What Goods Allowed to Be Imported into Vietnam?

 Foreign owned companies in Vietnam wishing to import and distribute physical goods into Vietnam must comply with many regulations. It is imperative that the right to conduct import business of foreign investors and FDI companies differ from the right of Vietnamese traders having no foreign direct investment capital because trading activities are considered conditional investment area.

1. General Principles of Imported Goods

In principle, as other countries, the importers have to follow the general rules when importing and distributing physical goods into Vietnam:

i. Not to import goods specified under the list of goods banned from import or suspended from import provided, published by Vietnam government;

ii. Follow the guideline or import regulations and conditions required by ministries and ministerial-level agencies. There are specific conditions for importing certain goods which the importers have to follow i.e. certain medical equipment have to be approved by the Ministry of Health; Food, cosmetics products need to be testedReceiving and transmitting telecom equipment must be inspected by Ministry of Information and Communication; Books, CDs will be checked and scanned for contents to be approved by Ministry of Cultures, Sport and Tourism; Equipment must satisfy energy, environmental regulations to be inspected and labeled by Ministry of Science and Technology…

iii. Implement other relevant laws, commitments of the Socialist Republic of Vietnam in treaties which it has signed or acceded to, and the roadmap announced by the Ministry of Industry and Trade.

2. Goods Prohibited to Be Imported into Vietnam

i. For the goods being banned to be imported and distributed in Vietnam, the importers have to follow strictly to avoid penalties:

ii. Weapons, ammunitions, explosives (excluding industrial explosives), military technical equipment.

iii. Assorted fireworks, sky lanterns, assorted devices causing interference to vehicle speedometers.

iv. Used consumer goods: Textiles and garments, footwear, clothes; Electronic appliances; Refrigerating appliances; Home electric appliances; Medical equipment; Interior decoration goods;

v. Assorted publications banned from dissemination and circulation in Vietnam

vi. Assorted cultural publications banned from dissemination and circulation or decided to be suspended from dissemination and circulation in Vietnam.

vii. Right-hand drive means of transport; assorted automobiles and their spare parts which have their frame or engine numbers erased, modified or tampered with; Assorted motorcycles, special-use motorbikes and motorbikes which have their frame or engine numbers erased, modified or tampered with

viii. Used supplies and vehicles

ix. Chemicals in Annex III of the Rotterdam Convention.

x. Pesticides banned from use in Vietnam.

xi. Wastes and scraps, refrigerating equipment using C.F.C.

xii. Products and materials containing asbestos of the amphibole group

xiii. Schedule-I toxic chemicals; Chemicals on the list of banned chemicals

It is important for foreign trader wishing to establish a trading company in Vietnam to not only study the market demand in Vietnam but also the country’s law on import, export, customs law to ensure their compliance during the operation.  If doubted, the Client is suggested to reach out for help and advisory of law firms in Vietnam by qualified lawyers in the area of import, export and customs.

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10 Critical Reasons Why Logistics Lawyers in Vietnam Are Essential for Global Logistics Firms

Logistics has been an essential component of global trade and commerce for centuries. Many global logistics firms have developed robust processes and procedures to manage the complexities of moving goods across international borders.

However, in Vietnam, the logistics landscape presents unique challenges due to the local environment, regulations, customs and practice clashing with with growing complexity of the industry, advancements in communication infrastructure, and sophisticated tracking systems. Despite these advancements, manual processes such as customs inspections remain prevalent. Furthermore, the logistics industry in Vietnam heavily relies on customs practices and international standards, making it challenging for foreign firms to understand and localize their operations effectively.

Many global logistics and freight forwarding companies entering the Vietnamese market have not invested sufficiently in localized support, particularly engaging with logistics lawyers in Vietnam, assuming that their global processes would suffice. This assumption often proves to be misguided. This article explores ten critical reasons why logistics lawyers in Vietnam are indispensable for global logistics firms aiming to succeed in this dynamic market.

