Legal basis:

• The Maritime Code of Vietnam
• Decree No.147/2018/NĐ-CP
• Decree No.160/2016/NĐ-CP

 Sea transportation service is a service of transporting goods, luggage, and passengers by ship. This service has several outstanding advantages such as: Being strictly controlled by customs authorities to avoid risks affecting customers’ interests; Can transport goods and luggage of large size and volume at low cost; Expanding the exchange of goods and international cooperation through sea routes, etc should attract the attention of many investors. So, if businesses want to do business in shipping services, what conditions do they need to meet, and how to prepare an application for a license to do business in shipping services?

1. Conditions for sea transportation services business

The prerequisite for doing business in shipping services is that shipping enterprises and cooperatives are established following legal provisions on cooperatives (hereinafter referred to as enterprises).

In addition, international shipping businesses must also meet the following conditions:

For international sea transportation business

Regarding finance: A guarantee granted by a credit institution or a branch of a foreign bank is required to secure the obligations of the ship-owner to seafarers with a minimum of 5 billion VND.

Regarding watercraft: Have the legal right to use at least 1 ship; If a ship flies the flag of Vietnamese nationality, it must comply with the National Technical Regulations issued by the Minister of Transport.

During operation, enterprises must establish or hire the following organizational apparatus and human resources:

– Regarding organizational structure, including: Safety management department according to the provisions of the International Safety Management Code (ISM Code); maritime security management department according to the provisions of the International Ship and Port Security Code (ISPS Code);

– Regarding human resources: Persons assigned to be in charge of maritime safety and security management must be trained, and certified according to the regulations of the Minister of Transport.

For domestic sea transportation business

Have the right to legally use at least 1 seagoing vessel flying a Vietnamese national ensign shall comply with the National Technical Regulation issued by the Minister of Transport.

For foreign organizations participating in inland transportation using watercraft flying Vietnamese national ensigns

Foreign organizations participating in domestic transportation by ships flying the Vietnamese flag must establish joint venture enterprises according to regulations, in which the capital contribution ratio of foreign investors does not exceed 49% of charter capital.

Foreign seafarers are allowed to work on seagoing vessels flying Vietnamese national ensigns or seagoing vessels registered in Vietnam under ownership of joint ventures but the total number of foreign seafarers must not exceed 1/3 of the manning levels for seagoing vessels; At the same time, the ship master or first mate of that ship must be a Vietnamese citizen.

2. Documents, orders and procedures for applying for a sea transportation business license

Enterprises need to fully prepare the following documents:

– First, an application form for a certificate of eligibility for sea transportation business according to Form No.01 specified in the Appendix issued with the guiding Decree;

– Second, a list of titles with documents of each title and related degrees and certificates of the titles: 1 photocopy granted from the master register or 1 certified photocopy from the original or 1 photocopy enclosed with the original for collation;

– Third, written guarantee from a credit institution or foreign bank branch: 1 original;

– Finally, the ship registration certificate: 1 photocopy enclosed with the original for collation.

Order and procedures for applying license:

Step 1: The enterprise applying for a sea transportation business license shall send 1 set of documents directly or via the postal system or other appropriate forms to the Vietnam Maritime Administration.

Step 2: Vietnam Maritime Administration receives applications. In case the dossier is not valid, within 2 working days from the date of receiving the dossier, the Vietnam Maritime Administration will issue a document instructing the enterprise to complete the dossier according to regulations; If the application is valid, the submitter will receive a receipt.

Step 3: Within 5 days from the date of receiving complete and valid documents, the Vietnam Maritime Administration will evaluate the documents, issue a sea transportation business license, and return the results directly or send them via the postal system; In case of not issuing a sea transportation business license, the Vietnam Maritime Administration must respond in writing and clearly state the reason.

Step 4: The enterprise receives a sea transportation business license.

Issuing a sea transportation business license means firmly building the interests of businesses against fraudulent service business practices that infringe on State management. When enterprises comply with the legal regulations on the procedures for granting a sea transportation business license, Vietnamese law will protect their legal rights and interests, creating a legal basis for resolving disputes that arise.

3. About Us, Hankuk Law Firm

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