New points of Decree No. 163/2017 / ND-CP regulating logistics business Decree No. 163/2017 / ND-CP regulating the business of logistic services issued by the Government on 30/12/2017 takes effect from 20/02/2018 and replaces Decree 140/2007 / ND-CP detailing the Commercial Law on conditions for trading logistic services and limiting liability for traders providing logistic services; with 3 chapters of 8 articles (instead of 4 chapters, 12 articles in Decree 140).

Compared with Decree 140/2007 / ND-CP, Decree 163/2017 / ND-CP contains the following new noteworthy points: First, on the subject of application Decree No. 163/2017 / ND-CP stipulates that “This Decree applies to traders providing logistic services and related organizations and individuals” while Decree 140/2007 / ND-CP. Specific provisions are “traders providing logistic services in Vietnam and other organizations and individuals involved in logistic services”. Thus, the Decree 163/2017 / ND-CP has expanded to apply to foreign logistics enterprises.

Secondly, if Decree 140 classifies logistics services into three groups, many of which are services, Decree 163 specifies 17 types of logistics services to facilitate the management. Third, on the condition of business logistics services Decree 140/2007 / ND-CP requires traders dealing in logistic services to have sufficient means, equipment, tools to ensure safety and technical standards and have staff to meet the requirements. However, Decree 163/2017 / ND-CP does not specify this requirement, but specific legal documents for each type of service are required. Decree 163 also specifies the conditions for foreign investors doing business in logistics services (Clause 3 of Article 4), in which the foreigners will be allowed to buy shares , the proportion of capital contribution in the enterprise is proportional to the logistics business related to transportation (current regulations only allow the establishment of joint ventures). Fourth, on the Limitation of Liability Decree No. 163/2017 / ND-CP specifies that the limit of liability is the maximum limit for which traders providing logistic services shall pay damages to customers for losses incurred in the past.

To organize the provision of logistics services according to the provisions of this Decree. In cases where the relevant law stipulates the limit of liability of traders providing logistic services, the provisions of relevant laws shall apply. Where the relevant law does not provide for the limitation of liability, the liability of the logistics service trader shall be limited by the parties’ agreement. In cases where the parties do not have an agreement, if the customer does not give advance notice on the value of the goods, the maximum liability limit is 500 million VND for each claim.

If the customer has informed in advance of the value of the goods and is certified by a logistics business entity, the liability limit will not exceed the value of the goods. Fifth, Decree 163 removed chapter 3 on state management of logistics services in Decree 140, instead assigned the Ministry of Industry and Trade to implement this Decree. Specify the names of relevant ministries, branches and agencies.