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​ 

March 31, 2026
Thailand’s Department of Business Development (DBD) has issued a regulation imposing additional requirements for amending a company’s directors and signatory power to designate a foreign national as an authorized signatory of the company. This measure, effective April 1, 2026, has been introduced in response to the widespread use of Thai nationals as nominees to conduct business on behalf of foreigners, a practice considered to have an adverse impact on the country’s economic stability and security. The new measures are particularly concerned with changes to the authorized signatory structure of companies that originally had only Thai directors authorized to sign for and bind the company. Under the new rules, any amendment that results in a foreign national becoming an authorized signatory—whether solely or jointly—for such a company will be subject to additional verification. Directors signing an application to register such an amendment to the company’s authorized signatory structure are now also required to provide a statement confirming that all shareholders of the company have made genuine contributions and no Thai national has assisted with, supported, or participated in business activities in a nominee capacity. Implications Companies intending to appoint foreign directors as authorized signatories should be aware of the increased regulatory requirements and assessments. Additional documentation and confirmations may be required as part of the registration process.
Read More
March 31, 2026
On December 10, 2025, the National Assembly of Vietnam adopted Law on Vocational Education No. 124/2025/QH15, which took effect on January 1, 2026, replacing Law on Vocational Education No. 74/2014/QH13 of 2014. The new law broadens the categories of institutions eligible to deliver vocational training, introduces vocational upper secondary schools, and shifts governance structures for private institutions from ownership-representative boards of management to stakeholder-based school councils. These reforms aim to diversify training providers, align programs with labor market needs, and create a more flexible, open vocational education ecosystem, offering expanded opportunities for foreign and domestic investors, universities, and enterprises. Some highlights of the new Law on Vocational Education are presented below. Expansion of Vocational Training Levels and Programs In addition to elementary, intermediate, and college—the three levels of vocational training program set out under the 2014 Law on Vocational Education—the new law expands the structure by introducing two new levels: Vocational high school training programs are placed between elementary and intermediate levels, and are aimed at combining upper secondary education with vocational training, expanding options for learners after graduating from the lower secondary level. Other vocational training programs are not specified in detail under the new law, but aim to equip learners with the capability to perform and handle one or several simple tasks of an occupation. Expansion of Vocational Education Providers The new law reclassifies and extends vocational education providers by classifying them into two distinct categories: Vocational education institutions, which include colleges, intermediate schools, and vocational high schools. Establishments participating in vocational education activities, which include vocational education centers, vocational-continuing education centers, continuing education centers, other centers with vocational education functions, enterprises, cooperatives, and higher education institutions. Vocational education providers may provide one vocational training level only, or several/all levels, depending on the type of provider. The
Read More
March 31, 2026
Thailand’s Office of the Consumer Protection Board has opened a public hearing period on draft regulations governing the transfer of direct sales and direct marketing businesses. The draft Notification of the Direct Sales and Direct Marketing Committee: Criteria and Procedures for Business Transfer and Amendment of Registration for Direct Sales or Direct Marketing Businesses establishes a compliance-focused process with strict documentation requirements and timelines for transferring direct sales and direct marketing businesses. The proposed framework also defines the roles of transferors and transferees and establishes application procedures with the Office of the Consumer Protection Board. Applications may be submitted in person or electronically and will be examined to confirm they are complete, authentic, and compliant with legal requirements. This includes verification that: The transferee meets all required qualifications; No disqualifying factors apply; and The applicant is not subject to legal restrictions. The public hearing period is open until April 29, 2026. Direct sales and direct marketing business operators should prepare for these proposed requirements to ensure compliant implementation once the regulations are finalized.
Read More
March 27, 2026
Thailand’s National Broadcasting and Telecommunications Commission (NBTC) has publicly indicated that it is preparing a new regulatory framework for data center operators that may introduce foreign-ownership restrictions. In particular, the NBTC is considering reclassifying data center operations from a type 1 telecommunications business license to a type 3 license. If implemented, this change would subject data center operators to a significantly more stringent regulatory regime, especially in relation to foreign ownership and control. The NBTC has indicated that it intends to propose a draft framework to the NBTC board. This would be followed by a public hearing process, with a view to implementing the new rules within 2026. Under the Telecommunications Business Act B.E. 2544 (2001), as amended, telecommunications businesses operating under type 3 licenses are subject to foreign ownership restrictions, including a requirement that less than 50% of the total issued shares be held by foreign shareholders. In addition, type 3 licensees are subject to foreign dominance restrictions, which prohibit arrangements that allow foreigners to dominate the business. These foreign dominance restrictions are broad in scope and may capture various forms of direct and indirect control or influence. This includes circumstances in which a foreign national is able to influence or control the formulation of policy, management, or business operations, or the appointment of directors or senior executives. At this stage, the exact scope of the proposed rules remains unclear. Businesses with existing or planned data center operations in Thailand should therefore monitor upcoming NBTC developments in this regard and prepare for the expected public hearing process.
Read More