THE NATIONAL ASSEMBLY
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SOCIALIST REPUBLIC OF VIET NAM
Independence – Freedom – Happiness
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No. 40/2005/QH11

Hanoi, June 14, 2005

THE VIETNAM MARITIME CODE

Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No. 51/2001/QH10 of December 25, 2001 of the Xth National Assembly, the 10th session;
This Code provides for maritime shipping activities,
Chapter I

GENERAL PROVISIONS

Article 1. – Scope of regulation
1. This Code provides for maritime shipping activities, covering seagoing vessels, crew, seaports, marine navigable channels, ocean shipping, marine navigation safety, marine navigation security, prevention of environmental pollution and other activities related to the use of seagoing vessels for economic, cultural, social, sport, public service and scientific research purposes.
Military vessels, public-duty vessels, fishing vessels, inland waterway crafts, hydroplanes, military ports, fishing ports and inland waterway ports and wharves shall be governed by this Code only in cases where there are relevant specific provisions of this Code.
2. Where the provisions of the Vietnam Maritime Code are different from those of other laws on the same issue relating to maritime shipping activities, the provisions of this Code shall apply.
Article 2. – Subjects of application
1. This Code shall apply to Vietnamese organizations and individuals and foreign organizations and individuals involved in maritime shipping activities in Vietnam.
2. In cases where international agreements to which the Socialist Republic of Vietnam is a contracting party contain provisions different from those of this Code, the provisions of such international agreements shall apply.
Article 3. – Principle of application of laws in case of conflict of laws
1. Legal relations relating to ownership of property on board seagoing vessels, charterparties, crew employment contracts, contracts of carriage of passengers and luggage, the division of salvage remuneration between the owner and crew of the salving ship, the recovery of property sunk on the high seas or incidents occurring on board seagoing vessels on the high seas, shall be governed by the laws of the flag states.
2. Legal relations relating to general average shall be governed by the law in force in the country of the place where the seagoing vessel calls at immediately after such general average occurs.
3. Legal relations relating to collision, salvage remuneration, or the recovery of property sunk in the internal waters or territorial sea of a country shall be governed by the law of such country.
Legal relations relating to collisions or salvage operations performed on the high seas shall be governed by the law of the country whose arbitration or court is the first to deal with the dispute.
Collisions occurring on the high seas or the internal waters or territorial sea of another country between seagoing vessels of the same nationality shall be governed by the law of the flag state.
4. Legal relations relating to contracts of carriage of cargo shall be governed by the law of the country where the cargo is delivered as contracted.
Article 4. – Right to reach agreement in contracts
1. Parties to contracts relating to maritime shipping may reach separate agreements, which are not restricted by this Code.
2. Parties to contracts relating to maritime shipping at least one of which is a foreign organization or individual may agree to apply foreign laws or international maritime customs to their contractual relations and the choice of an arbitration or a court in either of their countries or in a third country for settlement of their disputes.
3. If its is provided for in this Code or agreed upon by the parties in their contracts, foreign laws may be applied in Vietnam to contractual relations relating to maritime shipping, provided that such laws do not contravene the fundamental principles of Vietnamese law.
Article 5. – Principles of maritime shipping
Maritime shipping must comply with the provisions of this Code, other provisions of Vietnamese law, and treaties to which the Socialist Republic of Vietnam is a contracting party.
Maritime shipping must ensure marine navigation safety, defense and security; protect the interests, sovereignty, sovereign rights and jurisdiction of the Socialist Republic of Vietnam.
Maritime shipping must comply with the national socio-economic development strategy as well as strategies, plannings and plans for transport for transport development.
Maritime shipping must ensure economic efficiency combined with protection, improvement and development of the environment and natural landscapes in a sustainable manner.
Article 6. – Maritime development policies
The State prioritizes investment in developing seaport infrastructure facilities in service of national or inter-regional socio-economic development; increasing the shipping capacity of Vietnamese fleets, transferring and applying maritime scientific and technological advances.
The State adopts policies to encourage all Vietnamese and foreign organizations and individuals to develop Vietnamese fleets, seaport infrastructure facilities and carry out other maritime shipping activities in Vietnam.
Article 7. – The right to domestic carriage
1. Vietnamese seagoing vessels shall enjoy priority to conduct domestic carriage of cargoes, passengers and luggage.
2. When Vietnamese seagoing vessels are incapable of domestic carriage, foreign seagoing vessels may participate in domestic carriage in the following cases:
a. Carrying extra-long and extra-heavy cargoes or other kinds of cargoes by seagoing vessels exclusively used for this purpose;
b. Preventing, controlling, remedying the consequences of, natural disasters, epidemics or rendering emergency relief;
c. Transporting passengers and luggage from tourist passenger vessels to the land and vice versa
3. The Transport Minister shall decide on the cases specified at Points a and b, Clause 2 of this Article.
Directors of port authorities shall decide on the cases specified at Point c, Clause 2 of this Article.
Article 8. – Responsibilities of state management of maritime shipping
1. The Government performs uniform state management of maritime shipping.
2. The Transport Ministry is responsible to the Government for performing the state management of maritime shipping.
3. Ministries and ministerial – level agencies shall, within the scope of their respective tasks and powers, have to coordinate with the Transport Ministry in performing the state management of maritime shipping.
4. People’s Committees at all levels shall, within the scope of their tasks and powers, have to perform the state management of maritime shipping in localities.
Article 9. – Maritime inspectorate
1. The maritime inspectorate is attached to the Transport Ministry’s Inspectorate and performs the specialized maritime inspection functions.
2. The organization, functions, tasks and powers of the Maritime Inspectorate shall comply with the provisions of this Code and the provisions of law on inspection.
Article 10. – Prohibited acts in maritime shipping
1. Causing harms or threatening to cause harms to the sovereignty and security of the Socialist Republic of Vietnam.
2. Carrying persons, cargoes, luggage, weapons, radioactive matters, hazardous wastes and narcotic drugs in contravention of the provisions of law.
3. Intentionally creating obstructions, causing danger to or obstructing navigation.
4. Using, operating seagoing vessels without registration, registry or with expired registration, registry or with forged registration, registry.
5. Refusing to participate in search and rescue at sea even though practical conditions permit.
6. Causing environmental pollution
7. Infringing upon the file, health, honor and dignity of persons on board seagoing vessels; appropriating, intentionally damaging or destroying property on board seagoing vessels; fleeing after causing maritime accidents.
8. Disturbing public order, obstructing or resisting persons on public duty on board seagoing vessels and at seaports.
9. Abusing one’s position and powers to act against regulations on maritime shipping management; tolerating, covering persons committing violations of maritime law.
10. Other prohibited acts in maritime shipping as provided for by law.
Chapter II

SEAGOING VESSELS

Section 1. GENERAL PROVISIONS
Article 11. – Seagoing vessels
Seagoing vessels are vessels or other moving floating structures exclusively used for navigation on the sea.
Seagoing vessels provided for in this Code do not include military vessels, public duty vessels and fishing vessels.
Article 12. – Vietnamese seagoing vessels
1. Vietnamese seagoing vessels are vessels which have been entered into the Vietnam National Register of Ships or have been granted provisional permits for flying the Vietnamese flag by foreign based Vietnamese diplomatic missions or consulates.
2. Vietnamese seagoing vessels are entitled and obliged to fly the Vietnamese flag.
3. Only Vietnamese seagoing vessels may fly the Vietnamese flag.
Article 13. – Shipowners
1. Shipowners are owners of seagoing vessels.
2. State enterprises that are assigned by the State to manage and operate seagoing vessels shall also be entitled to the application of the provisions of this Code and other relevant provisions of law regarding shipowners.
