Investors in Vietnam

Subscribe to Updates

On December 30, 2017, the government of Vietnam issued Decree No. 163/2017/ND-CP (Decree 163) on regulations for doing business in logistics services. Under the provisions of Decree 163, which will come into effect on February 20, 2018, replacing Decree No. 140/2007/ND-CP dated September 5, 2007 (Decree 140), the classification of logistics services will be more aligned with Vietnam’s WTO commitments. Decree 163 also sets out the basis for foreign investors to set up companies providing logistics services in Vietnam under certain ownership limits.

Classification of Logistics Services

Logistics services under Decree 163 are categorized into 17 main types, but a number of logistics services allowed in Decree 140, such as import and export entrustment services, goods maintenance services, trading and consignment agencies, etc., are no longer included. At the same time, Decree 163 adds several services which were not set out under Decree 140, most notably wholesaling support services, transport services as part of rail transport services, air carriage services, and technical testing and analysis services.

Decree 140 had its own rule for categorizing logistics services which was not aligned with the classification of logistics services under Vietnam’s WTO commitments. However, under Decree 163, logistics services will be grouped in accordance with Vietnam’s schedule of specific commitments to the WTO. Accordingly, foreign investors should find it much easier to compare Vietnamese regulations with international commitments.

Investment Conditions and Foreign Ownership Limits

One of the highlights of Decree 163 with regard to foreign ownership limits is that overseas investors from WTO-member countries are now allowed to establish companies or contribute capital to/purchase shares from Vietnamese enterprises doing business in logistics services, provided that the capital contribution ratio of foreign investors in the enterprise does not exceed—depending on the type of service—49%, 50%, or 51%. In certain situations, no foreign ownership limit is stated, and the only condition is that there must be capital contribution from a domestic investor in that enterprise.

Besides foreign ownership ratios, Decree 163 also specifies several other conditions for foreign investors to conduct business in the sector. For example, for marine transport trading (excluding internal shipping), foreign investors can set up companies operating fleets of ships flying Vietnamese flags, but the captain and the first deputy captain must be Vietnamese citizens, and foreign crew members must be less than one-third of the total. For road transport, all drivers at foreign-invested companies must be Vietnamese citizens. It should be noted that, in addition to the conditions set out by Decree 163, investment in specific logistics services may also be subject to various specific conditions set out by the relevant laws applicable to such services.

It is clear that the new regulations of Decree 163 will help to fill in the missing gaps of Decree 140, which was initially supposed to help incorporate Vietnam’s WTO commitments into national legislation, but fell short of being consistent with the commitments in a number of areas. This new decree, once it takes effect, will signal better business opportunities for foreign investors in logistics services and help expand business partnerships between domestic and overseas companies operating in the sector.

