Decree No. 147/2018/ND-CP Amending and supplementing certain provisions of decrees on business conditions in the maritime sector

DECREE

Amending and supplementing certain articles of Decrees stipulating conditions for business operations in the maritime sector
The Government promulgates this Decree to amend and supplement certain articles of Decrees stipulating conditions for business operations in the maritime sector.
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Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Vietnam Maritime Code on November 25, 2015;

BASED ON THE INVESTMENT LAW DATED NOVEMBER 26, 2014 AND THE LAW AMENDING AND SUPPLEMENTING ARTICLE 6 AND ANNEX 4 ON THE LIST OF INDUSTRIES AND BUSINESSES WITH CONDITIONAL OPERATIONS UNDER THE INVESTMENT LAW 2014;

Pursuant to the Enterprise Law dated November 26, 2014;

At the proposal of the Minister of Transport;

Article 1. Amending and supplementing certain articles of Decree No. 29/2017/NĐ-CP dated March 20, 2017 of the Government stipulating conditions for training institutions, training centers, and organizations recruiting and supplying seafarers

"Article 4. Conditions regarding material infrastructure and training equipment

a) Amending and supplementing Point c Clause 2 as follows:

1. Possess material infrastructure and training equipment that comply with national technical standards issued by the Minister of Transport.

2. Hold a Certificate of Quality Management System Compliance according to ISO Standards issued by authorized certification bodies not later than 18 months from the date of issuance of the Certificate of Eligibility for Training and Seafarer Training Institutions.

3. Possess an electronic database managing seafarer vocational certificates for retrieval in accordance with the STCW Convention not later than 12 months from the date of issuance of the Certificate of Eligibility for Training and Seafarer Training Institutions."

"Article 5. Conditions regarding lecturers and instructors

2. Amending and supplementing Clause 5 as follows:

1. Lecturers teaching theoretical subjects must have a bachelor's degree or higher in relevant fields corresponding to the courses or specialties assigned to teach.

2. Instructors teaching practical subjects must hold a Chief Instructor Certificate or equivalent certificate issued by the International Maritime Organization (IMO) or recognized entities by IMO in accordance with the STCW Convention; they must have served in officer management positions on board ships as required by each training program as stipulated by the Minister of Transport.

3. In addition to the conditions stipulated in this Decree, training institutions and centers for seafarers must also comply with related regulations under laws on education and vocational training."

3. Issuing the Model Report explaining the conditions ensuring the operation of seafarer training and instruction as specified in the Appendix attached to this Decree.

4. Abolishing Model No. 02 stipulated in the Appendix attached to Decree No. 29/2017/NĐ-CP dated March 20, 2017 of the Government stipulating conditions for training institutions, training centers, and organizations recruiting and supplying seafarers.

Article 2. Amending and supplementing certain articles of Decree No. 70/2016/NĐ-CP dated July 1, 2016 of the Government on conditions for providing maritime safety assurance services

"Article 5. Conditions for providing services to establish, operate, maintain, and repair maritime signals, water areas, sea zones, public maritime channels, and shipping routes

1. Amend and supplement Article 5 as follows:

2. The person responsible for providing services to establish, operate, maintain, and repair maritime signals, water areas, sea zones, public maritime channels, and shipping routes must have a bachelor's degree in economics or engineering and at least five years of experience working in the field of maritime safety assurance."

Enterprises providing services for establishing, operating, maintaining and maintenance of maritime signals, water areas, seawaters, public navigation lanes and routes must meet the following conditions:

1. They must be enterprises holding 100% state capital; their organizational and operational charters must be approved by the Minister of Transport.

3. Must have minimum facilities: one wharf, production workshop, maintenance facility for maritime signals.

"Article 6. Conditions for providing services to establish, operate, maintain, and repair specialized maritime signals, water areas, sea zones, and maritime channels

2. Amending and supplementing Article 6 as follows:

2. The person responsible for providing services to establish, operate, maintain, and repair specialized maritime signals, water areas, sea zones, and maritime channels must have a bachelor's degree in economics or engineering and at least five years of experience working in the field of maritime safety assurance."

Enterprises providing services for establishing, operating, maintaining and maintenance of maritime signals, water areas, seawaters, and specialized navigation lanes must meet the following conditions:

1. They must be enterprises established in accordance with the law.

"Article 7. Conditions for providing services to survey water areas, sea zones, public maritime channels, and shipping routes for publishing Marine Notices

3. Amending and supplementing Article 7 as follows:

2. The person responsible for providing services to survey water areas, sea zones, public maritime channels, and shipping routes must have a bachelor's degree in economics or engineering and at least five years of experience working in the field of maritime surveying.

