Logistics is one of the fastest-growing sectors in Vietnam, driven by manufacturing expansion, e-commerce growth, and cross-border trade. However, logistics companies also operate in a highly regulated and enforcement-sensitive environment, where legal mistakes are easy to make and costly to fix.
Many logistics businesses believe they are compliant because they hold the necessary licenses or have operated for years without major issues. In reality, most legal problems in the logistics sector do not arise from missing licenses, but from operational and compliance gaps that are often overlooked.
This article explains where logistics businesses most commonly make legal mistakes, why these issues keep recurring, and how ongoing legal consultancy helps logistics companies operate safely and sustainably in Vietnam.
One of the most frequent legal mistakes in the logistics sector is operating beyond the registered business scope.
Logistics companies often:
Add services gradually (warehousing, customs brokerage, last-mile delivery)
Assume related services are automatically permitted
Fail to update enterprise registration or licenses
Authorities assess compliance based on actual activities, not business intentions. Even small deviations from registered scope can lead to administrative penalties during inspections.
Logistics is a conditional business sector in Vietnam. Holding a logistics license does not eliminate ongoing compliance obligations.
Common mistakes include:
Failing to maintain required conditions after licensing
Not updating licenses when operational scale changes
Overlooking sub-licensing requirements for specific services
Many penalties arise because companies stop monitoring license conditions after approval, assuming compliance is permanent.
Contracts are the backbone of logistics operations, yet they are often treated as standard paperwork.
Logistics businesses frequently rely on:
Generic contract templates
Foreign templates not adapted to Vietnamese law
Client-drafted terms with unbalanced risk allocation
Common contract issues include:
Unclear liability limits
Weak force majeure clauses
Inadequate claims and compensation mechanisms
Inconsistent dispute resolution provisions
When cargo loss, delays, or damage occur, these contractual weaknesses become major financial risks.
Logistics involves multiple parties—shippers, carriers, warehouses, customs agents, and subcontractors. Without careful legal structuring, liability can easily fall on the logistics provider.
Many companies fail to:
Clearly limit liability in contracts
Align liability clauses with insurance coverage
Coordinate responsibilities across subcontractors
As a result, logistics businesses may bear losses that could have been legally avoided.
Labor law compliance is a major risk area for logistics companies, especially those operating warehouses, fleets, or shifts.
Common mistakes include:
Improper overtime arrangements
Missing written employee consent for overtime
Inconsistent working hour records
Improper termination procedures
These issues are frequently discovered during labor inspections and can result in fines or labor disputes—even when employment contracts exist.
Logistics companies often rely heavily on subcontractors for transportation, warehousing, or last-mile delivery.
Legal risks arise when companies:
Do not clearly define subcontracting responsibilities
Fail to include compliance obligations in subcontractor contracts
Assume subcontractor violations will not affect them
In practice, authorities and clients often hold the main logistics provider responsible for subcontractor non-compliance.
For logistics companies involved in import-export activities, customs compliance is critical.
Common legal mistakes include:
Improper authorization when acting on behalf of clients
Ambiguous responsibility for customs declarations
Failure to document client instructions clearly
These issues can lead to penalties, disputes with clients, or increased scrutiny from customs authorities.
Logistics operations generate a high volume of documents—transport records, delivery confirmations, warehouse logs, invoices, and contracts.
Many businesses:
Store documents inconsistently
Fail to align operational records with legal requirements
Cannot produce complete documentation during inspections
In inspections and disputes, lack of documentation is often treated as non-compliance, regardless of actual performance.
In many logistics companies, legal compliance is handled informally by:
Operations teams
Accounting departments
Branch managers
Without legal oversight, compliance becomes fragmented and reactive. Legal risks accumulate silently until inspections, disputes, or audits expose them.
Logistics businesses often make the same mistakes because:
Operations move faster than legal review
Compliance responsibilities are unclear
Legal advice is sought only after problems arise
There is no internal legal function
This reactive approach increases risk as operations scale.
Many logistics businesses consult lawyers only when:
A dispute has escalated
An inspection is announced
A penalty has already been imposed
At that point, legal advice focuses on damage control rather than prevention. Options are limited, and costs are higher.
Logistics operations require continuous legal monitoring, not occasional legal intervention.
Ongoing legal consultancy functions as an outsourced legal department, embedded into daily operations.
With ongoing legal support, logistics companies benefit from:
Regular review of business scope and licenses
Contract risk assessment and updates
Labor compliance monitoring
Guidance on subcontracting and liability allocation
Support during inspections and regulatory interactions
Legal compliance becomes part of operational planning rather than an afterthought.
FDI logistics companies face additional challenges:
Language barriers
Use of global contract templates not aligned with Vietnamese law
Differences between headquarters policies and local enforcement
Increased scrutiny from authorities
Local ongoing legal consultancy helps bridge these gaps and reduce compliance risk.
DEDICA provides ongoing legal consultancy services tailored for logistics companies operating in Vietnam.
As an outsourced legal department, DEDICA supports logistics clients by:
Reviewing and updating business scope and licensing compliance
Strengthening contracts with clients and subcontractors
Advising on liability, insurance alignment, and risk allocation
Supporting labor compliance and inspections
Preventing disputes before they disrupt operations
DEDICA’s approach is practical, prevention-focused, and industry-aware, designed to support fast-moving logistics operations.
Logistics businesses rarely fail because of a single legal violation. Instead, problems arise from small, repeated compliance gaps in contracts, labor management, licensing, and operations.
In a sector where margins are tight and operations are complex, legal mistakes can quickly erode profitability and damage reputation.
By engaging ongoing legal consultancy, logistics companies gain continuous protection, operational clarity, and the confidence to grow without being derailed by avoidable legal risks.
📞 Hotline: (+84) 39 969 0012 (Available via WhatsApp, WeChat, Zalo)
🕒 Working Hours: Monday – Friday (8:30 – 18:00)
Contact us today for a free initial consultation with our experienced lawyers!
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