On October 16th, 2018,
Vietnam Government issued Decree No. 144/2018/ND-CP amending, supplementing the
decrees on multimodal transport. Under the law of Vietnam, multimodal transport
(“MT”) is the transportation of goods performed with at least two different
modes of transport under the multimodal transport contract from an original
place to a place designated for delivery, the carrier is liable for the entire
carriage. MT business includes: International multimodal transport (“IMT”) and
Domestic multimodal transport (“DMT”).
The new decree
eliminates and simplifies regulations on IMT business conditions and abolishes
DMT business as a conditional business line. In fact, DMT including many
transportations such as transport by sea, air,… is governed by specialized laws
on each transport, hence it is not necessary to stipulate additional business
conditions when conducting the combined transport.
Regarding the
conditions of IMT business, the new Decree no longer differentiates between
domestic and foreign enterprises as in the past, all enterprises therefore must
meet the followings:
(1) Maintaining a
minimum amount of assets equivalent to SDR 80,000 or provide an equivalent
guarantee or an alternative of financial character as regulated by laws;
(2) Having a liability
insurance policy for multimodal transport operator or an equivalent guarantee.
In addition, in order
to facilitate member state of the ASEAN Framework Agreement on Multimodal
Transport or another international treaty on multimodal transport to which
Vietnam is a signatory, new regulations are stipulated as follows:
(1) Having a
registration certificate of international multimodal transport or another
document of equivalent validity issued by the competent national body of its
country;
(2) Having a liability
insurance policy for multimodal transport operator or an equivalent guarantee.
The licenses to
provide international multimodal transport service issued by competent
authorities of Vietnam before the date of entry into force of this Decree are
still valid until their expiration dates.
With the role of
supporting trading activities, modern transports need to meet the increasingly
complex requirements of the domestic and international transport market, which
not only deliver goods but also connect the transport process into an
uninterrupted transport chain to ensure a faster and safer transport process.
Transport lawyers at
ANT Lawyers, the law firm in Vietnam have always following up the legal
development on transportation to provide our clients with regular update on the
matters.