Section 2. REGISTRATION OF SEAGOING VESSELS
Article 14. – Principles for registration of seagoing vessels
1. The registration of Vietnamese seagoing vessels shall abide by the following principles:
a. Seagoing vessels owned by Vietnamese organizations or individuals shall be entitled to registration in the Vietnam National Register of Ships, including registration of flying the Vietnamese flag and registration of ownership thereof.
Seagoing vessels owned by foreign organizations or individuals and satisfying all conditions stated in Article 16 of this Code may be entered into the Vietnam National Register of Ships. Registration of a Vietnamese seagoing vessel includes registration of flying the Vietnamese flag and registration of ownership thereof or only registration of flying the Vietnamese flag.
Foreign seagoing vessels chartered by Vietnamese organizations or individuals in the form of bareboat charter or hire-purchase charter may be registered to fly the Vietnamese flag.
b. Seagoing vessels which have been registered abroad must not be registered to fly the Vietnamese flag, unless their old registration has been suspended or deleted.
c. The registration of Vietnamese seagoing vessels is effected by the Vietnam Registry of Shipping in public manner and subject to the payment of a fee; organizations and individuals may request the grant of certified extracts from or copies of entries in the Vietnam National Register of Ships, for which they have to pay a fee.
2. Seagoing vessels owned by Vietnamese organizations or individuals may be registered to fly a foreign flag.
Article 15. – Kinds of seagoing vessels subject to registration
1. The following kinds of seagoing vessels must be registered in the Vietnam National Register of Ships:
a. Self – propelled seagoing vessels with main engine capacity of 75kW or more;
b. Non-self-propelled seagoing vessels, with total capacity of 50GT or more, or a tonnage of 100 tons or more, or a designed load waterline length of 20 meters or more;
c. Seagoing vessels smaller than those specified at Points a and b of this Clause but operating on foreign routes.
2. The registration of seagoing vessels other than those specified in Clause 1 of this Article shall be stipulated by the Government.
Article 16. – Conditions for registration of Vietnamese seagoing vessels
1. To be entered into the Vietnam National Register of Ships, seagoing vessels must satisfy the following conditions:
a. Having lawful paper evidencing ownership of seagoing vessels;
b. Having certificates of tonnage, certificates of class of seagoing vessels;
c. Having proper names approved by the Vietnam Registry of Shipping;
d. Having certificates of suspension or deletion of registration, for seagoing vessels registered abroad;
e. Shipowners having head offices, branches or representative offices in Vietnam
f. Used foreign seagoing vessels applying for first-time registration or re-registration in Vietnam must have their age suitable to each type of seagoing vessels as stipulated by the Government;
g. Having paid a charge or fee as provided for by law.
2. Foreign seagoing vessels chartered by Vietnamese organizations or individuals in the form of bareboat charter or hire purchase, when applying for registration to fly the Vietnamese flag, must, apart from meeting the conditions specified at Points a, b, c, d, f and g, Clause 1 of this Article, have bareboat charters or hire-purchase contracts.
Article 17. – Responsibilities of shipowners for registering seagoing vessels in Vietnam
1. Shipowners shall have to fully supply papers and fully and accurately declare the contents relating to seagoing vessel registration specified in Articles 16 and 19 of this Code to the Vietnam Registry of Shipping.
2. In case of seagoing vessels newly built, purchased by, presented to or inherited by Vietnamese organizations or individuals, shipwoners shall have to register them within sixty days after receiving the vessels in Vietnam or, for seagoing vessels received abroad, after taking them to the first Vietnamese seaport.
3. Shipowners shall have to pay a seagoing vessel registration fee according to the provisiosn of law.
4. After completing the registration, shipowners shall be granted certificates of registration of Vietnamese seagoing vessels, which shall constitute proof of the seagoing vessels’ flying the Vietnamese flag and ownership status.
5. Any changes of ships relating to the contents entered into the Vietnam National Register of Ships must be informed by their owners in an accurate, full and timely manner to the Vietnam Registry of Shipping.
6. The provisions of this Article shall apply to Vietnamese organizations and individuals that bareboat charter or hire-purchase a vessel.
Article 18. – Registration of seagoing vessels in course of building
1. Owners of seagoing vessels in course of building may have such vessels entered into the Vietnam National Register of Ships and receive certificates of registration of seagoing vessels in course of building. These certificates shall not be valid for substituting certificates of registration of Vietnamese seagoing vessels.
2. To be entered into the Vietnam National Register of Ships, seagoing vessels in course of building must fully satisfy the following conditions:
a. Having shipbuilding contracts or contracts of purchase and sale of seagoing vessels in course of building;
b. Having proper names approved by the Vietnam Registry of Shipping;
c. Having keel-setting.
Article 19. – Basic data of the Vietnam National Register of Ships
1. The Vietnam National Register of Ships contains the following basic data:
a. The old name and new name of the vessel; the name and address of the head office of the shipowner; the name and address of the foreign shipowner’s branch or representative office in Vietnam; the name and address of the head office of the bareboat charterer or hire-purchaser applying for registration; the name of the ship operator, if any; the kind and use purpose of the vessel;
b. The port of registration;
c. The registration serial number;
d. The time of registration;
e. The year and place of building;
f. The principle technical parameters of the vessel;
g. The ownership status of the vessel and any related changes;
h. The time of and the ground for vessel’s registration suspension or deletion.
2. Every change in the registration date stipulated in Clause 1 of this Article must be entered into the Vietnam National Register of Ships.
Article 20. – Deletion of registration of Vietnamese seagoing vessels
1. Vietnamese seagoing vessels shall have their registration deleted from the Vietnam National Register of Ships in the following cases:
a. Having been destroyed or sunk irrecoverably;
b. Having been missing;
c. Having no longer met all conditions for flying the Vietnamese flag;
d. Having lost the characteristics of a seagoing vessel;
e. At the request of their owners or registrants.
2. In cases specified at Points d and e, Clause 1 of this Article, when a seagoing vessel has been mortgaged, the deletion of registration of the Vietnamese seagoing vessel may be effected only with the consent of the mortgage of such vessel.
3. Upon deletion of registration of a seagoing vessel or a seagoing vessel in course of building from the Vietnam National Register of Ships, the Vietnam Registry of Shipping shall withdraw the certificates of registration of Vietnamese seagoing vessels or seagoing vessels in course of building and grant certificates of deletion of registration.
Article 21. – Detailed provisions on registration of seagoing vessels
The Government shall provide in detail for the organization and operation of the Vietnam Registry of Shipping; order and procedures for registration of seagoing vessels in Vietnam; cases of seagoing vessels owned by Vietnamese organizations or individuals entitled to registration to fly foreign flags; and cases of seagoing vessels owned by foreign organizations or individuals entitled to registration to fly the Vietnamese flag.
Article 22. – Registration of public-duty vessels
Public-duty vessels are seagoing vessels exclusively used for the performance of public duties for non-commercial purposes.
The provisions of this Section shall apply to the registration of public-duty vessels.
Section 3. REGISTRY OF VIETNAMESE SEAGOING VESSELS
Article 23.- Registry of Vietnamese seagoing vessels
1. Vietnamese seagoing vessels must be inspected, classified and granted technical certificates of marine navigation safety, marine navigation security and prevention of environmental pollution by Vietnam Register or foreign registries authorized by the Transport Minister according to the provisions of Vietnamese law and treaties which the Socialist Republic of Vietnam is a contracting party.
2. The Transport Minister shall promulgate marine navigation safety, marine navigation security and environmental pollution prevention standards applicable to seagoing vessels and provide for and organize the registry of seagoing vessels in Vietnam.
