Hanoi has passed a new law that tightens the rules on entering or operating in Vietnam’s shipping industry as the sector grapples with financial difficulties.
The national government introduced in mid-April this year Decree No. 30/2014 that specifies new conditions for domestic and foreign entities engaged in sea transportation, shipping agency service, and towage service in Vietnam.
The law will take effect on July 1, 2014, and replace Decree No.115 passed in 2007.
Under the recently passed bill, a new maritime transportation company, shipping agency, or towage service will need a license from the Vietnam Marine Bureau that will have a validity of five years. Firms established before July 1 this year have five years before having to apply for the license, but they must meet all the conditions set out by the new bill.
Moreover, shipping players must have a minimum capital of VND20 billion (US$949,600) to conduct an international shipping business or VND5 million to conduct domestic operations.
For foreign investors, they may put up a joint-venture shipping agency or towing service with a 49 percent cap on foreign ownership.
A shipping agency must now use Vietnamese shipping agents, and a towage service must have at least two towing vessels and purchase professional insurances.
Decree No. 30 also requires all companies involved in sea shipping, agency service, and towage service to have experienced in-house counsels.
Photo: Trang Si Hung
