CONDITIONS FOR COMMERCIAL OPERATION OF SEAPORTS
On April 04, 2017, the Government issued the Decree No. 37/2017/ND-CP on conditions for commercial operation of seaports; port enterprises may commercially operate seaports only after obtaining a certificate of eligibility for commercial operation of seaports; port enterprises shall commercially operate seaports in conformity with announced use purposes and functions of seaports; port enterprises shall maintain all conditions prescribed in this Decree and other relevant laws throughout the period of commercial operation of seaports.
At the same time, enterprises must satisfy all the conditions for commercial operation of seaports such as organizational structure and personnel; physical foundations and equipment; occupational safety and health, fire and explosion prevention and fighting; on environmental protection. Within that, the person in charge of the section managing commercial operation of seaports must possess a university or higher degree in maritime shipping, economics or trade and have at least 5 years’ experience in commercial operation of seaports; enterprises must have sufficient physical foundations, storage space and necessary equipment and devices in conformity with national technical regulations on seaports; in case of insufficient storage space, port enterprises shall sign contracts to lease storage space for at least 5 years, except cases of commercially operating floating terminals, anchorage zones, transshipment zones or offshore oil ports.
Particularly, the Decree also requires that In case a foreign-invested port enterprise wishes to provide cargo handling services, it may only establish a joint-venture enterprise in which the foreign holding rate must comply with the Vietnam’s Schedule of Commitments to the World Trade Organization (WTO.
This Decree takes effect on July 1, 2017. Port enterprises which have commenced commercial operation of seaports before the effective date of this Decree may continue their business but must meet the conditions prescribed in this Decree as from July 1, 2020.
