THE GOVERNMENT

DECREES:

Article 1.- Scope of regulation

This Decree provides for business conditions for ocean shipping service provision. In this Decree, ocean shipping services comprise ocean shipping agency service, towage service in Vietnamese seaports and other ocean shipping services.

Article 2.- Subjects of application

1. This Decree applies to organizations and individuals providing ocean shipping services in Vietnam.

2. Apart from business conditions for ocean shipping service provision specified in Articles 3, 4 and 5 of this Decree, organizations and individuals providing ocean shipping services shall satisfy other business conditions under law.

Article 3.- Business conditions for ocean shipping agency service provision

Organizations and individuals providing ocean shipping agency services shall establish enterprises in accordance with law. When establishing a foreign-invested enterprise, the foreign share must not exceed 49% of the enterprise's charter capital.

Article 4.- Business conditions for towage service provision in Vietnam seaports

Organizations and individuals providing towage services in Vietnam seaports shall establish enterprises in accordance with law. When establishing a foreign-invested enterprise, foreign shares must not exceed 49% of the enterprise's charter capital and the foreign-invested enterprise shall have its towage ships registered to fly the Vietnamese flag.

Article 5.- Business conditions for other ocean shipping service provision

Organizations and individuals providing other ocean shipping services in Vietnam shall comply with Vietnam's commitments to the World Trade Organization (WTO) and other treaties to which Vietnam is a contracting party.

Article 6.- Inspection and handling of violations

1. Inspection of business conditions

Ministers, presidents of provincial/municipal People's Committees and heads of maritime state management agencies shall direct functional agencies to inspect organizations' and individuals' observance of business conditions specified in this Decree.

2. Handling of violations

Organizations and individuals that commit acts of violating the provisions of this Decree shall, depending on the nature and severity of their violation, be disciplined, administratively sanctioned or examined for penal liability; if causing damage, they shall pay compensations in accordance with law.

Article 7.- Implementation effect

This Decree takes effect 15 days after its publication in "CONG BAO." To annul the Government's Decree No. 57/2001/ND-CP of August 24, 2001, on ocean shipping business conditions, and Decree No. 10 /2001/ND-CP of March 19, 2001, on business conditions for maritime service provision.

Article 8.- Responsibilities of implementation

1. The Minister of Transport shall organize the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial/municipal People's Committees, and relevant organizations and individuals shall implement this Decree.