Download Full Article
Related Professionals

Practices

Corporate/M&A

Customs and International Trade

Location

RELATED INSIGHTS​ 

August 11, 2026
Cambodia’s Ministry of Justice has launched a new platform on its official website to publish notices of forced sales issued by each municipal and provincial court of first instance. The platform’s stated purpose is to inform the public and facilitate greater participation in forced-sale auctions conducted in connection with court-ordered enforcement proceedings. How the Platform Works The platform publishes forced-sale notices from courts of first instance across Cambodia’s municipalities and provinces and includes a link where the public can view properties currently subject to forced sale. To participate in a forced-sale auction, individuals can download Khmer-language bidding application forms through links provided on the platform. The form typically requires the applicant’s name, sex, year of birth, identity card number and issue date, and address, together with details identifying the immovable property (including its ownership certificate number), the relevant enforcement case number and date, and the reference to the public auction or tender announcement issued by the court. Completed application forms must be submitted directly to the specific municipal or provincial court that issued the forced sale. For further inquiries about a particular forced sale, interested parties should likewise contact the relevant municipal or provincial court. Forced Sale of Immovable Property in Cambodia The publication of these notices relates to the forced sale procedure for immovable property under Cambodia’s Code of Civil Procedure (CPC). Unlike property seizure by a court, a forced sale is a compulsory execution proceeding—a subsequent enforcement step that arises only after an underlying dispute has been adjudicated and a debtor fails to pay the debt or outstanding amount due under a final and binding judgment or other enforceable title of execution. For the purposes of this procedure, the term “immovable property” under the CPC refers to land, registered buildings, jointly held shares of such property, registered
Read More
July 21, 2026
On July 6, 2026, Myanmar’s Ministry of Finance and Revenue introduced revised procedures governing the importation and exportation of goods and vehicles, replacing the framework that had been in place since 2017. The revised procedures were introduced in Notification No. 115/2026, which establishes updated compliance requirements and penalties for importers and exporters, covering licensing, declarations, product specifications, prior arrival of goods, and imports or exports made without the required licenses or permits. Scope Unlike its predecessor (Notification No. 6/2017), which focused primarily on import-related noncompliance, the new notification regulates both import and export activities and introduces a separate penalty schedule for export violations. Exporters are now required to ensure that their exports comply with the approvals stated in export licenses and permits, match the information declared in export declarations, and are supported by the required licenses, permits, and accompanying documents. Import Compliance and Penalties The new notification imposes several compliance requirements on importers. Importers must ensure that the country of origin, branding, labeling, and other product information are consistent with the relevant import license or permit, import declaration, and the imported goods. For vehicles and machinery, the model year must match the year approved by the Ministry of Commerce. Importers must also ensure that goods are not imported before the issuance or after the expiry of the import license or permit, and that the imported quantity does not exceed the approved amount. Failure to comply with these requirements may result in regulatory action. As for the notification’s revised penalties for noncompliance with import licensing requirements, imports made without the required import license, permit, or import declaration may be subject to fines ranging from one to three times the assessable value (AV) of the goods, depending on the category of goods involved. Certain vehicles and machinery, as well as specific
Read More
July 15, 2026
On July 8, 2026, Thailand enacted a new law significantly expanding the framework for government service delivery and licensing facilitation. The Facilitation of Licensing and Public Services Consideration Act B.E. 2569 (2026) (Facilitation Act 2026) replaces and expands the framework of governmental services under the Facilitation of Official Licensing Consideration Act B.E. 2558 (2015) (Facilitation Act 2015) and broadens its scope to cover public services, administrative processes, and public benefits. The Facilitation Act 2026 aims to modernize government services by promoting e-filing, reducing administrative burdens and repeated document requests, and improving predictability. For businesses, this should ease compliance and shorten approval timelines, subject to implementing regulations and agency readiness. Public Services Facilitation Scope The Facilitation Act 2015 applied mainly to permissions, registrations, and notifications required before conducting activities that require licenses, certificates, permits, approvals, or registrations. The Facilitation Act 2026 broadens this framework to include public services and other benefits, such as welfare, subsidies, and grants, provided to Thai citizens, expanding government agencies’ responsibilities beyond licensing facilitation into a wider administrative-service framework. It also introduces a broader definition of “government agency” to include central, regional, and local government bodies, state enterprises, public organizations, and other state entities. Licensing Changes The Facilitation Act 2026 introduces a “super license” (termed a “main license” under the act) that exempts the holder from obtaining multiple related or ancillary licenses issued by different government agencies. Obtaining a super license deems the licensee to have automatically obtained the related “sublicenses” required to conduct the relevant activities. The cabinet will designate eligible activities by royal decree. The act also introduces an expedited licensing option, allowing applicants to pay an additional fee to fast-track their applications in urgent cases. Expedited processing must not interfere with standard application timelines. The criteria, procedures, conditions, and fees for expedited licensing
Read More
July 10, 2026
Vietnam has taken a significant step in regulating its e-commerce sector with the issuance of a new decree guiding the country’s recently enacted Law on E-Commerce. Decree No. 248/2026/ND-CP, issued on June 30, 2026, and taking effect the following day, addresses mandatory platform policies, registration requirements for offshore platforms, additional obligations on platform operators, and market access conditions for foreign investors. Mandatory Policy Contents The decree sets out detailed guidance on the required contents of various platform policies, covering pricing, payment, display priority, livestream sales, delivery, returns, method of service provision, and service termination and refunds. Clarification of Obligations for Platform Operators The decree provides clarification of the obligations applicable to platform operators. Notably, intermediary e-commerce platform operators with online ordering functions must: Collect specific information to implement electronic identity verification of sellers; Cooperate with regulators by reporting online through the state e-commerce management system and by blocking, suspending, or removing content upon request of a competent authority; Maintain a mechanism to store contract data, including price, product or service information, and parties’ information, for at least three years from the date of contract conclusion; and If qualifying as a “large digital platform” under consumer protection law, maintain an online system for receiving and handling complaints and requests, and comply with enhanced content-removal requirements. Registration Requirements for Offshore Platforms Offshore e-commerce platforms, whether direct-sales, intermediary, social-network-based, or integrated, that conduct e-commerce activity in Vietnam must register with the Ministry of Industry and Trade if the platform: Allows Vietnamese-language selection; Uses a “.vn” domain; or Reaches 100,000 or more transactions with Vietnam-based buyers within a calendar year. Notably, the registration requirement now captures not only traditional intermediary platforms, but also direct-sales platforms. Foreign Investment Conditions Foreign investors holding a controlling interest in an intermediary e-commerce platform, a social media platform
Read More