Decree No. 40/1998/ND-CP on marine transportation business of companies and private enterprises

DECREE OF THE GOVERNMENT

Regarding the marine transportation business of companies and private enterprises

THE GOVERNMENT

Pursuant to the Law on the Organization of the Government dated September 30, 1992;

Pursuant to the Vietnam Maritime Code dated June 30, 1990;

Pursuant to the Law on Enterprises dated December 21, 1990 and the Law Amending and Supplementing Certain Provisions of the Law on Enterprises dated June 22, 1994;

Pursuant to the Law on Private Enterprises dated December 21, 1990 and the Law Amending and Supplementing Certain Provisions of the Law on Private Enterprises dated June 22, 1994;

Considering the proposal of the Minister of Transport,

DECREE:

Article 1. This Decree stipulates the conditions and procedures for granting permission to conduct marine transportation business for companies and private enterprises, and the conditions and procedures for granting permission to operate marine transportation on maritime routes for privately-owned Vietnamese ships.

Article 2. The privately-owned Vietnamese ships referred to in this Decree, hereinafter referred to as "private ships," are ships owned by companies and private enterprises established under the Law on Enterprises and the Law on Private Enterprises, which have been registered in the "National Register of Ships."

Article 3. Private ships meeting the conditions prescribed in this Decree, other relevant provisions of Vietnamese law, and the provisions of international treaties to which Vietnam is a party may be granted permission to operate marine transportation on maritime routes.

Article 4. The maritime routes referred to in Article 3 of this Decree include domestic maritime routes and international maritime routes:

1- Domestic maritime routes are maritime routes from one Vietnamese seaport or inland waterway port to another Vietnamese seaport or vice versa.

2- International maritime routes are maritime routes from a Vietnamese seaport to a foreign seaport and are specifically defined as follows:

a) Coastal international maritime routes are maritime routes from a Vietnamese seaport to a seaport in Guangxi Province, China or to a seaport in Cambodia.

b) Near international maritime routes are maritime routes from a Vietnamese seaport to seaports in Southeast Asian countries , Northeast A, excluding the seaports specified in Clause 2(a) of this Article.

c) Far-sea international maritime routes are maritime routes from a Vietnamese seaport to seaports in all countries around the world, excluding the seaports specified in Clause 2(a) and 2(b) of this Article.

Article 5. Companies and private enterprises are permitted to conduct marine transportation business on domestic maritime routes when they meet the following conditions:

1- Meeting the conditions prescribed by the Law on Enterprises or the Law on Private Enterprises;

2- Having a minimum statutory capital of 2 billion Vietnamese dong;

3- Managers and operators of the business must ensure professional qualifications as guided by the Ministry of Transport, at least having graduated from a specialized secondary maritime school, with at least three years of work experience in the marine transportation industry;

4- The chief accountant must ensure professional qualifications as prescribed by the Ministry of Finance;

5- Being proposed by the People's Committee of the province or centrally-administered city (hereinafter collectively referred to as the provincial People's Committee) where the company or enterprise has its headquarters to the Ministry of Transport for approval of the issuance of a permit to conduct marine transportation business.

Article 6. Companies and private enterprises are permitted to conduct marine transportation business on international maritime routes when they meet the following conditions:

1- Meeting the conditions prescribed by the Law on Enterprises or the Law on Private Enterprises;

2- Having a minimum statutory capital of 5 billion Vietnamese dong for coastal international maritime routes, 10 billion Vietnamese dong for near international maritime routes, and 15 billion Vietnamese dong for far-sea international maritime routes;

3- Managers and operators of the business must ensure professional qualifications as guided by the Ministry of Transport, at least having graduated from a specialized secondary maritime school for coastal international maritime routes, a maritime university for near international maritime routes and far-sea international maritime routes, with at least five years of work experience in the marine transportation industry, and possessing the necessary English proficiency for conducting marine transportation business on international maritime routes;

4- The chief accountant must ensure professional qualifications as prescribed by the Ministry of Finance, and possess the necessary English proficiency for conducting marine transportation business on international maritime routes;

5- Being proposed by the provincial People's Committee where the company or enterprise has its headquarters to the Ministry of Transport for approval of the issuance of a permit to conduct marine transportation business.

