Vietnam has become a strategic logistics hub in Southeast Asia, attracting a growing number of foreign-invested logistics companies. From freight forwarding and warehousing to customs brokerage and last-mile delivery, FDI logistics businesses play a key role in regional supply chains.
However, many FDI logistics companies operate in Vietnam without a local legal or compliance department. Legal matters are often handled by headquarters overseas, assigned to accounting firms, or addressed only when disputes or inspections occur.
At first, this approach may appear efficient. But in practice, FDI logistics companies without local legal oversight face a range of hidden and recurring legal problems that can seriously disrupt operations.
Logistics companies operate at the intersection of multiple legal regimes, including:
Commercial and contract law
Transportation and logistics regulations
Customs and trade compliance
Labor and employment law
Licensing and administrative procedures
For FDI companies, these rules are applied strictly by Vietnamese authorities, often with little flexibility for misunderstandings or foreign practices.
Without a legal department monitoring compliance continuously, small procedural mistakes can quickly turn into administrative penalties or operational delays.
One of the most frequent problems for FDI logistics companies is operating outside licensed business scope.
This often happens when companies:
Add new logistics services after establishment
Expand into new provinces or ports
Change operational models or subcontracting structures
While these changes may seem operationally minor, they often require updates to:
Investment registration certificates
Enterprise registration
Logistics-specific licenses
Authorities assess compliance based on actual operations, not original business plans or headquarter approvals. Operating beyond registered scope is a common reason logistics FDI companies are fined.
Logistics contracts are complex and highly risk-sensitive. FDI companies often rely on:
Global contract templates
Contracts governed by foreign law
Counterparty-drafted agreements
Without local legal review, contracts may:
Allocate liability unfairly under Vietnamese law
Contain unenforceable limitation of liability clauses
Create conflicts between commercial terms and local regulations
Fail to protect the logistics company during loss or damage claims
When disputes arise, Vietnamese courts and authorities apply local law—not overseas standards or assumptions.
Many FDI logistics companies assume that customs compliance is fully handled by clients or customs brokers. In reality, logistics companies can still face legal exposure related to:
Documentation accuracy
Misclassification or declaration errors
Improper authorization or delegation
Procedural violations during customs clearance
Without legal oversight, companies may unknowingly accept operational practices that increase compliance risk.
Logistics companies manage large and dynamic workforces, including:
Drivers
Warehouse staff
Operations and coordination teams
Common labor-related risks include:
Overtime and shift scheduling violations
Improper use of subcontracted labor
Invalid termination or disciplinary procedures
Inconsistent payroll and social insurance records
FDI logistics companies without legal departments often rely on internal HR practices or global policies that do not fully comply with Vietnamese labor law.
A major challenge for FDI logistics companies is the mismatch between global policies and local law.
Examples include:
Global compliance manuals that ignore Vietnam-specific rules
Internal approval processes that do not meet statutory requirements
Disciplinary or termination policies that conflict with mandatory labor law
During inspections or disputes, Vietnamese authorities apply local regulations, regardless of global corporate standards.
Vietnamese regulations affecting logistics change frequently, including:
Transportation and logistics licensing
Labor and social insurance rules
Administrative reporting obligations
Trade and customs procedures
Overseas legal teams rarely track these changes in real time. Without local legal support, FDI logistics companies often continue operating under outdated requirements—until inspections reveal non-compliance.
In many FDI logistics companies without legal departments:
Operations teams focus on delivery and efficiency
HR handles labor matters
Accounting manages tax and reporting
Management oversees contracts
No single function monitors legal risk holistically. As a result, compliance gaps develop silently, often discovered only during inspections or disputes.
FDI logistics companies without legal departments often experience inspections as disruptive and stressful.
Common problems include:
Missing or inconsistent documentation
Unclear communication with authorities
Misunderstanding inspection scope and procedures
Without legal guidance, inspections can escalate into penalties even when violations are procedural rather than substantive.
Companies with ongoing legal support typically approach inspections with preparation, clarity, and confidence.
Some logistics companies consult lawyers only when:
Authorities issue inspection notices
Penalties are imposed
Disputes with customers or partners escalate
At that point, legal advice is reactive. Many risks—especially licensing, labor, and procedural risks—cannot be corrected retroactively.
Logistics operations require continuous legal oversight, not emergency legal intervention.
FDI logistics companies often believe they are compliant because:
Operations run smoothly
No penalties have occurred yet
Similar practices are common in the industry
However, compliance is not based on habit or industry practice. It is based on current law, documentation, and procedures—all of which require ongoing legal monitoring.
For many FDI logistics companies, the most effective solution is ongoing legal consultancy acting as a local outsourced legal department.
This model provides:
Continuous monitoring of licensing and compliance risks
Legal review of contracts and operational changes
Updates on regulatory changes affecting logistics
Preparation and support for inspections
Alignment between global policies and Vietnamese law
Legal risk is managed proactively—before enforcement occurs.
Building an in-house legal department in Vietnam can be costly and inflexible. Ongoing legal consultancy offers:
Predictable monthly or retainer-based fees
Access to multi-disciplinary legal expertise
Flexibility to scale support as operations expand
This makes it particularly suitable for FDI logistics businesses.
DEDICA provides ongoing legal consultancy services tailored specifically for FDI logistics companies operating in Vietnam.
As an outsourced legal department, DEDICA supports clients by:
Advising on logistics contracts and liability allocation
Monitoring licensing, investment, and compliance obligations
Supporting labor and HR compliance
Updating clients on regulatory changes affecting logistics
Assisting during inspections and authority interactions
DEDICA’s approach is practical, preventive, and industry-focused, helping FDI logistics companies operate confidently and compliantly in Vietnam.
Operating a logistics business in Vietnam without a legal department exposes FDI companies to compounding legal risks—especially in licensing, labor, contracts, and inspections.
Most problems do not arise from bad intent, but from procedural gaps, missed updates, and lack of continuous legal oversight.
By engaging ongoing legal consultancy as a local outsourced legal department, FDI logistics companies gain the structure, clarity, and compliance needed to grow sustainably and avoid costly disruptions.
📞 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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