Article 24. – Technical inspection and supervision of Vietnamese seagoing vessels
1. Seagoing vessels which are newly built, transformed, reconstructed or repaired must be subject to inspection and supervision by registry organizations with respect to their quality, technical safety, compliance with the approved design dossiers before they are granted relevant certificates.
2. Seagoing vessels in the course of operation shall be subject to periodical inspection by registry organizations with respect to their quality and technical safety.
Article 25. – Registry of public-duty vessels
The provisions of this Section shall apply to the registry of public-duty vessels
Section 4. CERTIFICATES AND DOCUMENTS OF SEAGOING VESSELS
Article 26.-Certificates and documents of seagoing vessels
1. Seagoing vessels must have seagoing-vessel registration certificates, certificates of marine navigation safety, marine navigation security and prevention of environmental pollution according to the provisions of Vietnamese law and treaties to which the Socialist Republic of Vietnam is a contracting party.
The Transport Minister shall provide in detail for certificates and documents of Vietnamese seagoing vessels.
2. Certificates of marine navigation safety, marine navigation security and prevention of environmental pollution must show the period of their validity. This period may be extended for ninety days at most if the seagoing vessels are actually unable to call for inspection at the designated place and their practical technical conditions still ensure marine navigation safety, marine navigation security and prevention of environmental pollution. This extended duration shall expire immediately upon the seagoing vessel’s arrival at the designated port for inspection.
3. Certificates of marine navigation safety, marine navigation security and prevention of environmental pollution shall become invalid if the seagoing vessels see alterations that seriously affect their capability of ensuring marine navigation safety, marine navigation security and prevention of environmental pollution.
4. Where they have grounds to believe that seagoing vessels fail to ensure marine navigation safety, marine navigation security and prevention of environmental pollution, the maritime inspectorate and port authorities shall be entitled to suspend the operation of such seagoing vessels, conduct by themselves or request Vietnamese registry organizations to conduct technical inspection of such seagoing vessels, despite that the seagoing vessels have all certificates of marine navigation safety, marine navigation security and prevention of environmental pollution.
Article 27.-Seagoing-vessel tonnage certificates
1. Vietnamese seagoing vessels and foreign seagoing vessels, when operating in Vietnamese seaport waters or seas, must have seagoing-vessel tonnage certificates granted by Vietnamese registry organizations or competent foreign seagoing vessel tonnage measurement organizations. Seagoing-vessel tonnage certificates must comply with the provisions of Vietnamese law and treaties to which the Socialist Republic of Vietnam is a contracting party.
2. In case of doubting the authenticity of seagoing-vessel tonnage certificates specified in Clause 1 of this Article, competent Vietnamese state agencies may decide on their own initiative or at the request of concerned organizations or individuals to re-inspect the capacity of seagoing vessels. In case the inspection results are incompatible with the seagoing vessel’s capacity certificates, the shipowner must incur expenses related to the re-inspection. In case the inspection results are compatible with the seagoing vessel’s capacity certificates, the competent state agencies which have decided on their own initiative on the inspection or the organizations or individuals that have requested the inspection must incur expenses related to the re-inspection.
Section 5. MARINE NAVIGATION SAFETY, MARINE NAVIGATION SECURITY AND PREVENTION OF ENVIRONMENTAL POLLUTION
Article 28.- Assurance of marine navigation safety, marine navigation security and prevention of environmental pollution
1. Vietnamese seagoing vessels shall only be employed for the purposes declared in the Vietnam National Register of Ships when their construction, standing appliances and equipment, certificates and documents, complement and professional competence of crew comply with the provisions of Vietnamese law and treaties to which the Socialist Republic of Vietnam is a contracting party regarding marine navigation safety, marine navigation security and prevention of environmental pollution.
2. Seagoing vessels, when operating in Vietnamese seaport waters and seas, must observe the provisions of Vietnamese law and treaties to which the Socialist Republic of Vietnam is a contracting party regarding marine navigation safety, marine navigation security and prevention of environmental pollution.
3. Seagoing vessels, military vessels, public duty vessels, fishing vessels, inland waterway crafts and hydroplanes, when operating in Vietnamese seaport waters and seas, must follow the instructions of marine signals and observe the rules for the prevention of collisions and regulations of the Transport Minister.
Marine signals include signals noticeable in the form of image, light, sound and radio signals established to guide the navigation of seagoing vessels.
4. In marine navigational channels, at necessary positions near the coast, on islands, in water areas where exist obstructions and other structures at sea and in seaport waters where seagoing vessels are permitted to operate, marine signals must be installed according to regulations of the Transport Minister.
Marine navigational channels are water areas delimited by the system of marine signals and other aids to ensure safety for the operation of seagoing vessels and other waterway crafts. Marine navigational channels include seaport channels and other marine navigational channels.
5. When operating in Vietnamese seaport waters and seas, seagoing vessels exclusively employed for carrying oil, oil products and other dangerous cargoes must be covered by insurance policies for civil liability of their owners for environmental pollution.
6. Foreign seagoing vessels operated by nuclear power and vessels carrying radioactive substances shall not be permitted to enter into Vietnamese seaport waters, internal waters or territorial sea unless approval is granted by the Prime Minister.
Article 29.-Inspection and supervision of marine navigation safety, marine navigation security and prevention of environmental pollution
1. Seagoing vessels, when operating in Vietnamese seaport waters, internal waters and territorial sea, shall be subject to inspection and supervision by the maritime inspectorate and port authorities of marine navigation safety, marine navigation security and prevention of environmental pollution according to the provisions of Vietnamese law and treaties to which the Socialist Republic of Vietnam is a contracting party.
2. The inspection and supervision stated in Clause 1 of this Article must be conducted in accordance with law and not affect seagoing vessel’s marine navigation safety, marine navigation security and environmental pollution prevention capability.
3. Shipowners and masters shall have to create conditions for competent state agencies specified in Clause 1 of this Article to conduct inspection and supervision of their seagoing vessels.
4. Shipowners and masters shall have to repair and remedy their seagoing vessels’ defects related to marine navigation safety, marine navigation security and prevention of environmental pollution at the request of the maritime inspectorate and port authorities.
Article 30 . – Marine search and rescue
1. When being in danger and in need of help, seagoing vessels, military vessels, public-duty vessels, fishing vessels, inland waterway crafts and hydroplanes must emit SOS signals according to regulations.
2. When detecting or receiving SOS signals from person or other vessels in distress at sea, in seaport waters, seagoing vessels, military vessels, public-duty vessels, fishing vessels, inland waterway crafts and hydroplanes must, if practical conditions permit and no serious dangers will be caused to the vessels and persons on board, help the persons in distress by all means, even if they have to deviate from the set course and promptly notify relevant organizations and individuals thereof.
3. The marine search and rescue-coordinating agency must be ready to organize and coordinate activities of searching and rescuing in time the persons in distress in search and rescue areas under their management and have the right to mobilize persons and means for the search and rescue.
4. The Transport Minister shall specify the organization and operation of the marine search and rescue-coordinating agency.
Article 31.- Investigation of marine accidents
1. Marine accidents mean accidents caused by collisions or other incidents involving seagoing vessels, resulting in loss of life, missing persons, personal injuries, damage to cargoes, luggage and property on board the seagoing vessels, to seaports and other structures and equipment, damage to the vessels; in sinking, destruction, fire, running aground of the vessels; or in environmental pollution.
2. Directors of port authorities shall organize investigations of marine accidents; if detecting any criminal signs in the course of investigation, they shall transfer the dossiers to competent investigation agencies.
