As a pillar supporting trade and production, the logistics and logistics industry is becoming an attractive destination for foreign direct investment (FDI) in Vietnam. In recent years, the Government has continuously improved the legal framework and issued many preferential policies to encourage FDI to develop this field. However, to effectively take advantage of these incentives, investors need to clearly understand the appropriate regulations, conditions and legal strategies.
Vietnam identifies logistics as an important service industry, contributing to improving national competitiveness. Therefore, preferential policies for FDI in logistics have been implemented in an open, flexible and effective manner.
One of the important foundations to promote foreign investment is a stable legal framework. Vietnam has issued many related legal documents such as the Investment Law, Enterprise Law, Commercial Law, Customs Law... and specialized Decrees on logistics. In addition, Vietnam also participates in many free trade agreements (FTAs), helping FDI enterprises access the market more conveniently.
FDI projects in logistics and warehousing can enjoy many incentives, including:
Exemption and reduction of corporate income tax in the initial period;
Exemption from import tax for machinery and equipment creating fixed assets;
Enjoy preferential policies on land rent and water surface rent in industrial parks and economic zones;
Support access to credit and infrastructure, especially in key logistics localities such as Hai Phong, Binh Duong, Dong Nai, Long An...
In addition, projects that apply high technology, green logistics or have digital transformation elements are also given priority for approval and special encouragement.
Although there are many preferential policies, not all investors can easily take advantage of these advantages. Many FDI enterprises encounter problems right from the stage of applying for investment licenses or project operations. This is when the role of specialized legal consulting units promotes practical value.
To ensure the investment process goes smoothly, FDI enterprises need to do:
Carefully review industry and local planning, determine the types of logistics services allowed for investment;
Build a complete and transparent investment profile, clearly showing operational objectives, capital scale, and implementation progress;
Choose an appropriate legal structure such as a 100% foreign-owned company, joint venture... based on the specific logistics field.
Careful preparation not only helps shorten licensing time, but is also the first step to fully enjoying regulatory incentives.
Each type of offer has conditions attached, for example:
To be exempt from corporate income tax for the first 4 years, the project must be in the list of preferential industries and be implemented on schedule;
Land lease incentives are often associated with a commitment to effectively use the land fund within a certain period of time;
Tax exemption for imported machinery and equipment must clearly demonstrate the purpose of creating fixed assets.
Therefore, firmly grasping legal regulations and following standard procedures is a key factor. Businesses should regularly consult lawyers to avoid risks of post-audit or having incentives revoked due to violation of commitments.
Firmly grasping legal regulations and following standard procedures are key factors [/caption]From the practice of consulting and accompanying many FDI projects in Vietnam, DEDICA's team of lawyers suggests a number of legal solutions to help FDI enterprises in logistics achieve sustainable efficiency:
Local investment greatly affects preferential policies. Areas such as Bac Ninh, Hai Phong, Ho Chi Minh City, and Long An often have land funds suitable for logistics development, and are ready to support administrative procedures.
Legally, if a business wants complete control, it should choose a 100% foreign-owned company model. On the contrary, if you need to take advantage of local advantages or domestic partners, the joint venture model is an option worth considering.
From the stage of applying for an Investment Registration Certificate (IRC) to adjusting the license during operations, steps need to be closely monitored and documents standardized.
In addition, the logistics industry is also related to many other fields such as environmental protection, fire prevention, customs... Therefore, building an internal legal compliance system will help businesses limit risks and promptly handle changes when there are fluctuations.
During the operation phase, many FDI enterprises often only focus on logistics operations but ignore arising legal factors such as contracts with partners, tax risks, handling of administrative violations...
With regular legal services (legal retainer), businesses can proactively control risks, adjust operations in accordance with legal regulations and avoid penalties due to negligence.
During the operation phase, many FDI enterprises often only focus on logistics operations and ignore legal factors that arise [/caption]As a legal consulting unit for many FDI enterprises in the field of logistics and warehousing, DEDICA clearly understands the Vietnamese legal system as well as the challenges that investors face. We not only support investment licensing and business registration, but also accompany throughout the operating process to help businesses operate safely - effectively - legally.
If you are looking for a team of professional lawyers who understand both legal and logistics practices in Vietnam, contact DEDICA today.
Hotline:(+84) 39 969 0012 (Support via WhatsApp, WeChat and Zalo)
Head office:144 Vo Van Tan Street, Xuan Hoa Ward, City. Ho Chi Minh (144 Vo Van Tan Street, Vo Thi Sau Ward, District 3, Ho Chi Minh City)
Business hours: Monday – Friday (8:30 – 18:00)
Contact us now to receive a free initial consultation from our team of professional lawyers!
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