Foreign investor: I would like to consult with your firm regarding procedure / process on setting up a Forwarder/ Logistics company in HCM, Vietnam.
The company that I work for is a global logistics company with Head office in Singapore.
As our company is expanding our business into SE Asia. We are looking into setting up a company in Vietnam. AS Far as I understand there are few options available , such as WOFE, Joint Venture, etc.
Lawyer: Regarding your inquiries, I would like to brief you some opinion on logistic services as follows:
Foreign Investor can setup a foreign invested company for providing logistic services in Vietnam.
Depending on specific logistic services to be provided in Vietnam, foreign ownership restriction may be applied. Particular as follows:
– Warehouse services and transport agency service: It is possible for setting up wholly foreign owned company.
– Custom Clearance Services: It is possible for setting up joint venture company with local partner, in which foreign ownership can be up to 99.99% of total capital of the joint venture.
– Container Handling Services: It is possible for setting up joint venture company with local partner, in which foreign ownership can be up to 50% of total capital of the joint venture.
– Road Freight Transportation Service: It is possible for setting up joint venture company with local partner, in which foreign ownership can be up to 51% of total capital of the joint venture. However, Vietnam Government reserve right to restrict number license granted to Foreign Investors in Vietnam based on demand of the market.
– Domestic Maritime Freight Transportation Service: It is possible for setting up joint venture company with local partner, in which foreign ownership can be up to 49% of total capital of the joint venture.
– International Maritime Freight Transportation Service: It is possible for setting up wholly foreign owned company.
Complexity of the case shall very much depend on specific logistic services to be registered, capital amount and specific location of the foreign invested company. Please classify with your Client, then we can prepare the best proposal for them.
