The Vietnamese Maritime Code was passed in November 2015 and officially took effect on July 1 of this year. This new legislation aims to modernize and streamline maritime operations in Vietnam, ensuring compliance with international standards and enhancing the country’s maritime economy.
With many new points, this law will have a positive impact on the marine economy and maritime activities in Vietnam.
Ready to Implement the New Maritime Code
In November 2015, the National Assembly passed the amended Vietnamese Maritime Code, which came into effect on July 1, 2017. In an interview with the Transportation Newspaper, Nguyen Xuan Sang, Director of the Vietnam Maritime Administration, stated that the new code ensures continuity, revises and supplements unregulated content, unclear provisions, and inconsistencies; it eliminates regulations that are no longer relevant to current practices and development trends.
According to Mr. Sang, the new code meets the requirements and creates conditions to promote the development and integration of the port system towards large-scale modernization, ensuring good management of the flow of goods and passengers domestically and internationally. It ensures consistency with the Constitution and existing legal documents, as well as compliance with international treaties to which Vietnam is a party. “The law also develops some new provisions. For instance, it empowers competent authorities to specify content that meets practical requirements. The application of provisions from conventions, treaties, international customs, and foreign laws must align with the fundamental principles of Vietnamese law and the development trends and practical situation of maritime activities in Vietnam,” Mr. Sang stated.
To prepare for the implementation of this new law, Mr. Nguyen Xuan Sang mentioned that as soon as it was passed, the Vietnam Maritime Administration began working on drafting guiding legal documents. This includes 12 draft decrees from the Government, 25 draft circulars from the Minister, and decisions from the Minister of Transport.
Additionally, the Vietnam Maritime Administration proactively proposed to supplement the program with 2 draft decrees and 3 draft circulars to ensure timely regulations and guidance for new issues arising in maritime production and business activities.
“In 2016, the Vietnam Maritime Administration organized more than 10 conferences to promote and disseminate the 2015 Maritime Code and newly issued legal documents in various provinces and cities across the country, such as Hanoi, Hai Phong, Thanh Hoa, Nghe An, Ho Chi Minh City, and Da Nang. We collaborated with maritime universities and colleges, as well as several localities, to spread legal maritime regulations to teachers, students, and local government agencies, helping interested parties quickly access the content of the regulations to better serve their work and activities,” Mr. Sang shared. He added that in the first half of 2017, the Vietnam Maritime Administration continued to draft 4 decrees from the Government, 1 decision from the Prime Minister, and 15 draft circulars from the Minister (with the circular announcing the port water area and management zones being actively reviewed and drafted) along with a proposal to develop a decree. 100% of the draft legal documents were completed on schedule.
“The Vietnam Maritime Administration has submitted 9 detailed outlines and 15 draft documents to the Ministry of Transport. So far, the competent authorities have issued 14 legal documents, including 5 decrees and 9 circulars. Other draft legal documents are also being reviewed and commented on urgently to ensure timely issuance and implementation immediately after the law comes into effect,” Mr. Sang further noted.
Clear Legal Framework Benefits Businesses
According to assessments by maritime experts, the revised and supplemented content in the Maritime Code meets the production and business requirements of enterprises, with a particular focus on administrative procedure reforms to facilitate maritime activities. Tran Quy Phi, Deputy Head of the Communications Department at Vietnam Maritime Corporation (Vinalines), stated that the regulations regarding port authorities represent the most groundbreaking content in this revision of the Maritime Code.
Currently, coordinating port investment in certain areas faces many challenges. Notably, there is often a lack of synergy between the exploitation of port waters and the use of the land behind the port, which prevents the full economic potential of the port area from being realized. Many businesses invest in and operate ports in the same area independently, leading to unhealthy competition. Therefore, there is a need for an appropriate organization to unify all forces towards the most efficient and coordinated port operations. The port management and operation authority is the organization that will implement this.
“The new code specifically allows private entities to participate in the business and operation of port infrastructure. This represents a significant breakthrough to promote the development of the maritime sector. The amended Maritime Code also clarifies the definition of a ship. Accordingly, entities such as floating docks, floating storage, mobile platforms, and similar floating structures are not considered ships. By clearly defining these concepts, it avoids confusion during the processes of buying, registering, and using ships. The provisions for ship registration, inspection, and mortgaging are also detailed, facilitating the operations of shipowners and businesses,” Mr. Thi said.
Regarding shipbuilding and ship dismantling activities, Phung Van Khoi, Deputy General Director of Nam Trieu Shipbuilding Company, noted that the new code has significant impacts. It clearly defines the planning for the development of the shipbuilding and repair industry and the facilities for new construction and repair. The new law specifies the basic conditions that ship dismantling facilities must meet. This represents a significant advancement, creating a clearer legal basis.
“Currently, many facilities that do not meet the necessary conditions are still involved in ship dismantling, causing many negative environmental consequences. With the new Maritime Code, this will certainly not happen again,” Mr. Khoi said.
Le Phong
