The road transport business is one of the industries with high demand and significant growth potential in Vietnam. However, this is also a heavily regulated sector, requiring enterprises and individuals wishing to engage in this business to fully satisfy all legal requirements prescribed by law.
In 2026, numerous regulations relating to the issuance of transport business licenses were updated and amended, creating concerns for many enterprises and investors. In the article below, Siglaw Firm summarizes the latest legal provisions on conditions, application dossiers, and licensing procedures for road transport business activities under current Vietnamese law.
What is Road Transport Business?
According to Clause 4, Article 56 of the 2024 Law on Roads, road transport business refers to activities conducted by organizations and individuals using rudimentary vehicles or motor vehicles to provide passenger or freight transportation services on roads for profit-making purposes.
Road transport business using automobiles and four-wheeled motor vehicles is divided into two categories:
- Passenger transport business; and
- Freight transport business.
In addition, where organizations or individuals use automobiles or four-wheeled motor vehicles for internal transportation activities within an enterprise without collecting transportation fees, such activities are not considered business operations. Internal transportation expenses shall instead be accounted for as management, production, product distribution, or service costs of the transport operator.
Point e, Clause 2, Article 58 and Point a, Clause 2, Article 62 of the 2024 Law on Roads stipulate that entities without a road transport business license are prohibited from operating vehicles for passenger or freight transportation purposes.
Accordingly, organizations and individuals wishing to conduct road transport business activities must obtain a Transport Business License for automobiles or four-wheeled motor vehicles.
Conditions for Obtaining a Transport Business License for Automobiles and Four-Wheeled Motor Vehicles
Conditions for Passenger Transport Business by Automobile
According to Article 13 of Decree No. 158/2024/ND-CP, automobiles used for commercial passenger transportation must satisfy the following requirements:
- The vehicles must be under the lawful ownership or lawful right of use under a contract between the passenger transport business entity and organizations or individuals;
- The vehicles must be equipped with journey monitoring devices and driver image recording devices;
- The vehicles must satisfy standards regarding technical safety, environmental protection, seating capacity, and service life corresponding to each vehicle category.
Conditions for Freight Transport Business by Automobile
Pursuant to Article 14 of Decree No. 158/2024/ND-CP, automobiles used for commercial freight transportation must satisfy the following requirements:
- The vehicles must be under lawful ownership or lawful right of use under a vehicle lease agreement between the transport business entity and organizations or individuals;
- In cases where vehicles are registered under the ownership of cooperative members, a service contract between the member and the cooperative must be available;
- The vehicles must meet technical safety standards, possess specialized designs suitable for freight transportation, and comply with regulations on vehicle service life according to each vehicle type.
Conditions for Passenger Transport Business by Four-Wheeled Motor Vehicles
Under Article 15 of Decree No. 158/2024/ND-CP, four-wheeled motor vehicles used for passenger transport business must satisfy the following requirements:
- The vehicles must be under lawful ownership or lawful right of use pursuant to a vehicle lease agreement between the business entity and organizations or individuals;
- Where vehicles are registered under the ownership of cooperative members, a service contract between the member and the cooperative is required;
- The vehicles must not exceed 20 years of service life.
Conditions for Freight Transport Business by Four-Wheeled Motor Vehicles
Article 16 of Decree No. 158/2024/ND-CP prescribes the mandatory requirements for four-wheeled motor vehicles participating in freight transport business activities, including:
- The vehicles must be under lawful ownership or lawful right of use pursuant to a vehicle lease agreement between the transport business entity and organizations or individuals;
- Where vehicles are registered under the ownership of cooperative members, a service contract between the member and the cooperative is required;
- The vehicle service life must comply with Clauses 1 and 2, Article 40 of the Law on Road Traffic Order and Safety.
Application Dossier for a Transport Business License for Automobiles and Four-Wheeled Motor Vehicles
The application dossier for obtaining a Transport Business License is prescribed under Article 19 of Decree No. 158/2024/ND-CP.
Accordingly, applicants must prepare the following documents:
- An application form for the issuance of a Transport Business License;
- Diplomas and certificates of the transport operation manager;
- A decision on the establishment and regulations on the functions and duties of the transport safety management department;
- A decision assigning duties to the transport operation manager.
Procedures for Obtaining a Transport Business License for Automobiles and Four-Wheeled Motor Vehicles
Pursuant to Article 21 of Decree No. 158/2024/ND-CP, the licensing procedure consists of the following steps:
Step 1:
The transport business entity submits one set of application documents to the Department of Transport where its head office or branch office is located through one of the following methods:
- Direct submission;
- Online submission; or
- Postal service.
Step 2:
Within three (03) working days from the date of receipt, the Department of Transport shall review and assess the application dossier.
If amendments or supplements are required, the Department will notify and provide guidance accordingly.
Step 3:
Within four (04) days from the date of receiving a valid application dossier, the Department of Transport shall issue the Transport Business License for automobiles and four-wheeled motor vehicles.
If the license is refused, the applicant will receive a written notice or an electronic notification via the online public service system clearly stating the reasons for refusal.
The above information constitutes preliminary legal advice on road transport business activities provided by Siglaw Firm. Should you require detailed legal consultation, please contact:
Head Office in Hanoi: 44/A32 – NV13, Area A Geleximco, Le Trong Tan Street, Tay Mo Ward, Hanoi, Vietnam
Southern Branch: 103 – 105 Nguyen Dinh Chieu Street, Xuan Hoa Ward, Ho Chi Minh City, Vietnam
Central Branch: VIFC DN – ICT Building, Software Park No. 2, Nhu Nguyet Street, Hai Chau Ward, Da Nang, Vietnam
Email: vp@siglaw.com.vn
Hotline: +84 961 366 238
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