Numerous foreign investors are eyeing the Vietnamese logistics servicemarket but are facing difficulties because of unclear regulations, theEnglish language news portal VietNamNet Bridge reported.
Chau HuyQuang, Director of Rajah & Tann LCT Lawyers, a law firm, noted thatforeign investors are having problems when registering theirinvestments in the logistics sector.
Vietnam, which joined theWorld Trade Organization (WTO) seven years ago, has fully opened itslogistics market to foreign investors under its WTO commitments.
However,in July 2014, the Ho Chi Minh City People’s Committee released adocument asking to stop licensing foreign-invested logistics firms.
Quang said in Thoi bao Kinh Te Saigon that he does not understand whether foreign logistics investors are welcomed in Vietnam.
“ASingaporean investor cannot set up a logistics firm in HCM City becauseof legal documents, though no ban is found in the laws,” he was quotedas saying.
Meanwhile, Quang said his client, a foreign investedlogistics company, has just been licensed by Ba Ria – Vung Tauprovincial authorities. It seems that the ban is not applied in theprovince.
“Eighty percent of the 1,000 Vietnamese logistics firmsare very small with chartered capital of 1-2 billion VND only.Meanwhile, the large projects capitalized at 5-7 million USD are notwelcomed. Is Vietnam now trying to protect domestic firms?” he asked.
Inreply, HCM City Vice Mayor Le Manh Ha said the city’s authoritiesreleased a document requesting appropriate agencies to halt licensingforeign invested logistics firms because it is still necessary toclarify legal issues.
“It will be very dangerous if wemisunderstand the laws,” he explained, adding that the city authoritiesdo not intend to ban foreign invested logistics in the city.
Asenior official of the Ministry of Industry and Trade (MoIT) said theministry has received documents from many businesses asking to clarifythe regulations in the Decree No 140 which addresses the conditionslogistics enterprises must have.
He said the ministry has sent a dispatch to the Prime Minister asking to clarify the regulations for investors’ consideration.
TheVietnamese logistics market is a very lucrative one for foreigninvestors. Dau Tu newspaper reported that many investment deals in thelogistics sector were announced recently by German investors. DHL, theGerman world’s leading express delivery service provider, last weekannounced the opening of a new air route in Asia which aims to connectthe express delivery networks in Bangkok, Hanoi and Hong Kong.
Severaldays later, DHL decided to provide six flights a week instead of fiveon the Penang (Malaysia) – HCM City – Hong Kong route, which helpsincrease the transport capacity by 20 percent on the air route.
In September 2014, DHL announced the largest ever investment deal in Vietnam worth 10 million USD.
In mid-July, MBS Logistics, another well-known German logistics firm, opened its branch in Vietnam.
Meanwhile,Karl Gross, which set up its representative office in Vietnam in 2008,decided to set up a subsidiary based in HCM City to expand its businessin the country.-VNA
Chau HuyQuang, Director of Rajah & Tann LCT Lawyers, a law firm, noted thatforeign investors are having problems when registering theirinvestments in the logistics sector.
Vietnam, which joined theWorld Trade Organization (WTO) seven years ago, has fully opened itslogistics market to foreign investors under its WTO commitments.
However,in July 2014, the Ho Chi Minh City People’s Committee released adocument asking to stop licensing foreign-invested logistics firms.
Quang said in Thoi bao Kinh Te Saigon that he does not understand whether foreign logistics investors are welcomed in Vietnam.
“ASingaporean investor cannot set up a logistics firm in HCM City becauseof legal documents, though no ban is found in the laws,” he was quotedas saying.
Meanwhile, Quang said his client, a foreign investedlogistics company, has just been licensed by Ba Ria – Vung Tauprovincial authorities. It seems that the ban is not applied in theprovince.
“Eighty percent of the 1,000 Vietnamese logistics firmsare very small with chartered capital of 1-2 billion VND only.Meanwhile, the large projects capitalized at 5-7 million USD are notwelcomed. Is Vietnam now trying to protect domestic firms?” he asked.
Inreply, HCM City Vice Mayor Le Manh Ha said the city’s authoritiesreleased a document requesting appropriate agencies to halt licensingforeign invested logistics firms because it is still necessary toclarify legal issues.
“It will be very dangerous if wemisunderstand the laws,” he explained, adding that the city authoritiesdo not intend to ban foreign invested logistics in the city.
Asenior official of the Ministry of Industry and Trade (MoIT) said theministry has received documents from many businesses asking to clarifythe regulations in the Decree No 140 which addresses the conditionslogistics enterprises must have.
He said the ministry has sent a dispatch to the Prime Minister asking to clarify the regulations for investors’ consideration.
TheVietnamese logistics market is a very lucrative one for foreigninvestors. Dau Tu newspaper reported that many investment deals in thelogistics sector were announced recently by German investors. DHL, theGerman world’s leading express delivery service provider, last weekannounced the opening of a new air route in Asia which aims to connectthe express delivery networks in Bangkok, Hanoi and Hong Kong.
Severaldays later, DHL decided to provide six flights a week instead of fiveon the Penang (Malaysia) – HCM City – Hong Kong route, which helpsincrease the transport capacity by 20 percent on the air route.
In September 2014, DHL announced the largest ever investment deal in Vietnam worth 10 million USD.
In mid-July, MBS Logistics, another well-known German logistics firm, opened its branch in Vietnam.
Meanwhile,Karl Gross, which set up its representative office in Vietnam in 2008,decided to set up a subsidiary based in HCM City to expand its businessin the country.-VNA