3. The Transport Minister shall provide in detail for the reporting and investigation of marine accidents.
Section 6. TRANSFER OF OWNERSHIP AND MORTGAGE OF SEAGOING VESSELS
Article 32.- Transfer of ownership of seagoing vessels
1. The transfer of ownership of seagoing vessels must be established in writing according to the provisions of Vietnamese law or the law of the country where the transfer is effected.
2. The transfer of ownership of Vietnamese seagoing vessels shall be effective after it is entered into the Vietnam National Register of Ships.
3. After the completion of procedures for transfer of ownership, the whole seagoing vessel and its appurtenances shall come under the ownership of the transferee, unless otherwise agreed upon by the involved parties.
Appurtenances of a seagoing vessel include objects, facilities and equipment on board the vessel which do not constitute component parts of the vessel.
4. Regulations on transfer of ownership of seagoing vessels shall apply to the transfer of ownership of shares of seagoing vessels.
5. The Government shall provide for the conditions, order and procedures for transfer of ownership of seagoing vessels in the form of purchase and sale.
Article 33. – Mortgage of Vietnamese seagoing vessels
1. The mortgage of a seagoing vessel means an act whereby the shipowner secures with his/her seagoing vessel the performance of his/her obligation to the obligee but is not require to hand over the vessel to the mortgagee for custody.
2. Shipowners have the right to mortgage Vietnamese seagoing vessels under their ownership to mortagagees according to the provisions of this Code and other relevant provisions of law.
3. Contracts for mortgage of Vietnamese seagoing vessels must be made in writing. The mortgage of Vietnamese seagoing vessels shall comply with the provisions of Vietnamese law.
4. The provisions on mortgage of seagoing vessels shall also apply to the mortgage of seagoing vessels in course of building.
Article 34.- Principles of mortgage of Vietnamese seagoing vessels
1. Mortgaged seagoing vessels must not change hands, unless it is consented by the morgagees.
2. Mortgaged seagoing vessels must be covered with insurance by their owners, unless otherwise agreed upon in mortgage contracts.
3. Where the morgagee has transferred the whole or part of his/her right to the debt secured with the mortgaged seagoing vessel to another person, the mortgage of such seagoing vessel shall be also transferred in the same way.
4. A seagoing vessel may be used to secure several obligations, provided that its value is bigger than the aggregate value of the secured obligations, unless otherwise agreed upon.
The priority order of mortgages is determined on the basis of the corresponding order of registered mortgages in the Vietnam National Register of Ships.
5. The mortgage of a seagoing vessel owned by two or more owners must be consented by all the owners, unless otherwise agreed upon.
6. Where a seagoing vessel suffers from total loss, the mortgage shall terminate; the mortgagee shall be prioritized to receive the indemnity paid by the insurer for the total loss of the seagoing vessel.
7. Mortgagees shall only keep copies of seagoing-vessel registration certificates of mortgaged seagoing vessels.
Article 35.- Registration of mortgages of Vietnamese seagoing vessels
1. Registration of mortgage of a Vietnamese seagoing vessel has the following details:
a. The names and addresses of the head offices of the mortgagee and the shipowner;
b. The name and nationality of the mortgaged seagoing vessel;
c. The amount secured by the mortgage, interest rate and maturity.
2. The mortgage of a seagoing vessel shall become effective from the time it is entered into the Vietnam National Register of Ships.
3. Information on the registration of mortgages of Vietnamese seagoing vessels shall be supplied upon request.
4. Registrants of mortgages of seagoing vessels and users of information on mortgages of seagoing vessels shall have to pay fees.
Section 7. MARITIME LIENS
Article 36.- Maritime liens
1. Maritime lien is the right of a person who lodges a maritime claim specified in Article 37 of this Law to priority in claiming compensation from the owner, charterer or operator of a seagoing vessel which has given rise to the maritime claim.
Maritime claim is an act whereby a party requests the other party to perform the obligation arising in relation to maritime shipping.
2. Maritime claims that give rise to maritime liens specified in Article 37 of this Code take priority over maritime claims secured by the mortgage of seagoing vessels and other security transactions.
3. Maritime liens shall be exercised through competent courts in the form of decisions to arrest seagoing vessels which are related to maritime claims that have given rise to maritime liens.
4. Persons who lodge maritime claims shall have maritime liens over seagoing vessels to secure the maritime claims specified in Article 37 of this Code, even though the seagoing vessels concerned have been mortgaged or their owners have conducted other security transactions to secure other obligations under contracts.
5. Maritime liens on seagoing vessels shall not be affected by a change of owners, charterers or operators, whether or not the purchasers of the seagoing vessels know that the vessels have been related to maritime claims that give rise to maritime liens.
Article 37.-Maritime claims giving rise to maritime liens
1. Maritime claims for wages, repatriation costs, social insurance contributions, and other amounts due to shipmasters, officers and other members of shipcrews.
2. Maritime claims for indemnity for loss of life, personal injuries, other health damage directly related to seagoing vessel’s operation;
3. Maritime claims for tonnage dues, maritime safety assurance dues, pilotage, wharfage, and other seaport dues and charges;
4. Maritime claims for salvage remuneration;
5. Maritime claims based on tort arising out of property loss and damage directly caused by the operation of seagoing vessels.
Article 38.- Priority order of settlement of maritime claims giving rise to maritime liens
1. Maritime claims giving rise to maritime liens shall be prioritized for settlement in the order of claims listed in Article 37 of this Code; where a maritime claim for remuneration for the salvage of a seagoing vessel arises after maritime claims giving rise to other maritime liens, such claim shall take priority over other maritime claims.
2. Maritime claims that give rise to maritime liens in the same clause of Article 37 of this Code shall rank pari passu as between themselves; where the sum of money is insufficient to cover the value of each maritime claim, it shall be divided in proportion to the value of each maritime claim.
3. Maritime claims arising from one event shall be deemed to have arisen at the same time.
4. Maritime claims that give rise to maritime liens on a seagoing vessel on the last voyage shall take priority over those on previous voyages.
5. Maritime claims arising from one labor contract relating to many voyages shall be settled at the same time with those relating to the last voyage.
6. In case of maritime claims for salvage remuneration specified in Clause 4, Article 37 of this Code, the maritime claim arising later shall be settled before other maritime claims.
Article 39.- Statute of limitations of maritime liens
The statute of limitations of a maritime lien is one year, counting from the date of arising of the maritime lien.
The statute of limitations of a maritime lien defined in Clause 1 of this Article is counted as follows:
From the date of termination of the salvage operation, in case of settlement of salvage remuneration;
From the date of arising of loss, in case of settlement of loss and damage caused by the operation of the seagoing vessel;
From the date payment is due, in case of settlement of other maritime claims.
A maritime lien shall terminate as from the time the owner, charterer or operator of the vessel has fully paid debts arising from the related maritime claims; the maritime lien remains effective if the payment money is still kept by the master or the person who is authorized to pay on behalf of the owner, charterer or operator of the vessel the debts related to the maritime claim concerned.
In cases where a court cannot exercise the right to arrest the seagoing vessel within the Vietnamese internal waters or territorial sea in order to protect the interests of the maritime claimant who permanently resides or has his/her head office in Vietnam, the statute of limitations specified in Clause 1 of this Article shall terminate thirty days after the vessel arrives at the first Vietnamese port but shall not exceed two years, counting from the date of arising of the maritime lien.
Section 8. ARREST OF SEAGOING VESSELS
Article 40.-Arrest of seagoing vessels
1. The arrest of a seagoing vessel is an act of banning or restricting the movement of a seagoing vessel by decisions of a court to secure the settlement of maritime claims specified in Article 41 of this Code, but excluding the seizure of the seagoing vessel in execution of a court judgment or decision or an enforcement decision of a competent state agency.