Enterprises providing survey services for water areas, seawaters, public navigation lanes and routes for announcing Maritime Notices must meet the following conditions:

1. They must be enterprises holding 100% state capital; their organizational and operational charters must be approved by the Minister of Transport.

3. Must have minimum specialized survey equipment including: echo sounder; coordinate and height determination equipment; obstacle detection scanner; tide recorder; wave compensation device; underwater acoustic velocity measurement equipment in water environment and specialized survey software."

"Article 8. Conditions for providing services to survey specialized water areas, sea zones, and maritime channels for publishing Marine Notices

"Article 8. Liquidity ratio, in case microfinance organizations have a risk of losing the ability to pay, losing the ability to pay

2. The person responsible for providing services to survey specialized water areas, sea zones, and maritime channels must have a bachelor's degree in economics or engineering and at least five years of experience working in the field of maritime surveying.

Enterprises providing survey services of maritime areas, waters, and dedicated shipping channels to publish Marine Notices must meet the following conditions:

1. They must be enterprises established in accordance with the law.

3. Must have minimum specialized survey equipment including: echo sounder; coordinate and height determination equipment; obstacle detection scanner; tide recorder; wave compensation device; underwater acoustic velocity measurement equipment in water environment and specialized survey software."

"Article 10. Conditions for enterprises providing marine notice services

5. Amending and supplementing Article 10 as follows:

Enterprises providing marine notice services as stipulated in Clause 2, Article 9 of this Decree must meet the following conditions:

1. Be a state-owned enterprise holding 100% of the charter capital; approved by the Minister of Transport for organizational and operational regulations.

2. The person responsible for providing marine notice services must have a bachelor's degree in economics or engineering and at least five years of experience working in the maritime field."

"Article 11. Conditions for providing services to regulate maritime safety assurance in water areas, sea zones, and public maritime channels

6. Amending and supplementing Article 11 as follows:

2. The person responsible for providing services to regulate maritime safety assurance must have a bachelor's degree in economics or engineering and at least five years of experience working in the field of regulating maritime safety assurance."

Enterprises providing navigation safety regulation services in maritime areas, waters, and public shipping channels must meet the following conditions:

1. They must be enterprises holding 100% state capital; their organizational and operational charters must be approved by the Minister of Transport.

"Article 12. Conditions for providing services to regulate maritime safety assurance in specialized water areas, sea zones, and maritime channels

7. Amending and supplementing Article 12 as follows:

"Article 12. Conditions for providing maritime traffic regulation services to ensure maritime safety in areas, waters, and dedicated shipping lanes"

Enterprises providing navigation safety regulation services in maritime areas, waters, and dedicated shipping channels must meet the following conditions:

1. They must be enterprises established in accordance with the law.

"2. The person responsible for managing the provision of maritime safety regulation services must have a university degree in economics or engineering and at least five years of experience working in the field of maritime safety regulation."

8. Amend and supplement Article 13 as follows:

"Article 13. Conditions regarding organization and capital of enterprises"

Enterprises providing surveying, construction, and issuance of nautical charts for port waters, shipping channels, and maritime routes; construction and issuance of maritime documents and publications must meet the following conditions regarding organization and capital: They must be enterprises established in accordance with the law, wholly owned by the State, and approved by the Minister of Transport for their organizational charter and operations."

9. Amend and supplement Article 14 as follows:

"Article 14. Conditions regarding human resources and infrastructure"

Enterprises providing surveying, construction, and issuance of nautical charts for port waters, shipping channels, and maritime routes; construction and issuance of maritime documents and publications must meet the following conditions regarding human resources and infrastructure:"

"1. The person responsible for managing the provision of surveying, construction, and issuance of nautical charts for port waters, shipping channels, and maritime routes; construction and issuance of maritime documents and publications must have a university degree in economics or engineering and at least five years of experience working in the field of marine surveying."

"2. Must have specialized survey equipment including: echo sounder; positioning and height measurement devices; obstacle scanning equipment; self-recording tide gauge; wave compensation device; underwater acoustic velocity measuring equipment in water; specialized survey software and software for editing and publishing paper and electronic nautical charts."