The Importance of Logistics Lawyers in Vietnam

Logistics lawyers in Vietnam play a pivotal role in helping global logistics firms navigate the intricate legal landscape of the Vietnamese logistics industry. Their expertise ensures compliance with local laws, smooth operational processes, and protection of the firms’ interests. Here’s a detailed look at how logistics lawyers in Vietnam are crucial for foreign logistics companies.

1. Expertise in Local Laws and Regulations

Vietnam’s legal framework for logistics is complex and continually evolving. Logistics lawyers in Vietnam possess an in-depth understanding of local laws and regulations that govern the logistics industry.  Many of the times, the issues are with the licensing, and requirements to conduct the the business lines of logistics, transport agent, freight forwarder, bonded warehouse leasing, customs brokerage permits. The logistics lawyers ensure that foreign logistics firms comply with all relevant legal requirements, thereby minimizing the risk of legal disputes and operational disruptions. Their knowledge is crucial for understanding the specific legal nuances that can affect logistics operations in Vietnam.

2. Facilitating Market Entry

Entering the Vietnamese market involves navigating various legal formalities, which can be daunting for foreign logistics firms. Logistics lawyers in Vietnam assist companies with all necessary documentation and procedures, ensuring a smooth and efficient market entry. Their expertise in drafting and reviewing contracts, advising, applying, obtaining licenses, and securing permits is invaluable for foreign firms looking to establish a foothold in Vietnam.  Further, it is equivalent important to help align expectation of the logistics companies entering Vietnam taking consideration of different cultures, business practice and the way State authorities in Vietnam work.

3. Navigating Customs Procedures Challenges

Customs procedures in Vietnam are known for their complexity and manual processes. Logistics lawyers in Vietnam provide essential guidance on navigating these procedures, ensuring compliance with customs regulations. They assist in advising the legal requirements for the logistics company in preparing and submitting customs documentation, responding to customs queries, and addressing any issues that may arise during customs inspections. 

4. Mitigating Risks

The logistics industry in Vietnam is fraught with risks, including regulatory compliance issues, operational disruptions, and legal disputes. Logistics lawyers in Vietnam conduct thorough due diligence and risk assessments, identifying potential legal issues and developing strategies to mitigate them. This proactive approach helps foreign logistics firms avoid costly legal disputes and ensures smoother operational processes.  For instance, for avoidance of litigation at local court, making sure arbitration would be a preferred choice when it comes to dispute need to be prepared from engaging with customers, which sometime get lost in foresight.  

5. Handling Dispute Resolution

Disputes are inevitable in the logistics industry. Logistics lawyers in Vietnam provide expert representation in negotiations, mediation, arbitration and court proceedings. Whether it’s a contractual disagreement, issues with local partners, or conflicts with regulatory authorities, these lawyers work diligently to resolve disputes efficiently and favorably. Their support is crucial for maintaining operational continuity and protecting the interests of foreign logistics firms.  Pay attention, dispute in logistics might be complex in a sense that there are international practice, or jargon not being easily understood by the outsiders.  INCOTERMS are simplest examples when it comes to evaluating risks transfer liabilities.  

6. Ensuring Compliance with Labor Laws

Vietnamese labor laws are comprehensive and can be challenging for foreign logistics firms to navigate. Logistics lawyers in Vietnam offer guidance on employment contracts, employee benefits, and labor relations, ensuring compliance with local labor regulations. By helping logistics firms understand their obligations and rights, these lawyers foster a harmonious and legally compliant workplace, which is essential for successful operations.

7. Providing Strategic Business Advice

Logistics lawyers in Vietnam are not merely legal advisors; they often play a strategic role in business planning. They offer valuable insights into local market conditions, potential legal challenges, and strategic opportunities. For instance, they could search other companies in the market and provide some insights on permits and licenses the other companies might have. This strategic advice helps logistics firms make informed decisions that align with their business goals and the regulatory environment, enhancing their chances of success in the Vietnamese market.

