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Japanese Partner

Decree No. 163/2017/ND-CP on provision of logistics services issued by the Government on 30th December 2017 has replaced Decree No. 140/2007/ND-CP providing detailed regulations on the Commercial Law regarding conditions for engaging in logistic services business, and limitations on liability of logistic services business traders

Compared with Decree No. 140, the new Decree 163 contains some new noteworthy points as bellows:

Firstly, the Vietnamesezed term “lô-gi-stíc”  in the previous Decree 140 has been changed to more International "logistics"  to make consistent to globalized trend.

Secondly, in comparison with Decree 140, Decree 163 extents more regulated entities to include foreign logistics enterprise.

Instead of dividing into group as Principal logistic services, Logistic services relating to transportation, Other related logistic services under Decree 140, Decree 163 specifies 17 types of logistics services.

Decree 163 requires traders in a particular logistic services must meet the conditions of investment and business conditions for that services, and to conduct part or all of the logistics business activities by electronic means connected to the Internet, mobile telecommunications networks or other open networks, the traders are required also to comply with regulations on electronic commerce.

Besides, foreign investors are allowed to buy shares, proportion of capital contribution in the enterprise with logistics business related to transportation (the old regulations only allow the establishment of joint ventures).

In addition, Decree 163 also regulates limitations on liability as follows: Limitations on liability are maximum liability assumed by logistics service providers for compensation to customers for losses incurred during the provision of logistic services in accordance with regulations of Decree 163; In case limitations on liability of logistics service providers are specified by a relevant law, such relevant law shall be complied with; In case limitations on liability of logistics service providers are not specified by any law, such limitations shall be agreed upon by the parties. In case no agreement is made, if customer fails to give a prior notice of the value of cargoes, the maximum liability shall be 500 million VND for each claim for compensation; and if customer gave a prior notice of the value of cargoes and this was verified by the logistics service provider, the liability shall not exceed such value.

Finally, Decree 163 removes entirely the Chapter 3 on state administration of logistic services business activities in Decree 140 and assigns the management to Ministry of Industry and Trade. The relevant ministries, branches and authorities are not specified.