THE GOVERNMENT
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No. 140/2007/ND-CP
Hanoi, September 05, 2007
 
DECREE
PROVIDING DETAILED REGULATIONS ON THE COMMERCIAL LAW REGARDING CONDITIONS FOR ENGAGING IN LOGISTIC SERVICES BUSINESS, AND LIMITATIONS ON LIABILITY OF LOGISTIC SERVICES BUSINESS ENTITIES
THE GOVERNMENT 
Pursuant to the Law on Organization of the Government dated 25 December 2001;
Pursuant to the Commercial Law dated 14 June 2005;
Having considered the proposal of the Minister of Industry and Trade; 
DECREES: 
Chapter I
GENERAL PROVISIONS 
Article 1 Governing scope 
This Decree provides detailed regulations for implementation of the Commercial Law with regard to conditions for engaging in logistic services business and the limitations on liability of business entities engaging in logistic services business. 
Article 2 Applicable entities 
This Decree applies to business entities engaging in logistic services business and to other organizations and individuals with activities related to logistic services. 
Article 3 Interpretation of terms 
In this Decree, the following terms shall be construed as follows:
1. Logistic services means the commercial activities stipulated in article 233 of the Commercial Law.
2. Business entity engaging in logistic services business means a business entity who organizes the performance of logistic services for clients by itself conducting such services or by hiring another business entity to conduct one or a number of stages of such services.
3. Foreign business entity engaging in logistic services business means a business entity from any country or territory with which Vietnam has an undertaking in an international treaty regarding opening of the logistic services business market.
4. Limitation on liability means the maximum level at which a business entity engaging in logistic services business is liable to pay compensation to a client for loss and damage arising during the process of organization of the performance of logistic services in accordance with the provisions in this Decree. 
Article 4 Classification of logistic services 
Logistic services as stipulated in article 233 of the Commercial Law shall be classified as follows:
1. Principal logistic services, comprising:
(a) Services of arranging pickup and loading of goods, including loading goods into containers;
(b) Goods warehousing and storage services, including the business of warehousing in containers and storage for processing raw materials and equipment;
(c) Transportation agency services, including agency activities of conducting customs procedures and preparing plans for unloading goods1;
(d) Other subsidiary services including activities of receiving, archiving and managing information about transportation and storage of goods throughout the entire logistic process; activities being reprocessing of goods returned by clients, reprocessing of goods in storage and of outof-date goods and redistribution of such goods; and activities being leasing out and hire purchase of containers.
2. Logistic services relating to transportation, comprising:
(a) Sea carriage services;
(b) Internal waterways carriage services;
(c) Aviation carriage services;
(d) Rail carriage services;
(dd) Road carriage services;
(e) Pipeline conduit services.
3. Other related logistic services, comprising:
(a) Services being technical checks and analysis;
(b) Post services;
(c) Wholesale commercial services;
(d) Retail commercial services, including activities of managing goods in storage; collecting goods from various sources, assembling and classifying the goods, and redistributing and delivering them;
(e) Other subsidiary transportation services.
Chapter II 
CONDITIONS FOR ENGAGING IN LOGISTIC SERVICES BUSINESS AND LIMITATIONS ON LIABILITY OF BUSINESS ENTITIES ENGAGING IN LOGISTIC SERVICES BUSINESS 
Article 5 Conditions for engaging in logistic services business applicable to principal logistic services Business entities engaging in the principal logistic services stipulated in article 4.1 of this Decree must satisfy all the following conditions:
1. The enterprise must have lawful business registration in accordance with the law of Vietnam.
2. There must be adequate facilities, equipment and working facilities which ensure technical [standards] and safety criteria, and there must be a team of staff who satisfy the requirements.
3. Foreign business entities, in addition to satisfying the conditions stipulated in clause 2 of this article, shall only be permitted to engage in logistic services business when they also satisfy the following specific conditions:
(a) In the case of business in unloading goods, a foreign business entity shall only be permitted to establish a joint venture company in which the capital contribution ratio of the foreign investor does not exceed 50%;
(b) In the case of business in warehousing services, the foreign business entity shall be permitted to establish a joint venture company in which the capital contribution ratio of the foreign investor does not exceed 51%; this restriction shall terminate in year 2014;
(c) In the case of business in transportation agency services, the foreign entity shall be permitted to establish a joint venture company in which the capital contribution ratio of the foreign investor does not exceed 51%, and as from year 2014 the establishment of a joint venture company shall not be restricted in terms of the capital contribution ratio of the foreign investor;
(d) In the case of business in other subsidiary services, the foreign business entity shall be permitted to establish a joint venture company in which the capital contribution ratio of the foreign investor does not exceed 49%; this restriction shall be 51% as from year 2010 and [this restriction] shall terminate in year 2014. 
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