2. The procedures for arrest of seagoing vessels shall comply with regulations of the National Assembly Standing Committee.
Article 41.- Maritime claims giving rise to the right to arrest seagoing vessels
Maritime claims giving rise to the right to arrest seagoing vessels are claims in the following cases:
1. Cases specified in Article 37 of this Code;
2. Damage caused by or threatened to be caused by a seagoing vessel to the environment, coast or related interests; measures taken to avert, limit or remedy such damage; money indemnity for such damage; expenses for reasonable measures actually taken or to be taken to rehabilitate the environment; loss already inflicted or to be inflicted on a third party affected by such damage; damage, expenses or loss similar to those specified in this Clause;
3. Expenses incurred in the raising, movement, recovery, destruction or rendering harmless of a seagoing vessel which is sunk, wrecked, stranded or abandoned, including any appurtenance that is or has been on board the vessel, expenses or costs related to the abandoned seagoing vessel and expenses for its crew.
4. Agreement relating to the use or charter of a seagoing vessel, whether by charterparty or otherwise;
5. Agreement relating to the carriage of cargo or passengers on board a seagoing vessel, whether by charterparty or otherwise;
6. Loss of or damage to cargo, including luggage carried on board a seagoing vessel;
7. General average;
8. Towage;
9. Pilotage;
10. Goods, materials, food, fuel, equipment (including containers) supplied or services provided to a seagoing vessel for its operation, management, preservation and maintenance;
11. Building, transformation, reconstruction, repair or equipment of a seagoing vessel;
12. Payments made on behalf of the shipowner;
13. Insurance premiums paid by the shipowner or a person on behalf of the shipowner or bareboat charterer;
14. Commision, brokerage or agent’s expenses relating to a seagoing vessel which must be paid by its owner, bareboat charterer or an authorized person;
15. Disputes over ownership of a seagoing vessel;
16. Disputes between co-owners of a seagoing vessel over the use of the seagoing vessel or earnings of the vessel;
17. Mortgages of a seagoing vessel;
18. Disputes arising from contracts for purchase and sale of seagoing vessels.
Article 42.- Exercise of the right to arrest seagoing vessels
1. After receiving the request for arrest of a seagoing vessel made by a person who files a maritime claim specified in Article 41 of this Code, a competent court shall consider and decide on the arrest of the seagoing vessel in the following cases:
a. The shipowner is the person responsible for the maritime claim at the time of arising of the maritime claim and still owns the vessel at the time of its arrest;
b. The bareboat charterer is the person responsible for the maritime claim at the time of arising of the maritime claim and still the bareboat charterer or the owner of the vessel at the time of its arrest;
c. This maritime claim is based on the mortgage of the seagoing vessel concerned;
d. This maritime claim is related to the right to ownership or possession of the seagoing vessel concerned;
e. This maritime claim is secured by a maritime lien relating to the seagoing vessel concerned.
2. The arrest shall be also effected of another or many other seagoing vessels owned by the person who is held responsible for the maritime claim and, at the time of arising of the maritime claim, is also:
a. The owner of the seagoing vessel related to the arising maritime claim;
b. The bareboat charterer, time charterer or voyage charterer of the seagoing vessel related to the arising maritime claim.
3. The provisions of Clause 2 of this Article shall not apply to maritime claims relating to the right to ownership of seagoing vessels.
Article 43.-Financial assurances for requests for arrest of seagoing vessels
1. In order to effect the arrest of a seagoing vessel, the requester for such arrest must provide financial assurances in the form and value set by the court corresponding to the damage that might occur from the request.
2. The requester for arrest of a seagoing vessel shall be responsible for any loss or damage caused by the wrong request.
Article 44.-Release of arrested seagoing vessels
1. Immediately after the shipwoner, charterer or operator of a seagoing vessel has taken substitute security measures of fully paid the deblt, the arrested seagoing vessel must be released.
2. Failing an agreement between the involved parties on the level and form of substitute security, the court shall decide on the level and form of substitute security which, however, must not exceed the value of the arrested seagoing vessel. The requester for the arrest of a seagoing vessel must not perform any action that infringes upon the property or other interests of the shipowner, charterer or operator.
3. The arrested seagoing vessel may be released at the request of the requester for the arrest; in this case, all related expenses shall be incurred by the requester.
Chapter III

SHIPCREW

Article 45.- Shipcrew
Shipcrew consists of crewmen within the complement of a seagoing vessel, including the master, officers and those who hold other job titles arranged to work on board the vessel.
Article 46.- Crewmen working on board seagoing vessels
1. Crewmen are those who meet all conditions and criteria for holding job titles on board a Vietnamese seagoing vessel.
2. Crewmen working on board a Vietnamese seagoing vessel must fully meet the following conditions:
a. Being Vietnamese citizens or foreign citizens permitted to work on board a Vietnamese seagoing vessel;
b. Meeting all criteria of health, working age, professional competence and having all professional certificates as provided for;
c. Being arranged to hold job titles on board a seagoing vessel;
d. Having crewman’s books;
e. Having crewman’s passports for exit or entry, if such crewmen are arranged to work on board a seagoing vessel operating on an international route.
3. Vietnamese citizens who meet all conditions as required may work on a foreign seagoing vessel.
4. The Transport Minister shall specify job titles of crewmen and tasks of each job titles; the minimum safe complement; professional criteria and professional certificates of crewmen; registration of crewmen; crewman’s passports and books; conditions for crewmen who are Vietnamese citizens to work on board foreign seagoing vessels and conditions for crewmen who are foreign citizens to work on board Vietnamese seagoing vessels.
5. The Health Minister shall coordinate with the Transport Minister in specifying health criteria for crewmen working on board Vietnamese seagoing vessels.
Article 47.-Obligations of crewmen
1. Crewmen working on board a Vietnamese seagoing vessel shall have the following obligations:
a. To strictly abide by Vietnamese laws, treaties to which the Socialist Republic of Vietnam is a contracting party, and the law of the country where the Vietnamese seagoing vessel operates;
b. To perform with due diligence the tasks according to their assigned job titles and take responsibility to the master for these tasks;
c. To promptly, strictly and accurately execute the orders of the master;
d. To prevent accidents and incidents occurring to the seagoing vessel, cargo, persons and luggage on board. When detecting dangerous circumstances, to immediately report them to the master or the officer on watch, and, at the same time, take necessary measures to prevent accidents or incidents that may arise from such dangerous circumstances;
e. To manage and use certificates, documents, equipment, tools and other property of the seagoing vessel which they are assigned to manage;
f. To perform other tasks as provided for by law.
2. Vietnamese crewmen working on board a foreign seagoing vessel shall be obliged to perform labor contracts signed with the foreign shipowner or employer.
Article 48.- Working regime and interest of crewmen
1. The working regime and interests of crewmen working on board a Vietnamese seagoing vessel shall comply with the provisions of Vietnamese law.
2. Where the shipowner or master requests crewmen to leave the seagoing vessel, the shipowner shall be responsible for covering all living and traveling costs necessary for crewmen to come to the place indicated in the crew employment contract or to the port where crewmen are employed, unless otherwise agreed in the crew employment contract; where the master requests crewmen to leave the seagoing vessel, the master must report it to the shipowner.
3. When the loss of or damage to lawful own property of crewmen is caused by an accident occurring to the seagoing vessel, the shipowner must pay compensation for such property at the market price at the time when and at the place where the accident is dealt with. If the accident is caused by the fault of a crewmen, he/she shall not be entitled to claim for such loss or damage.
4. The working regime and interests of Vietnamese crewmen working on board a foreign seagoing vessel and of foreign crewmen working on board a Vietnamese seagoing vessel shall comply with their labor contracts.