10. Amend and supplement Article 15 as follows:

"Article 15. Conditions regarding organization and capital of enterprises"

Enterprises providing maritime electronic information services must meet the following conditions regarding organization and capital: They must be enterprises established in accordance with the law, wholly owned by the State, and"

11. Amend and supplement Article 16 as follows:

"Article 16. Conditions regarding human resources and infrastructure"

Enterprises providing maritime electronic information services must meet the following conditions regarding human resources and infrastructure: The person responsible for managing the provision of maritime electronic information services must have a university degree or higher in maritime information or telecommunications engineering and at least five years of experience working in the field of maritime electronic information."

"12. Amend and supplement Article 18 as follows:"

"Article 18. Conditions regarding human resources and infrastructure"

Enterprises providing maritime pilotage services must meet the conditions regarding human resources and infrastructure as follows:

1. The person responsible for managing the provision of maritime pilotage services must be a distinguished pilot.

"2. Must have the minimum number of pilots certified for the operational area corresponding to the assigned vessel routing service. The determination of the minimum number of pilots by category and the minimum number of vessels for picking up and dropping off pilots shall be carried out as follows:"

"a) The minimum number of pilots by category is calculated based on the vessel routing service, the number of vessels, and the tonnage of vessels operating on the route in the three years prior (for newly opened vessel routing services, the minimum number of pilots by category is calculated based on the forecasted number of vessels and tonnage operating on the route in the first three years); the maximum number of working days per year for employees according to the law, the minimum number of pilots on each route must ensure sufficient demand for pilotage services and a minimum reserve of 10% of the total number of pilots."

"b) The minimum number of vessels for picking up and dropping off pilots is determined based on the annual number of vessels guided by the pilot enterprise and the navigation conditions in the pilotage area."

"c) The Vietnam Maritime Administration announces the minimum number of pilots by category and the minimum number of vessels for picking up and dropping off pilots for each vessel routing service; assigns compulsory pilot areas and vessel routing services to pilot service enterprises according to the principle that one vessel routing service is handled by only one pilot service enterprise."

13. Amend and supplement Article 20 as follows:

"Article 20. Conditions regarding organization of enterprises"

Organizations providing wreck removal services must be enterprises established in accordance with the law."

"14. Amend and supplement Article 22 as follows:"

"Article 22. Conditions for operating maritime signal import services"

1. They must be enterprises established in accordance with the law.

"2. Must comply with fire prevention and firefighting regulations as stipulated by law."

Article 3. Amending and supplementing some articles of Decree No. 160/2016/ND-CP dated November 29, 2016 of the Government on conditions for marine transport business, ship agency services, and towing services.

a) Amending and supplementing Point c Clause 2 as follows:

"Article 4. General Conditions for Marine Transport Business

It is a business or cooperative engaged in marine transport business established in accordance with the provisions of the law (hereinafter referred to as the business)."

2. Amending and supplementing Clause 5 as follows:

"Article 5. Conditions for Businesses Engaged in International Marine Transport Business

In addition to the provisions of Article 4 of this Decree, businesses engaged in international marine transport must also meet the following conditions:

1. Financial condition: Must have a guarantee in accordance with the provisions of the law with a minimum amount of five billion Vietnamese dong (VND) or purchase insurance to ensure the obligations of the shipowner towards seafarers as prescribed.

2. Vessel condition: Legally entitled to use at least one vessel; if the vessel flies the flag of Vietnam, it must comply with the National Technical Regulations issued by the Minister of Transport.

3. During the course of operation, the business must establish or hire organizational structures and personnel as follows:

a) Organizational structure, including: A safety management department in accordance with the International Safety Management (ISM) Code; a maritime security management department in accordance with the International Ship and Port Facility Security (ISPS) Code;

b) Personnel: The person responsible for managing safety and maritime security must be trained, instructed, and certified according to the regulations of the Minister of Transport."

3. Amend and supplement Article 6 as follows:

"Article 6. Conditions for Businesses Engaged in Domestic Marine Transport Business

In addition to the provisions of Article 4 of this Decree, businesses engaged in domestic marine transport must also meet the following condition:

Legally entitled to use at least one vessel flying the flag of Vietnam, which must comply with the National Technical Regulations issued by the Minister of Transport."

4. Amending and supplementing Article 12 as follows:

"Article 12. Conditions for Agency Personnel

Ship agency personnel must be Vietnamese citizens who have been granted a professional certificate for ship agency services by the competent authority according to the regulations of the Minister of Transport."

