The process of obtaining seaport investment licenses in Vietnam requires careful attention to legal requirements and procedures. This comprehensive guide will walk you through the essential steps and considerations for securing your seaport investment license.

1. Introduction to Seaport Investment in Vietnam

Vietnam’s maritime sector has become increasingly attractive to foreign investors, with the government actively promoting private investment in port infrastructure. Understanding the licensing process is crucial for successful market entry.

Current Investment Climate

• Growing demand for port infrastructure: With the rise in economic and trade activities, the demand for port infrastructure is increasing. This not only drives the construction and upgrading of ports but also creates a need for maritime transport and logistics support services.
• Supportive government policies for foreign investment: Government investment support policies, especially for foreign investors, play an essential role in creating an attractive investment environment. Tax incentives, financial support, and administrative procedure simplifications help minimize risks and investment costs.
• Strategic location in Southeast Asian shipping routes: Vietnam is strategically positioned within Southeast Asia’s shipping routes, providing favorable conditions for connectivity with major markets in the region. This location optimizes logistics and trade activities, contributing to the sustainable development of seaports.

2. Prerequisites for License Application

Before initiating the application process, investors must ensure they meet several fundamental requirements:

Basic Requirements (Chapter II, Decree No. 37/2017/ND-CP)

1. Enterprise Requirements:

• Must be a business established under Vietnamese law.
• If the enterprise has foreign investment and engages in container handling services as part of maritime transport support services, the foreign investor’s capital contribution must not exceed 50% of the charter capital, as regulated by law.

2. Organizational Structure and Human Resource Requirements:

• Organizational Structure: The enterprise must have a maritime security management department as required by law.
• Human Resources: Port security officers must be trained, certified, and meet the standards set by the Minister of Transport, in accordance with the International Ship and Port Facility Security (ISPS) Code.

3. Infrastructure and Equipment Requirements:

• The enterprise must have adequate facilities, warehouses, yards, and equipment that meet national technical standards for seaports.
• If the port does not have warehouses or yards, the enterprise must have a lease agreement for such facilities (except for floating docks, anchorage areas, transshipment zones, and offshore oil and gas ports).
• Compliance with occupational safety and fire prevention regulations must be ensured.

4. Environmental Protection Requirements:

• The enterprise must have adequate means to receive, collect, and treat ship-generated waste in compliance with the MARPOL Convention and other environmental protection regulations.
• All environmental protection documents for the port must be approved by competent authorities following the Environmental Protection Law 2020 and Decree 08/2022/ND-CP.

3. Required Documentation

A complete application package must include the following documents:

Essential Documents (Clause 1, Article 10, Decree No. 37/2017/ND-CP)

• Application form requesting the Certificate of Eligibility.
• Business registration certificate: A certified copy or a copy with the original for comparison, or an electronic copy from the original register, or a certified electronic copy from the original.
• List of key positions and labor contracts: A certified copy or a copy with the original for comparison, or an electronic copy from the original register, or a certified electronic copy from the original.
• Port operation plan of the enterprise: A certified copy or a copy with the original for comparison, or an electronic copy from the original register, or a certified electronic copy from the original.

4. Step-by-Step Application Process

Follow these sequential steps to secure your seaport investment license: (Article 10, Decree No. 37/2017/ND-CP)

Step 1: Consultation and Initial Preparation

Before starting, businesses should thoroughly research legal, technical, and market requirements; conduct field surveys; consult with experts; and draft a detailed investment plan.

Step 2: Preparing the License Application

• Gather all required documents as per regulations.
• Prepare any additional documents required by local authorities or specific requests from the Vietnam Maritime Administration.

Step 3: Submitting the Application

Enterprises submit the application for the Certificate of Eligibility to the Vietnam Maritime Administration through one of the following methods:

• Direct submission to the competent authority.
• Via postal services.
• Through the online public service system or other appropriate methods.

S4: Application Receipt and Review

• The Vietnam Maritime Administration receives the application.
• If the application is incomplete, within 02 working days from the date of receipt, the authority will guide the enterprise to complete the application as required.
• If the application is complete, the Vietnam Maritime Administration will issue a receipt.

S5: Evaluation and Verification of the Application

• Within 07 working days from the date of receiving a complete and valid application, the Vietnam Maritime Administration will conduct an evaluation and review process.

S6: Issuance of the Certificate of Eligibility

• Following the evaluation, the Vietnam Maritime Administration will decide on the issuance of the Certificate of Eligibility for port operation.
• The certificate will be sent to the enterprise directly via postal services, through the online public service system, or by other appropriate means.
• In case of rejection, the authority will provide a written explanation stating the reasons for denial.

S7: Project Implementation and Compliance

After obtaining the license, the enterprise must implement the project according to the approved plan while complying with safety, environmental protection, and legal obligations.

5. Timeline and Fees

6. Common Challenges and Solutions

Typical Obstacles

Investors often encounter these common challenges:

1. Documentation Complexity: The licensing and port investment process requires businesses to prepare a large volume of documents, including legal, technical, and financial evidence. These documents must be certified, accurate, and complete according to regulatory requirements. The complexity of documentation can lead to application rejections due to missing or incorrect information.

Solutions:

• Collaborate with legal experts: Experienced maritime investment lawyers can help businesses review and complete documentation to ensure compliance with all applicable regulations.
• Establish a robust internal process: Companies should implement thorough document verification procedures before submission to minimize errors and omissions.