8. Facilitating Environmental Compliance

Environmental regulations are a critical aspect of logistics operations in Vietnam. Logistics lawyers in Vietnam assist firms in understanding and complying with these regulations, ensuring that their operations meet all necessary environmental criteria. This includes guiding clients through environmental impact assessments and implementing appropriate mitigation measures. Their support ensures that logistics operations proceed without legal complications related to environmental issues.

9. Enhancing Communication with Local Authorities

Effective communication with local authorities is crucial for the success of any logistics operation. Logistics lawyers in Vietnam act as intermediaries, facilitating clear and effective communication between logistics firms and government officials. This role is vital in ensuring that all legal and regulatory requirements are met without delays and that any issues that arise are promptly addressed.

10. Building Long-Term Relationships

Successful logistics operations often rely on long-term relationships with legal advisors. Logistics lawyers in Vietnam prioritize building strong, trust-based relationships with their clients. This ongoing support ensures that logistics firms have a reliable legal partner who understands their operations and can provide timely advice as needed. These long-term relationships are invaluable for navigating the complexities of the logistics industry in Vietnam.

The Growing Complexity of Vietnam’s Logistics Industry

Vietnam’s logistics industry is evolving rapidly, driven by advancements in technology, infrastructure, and regulatory frameworks. However, this growth also brings increased complexity, making it essential for foreign logistics firms to have localized support. Here are some key factors contributing to the complexity of Vietnam’s logistics industry:

Communication Infrastructure

Companies might have used advanced tracking systems and digital platforms becoming more prevalent. While these advancements offer numerous benefits, they also introduce new challenges to be aligned with local regulations i.e. electronic vs paper trail. Logistics firms must ensure that their systems are compatible with local regulations while they can effectively manage and integrate these systems into their operations.

Manual Processes

Despite technological advancements, many aspects of Vietnam’s logistics industry still rely on manual processes. Customs inspections, for example, often involve manual checks and paperwork, which can be time-consuming and prone to errors. Logistics lawyers in Vietnam help firms navigate these manual processes, ensuring that all documentation is accurate and complete and that any issues are promptly resolved.

International Standards and Localization

The logistics industry operates on international standards, making it challenging for foreign firms to localize their operations effectively. Logistics lawyers in Vietnam provide essential support in understanding and complying with local regulations while maintaining adherence to international standards. This balance is crucial for ensuring that logistics operations are efficient and legally compliant.

The Challenges Faced by Global Logistics Firms in Vietnam

Global logistics firms entering the Vietnamese market face several unique challenges that can hinder their success if not properly addressed. Here are some of the key challenges and how logistics lawyers in Vietnam can help overcome them:

Understanding Local Regulations

Vietnam’s regulatory environment can be complex and difficult to navigate for foreign firms. Logistics lawyers in Vietnam provide essential guidance on understanding local regulations and ensuring compliance. Their expertise helps firms avoid legal pitfalls and ensures that their operations align with local laws.

Managing Operational Risks

Operational risks are inherent in the logistics industry, particularly in a dynamic market like Vietnam. Logistics lawyers in Vietnam conduct thorough risk assessments and develop strategies to mitigate these risks. This proactive approach helps firms manage operational risks effectively and ensures smoother logistics operations.

Navigating Bureaucratic Hurdles

Vietnam’s administration processes can be slow and cumbersome, posing challenges for foreign logistics firms. Logistics lawyers in Vietnam assist in navigating these hurdles, ensuring that all necessary permits and approvals are obtained promptly. Their support is crucial for avoiding delays and ensuring that logistics operations run smoothly.

Ensuring Effective Communication

Effective communication with local authorities and partners is essential for successful logistics operations. Logistics lawyers in Vietnam facilitate clear and effective communication, ensuring that any issues are promptly addressed and that all regulatory requirements are met. Their role as intermediaries helps bridge the communication gap and ensures smooth operations.

The Essential Role of Logistics Lawyers in Vietnam

In conclusion, the logistics industry in Vietnam presents unique challenges that require localized support and expertise. Logistics lawyers in Vietnam play a critical role in helping global logistics firms navigate the complexities of the legal landscape, ensuring compliance with local regulations, and protecting the firms’ interests. By leveraging the expertise of logistics lawyers, foreign logistics firms can overcome challenges, mitigate risks, and achieve success in Vietnam’s dynamic market.

