With its role as a pillar supporting trade and manufacturing, the logistics and warehousing sector is becoming an attractive destination for foreign direct investment (FDI) in Vietnam. In recent years, the Government has continuously improved the legal framework, while issuing many incentive policies to encourage FDI development in this field. However, to make effective use of these incentives, investors need to clearly understand the regulations, conditions, and appropriate legal strategies.

Overview of policies to attract foreign investment into logistics and warehousing

Vietnam identifies logistics as an important service industry contributing to enhancing national competitiveness. Therefore, incentive policies for FDI into logistics have been implemented in an open, flexible, and effective manner.

Legal infrastructure gradually being completed

One of the important foundations for promoting foreign investment is a stable legal framework. Vietnam has promulgated many relevant legal documents such as the Investment Law, the Enterprise Law, the Commercial Law, the Customs Law… together with decrees specialized in logistics. In addition, Vietnam has also joined many Free Trade Agreements (FTAs), helping FDI enterprises access markets more favorably.

Attractive investment incentives

FDI projects in logistics and warehousing may enjoy many incentives, including:
• Exemption or reduction of corporate income tax in the initial period;
• Exemption from import tax for machinery and equipment that create fixed assets;
• Preferential policies on land rental and water surface rental at industrial zones, economic zones;
• Support for access to credit and infrastructure, especially in key logistics localities such as Hai Phong, Binh Duong, Dong Nai, Long An…

In addition, projects applying high technology, green logistics, or having digital transformation elements are also prioritized for consideration and special encouragement.

Legal consulting to help FDI optimize benefits and manage risks

Although there are many incentive policies, not all investors find it easy to take advantage of these benefits. Many FDI companies face obstacles right from the stage of applying for investment permits or operating the project. This is when the role of specialized legal advisory units shows its practical value.

Careful legal preparation from the beginning

To ensure the investment process goes smoothly, FDI enterprises need to:

• Review carefully sector and local planning, determine which types of logistics services are allowed for investment;
• Prepare a complete, transparent investment dossier clearly showing operational objectives, capital scale, implementation timeline;
• Choose the appropriate legal structure such as a 100% foreign-owned company, a joint venture… depending on the specific logistics area.

Thorough preparation not only helps shorten permit issuance time, but is also the first step to fully enjoy incentives under regulations.

Properly leveraging tax and land incentives

Each incentive type comes with attached conditions, for example:

• To be granted corporate income tax exemption in the first 4 years, a project must belong to the list of preferential sectors and be implemented on schedule;
• Land rent incentives are often tied to commitments to use land efficiently within a certain period;
• Import tax exemptions for machinery/equipment must clearly demonstrate that their purpose is to create fixed assets.

Therefore, fully understanding legal regulations and performing procedures correctly are key factors. Companies should regularly consult lawyers to avoid risks of post-audit or having incentives revoked due to breach of commitments.

Legal solutions for foreign investors in the logistics sector

From experience in advising and accompanying many FDI projects in Vietnam, DEDICA’s legal team suggests several legal solutions to help FDI enterprises in logistics achieve sustainable effectiveness:

Choosing appropriate location and legal structure

Investment locality greatly affects incentive policies. Areas such as Bac Ninh, Hai Phong, Ho Chi Minh City, Long An often have land fund appropriate for logistics development, and are ready to support administrative procedures.

Legally, if an enterprise wants full control, it should choose the model of 100% foreign-owned company. Conversely, if needing to take advantage of local connections or domestic partners, a joint venture is a worthwhile option to consider.

Proactivity in legal procedures and compliance

From the stage of applying for the Investment Registration Certificate (IRC) to adjusting licenses during operation, steps need to be closely monitored and the dossier standardized.

Also, the logistics sector relates to many other fields such as environmental protection, fire safety, customs… Therefore, building an internal legal compliance system helps enterprises limit risks and respond promptly when there are changes.

Optimizing operations through continuous legal advisory

During operation, many FDI businesses often focus only on logistics operations but overlook arising legal issues such as contracts with partners, tax risks, handling administrative violations…

With ongoing legal services (legal retainer), enterprises can proactively control risks, adjust operations to comply with legal regulations, and avoid fines due to negligence.

DEDICA – Strategic legal partner for FDI projects

As a legal advisor for many FDI enterprises in logistics and warehousing, DEDICA understands well Vietnam’s legal system as well as the challenges that investors face. We do not only support investment licensing, business registration, but also accompany continuously during operation to help enterprises operate safely – effectively – in compliance with the law.

If you are looking for a team of professional lawyers who understand both law and the practical side of logistics in Vietnam, contact DEDICA today.
📞 Hotline: (+84) 39 969 0012 (Support via WhatsApp, WeChat and Zalo)
🏢 Head office: 144 Võ Văn Tần Street, Xuân Hòa Ward, Ho Chi Minh City (144 Võ Văn Tần, Võ Thị Sáu Ward, District 3, Ho Chi Minh City)
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