Article 49.-Legal status of masters
1. The master shall exercise the highest command on board a seagoing vessel and commands the vessel on the single-leader regime. All persons on board the seagoing vessel must obey the orders of the master.
2. The master shall submit to the direction by the shipowner or charterer or operator of the vessel.
Article 50.- Obligations of masters.
1. To organize management and operation of the seagoing vessel according to the provisions of law.
2. To take due care that the seagoing vessel be seaworthy in every respect, comply with professional standards of seamanship and regulations on equipment, ship hull, adequate provisions, proper manning and other matters relating to marine navigation safety for the vessel and persons on board before the commencement of and during a voyage.
3. To pay due attention that the cargo is loaded arranged and preserved on board and unloaded from the vessel in a reasonable way, despite that these jobs are assigned to responsible persons for performance.
4. To take due care that the cargo on board the seagoing vessel be neither damaged nor lost; take necessary measures to protect the interests of persons with interests in the cargo; make use of all means possible to notify such persons of special events relating to the cargo.
5. To take all necessary measures to protect the seagoing vessel, persons and other property on board.
6. Where the port of delivery of cargo or disembarkment of passengers is blockaded, in danger of war or in another state of emergency, to direct the seagoing vessel to the nearest safe port and take all necessary measures to protect the vessel, persons and property on board and documents of the vessel.
7. Where the seagoing vessel is threatened with sinking or destruction, to make use of all available possibilities to save first passengers and then crewmen.
The master must be the last to leave the seagoing vessel after he/she has made use of all means possible to save the logbooks, charts and other important documents of the vessel.
8. Not to leave the seagoing vessel when it is in peril, except for cases where it is extremely necessary to leave the vessel.
9. To personally operate the seagoing vessel to leave, enter a port, a canal, a marine navigable channel and when it is in seaport waters or upon the occurrence of difficult and dangerous circumstances.
10. To use pilots, tugboats in cases provided for by law or to ensure safety for his/her seagoing vessel.
The employment of a pilot shall not relieve the master of the obligation set out in Clause 9 of this Article.
11. To perform with due diligence the duties of a conscientious master.
12. To organize search and rescue of persons in peril at sea if the performance of this obligation does not cause any serious danger to his/her seagoing vessel and persons on board. The shipowner shall not be held responsible for the master’s failure to perform the obligation set out in this Clause.
13. To perform other obligations as provided for by law.
Article 51.- Rights of masters
1. To represent the shipowner and persons with interests in the cargo in handling matters relating to the navigation of the seagoing vessel and the management of the vessel and cargo on board.
2. To perform in the name of the shipowner and persons with interests in the cargo legal acts within the scope of work set out in Clause 1 of this Article, while away from the port of registration, possibly initiate lawsuits and participate in legal proceedings before court or arbitration, unless the shipowner or persons with interests in the cargo declare limitation of part or the whole of this power.
3. To refuse to let the vessel commence the voyage if he/she deems that the vessel fails to meet all conditions for marine navigation safety, marine navigation security and prevention of environmental pollution.
4. To apply various commendatory forms or disciplinary measures to crewmen under his/her command; to refuse to recruit or force to leave his/her ship crewmen who are not qualified in their job titles or commit law-breaking acts.
5. To borrow on behalf of the shipowner in necessary cases credits or money in cash within the limit sufficient for repair of the seagoing vessel, supplementation of crew, provisions for the vessel or for satisfying other needs so that the voyage can be continued.
6. To sell superfluous appurtenances or surplus reserves of the seagoing vessel within the limit set out in Clause 5 of this Article when it is enexpedient or impossible to wait for funds or instructions from the shipowner.
7. During a voyage, if means necessary for its completion cannot be obtained in any other way, after having by all means sought instructions from the charterer and the shipowner but in vain, to pledge or sell part of the cargo. In this case, the master must minimize the damage to the shipowner, the charterer and persons with interests in the cargo.
8. Where on a seagoing vessel, during a voygage, the reserved food and provisions have run out, to requisite part of the cargo being food and provisions carried on board, and the in the case of utmost necessity, to requisite food and provisions of persons on board. This requisition must be recorded in a minute. The shipowner shall have to compensate for the food and provisions requisited.
9. Where the seagoing vessel is in a peril at sea to request rescue, and after consultation with the vessels which come for assistance, to designate which vessel to render salvage.
Article 52.- Responsibilities of master for civil status on board seagoing vessels
1. For each case of birth or death and other related occurrences on board the seagoing vessel, to make entries in the vessel’s logbook and make a minute thereon in the presence of the vessel’s medical person and two witnesses; to keep in good conditions the body of the deceased, make an inventory list of, and preserve his/her property.
2. To report births or deaths occurring on board the seagoing vessel and send testaments and inventory lists of property of the deceased to the competent civil status agency in the first Vietnamese seaport at which the vessel calls or to the Vietnamese diplomatic mission or consulate in the nearest place if the vessel calls at a foreign seaport.
3. After having tried all means possible to ask for instructions of the shipowner and for opinions of the relatives of the deceased, the master shall, in the name of the shipowner, carry out necessary procedures and bury the deceased. All costs incurred from the burial shall be paid in accordance with the provisions of law.
Artice 53.- Responsibilities of master when criminal acts are committed on board seagoing vessels
1. Upon detecting criminal acts committed on board the seagoing vessel, the master shall have the following responsibilities:
a. To take all necessary measures to stop such acts and draw up files as provided for by law;
b. To protect evidence and, depending on the practical conditions, hand over the offenders together with relevant files to a competent state agency in the first Vietnamese port at which the seagoing vessel calls or to a public-duty vessel of the Vietnamese people’s armed forces encountered on the sea, or to inform such acts to the nearest Vietnamese diplomatic mission or consulate and to follow the instructions given by such agency, if the seagoing vessel calls at a foreign port.
2. In case of necessity to protect the safety and order of the seagoing vessel, person and cargo on board, the master may confine to a separate compartment any person who has committed a criminal act.
Article 54.- Responsibilities of master to notify Vietnamese diplomatic missions or consulates
1. Upon arrival of the seagoing vessel at a foreign port, if necessary, the master must notify the nearest Vietnamese diplomatic mission or consulate of the vessel’s arrival.
2. The master shall have to produce the seagoing vessel’s certificates and documents if it is so requested by such Vietnamese diplomatic mission or consulate.
Article 55.- Responsibilities of masters to report on the occurrence of marine accidents
Immediately after the occurrence or detection of a marine accident or another occurrence relating to marine navigation safety in the area where the seagoing vessel is operating, the master shall have to report it to the nearest competent state agency and make a report thereon according to regulations.
Article 56.- Sea protests
1. Sea protest is a document made by the master, describing the circumstance encountered by the seagoing vessel and measures already taken by the master to overcome such circumstance, limit loss and damage and protect the legitimate rights and interests of the shipowner and related persons.
2. When the seagoing vessel, persons or cargo on board are damaged or lost or suspected to be damaged or lost on account of an accident or incident, the master must make a sea protest and within twenty four hours after the accident occurs or after the vessel’s arrival at the first port after the accident occurs submit the sea protest to a competent state agency specified in Clause 3 of this Article for certification of this submission.
3. State agencies competent to certify the submission of sea protests in Vietnam include port authorities, public notaries or People’s Committees of the nearest place.
The order and procedures for certification of sea protests in Vietnam shall be stipulated by the
Transport Minister.
State agencies competent to certify the submission of sea protest in foreign countries include Vietnamese diplomatic missions and consulates in the nearest place or competent authorities of the countries where the seagoing vessels operate.