5. Amend and supplement Article 13 as follows:

"Article 13. Conditions for Towing Services Business

1. It is a business or cooperative engaged in towing services in Vietnam that must be established in accordance with the provisions of the law. In the case of a foreign-invested business engaged in towing services, the proportion of foreign investor's share capital shall not exceed 49% of the business's charter capital.

2. Legally entitled to use at least one towing vessel; the towing vessel must be a Vietnamese-flagged vessel."

6. Amending and supplementing Article 18 as follows:

"Article 18. Transitional Provisions

Businesses engaged in marine transport, ship agency services, and towing services established before the effective date of this Decree shall continue their operations; from the effective date of this Decree, all businesses must fully meet the conditions for marine transport, ship agency services, and towing services as stipulated in this Decree."

7. Repealing Clause 3 of Article 7; Articles 8, 9, 10; Clause 3 of Article 14; Clause 3 of Article 15; Model No. 01 and Model No. 02 specified in the Appendix accompanying Decree No. 160/2016/ND-CP dated November 29, 2016 of the Government on conditions for marine transport business, ship agency services, and towing services.

Article 4. Amending and supplementing some articles of Decree No. 114/2014/NĐ-CP dated November 26, 2014 of the Government on the objects and conditions for permission to import and dismantle used ships.

1. Amending and supplementing Clause 1 of Article 7 as follows:

"1. Enterprises dismantling ships that meet the following conditions shall be granted an Import Permit for Ship Dismantling by the Ministry of Transport:

a) They must be established in accordance with the provisions of the law;

b) They have a department for labor safety and environmental protection;

c) They have a statutory capital of 50 billion Vietnamese dong."

2. Amending and supplementing Article 12 as follows:

"Article 12. Conditions for putting ship dismantling facilities into operation

1. Having material infrastructure and technical equipment in accordance with national technical standards issued by the Minister of Transport.

2. Meeting environmental protection conditions as prescribed by law."

Article 5. Amending and supplementing some articles of Decree No. 37/2017/NĐ-CP dated April 4, 2017 of the Government on conditions for operating marine ports.

1. Amend and supplement Article 5 as follows:

"Article 5. Conditions for enterprises

1. They must be enterprises established in accordance with the law.

2. In the case where the port enterprise is a foreign-invested enterprise engaged in container handling services, which are part of supporting maritime transport services, the foreign investor may contribute capital in accordance with the law, wherein the proportion of foreign investor's contribution does not exceed 50% of the charter capital of the enterprise."

2. Amending and supplementing Article 6 as follows:

"Article 6. Conditions regarding organizational structure and human resources

1. Organizational structure conditions: Having a maritime security management department as prescribed.

2. Human resource conditions: Port security officers must be trained, instructed, and certified according to the regulations of the Minister of Transport in compliance with the International Ship and Port Facility Security Code (ISPS Code)."

3. Amending and supplementing Article 7 as follows:

"Article 7. Conditions regarding material infrastructure and equipment

1. Having sufficient material infrastructure, warehouses, yards, and necessary equipment in accordance with national technical standards for ports; in cases where the port does not have sufficient warehouses and yards, the port enterprise must have a lease agreement for warehouses and yards, except in cases where it only operates floating docks, anchorage areas, transshipment zones, and offshore oil terminals."

2. Meeting conditions for occupational safety and health, fire prevention, and explosion prevention as prescribed by law."

4. Amending and supplementing Article 9 as follows:

"Article 9. Environmental Protection Conditions

Ensuring sufficient means to receive and recover waste from vessels during operations at the port for treatment in accordance with the International Convention for the Prevention of Pollution from Ships (MARPOL) to which Vietnam is a member, and other environmental protection conditions as prescribed by law."

5. Abolishing Article 8 of Decree No. 37/2017/NĐ-CP dated April 4, 2017 of the Government on conditions for operating marine ports.

Article 6. Amending and supplementing some articles of Decree No. 111/2016/NĐ-CP dated July 1, 2016 of the Government on conditions for operating shipbuilding, conversion, and repair services.

1. Unit prices for construction projects published by the People's Committee of the province in accordance with Clause 2, Article 26 of Decree No. 10/2021/NĐ-CP serve as the basis for determining and managing construction investment costs within the province. The unit prices for construction projects published by the People's Committee of the province are determined based on construction norms issued by competent authorities and the cost factors' prices specified in Clause 3, Clause 4, and Clause 5 of this Article, consistent with the time of determining the unit price for construction projects. Cost factors' prices include: material prices, labor unit prices, machinery and equipment rental prices.

