The basics of Shipping in Vietnam

Basically, Shipping in Vietnam is the same as shipping anywhere in the world. Even with more than 3000km of coastline, shipping in Vietnam is growing and is shaping up to be one of the leading shipping markets in Asia. In this article we will cover the BASICS of Who is Who and what role they play in the Vietnam Container Shipping industry..

The authorities

Port authority

The Maritime Port Authority (abbreviated as the Port Authority – P/A) is an agency under the Vietnam Maritime Administration, performing the task of state management of maritime at seaports and assigned management areas. The functions of the Port Authority directly related to the shipping industry include: managing maritime activities at seaports, licensing – supervising ships entering and leaving ports, confirming the submission of maritime protests; implementing the decision to arrest ships of competent state agencies and temporarily detaining ships according to regulations, etc. In Vietnam, shipping agents will represent shipping lines / ship owners to work regularly with the Port Authority for each ship arriving and departing from the port.

Currently, there are 25 Maritime Port Authorities offices managing maritime areas from Quang Ninh to Ca Mau. The main Port Authorities offices include: Quang Ninh P/A, Hai Phong P/A, Ha Tinh P/A, Thanh Hoa P/A, Hue P/A, Da Nang P/A, Quy Nhon P/A, Nha Trang P/A, Binh Thuan P/A, Dong Nai P/A, Vung Tau P/A, Ho Chi Minh City P/A, Can Tho P/A,…

Customs

The General Department of Customs, under the Ministry of Finance, has the function of State management of Customs for import and export activities, entry and exit, transit of Vietnam, combating smuggling or illegal transportation of goods, foreign currency or Vietnamese currency across the border. Currently, the General Department of Customs has 35 provincial, inter-provincial and centrally-run city Customs Departments such as: Hanoi Customs Department, Hai Phong Customs Department, Ho Chi Minh City Customs Department, Da Nang Customs Department, Dong Nai Customs Department, Ba Ria-Vung Tau Customs Department, Can Tho Customs Department, ….

In the shipping industry, importers and exporters, customs clearance agents, shipping lines, seaports, … are the units that regularly work with customs agencies.

Other authorities

Depending on the field of goods or type of import and export, importers and exporters or logistics service providers will have to work with different specialized agencies. For example: applying for a Certificate of origin (C/O) to VCCI or the Ministry of Industry and Trade; vehicle inspection – certification of conformity with inspection agencies; quarantine for goods subject to quarantine,…

Users in shipping industry

Seaports

Vietnam has the advantage of a long coastline, many suitable locations for seaports, especially the Cai Mep – Thi Vai area in Ba Ria Vung Tau, where the natural channel (Thi Vai River) has great depth and little sedimentation. According to the ports directory in Vietnam, there are currently 34 seaports, including 2 special seaports: Hai Phong seaport and Ba Ria – Vung Tau seaport.

With a large number of terminals (125 container terminals operating in 25 localities), there are many port operators in Vietnam. Among them, we can mention names such as: Vinalines, Tan Cang Saigon, Gemadept, Hai An, Viconship, ITC, Hateco, … or foreign enterprises with shares in some ports such as: APM, SSA, CMA-CGM, MOL, Wanhai, Hanjin, ..

Shipping lines

Shipping lines are companies who operate fleets of ships that actually transport containers and cargoes from loading ports to unloading ports around the world. It can be said that most of the world’s leading container shipping lines are currently operating their services in Vietnam. For example: Hapag Lloyd, Maersk, MSC, CMA-CGM, ONE, HMM, Yang Ming, Wanhai, Cosco, PIL,..

In Vietnam, there are also many local companies those operate container ships but mainly only operate domestically or as feeders (consolidation ships) such as: Hai An, VIMC, Vosco, SNP,…

Shipping Agency

A shipping agent is an entity that represents shipping lines, ship owners or ship managers and handles their marketing, sales, operations and accounting functions at a certain port or group of ports or worldwide. In the past, international shipping lines had to use Vietnamese companies to act as agents, the most famous of which was Gemadept, which has now grown into a giant in the industry in Vietnam.

Nowadays, most shipping lines have established their own branches/representative offices in Vietnam instead of using agents. However, some small shipping lines or shipping lines that do not have service routes to Vietnam still use agents. In addition, there are some foreign companies operating in Vietnam that specialize in shipping agency services, for example: Ben line agencies.

Freight forwarder

Freight forwarder is a company that specializes in arranging the transportation of goods and related procedures on behalf of the exporter or importer. The duties of a Freight forwarder include booking space on the vessel, providing all necessary documents and arranging customs procedures (own or outsourced) or other logistics services. Forwarders play a very important role in the logistics sector, acting as a bridge between importers and exporters and shipping lines. Many forwarders are “giant” companies such as: Kuehne + Nagel, Sinotrans, DHL, DB Schenker, DSV, C.H. Robinson,… Some forwarders are actually subsidiaries or “siblings” of shipping lines such as: Maersk Logistics, Ceva Logistics (of CMA-CGM), OOCL Logistics, Yusen Logistics (of NYK), K’line Logistics,…

The number of Forwarders in Vietnam alone is up to … thousands after more than 30 years of development of the domestic shipping industry. Examples include: GMD Logistics, TCL, HAAL, AVT,..

Clearing agents

Customs agents are companies that specialize in providing customs services under agency contracts. They are agents on customs declarations, sign and stamp their names in the customs declarant box (with ECUS4 software), or use their digital signature to transmit the declaration (ECUS5 – VNACCS). Customs agents operate based on authorization contracts with import-export owners and must be responsible within the scope of authorization. Customs agents must have trained staff (called agents) and be recognized by the General Department of Customs. Logistics and forwarder companies (such as AVT) can also be Customs agents if they are trusted by importers and exporters and have a team of professionals that meet legal regulations.

Inland haulage companies

To transport containers from the port to the factory/construction site or vice versa, inland transporters are needed. In Vietnam, there are 3 forms of inland transport for containers: by road, by water and by rail, of which road and water transport are the main types. Some transport companies only provide road transport services (container truck fleets), some only provide water transport services (barge fleets), but some (such as AVT) can provide multimodal transport services, combining many types of transport, thanks to their diverse fleet of vehicles or operating experience.

Importers & Exporters

Import-export companies are enterprises specializing in import-export business activities. Some import-export companies not only focus on trade promotion, searching and establishing relationships with suppliers and manufacturers of goods abroad, but also perform functions as logistics / forwarder companies: customs clearance, transportation, preservation, warehousing, delivery of goods, etc.

Hopefully the above article has helped readers visualize the role of agencies and businesses related to the transportation and delivery of import and export goods in Vietnam. If you need further discussion, advice or request for Logistics services in Vietnam, please comment below or contact our team of experts immediately to receive the earliest support.