A draft Decree on logistics services in Vietnam (Draft Logistics Decree) has been circulated by the Ministry of Industry and Trade (MOIT) recently. The Draft Logistics Decree, which appears to be a near final draft, will replace Decree 140/2007 on the same topic. The salient points of the Draft Logistics Decree include:

The Draft Logistics Decree classifies logistics services in accordance with Vietnam’s commitment to the WTO. On the other hand, Decree 140/2007 has its own classification of logistics services which are not consistent with the description of logistics services under the WTO Commitments. So it is easier to compare the Draft Logistics Decree with the WTO Commitments;
The Draft Logistics Decree does not include certain logistics services which were provided in Decree 140/2007 (see the table below). Accordingly, it is not clear of these services are permitted or not permitted under the Draft Logistics Decree;
The investment conditions and foreign ownership limit provided in the Draft Logistics Decree are generally consistent with the WTO Commitments. That said, the Draft Logistics Decree provides that there will be no investment conditions or foreign ownership limit applicable to “other services provided by logistics service providers and as agreed with clients in accordance with international practice on logistics services and in accordance with the basic principles of the Commercial Law”. These services are logistics services which are not the specific services listed in the Draft Logistics Services including “other transport support services”. This provision arguably will expand the scope of permitted logistics services in Vietnam. However, the nature of logistics services covered by this provision is not clear since it is not clear how to distinguish “other transport support services” which is generally not permitted from “other services provided by logistics service provider” which is generally permitted; and
The table below sets out the applicable foreign ownership limit under the Draft Logistics Decree and, to the extent possible, a comparison with Decree 140/2007:

No.	Decree 140/2007 Business line	Decree 140/2007 Foreign ownership limit	Draft Decree Business line (same or similar)	Draft Decree Foreign ownership limit
1.	Domestic and international maritime transportation of goods	· 49% for domestic transportation · Unlimited for international transportation	Cargo transport services as part of sea transport services (except for inland transport) Dịch vụ vận tải hàng hóa thuộc dịch vụ vận tải biển (trừ vận tải nội địa)	· 49% of a joint venture (JV) operating a fleet of ships flying Vietnamese flag; · 100% foreign invested enterprise (FIE) for providing international shipping service.
2.	Domestic and international inland waterway transportation of goods	49%	Cargo transport services as part of inland waterway transport services Dịch vụ vận tải hàng hóa thuộc dịch vụ vận tải đường thuỷ nội địa	49% of a JV.
3.	Domestic and international road transportation of goods	51%	Cargo transport services as part of road transport services Dịch vụ vận tải hàng hóa thuộc dịch vụ vận tải đường bộ	· 51% of a JV; or · Carry out with a BCC.
4.	Freight transportation agency services	· 51% until 11 January 2014 · Not clear but probably unlimited from 11 January 2014	Freight transport agency service Dịch vụ đại lý vận tải hàng hóa	100% FIE is allowed.
5.	Goods loading/unloading services	50%	Container handling services (except for services provided at airports) Dịch vụ xếp dỡ container (trừ dịch vụ cung cấp tại các sân bay)	50% of a JV.
6.	Storage and warehousing services	· 51% until 11 January 2014 · Unlimited from 11 January 2014	Warehousing services as part of all transport modes support Dịch vụ kho bãi thuộc dịch vụ hỗ trợ mọi phương thức vận tải	100% FIE is allowed.
7.	Containers warehousing services	· 51% until 11 January 2014 · Unlimited from 11 January 2014	Container warehousing services as part of sea transport services Dịch vụ kho bãi container thuộc dịch vụ hỗ trợ vận tải biển	100% FIE is allowed.
8.	Goods collection services	Not clear but probably 51% until 1 January 2014 and unlimited thereafter.	Retailing support services including management of goods in storage, and collection, collation and classification of goods and their redistribution and delivery Dịch vụ hỗ trợ bán lẻ, bao gồm cả hoạt động quản lý hàng lưu kho, thu gom, tập hợp, phân loại hàng hóa, phân phối lại và giao hàng	No limitation.
9.	Customs clearance services	· 51% until 11 January 2014 · Not clear but probably unlimited from 11 January 2014	Customs clearance services as part of sea transport services Dịch vụ thông quan thuộc dịch vụ hỗ trợ vận tải biển	JV only, no ownership limitation.
10.	Repair services for transportation and sea-going vessels equipment for shipping companies	Not clear but may be not permitted	No similar services	Not clear but may be not permitted
11.	Import and export entrustment services	Not clear but may be not permitted	No similar services	Not clear but may be not permitted
12.	International freight forwarding	Same as “Freight transportation agency services”	Freight transport agency services;	Same as freight transport agency services
13.	Shipping agency and shipping brokerage services	· 49% for shipping agency services · Not clear for shipping brokerage	No similar services	Under Decree 160/2016: · 49% for shipping agency services · Not clear for shipping brokerage
14.	Freight forwarding entrustment services	Not clear subject to further researches	Freight transport agency services;	Same as freight transport agency services
15.	Goods maintenance services	Not clear depending on the classification of this service	No similar services	Not clear but may be not permitted
16.	Trading and consignment agency	Unlimited but subject to the specific goods in questions	No similar services	Not clear but may be not permitted
17.			Delivery services Dịch vụ chuyển phát	100% FIE is allowed.
18.			Other services comprising bill of lading inspection, cargo brokerage services, cargo inspection, sampling and weighing services; goods receipt and acceptance services; and preparation of transport documents Dịch vụ khác, bao gồm các hoạt động sau: kiểm tra vận đơn, dịch vụ môi giới vận tải hàng hóa, kiểm định hàng hóa, dịch vụ lấy mẫu và xác định trọng lượng; dịch vụ nhận và chấp nhận hàng; dịch vụ chuẩn bị chứng từ vận tải	JV only, no ownership limitation provided.
19.			Wholesaling support services Dịch vụ hỗ trợ bán buôn	Not provided.
20.			Transport services as part of rail transport services Dịch vụ vận tải hàng hóa thuộc dịch vụ vận tải đường sắt	49% of a JV.
21.			Air carriage services Dịch vụ vận tải hàng không	According to the provisions of the Law on Civil Aviation of Vietnam: · 30% of a FIE; · 49% of the biggest shareholder (Vietnamese entity) of such FIE; · Share transfer of non-FIE to foreign investor can be done after 2 years as from the date on which the company is licensed to provide air carriage services.
22.			Multimodal transport services Dịch vụ vận tải đa phương thức	No limitation
23.			Customs brokerage services Dịch vụ đại lý làm thủ tục hải quan	No limitation
24.			Technical testing and analysis services Dịch vụ kiểm tra và phân tích kỹ thuật	No limitation
25.	Other transport support services	Not allowed to provide these services unless otherwise provided in an international treaty of which Vietnam is a member.	Other transport support services Các dịch vụ hỗ trợ vận tải khác	Not allowed to provide these services unless otherwise provided in an international treaty of which Vietnam is a member.

This post is contributed by Le Thanh Nhat, a legal intern at Venture North Law Limited.

Vietnam Business Law