Foreign investors establish logistics companies
In the structure of the country’s economy, Logistics is increasingly growing to become a service industry that plays an extremely important role in supporting socio-economic development, contributing to improving productivity competitiveness in the economy. Developing the logistics service market will create opportunities for businesses of all economic sectors to develop, encouraging the attraction of domestic and foreign investment capital. Therefore, more and more foreign investors are interested in investing in the logistics field and establishing logistics companies in Vietnam.
Learn about types of logistics services
Logistics is a commercial activity in which traders carry out tasks such as planning and controlling the efficient transportation and storage of goods, services, and related information from the point of origin to the point of consumption according to the agreement with the customer to receive remuneration. Therefore, in Vietnam, there are types of logistics services including:
- Container unloading services (except services provided at the airport).
- Delivery service.
- Freight agency services.
- Customs clearance agent service.
- Air transport agency services.
- Freight transportation services belong to marine transportation services.
- Freight transport services belong to road transport services.
- Multimodal transport service.
Conditions for foreign investors when doing logistics service business.
- A person with nationality from a country or territory that is a member of the WTO.
- Provide full legal documents proving personal status such as identity card, passport.
- Traders providing specific services under logistics services must meet the investment and business conditions prescribed by law for that service.
Capital contribution ratio:
- In the case of cargo transport services business belonging to maritime transport services, they are allowed to establish a company or contribute capital, buy shares, or contribute capital in the enterprise, but the investment capital of foreign investors must not exceed 49%.
- Businesses of container handling services belonging to maritime transport support services can establish a company or contribute capital/ buy shares in the company but the capital contribution ratio cannot exceed 50%.
- If the business of transporting goods belongs to road transport services, foreign investors are allowed to establish a company or contribute capital or buy shares, but the capital contribution must not exceed 51% and 100%. The company driver must be a Vietnamese citizen.
Process for foreign investors to establish logistics companies in Vietnam.
Process 1: Apply for an investment registration certificate.
Foreign investors submit a set of application documents for an investment registration certificate to the investment registration agency. Investment registration documents include:
- A document requesting implementation of investment project (according to Form A.I.1 issued with Circular 03/2021/TT-BKHDT);
- Certified copy of personal identification documents (ID card or passport) for individual investors; copy of Business Registration for institutional investors;
- Certified copy of one of the documents related to the investor (financial statements of the last 2 years of the investor; Document/commitment to financial support of the holding company; Decision/commitment to support finances of financial institutions; …);
- The investment project proposal includes the following contents: investor implementing the project, investment objective, investment scale, investment capital and capital mobilization plan, location, term, investment progress, labor needs, proposals for investment incentives, assessment of impact and socio-economic efficiency of the project;
- A document explaining the technology used in the project;
- The location lease contract or other document confirms that the investor has the right to use the location to carry out the investment project.
Apply for an investment registration certificate to the investment registration agency:
- Management board of industrial zones if headquarters is located in the industrial zone.
- Department of Foreign Economic Relations – Department of Planning and Investment at the province/city center level if headquarters is located outside the industrial park.
Within 15 working days from the date of receipt of the dossier, the Investment Registration Office – Department of Planning and Investment/Management Board of industrial and export processing zones at the province/ city center shall review and grant an investment registration certificate. In case of refusal, it must be made in writing with a clearly stating the reason.
Process 2: Register to establish a foreign-invested logistics company.
The investor submits a set of company registration documents to the Business Registration Office under the Department of Planning and Investment where the enterprise is headquartered. Records include:
- An application for business registration (According to the form in Circular 02/2019/TT-BKHDT);
- Company rules;
- List of members (for limited liability companies) or list of shareholders (for joint stock companies);
- A valid copy of one of the following documents:
- Personal identification documents: ID card, Passport or other legal personal identification of founding shareholders and shareholders individuals who are foreign investors;
- Establishment decision of the foreign legal entity, Business registration certificate or other equivalent documents of the organization and authorization documents;
- Personal identification documents of authorized representatives of founding shareholders and shareholders who are foreign institutional investors;
- An investment registration certificate has been issued.
Apply for a business registration certificate in:
- Business Registration Office – Department of Planning and Investment.
- Submit your application online at the national information portal on business registration (dangkylanhdoanh.gov.vn).
After receiving the dossier, the Business Registration Office gives a receipt of the dossier to the applicant. Within 03 working days from the date of receiving the application, the Business Registration Office – Department of Planning and Investment will issue a business registration certificate. In case of refusal, a written notice must be issued with a clearly stating the reason.
Process 3: Complete post-establishment procedures.
Investors need to complete the following tasks for the company to operate:
- Register for an investment reporting account;
- Open a bank account;
- Labor registration;
- Apply for different types of licenses.
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