Article 57.-Crew employment contracts
1. Crew employment contract is a labor contract concluded in writing between the shipowner or crew employer and a crewman for working on board a seagoing vessel.
2. A crew employment contract contains the following principal details:
a. The name and address of the crew employer;
b. The names or list of employed crewmen;
c. Working conditions on board the seagoing vessel;
d. The period of employment of the crew;
e. Salaries, bonuses, meal allowances and other payments;
f. Insurance;
g. Other entitlements of the crewmen;
h. Responsibilities of the crew employer and the crewmen.
Article 58.-Responsibilities of shipowners for shipcrew
To arrange sufficient crewmen according to the seagoing vessel’s complement and ensure adequate working conditions on board the seagoing vessel for crewmen as provided for in Clause 2, Article 46 of this Code.
To define job titles of crewmen and their responsibilities, except for job titles stipulated by the Transport Minister.
To ensure working and living conditions for crewmen on board the seagoing vessel according to the provisions of law.
To purchase accident and other compulsory insurance for crewmen working on board the seagoing vessel according to the provisions of law.
Chapter IV

SEAPORTS

Article 59.-Seaports
1. Seaport is an area covering port land and port waters where facilities are built and equipment is installed for seagoing vessel’s navigation and operation for loading and unloading cargoes, embarking and disembarking passengers and providing other services.
Port land is a delimited land area for the construction of wharves, warehouses, storage yards, workshops, office buildings, service facilities, road, information and communication, electricity and water systems and other aids and for the installation of equipment.
Port waters is a delimited water area for the establishment of waters in front of wharves, area for vessels’ maneuvers, area for anchorage, area for lighterage, storm-shelter area, area for embarkment and disembarkment of pilots, quarantine area, area for fairways, and other aids.
A seaport may have one or more habors. A harbor may have one or more wharves. A harbor consists of wharves, warehouses, storage yards, workshops, office buildings, service facilities, road, information and communication, electricity and water systems, entrance channels, and other aids. A wharf is a fixed structure in a harbor, used for seagoing vessel’s anchorage, loading and unloading of cargoes, embarkment and disembarkment of passengers, and provision of other services.
2. Seaport facilities consists of harbor facilities and public seaport facilities.
Harbor facilities consist of wharves, waters in front of wharves, warehouses, storage yards, workshops, office buildings, service facilities, road, information and communication, electricity and water systems, sub-channels of the seaport and other aids constructed or installed on the port land and in the waters in front of wharves.
Public seaport facilities consist of seaport channels, the system of navigation aids and other aids.
3. Seaport channel is a delimited water area from the sea to a port marked by a system of navigation aids and other aids to ensure safe navigation of seagoing vessels and other crafts into and out of the seaport.
Sub-channel is a delimited water area from the seaport channel to a harbor marked by a system of navigation aids and other aids to ensure safe navigation of seagoing vessels and other crafts into and out of the harbor.
4. Military ports, fishing ports and inland waterway ports and landing stages situated in the seaport waters shall be subject to the state management of marine navigation safety, marine navigation security and prevention of environmental pollution under the provisions of this Code.
Article 60.- Classification of seaports
Seaports are classified into the following classes:
1. Seaports of class I are extremely important, big seaports in service of national or inter-regional socio-economic development;
2. Seaports of class II are important, medium seaports in service of regional or local socio-economic development;
3. Seaports of class III are small seaports in service of enterprises’ operation.
Article 61.- Functions of seaports
1. To ensure safety for seagoing vessels entering, operating in and leaving the seaports
2. To provide facilities and equipment necessary for seagoing vessels to anchor, load and unload cargoes, embark and disembark passengers.
3. To provide cargo transportation, loading and unloading, warehousing and preservation services in the seaports.
4. To provide shelter, repair, maintenance or necessary services to seagoing vessels and other crafts in emergency cases.
5. To provide other services for seagoing vessels, people and cargoes.
Article 62.-Announcement of closure, opening of seaports and seaport waters
1. The Government shall provide for conditions and procedures for closure or opening of seaports and seaport waters, management of marine navigable channels and maritime shipping activities in seaports.
2. The Transport Minister shall announce the closure or opening of seaports, seaport waters and management areas of seaport authorities after consulting the People’s Committees of the provinces or centrally-run cities where seaports exist.
3. Directors of seaport authorities shall make decisions to temporarily ban vessels and boats from entering or leaving their seaports.
Article 63.- Seaport development plans
1. Seaport development plans must be based on socio-economic strategies; defense and security tasks; plans for development of the transport sector, other sectors and localities, as well as the maritime shipping development trends in the world.
When drawing up plans relating to seaports, sectors and localities must obtain written opinions from the Transport Ministry.
2. The Prime Minister shall approve master plans for development of the system of seaports.
3. The Transport Minister shall approve detailed plans for development of the system of seaports.
Article 64.- Investment in building, management and operation of, seaports and seaport channels
1. Investment in building seaports and seaport fairways must comply with the plans on development of the system of seaports and seaport channels, the provisions of law on investment, on construction, and other relevant provisions of law.
2. Domestic and foreign organizations and individuals may invest in building seaports and seaport channels in accordance with the provisions of law.
Organizations and individuals investing in building seaports and seaport channels shall decide on the forms of management and operation of seaports and seaport channels.
3. The Government shall provide in detail for investment in building, management and operation of, seaports and seaport channels.
Article 65.-Marine navigation safety, marine navigation security and prevention of environmental pollution.
Organizations and individuals operating in seaports must observe the provisions of Vietnamese laws and treaties to which the Socialist Republic of Vietnam is a contracting party, concerning marine navigation safety, marine navigation security and prevention of environmental pollution.
Article 66.-Port Authorities
1. Port authorities are agencies performing the state management of maritime shipping in seaports and seaport waters.
2. Directors of port authorities are the highest commanders of port authorities.
3. The Transport Ministry shall provide for the organization and operation of port authorities.
Article 67.-Tasks and powers of directors of port authorities
1. To participate in formulating plans for development of seaports under their management and organize and supervise the implementation thereof after they are approved by competent state agencies.
2. To organize the implementation of regulations on management of maritime shipping activities in seaports and areas under their management; inspect and supervise seaport channels, the system of navigation aids; supervise maritime shipping activities carried out by organizations and individuals in seaports and areas under their management.
3. To grant permits, supervise seagoing vessels leaving, entering and operating in seaports; prohibit seagoing vessels which fail to meet all necessary conditions on marine navigation safety, marine navigation security and prevention of environmental pollution from entering seaports.
4. To execute seagoing vessel arrest decisions issued by competent state agencies.
5. To temporarily detain seagoing vessel under the provisions of Article 68 of this Code.
6. To organize search and rescue of persons in distress in seaport waters; mobilize persons and necessary means for conducting search and rescue or handling environmental pollution incidents.
7. To organize the registration of seagoing vessels, registration of crewmen; collect, manage and use assorted seaport dues according to the provisions of law.
8. To organize maritime inspection, investigate and handle according to their competence maritime accidents occurring in seaports and areas under their management.
9. To assume the prime responsibilities for and administer the coordination of activities of state management agencies in seaports.
10. To sanction administrative violations in the maritime domain according to their competence.
11. To perform other tasks and exercise other powers as provided for by law.
Article 68.-Temporary detention of seagoing vessels
1. The temporary detention of seagoing vessels shall be effected in the following cases:
a. Failure to meet all conditions on marine navigation safety, marine navigation security and prevention of environmental pollution;
b. In the process of investigation of maritime accidents;
c. Failure to fully pay maritime charges and fees;
d. Failure to fully pay fines for administrative violations according to the provisions of law;
e. Other cases as provided for by law.
