According to current regulations, foreign businesses with a capital ratio exceeding 51% are not licensed to conduct transport business in Vietnam…
The Ministry of Transport has recently sent a written reply to Vinacapital Vietnam Joint Stock Company (with foreign capital exceeds 51%) in terms of their proposal of ideas related to the provisions of Decree 10/2020 and expected investment in the transits delivering parcels to customers in accordance with the business registration certificate.
Regarding the demands for instructions of “application for badges and certificates of goods transport business registration by car for the ownership and use of trucks for postal activities and cargo delivery by business lines, the Ministry of Transport mentioned Clause 2, Article 3 of Decree 10 which stipulates: “Car hauling business is the implementation of at least one of the main stages of transport activities (directly operating vehicles, driving or determining freight rates) to transport passengers and goods on roads for the sake of making profits.”
On the other hand, the Ministry of Transport announced that the Agreement on Trade and Vietnam’s commitments on WTO accession provided that since Vietnam’s membership was granted, foreign service undertakings had been provided with cargo and freight services and passenger transport services through business cooperation contracts or joint ventures. In particular, the foreign capital ratio does not exceed 49%.
According to the Ministry of Transport, 3 years after the date of accession, depending on the market demand, it is legal to set up a joint venture to provide cargo services, specifically, the foreign capital ratio must not exceed 51% and 100% of the drivers of the joint venture must be Vietnamese citizens.
Also, the note No. 97/2020 of Vinacapital Vietnam Joint Stock Company shows that the company has a foreign capital ratio exceeding 51% and is expected to use vehicles for postal activities and cargo delivery by business lines and postal license. Therefore, as the enterprise currently has a foreign capital ratio exceeding 51%, the investment certificate might as well not include a transport business code as prescribed, leading to inability to get a car hauling business license. According to the provisions of Decree No. 10/2020, the enterprise is also disqualified from getting a transport business license.
“In terms of the management of internal car hauling activities (not transport business), the Ministry of Transport is implementing the tasks assigned by the Government in Clause 10, Article 23 of Decree No. 10/2020. The Ministry of Transport is currently preparing a dossier to submit to the Government to report to the National Assembly Standing Committee to assign the Government on the management of internal car hauling activities (not transport business). This content will be deployed when there are new regulations. ” the Ministry of Transport said.