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:

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