By leveraging their expertise, reputation, and strategic advice of logistics lawyers, logistics firms can overcome challenges and capitalize on the opportunities in Vietnam’s vibrant economy.

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Sales and Purchase of Ocean Ships in Vietnam

 Ship sales and purchase should involve shipping lawyers in Vietnam whom understand the laws and the shipping industry.

For long, maritime activities and carriage of goods by sea are important parts of the international economic life, supporting the import and export of goods, connecting Vietnam to the world commodities market and therefore playing as driving factors behind the development of maritime transportation field.

As the demands for transportation exists, although some times up and down depending on the cycle of the economy, ships purchase and sales are important part of maritime related transaction businesses. With its own special characteristics, the purchase or sale of ships usually involve enormous economic interests, and risks at the same time. Ships are special objects in transactions therefore require the help of local and international ship lawyers with knowledge and experience to handle.

Stages in a Ship Transaction

The sale and purchase of a ship include contract, inspections, and the closing.

At the first step, both buyer and seller appoint ship brokers to carry out the negotiating and defining the clauses needed in the contract. Once details of the contract are agreed, the parties shall initiate the process of drafting the contract under Memorandum of Agreement (MOA) which normally is under a standard form. The governing law applies to such contract is usually the law of the country where the ship is registered its nationality. To enable the international transaction of ship, parties will sign an addendum to the MOA, stating necessary documents to be provided which may include: Approval from Director or Shareholders of resolving the sale of the vessel; Export or Import Permission of the Maritime Administration (requirement depending on national legislation), Power of Attorney, as well as other related documents involving the grade, commitments of the seller, etc.  Once lawyers of buyers and sellers agree on the documents and have initial checking of such, the buyer may pay a deposit as a percentage of the value of the contract.

After the forming of contract, shipping lawyers of buyer start to inspect the documents provided by the seller.  The inspection of the ship could be conducted in parallel. For the documents inspection, the buyer will check the ship’s class records and certificate records. The inspection of records will reveal the history of the ship’s maintenance in compliance with the requirement of class. Furthermore, the buyer need to check the mortgages and the maritime lien records to make sure that the vessel is free from encumbrances, debts, taxes, mortgages and maritime liens.  This will help prevent any damages or loss subject to the legal issue of the ship which may occur before the delivery of the ship. The buyer should also acknowledge of whether the ship owner is in debts for fuels or salaries, etc. However, in some case, it may be difficult to verify such information without the collaboration of the ship owner.

For the physical inspection, instead of just checking the logbook for the status of the ship, it is preferable to hire a professional examiner to control the process of physical inspection relating the safety, certificates, equipment and engine issues. Sending a person on the ship to participate in some of the ship’s voyages may be advisable in circumstances.

At closing, the parties shall transfer the ship and all related documents as required. During the stage of delivery, the buyer physically accepts the delivery of the vessel after re-checking the status of the vessel, the remaining amount of fuel and engines status at the designed port. The place for delivery may be at a different location from where the contract was made. It depends on the agreement between the parties and usually for the convenience of the voyage.

An important document that needs to be transfer at this stage is the Bill of Sale. The Bill of Sale should be in proper form and duly notarized. In some country, it is crucial to get the Bill of Sale registered at the authority agencies in order for it to take effect.

Other procedures that the parties also need to complete at the state’s authority agencies include legalization of the ship transaction process, transference of vessel ownership and modification of the shipping registration. The state where parties are to complete such procedure shall be the country where the vessel is registered (the country which the vessel is permitted for flying flag).

Why Shipping Lawyers are Important in Ship Transaction?

Seagoing vessel is a special type of asset in a commercial transaction. When engaging in a contract to purchase a vessel, it is important to consider not only the nationality of the owner but also the nationality of the vessel itself. As the process of the transaction involves many procedures and requirements which usually need to be complete at the state’s authority agencies, the law of the country where the vessel is registered shall have a strong influence on the interpretation and execution of the contract.

