Do towage services need to establish enterprises in Vietnam?

1. Do towage services need to establish enterprises in Vietnam?

In Article 13 of Decree 160/2016/ND-CP as amended by Clause 5, Article 3 of Decree 147/2018/ND-CP on conditions for towage services, as follows:

1. A provider of towage services in Vietnam must be an enterprise or cooperative established as prescribed by law. In a case where a foreign-invested enterprise provides towage services, the foreign investors’ holding must not exceed 49% of the enterprise’s charter capital.

2. At least 01 tugboat is permitted for use. Such tugboat must fly Vietnamese national ensign.

According to this Article, comparing the above regulations, if you want to operate towage services in Vietnam, you must be an enterprise or cooperative established.

2. What are conditions for organizational structure and personnel when providing towage services in Vietnam?

According to Article 14 of Decree No. 160/2016/ND-CP on conditions for organizational structure and personnel when providing towage services, specifically as follows:

1. Any person in charge of business and operation of towage services must obtain at least a college’s degree in one of maritime, foreign trade, commercial or economic specialties.

2. Any person in charge of legal affairs must obtain at least a college’s degree in law speciality.

3. Any seafarer working on a seagoing vessel must satisfies all requirements pertaining to specialities, health and be issued with a professional certificate as prescribed. Any of Vietnamese seafarer working on a tugboat must satisfy all requirements pertaining to speciality, be issued with a professional certificate prescribed by the Minister of Transport; and satisfy all health requirements prescribed by the Minister of Health. (Repealed by Clause 7 Article 3 of Decree 147/2018/ND-CP).

Thus, when doing business in towage services in Vietnam, it is necessary to meet the above conditions for organizational structure and personnel to be able to operate in this field.

Best Regards!