"Article 8. Conditions regarding occupational safety and health, fire prevention, explosion prevention, and environmental protection

1. Meeting conditions for occupational safety and health, fire prevention, and explosion prevention as prescribed by law.

2. Ensuring sufficient means to receive and recover waste from vessels for treatment in accordance with the International Convention for the Prevention of Pollution from Ships (MARPOL) to which Vietnam is a member, and other environmental protection conditions as prescribed by law."

2. Amendment and supplementation of Article 9 as follows:

"Article 9. Quality Management System

1. Class 1 shipbuilding facilities must establish a quality management system in accordance with ISO 9001 or equivalent, and a safety and environmental management system in accordance with ISO 14001 or equivalent within twelve months from the date they meet operational conditions and maintain its application throughout their operation.

2. Class 2 shipbuilding facilities must establish a quality management system including procedures for new shipbuilding and conversion work in accordance with ISO 9001 or equivalent within twelve months from the date they meet operational conditions and maintain it throughout their operation."

1. To take the lead and coordinate with the Ministry of National Defense, provincial People's Committees, and relevant agencies and units:

"Article 13. Conditions regarding occupational safety and health, fire prevention, explosion prevention, and environmental protection

1. Meeting conditions for occupational safety and health, fire prevention, and explosion prevention as prescribed by law.

2. Ensuring sufficient means to receive and recover waste from vessels for treatment in accordance with the International Convention for the Prevention of Pollution from Ships (MARPOL) to which Vietnam is a member, and other environmental protection conditions as prescribed by law."

4. Amending and supplementing Article 14 as follows:

"Article 14. Quality Management System

Ship repair facilities must establish a quality management system including procedures for ship repair work in accordance with ISO 9001 or equivalent within twelve months from the date they meet operational conditions and maintain it throughout their operation."

5. Amending and supplementing Point c Clause 2 Article 16 as follows:

"c) Environmental protection, occupational safety, fire prevention, and explosion prevention documents and files approved by competent authorities in accordance with the law."

6. Abolishing Article 7; Article 12 and Point c Clause 3 Article 16 of Decree No. 111/2016/NĐ-CP dated July 1, 2016 of the Government on conditions for operating shipbuilding, conversion, and repair services.

Article 7. Effective Date

1. This Decree takes effect from the date of issuance.

2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairmen of provincial people's committees directly under the central government are responsible for guiding and implementing this Decree./.

Appendix

REPORT ON THE CONDITIONS FOR ENSURING

SEAFARER TRAINING AND INSTRUCTION ACTIVITIES

(Attached to Decree No. 147/2018/NĐ-CP

dated October 24, 2018 of the Government)

REPORT ON THE CONDITIONS FOR ENSURING

SEAFARER TRAINING AND INSTRUCTION ACTIVITIES

I. GENERAL SITUATION

1. General material infrastructure and training equipment of the facility

a) Construction works, classrooms, practical rooms, internship rooms, auxiliary construction works... used in common

b) Commonly used teaching equipment

2. Management staff, lecturers, instructors

Total number of management staff, lecturers, instructors:..., including:

Management staff:...

Lecturers, instructors:...including:

+ Theoretical lecturers:...

+ Practical lecturers, instructors:...

+ Dual roles...

3. Other contents (if any).

CONDITIONS FOR ENSURING TRAINING AND INSTRUCTION ACTIVITIES

1. At the HEADQUARTERS

a) Training and Instruction Program/Course (1)

- Infrastructure:

+ Number of theoretical classrooms:

+ Number of practical classrooms:

+ Number of workshops:

+ Number of simulation rooms:

+ Number of training vessels:

- Training and Instruction Equipment:

- Instructors and Training Officers

Total number of instructors and training officers for the training program/course: including:

+ Theoretical instructors

+ Practical instructors and training officers

+ Instructors and training officers holding concurrent positions (if any):

Accompanied by supporting documentation (certificates, credentials of instructors and training officers)

- List of programs, textbooks, materials, publications, reference materials for training and instruction (enumerate the list)

b) Training and Instruction Program/Course (4)

(Presented as specified in point a, Clause 1 above)

2. At Branch Office/Other Training Locations

(Presented as specified in Clause 1 above)

Note:

(1); Name of the first Training and Instruction Program/Course

(2): Certificate of Chief Trainer or equivalent

(3): Duration of holding the position of head, chief engineer, management officer, deck officer, engine officer...

...

(4): Name of the second, third Training and Instruction Program/Course...