2. Administrative Delays: Processing times at regulatory agencies are often prolonged due to complex administrative procedures and high document volumes. This can cause unexpected delays, affecting project timelines and investor confidence.

Solutions:

• Maintain frequent communication with authorities: Establishing clear communication channels and proactively tracking the application status helps businesses stay informed and adjust contingency plans if necessary.
• Prepare contingency plans: Identifying potential risks and formulating solutions for delays can minimize adverse impacts on the project.

3. Technical Requirements: The operation of seaports requires businesses to meet stringent technical standards for safety, environmental protection, and operational efficiency. Lack of experience or failure to comply with these standards can lead to operational risks, regulatory violations, and even severe incidents.

Solutions:

• Partner with professional design and operational firms: Companies experienced in port design, construction, and operation can ensure that projects adhere to national and international technical standards.
• Invest in internal capacity building: Training personnel, engineers, and operational teams enhances self-sufficiency in project management and operations.

7. Post-Approval Requirements

After obtaining the license, investors must comply with ongoing obligations:

Regular progress reports submission

• Project monitoring: Regular reporting enables regulatory bodies to closely track project implementation, ensuring activities align with approved plans and commitments.
• Early issue detection: Periodic reports help identify and address delays, errors, or arising issues in a timely manner.
• Transparency: Providing regular updates fosters transparency between investors and regulators, enhancing trust and facilitating support when needed.

Environmental compliance monitoring

• Environmental protection: Monitoring ensures port operations do not negatively impact ecosystems or public health.
• Regulatory compliance: Environmental supervision is a legal requirement, ensuring all project activities align with current environmental laws and standards.
• Legal risk mitigation: Fulfilling environmental obligations helps investors avoid legal violations, penalties, or operational suspensions.

Safety standard maintenance

• Ensure safety for employees and customers: Safety standards protect the lives and health of workers and port users.
• Minimize accident risks: Adhering to safety standards prevents accidents, incidents, and potential operational hazards.
• Legal compliance: Safety regulations are strictly enforced by law, so maintaining these standards prevents legal penalties and ensures stable operations.

Operational permit renewals

• Regulatory updates: License renewal allows authorities to reassess the company’s compliance with legal, safety, and environmental requirements.
• Operational continuity: Timely renewal ensures businesses can legally continue operations without disruption due to license expiration.
• Management quality improvement: The renewal process often involves evaluations and adjustments that enhance port operations’ efficiency and sustainability.

8. Expert Tips for Success

Establish strong local partnerships: Partnering with local businesses, organizations, and government entities helps companies gain market insights, receive necessary support, and reduce bureaucratic barriers.

• Specific benefits:

• Access to customer, supplier, and potential partner networks.
• Better understanding of local regulations and administrative procedures.
• Enhanced credibility and negotiation leverage in regulatory interactions.

Maintain transparent communication with authorities: Frequent and clear communication keeps businesses informed of policy changes, regulatory updates, and procedural requirements.

• Specific benefits:

• Minimizes risks from misinformation or delays.
• Builds trust with regulatory agencies, facilitating smoother administrative processes.
• Enables prompt resolution of operational issues.

Plan for long-term operational requirements: Port investment requires careful planning beyond licensing, including operational sustainability.

• Specific benefits:

• Identifies necessary resources (workforce, equipment, and infrastructure) to ensure efficient and sustainable operations.
• Prepares for operational risks, minimizing negative business impacts.
• Enhances adaptability to market, technological, and regulatory changes.

Stay updated on regulatory changes: The maritime industry frequently undergoes regulatory and technical standard updates. Keeping up with these changes ensures legal compliance and operational efficiency.

• Specific benefits:

• Ensures compliance with the latest regulations, avoiding fines or suspension.
• Enables businesses to adjust strategies in response to policy shifts, safety standards, and environmental regulations.
• Strengthens reputation and competitiveness by demonstrating a commitment to compliance and industry best practices.

9. Frequently Asked Questions

1. What is the minimum investment capital required?

Currently, there are no specific legal requirements for the minimum capital needed to operate a seaport. Investment capital primarily depends on the project’s scale, nature, and financial requirements for effective implementation.

Small-scale port investment projects typically require a minimum of $10 million USD (equivalent to hundreds of billions of VND).

2. How long does the entire process take?

From the initial application to full port operation, businesses typically require 2–3 years. After that, the project enters long-term operation with scheduled maintenance and upgrades as per regulatory and strategic planning requirements.

3. Are there restrictions on foreign ownership?

Foreign capital contribution limits: If the port-operating company is a foreign-invested enterprise engaged in container handling services, regulations stipulate that foreign investors cannot own more than 50% of the company’s charter capital. This means foreigners can contribute up to half, with the remainder controlled by domestic investors.

Other regulatory requirements: Beyond capital restrictions, foreign-invested enterprises must comply with legal, organizational, human resources, infrastructure, equipment, and environmental protection regulations under Vietnamese law. These may include training certification, safety standards, and other administrative requirements related to the maritime and port operation sector.

10. Conclusion

Obtaining a seaport investment license in Vietnam requires careful planning, thorough documentation, and patience. Success depends on understanding the regulatory framework and maintaining compliance throughout the process.

Need professional assistance? Contact Harley Miller Law Firm for specialized legal consultation in port development and personalized guidance through the licensing process.

For detailed legal advice, don’t hesitate to contact Harley Miller Law Firm

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