Article 7. The Prime Minister delegates the Minister of Transport to examine and decide on issuing permits for companies and private enterprises to conduct marine transportation business on international maritime routes.

Article 8. The establishment of enterprises engaged in marine transportation business shall be carried out in the following procedure:

1- The provincial People's Committee receives the application documents of the applicant for marine transportation business in accordance with the law;

2- Within seven days from the date of receiving complete and valid documents, the provincial People's Committee sends a letter to the Ministry of Transport along with the applicant's documents;

3- The documents must include copies of the certificates and diplomas as prescribed in Article 5 or Article 6 of this Decree;

4- Within ten days from the date of receiving complete and valid documents, the Ministry of Transport replies in writing to the provincial People's Committee regarding approval or non-approval for establishing the enterprise. If not approved, the reasons must be clearly stated;

5- After receiving the approval letter from the Ministry of Transport, the provincial People's Committee decides to issue a permit to establish a company or private enterprise. The company or private enterprise then proceeds with subsequent legal procedures as prescribed by law.

Article 9. Companies and private enterprises already permitted to conduct marine transportation business on domestic maritime routes wishing to add international maritime routes to their business scope, in addition to meeting the conditions prescribed in Articles 6 and 10 of this Decree, must also provide a confirmation document from the competent financial authority stating that the company or enterprise has fully fulfilled its financial obligations in the previous fiscal year.

Article 10. Privately-owned ships are granted a "Maritime Operation Permit" on maritime routes if they meet the following conditions:

1- The ship owner is an enterprise permitted to conduct marine transportation business according to this Decree;

2- The ship must meet the technical safety conditions to operate on maritime routes and has been issued appropriate certificates by the Vietnam Ship Survey Authority or authorized survey organizations in accordance with Vietnamese laws and international treaties to which Vietnam is a party;

3- The ship must have a civil liability insurance contract for the shipowner;

4- The crew of the ship must be adequately staffed and assigned according to their positions as stipulated by Vietnamese laws and international treaties to which Vietnam is a party.

Article 11. The issuance of the "Maritime Operation Permit" for private ships shall be carried out as follows:

1- Companies and enterprises submit to the Vietnam Maritime Administration a dossier including the following documents (legal copies as prescribed by law):

a) Business registration certificate of the company or enterprise;

b) Relevant documents concerning surveys, seafarers, and civil liability insurance for the shipowner.

2- Within 05 (five) days from the date of receiving complete and valid dossiers, the Vietnam Maritime Administration must issue the "Maritime Operation Permit" for the ship according to a unified form prescribed by the Minister of Transport. In case the requirements are not met, within this period, the Vietnam Maritime Administration must notify the applicant in writing stating the reasons.

Article 12.

1- Private ships with a "Maritime Operation Permit" for international coastal routes may operate on both international coastal routes and domestic routes;

2- Private ships with a "Maritime Operation Permit" for near-sea international routes may operate on near-sea international routes, international coastal routes, and domestic routes;

3- Private ships with a "Maritime Operation Permit" for deep-sea international routes may operate on all routes.

Article 13. Private companies and enterprises have the right to lodge complaints in accordance with the law if they are not permitted to engage in marine transportation business or if their ships are not granted a "Maritime Operation Permit".

Article 14. Private companies and enterprises that violate Vietnamese laws on marine transportation business or international treaties to which Vietnam is a party will be subject to legal sanctions depending on the severity of the violation.

Article 15. Private companies and enterprises engaged in marine transportation business prior to the effective date of this Decree must complete all legal procedures as prescribed by this Decree within 365 (three hundred sixty-five) days from the effective date of this Decree.

Article 16. This Decree shall take effect 15 days from its promulgation. All previous regulations contrary to this Decree are hereby abolished.

Article 17. The Minister of Transport shall be responsible for guiding the implementation of this Decree.

Ministers, heads of ministerial-level agencies, heads of agencies under the Government, Chairpersons of People's Committees of provinces and centrally governed cities are responsible for implementing this Decree./.