1. What is logistics service?

In the Commercial Code, Article 233 of the 2005 Commercial Law defines logistics services specifically as follows:

“Logistics services are commercial, whereby traders organize to perform many tasks including receiving goods, transporting, storing, storing, doing customs procedures, other paperwork, and consulting customers. , packaging, marking, delivery or other services related to goods as agreed with the customer for remuneration.”

Businesses exploiting any one of the above acts include receiving goods, transporting, warehousing, warehousing, customs clearance, other paperwork, customer consulting, packaging packaging, marking, delivery or other services related to goods have provided logistics services.

Because logistics activities are chain-based, if logistics are optimized, the business process will also be optimized to help products be transported as quickly as possible to customers, brand value and competitiveness will increase, bringing benefits. economic benefits for businesses. Logistics efficiency does not only apply to domestic trade activities. It also has an important role and significance in exporting goods between countries.

Logistics service activities are coordinated and managed by law. Therefore, it is controlled by specific provisions in the 2005 Commercial Law and other relevant legal documents.

3. Limitation of liability of logistics service providers according to the provisions of Decree No. 163/2017/ND-CP:

Legal grounds: Decree No. 163/2017/ND-CP of the Government regulates conditions for logistics services business and limits liability for traders providing logistics services.

3.1. Regarding logistics service business conditions:

– For domestic traders: traders providing specific services belonging to seventeen types of logistics services specified in Article 3 of Decree No. 163/2017/ND-CP must meet investment and business conditions. according to the provisions of law for that service. If you conduct part or all of your logistics business by electronic means connected to the Internet, mobile telecommunications network or other open networks, you must also comply with e-commerce regulations.

– For foreign investors: In addition to meeting the above conditions, foreign investors in countries and territories that are members of the World Trade Organization are provided with logistics services under specific conditions. following possible:

+ For foreign investors doing business in cargo transportation services under marine transportation services (except domestic transportation):

Foreign investors are allowed to establish companies that operate fleets flying the Vietnamese flag or contribute capital, buy shares, or contribute capital in enterprises (the capital contribution ratio of foreign investors must not exceed 49%).

The total number of foreign seafarers working on ships flying the Vietnamese flag (or registered in Vietnam) owned by these companies in Vietnam is not more than 1/3 of the ship's capital. The captain or first mate must be a Vietnamese citizen.

Foreign shipping companies are allowed to establish businesses or contribute capital, buy shares, or contribute capital in the business.

+ For foreign investors doing business in container handling services under maritime transport support services (some areas may be reserved to provide services or licensing procedures may be applied in those areas). This):

Foreign investors are allowed to establish businesses or contribute capital, buy shares, or contribute capital in businesses, in which the capital contribution ratio of foreign investors does not exceed 50%.

Foreign investors are allowed to establish commercial presence in Vietnam in the form of:Business Cooperation Contract.

+ For foreign investors providing container handling services in support of all modes of transportation, except services provided at airports:

Foreign investors are allowed to establish businesses or contribute capital, buy shares, or contribute capital in businesses, in which the capital contribution ratio of foreign investors does not exceed 50%.

+ For foreign investors providing customs clearance services under maritime transport support services:

Foreign investors are allowed to establish businesses or contribute capital, buy shares, or contribute capital in businesses, including capital contributions from domestic investors. Foreign investors are allowed to establish a commercial presence in Vietnam in the form of business cooperation contracts.

+ For foreign investors providing bill of lading inspection services, freight brokerage services, goods inspection, sampling and weight determination services; goods receiving and acceptance services; Transport document preparation services:

Foreign investors are allowed to establish businesses or contribute capital, buy shares, or contribute capital in businesses, in which the capital contribution ratio of foreign investors does not exceed 49%.

+ For foreign investors doing business in freight transportation services under road transportation services:

Foreign investors can do so through a business cooperation contract or establish an enterprise or contribute capital, buy shares, or contribute capital in an enterprise, in which the capital contribution ratio of foreign investors is not more than 51%.

All business drivers must be Vietnamese citizens.

+ For foreign investors doing business in air transport services:

Foreign investors must comply with the provisions of aviation law.

+ For foreign investors providing technical analysis and inspection services:

For services provided to exercise the Government's authority, it is carried out in the form of an enterprise in which capital is contributed by domestic investors after three years or in the form of an enterprise in which capital is not limited. foreign investors after five years from the date the private service provider is allowed to do business in those services.

Foreign investors are not allowed to provide inspection and certification services for transport vehicles.

The implementation of technical analysis and inspection services is limited to geographical areas determined by competent authorities for national security and defense reasons.

Note: In case a foreign investor is subject to the application of international treaties with different regulations on logistics service business conditions, the investor can choose to apply the investment conditions specified in one of the regulations. those treaties.

3.2. Limitation of liability:

Limit of liability is understood as the maximum limit that traders providing logistics services are responsible for damages to customers for losses arising during the process of organizing and implementing logistics services.

In cases where relevant laws have specific provisions on the limitation of liability of traders providing logistics services, the provisions of that relevant law shall comply.

As for cases where relevant laws do not stipulate liability limits, the liability limits of traders providing logistics services shall be agreed upon by the parties. In case the parties do not have an agreement, proceed as follows according to the provisions of the Decree.

– In case the customer does not receive advance notice of the value of the goods, the maximum liability limit is 500 million VND for each customer compensation claim.

+ In case the customer has received advance notice of the value of the goods and confirmation from the logistics service trader, the liability limit will not exceed the value of the goods.

+ In cases where traders providing logistics services organize the implementation of multiple stages with different liability limits: limit the liability of the stage with the highest liability limit.

3. The role of Logistics in practice:

Today, with the rapid development of the economy, when the world market is constantly growing, the Logistics field becomes more important and plays a huge role in the competition between businesses. business with each other. The meaning of Logistics will bring victory to businesses if those businesses can build an effective Logistics management system.

Thanks to the roles Logistics provides, businesses can solve the problem of raw materials from input to product output in the most effective way.

Logistics also helps businesses reduce operating costs and other transportation costs, thereby helping businesses increase competitiveness with other competitors.

Many large businesses in the country as well as around the world have recognized the importance of Logistics, thereby focusing on building and developing Logistics strategies to achieve great success.

Another important role is that Logistics is also an effective support factor for Marketing activities of businesses. By bringing products to the right time when customers are most in need, thereby satisfying customers and bringing profits to businesses.