The model contract usually comes with specific requirements on the content and form of the commercial invoice and the Bill of Sale pursuant to the national legislation (the nation where the vessel is registered). The parties may agree to change some of the clause in the model contract to meet their demand in the transaction. However, if a model contract is chosen to be used, the parties should at all time acknowledge of all the clauses existing in the contract and try to comply with the form and requirement of such documents.

Most of the transferred documents in a vessel transaction need to be notarized or legalized in order for the contract to take effect. However, the process of notarized and legalized in some country only certify that the documents have been duly signed and stamped, it doesn’t confirm or verify the certainty of the content and information provided in the documents. Therefore, both parties should require the other to provide the certificate or proof of the competent authority agencies confirming the certainty of the information or content that they have committed in the contract. For example, in a ship transaction, the buyer usually required seller to commit that the ship is free from any encumbrances, debts, taxes, mortgages and maritime liens. To confirm the certainty of such information, the buyer may require the seller to provide documents or certification from National Registration Agency for Secured Transactions to ensure the documents are provided in good faith. To reduce the risks, the buyer may also ask for a specific clause in a contract stating the liability of the seller in the event of future dispute relating the vessel.

In case one parties of the contract is an organization or company, the required documents should include the Minute of the Joint Meeting and Decision/ Approval of Directors or Shareholders resolving the sale of the vessel in accordance with the term and conditions of the MOA.  Those documents should be duly established and signed in accordance with the requirement of the national legislation (law of the country where the company is set up).  The Approval of Shareholder should also require the signature of all the shareholders of the company in order to avoid future disputes that may arise. Other documents which parties should also consider including Association’s Regulation, authorized papers, passports and personal documents of the representatives of each party.  This will help better understand the legal position of parties in the contract, ensure their legal status to engage and perform in the contract.

ANT Lawyers have experience in laws and shipping matters to advice clients whom are interested to buy ships from Vietnam ship owners.   We assist our clients in the process of reviewing contract, examining the documents and giving useful consultation for the sale and purchase procedure.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have Attorneys in Hanoi, Attorneys in Ho Chi Minh and Attorneys in Danang.

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How to Determine Financial Security to Request for Arrest of Ship?

According to Article 132 of Vietnam Law on Maritime, to request for arrest of ships, it is required to provide financial security to ensure that there is a way to hold the requester responsible in case the request is wrongful.

The person requesting arrest of ships must provide financial security in either or both of the following forms:

i) Submitting asset-backed security documents issued by banks or other credit institutions, or individuals, agencies or ovrganizations;

ii) Depositing a sum or valuable papers according to the Court’s judgement over execution of financial security in an escrow account opened at the bank within an area where the work office of the Court accorded authority to arrest a ship is located no later than 48 hours of receipt of such judgement.

The value of a financial security shall be decided by the Court and shall be proportionate to any loss or damage incurred due to consequences arising from request for wrongful arrest of a ship.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have law firm in Hanoi, law firm in Ho Chi Minh City and law firm in Da Nang. 

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What Documents and Evidence Should be Required to Arrest or Release Ship from Arrest?

 According to Article 134 of Vietnam Law on Maritime, the requester needs to provide documents and evidence attached with a written request for arrest of ships or a written request for release of ships from arrest.

Upon filing a request for arrest or release of ships, the person requesting such arrest must file a written request for arrest of ships or a written request for release of ships from arrest, enclosing documents and evidence stating that such request or release of ships is sound and legitimate.

Where documents about and evidence for a request for arrest or release of ships from arrest are all written in a foreign language, a Vietnamese translation copy must be submitted and legally authenticated in accordance with Vietnamese legislation. With respect to documents and papers created, issued and certified by a foreign competent authority in accordance with such foreign country’s laws, the consular legalization is required, except when this consular legalization process is exempted in uniformity with international agreements to which the Socialist Republic of Vietnam is a party.

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers have Attorneys in Hanoi, Attorneys in Ho Chi Minh and Attorneys in Danang.

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