2. The temporary detention of seagoing vessels shall terminate when the reason therefore set out in Clause 1 of this Article no longer exist.
Article 69.- Coordination of state management activities in seaports
1. State management agencies in charge of maritime shipping, security, quarantine, customs, taxation, culture and information, fire and explosion prevention and fight, environmental protection and other state management agencies shall perform their tasks and exercise their posers in seaports according to the provisions of law. Within the scope of their respective tasks and powers, these agencies shall have to coordinate with, and submit to the administration of the coordination of activities by, the directors of port authorities.
2. State management agencies that carry out regular activities in seaports may establish their working office within seaports. Port enterprises shall have to create favorable conditions for these agencies to perform their tasks and exercise their powers.
Chapter V

CONTRACTS OF CARRIAGE OF CARGO BY SEA

Section 1. GENERAL PROVISIONS
Article 70.-Contracts of carriage of cargo by sea
1. A contract of carriage of cargo by sea is a contract concluded between a carrier and a charterer, whereby the carrier agrees to carry a definite cargo by seagoing vessel from port of loading to port of delivery, in return for a definite freight paid by the charterer.
2. Cargo includes machinery, equipment, materials and raw materials, fuels, consumer goods and other moveable assets, including live animals, containers or similar tools supplied by the consignor for cargo packing, which are carried under contracts of carriage of cargo by sea.
3. Freight means remuneration paid to a carrier under a contract of carriage of cargo by sea.
Article 71.- Types of contracts of carriage of cargo by sea
Contracts of carriage of cargo by sea include:
1. Contracts of carriage according to carriage documents, which are contracts of carriage of cargo by sea concluded on the condition that instead of allowing for the cargo the whole cargo space of a vessel or a definite part thereof, the carrier will perform the carriage on the basis of the cargo’s kind, quantity, measure or weight.
Contracts of carriage according to carriage documents are concluded in a form agreed upon by the involved parties.
2. Contracts of carriage according to voyage, which are contracts of carriage of cargo by sea concluded on the condition that the carrier will allow for the cargo the whole cargo space of the vessel or a definite part thereof, for a voyage.
Contracts of carriage according to voyage must be concluded in writing.
Article 72.- Involved parties to contracts of carriage of cargo by sea
1. Charterer is the party that directly concludes or authorizes another party to conclude a contract of carriage of cargo by sea with a carrier. In case of contracts of carriage according to carriage documents, the charterer is called consignor.
2. Carrier is the party that directly concludes or authorizes another party to conclude a contract of carriage of cargo by sea with a charterer.
3. Actual carrier is the party that is entrusted by a carrier to perform the carriage of cargo by sea in whole or in part.
4. Shipper is the party that directly consigns or is entrusted by another party to consign cargo to a carrier under a contract of carriage of cargo by sea.
5. Consignee is the party that is entitled to receive cargo under the provisions of Article 89 and Article 110 of this Code.
Article 73.- Carriage documents
1. Carriage documents include bills of lading, ocean through bills of lading, sea waybills and other carriage documents.
2. Bill of lading is a carriage document serving as evidence of the receipt by the carrier of the cargo in the quantity, kind and conditions as indicated in the bill of lading for carriage to the place of discharge; as evidence of the ownership of the cargo for the disposal or receipt of the cargo and as evidence of the contract of carriage of cargo by sea.
3. Ocean through bill of lading is a bill of lading expressly indicating that the carriage of the cargo is performed by at least two ocean carriers.
4. Sea waybill is an evidence of the receipt of the cargo as indicated in the sea waybill; an evidence of the contract of carriage of cargo by sea. Sea waybills are non-negotiable.
5. Other carriage documents are documents with their contents and validity agreed upon by the carrier and the charterer.
Section 2. CONTRACTS OF CARRIAGE OF CARGO ACCORDING TO CARRIAGE DOCUMENTS.
Article 74.-Time of arising and termination of liability of carriers
1. The liability of a carrier shall arise from the time the carrier receives the cargo at the port of receipt, continue throughout the process of carriage and terminate upon the completion of delivery of the cargo at the port of delivery.
2. The receipt of the cargo shall be the time the carrier has received the cargo from the shipper, a competent state agency or a third party according to the provisions of law or regulations of the port of receipt.
3. The delivery of the cargo shall terminate in the following cases:
a. The carrier completes the delivery of the cargo to the consignee; where the consignee does not receive the cargo directly from the carrier, the delivery of the cargo shall be effected by the mode requested by the consignee in accordance with the contract, the law of the place of or the custom applied at the port of delivery;
b. The carrier completes the delivery of the cargo to a competent state agency or a third party according to the provisions of law or regulations of the port of delivery.
4. The parties to a contract of carriage may agree to lessen the liability of the carrier in the following cases:
a. In the period of time from the receipt of cargo to before the loading of cargo on board a seagoing vessel and in the period of time from the completion of the unloading of cargo the completion of delivery of cargo;
b. Carriage of live animals;
c. Carriage of cargo on deck.
Article 75.-Obligations of carriers
1. The carrier must exercise due diligence that before and at the commencement of a voyage the seagoing vessel be seaworthy; properly manned, equipped and supplied and that its holds, cool and refrigerating chambers and all other compartments in which the cargo is loaded, be prepared and brought to a proper condition for the receipt, carriage and preservation of the cargo suitable to its nature.
2. The carrier shall be responsible for careful and proper loading and unloading of cargo, and take due care of the cargo in the process of carriage.
3. The carrier must notify, within a reasonable time in advance, the shipper of the place of loading and the time the vessel is in readiness to load and the deadline for supplying the cargo. This notification shall not apply to liners unless the schedule is altered.
Article 76.-Cargo carried on deck
Cargo may be carried on deck only if it is so agreed upon between the carrier and the shipper or it is a custom and such carriage must be stated in the carriage documents.
Article 77.-Liabilities of carriers, actual carriers, their servants and agents
1. The carrier must be responsible for the whole process of carriage as provided for in this Section even though the carriage has been assigned in whole or in part to the actual carrier for performance. For the part of carriage performed by the actual carrier, the carrier shall be responsible for acts taken by the actual carrier as well as its servants and agents within the scope of their assigned work.
2. The actual carrier, its servants and agents shall enjoy the rights relating to the responsibilities of the carrier provided for in this Chapter when the cargo is under their control and when they take part in carrying out any activity stipulated in the contract of carriage of cargo.
3. Special agreements whereby the carrier undertakes obligations not provided for in this Chapter or denounces the rights they are entitled to under the provisions of this Code shall be effective for the actual carrier if the actual carrier so consents in writing. Regardless of whether or not the actual carrier so consents, the carrier shall still be bound to the obligations arising from these special agreements.
4. Where the carrier and the actual carrier bear joint liability, the extent of liability of each party shall be taken into account.
5. The total sum of indemnities payable by the carrier, the actual carrier and their servants and agents shall not exceed the whole limit of liability provided for in this Section.
Article 78.- Exemption of liability of carriers
1. The carrier shall not be liable for the loss of or damage to the cargo resulting from the unseaworthiness of the vessel if he/she has fully performed the obligations specified in Clause 1, Article 75 of this Code. In the case, the carrier shall be obliged to prove that he/she has performed his/her tasks with due diligence.
2. The carrier shall be completely exempt from liability for loss of or damage to the cargo in the following cases:
a. Fault of the master, crewmen, pilot or servants of the carrier in the operation or management of the vessel;
b. Fire not caused by the carrier;
c. Perils or maritime accidents at sea or in the port waters where the seagoing vessel is permitted to operate;
d. Natural calamities;
e. War;
f. Acts of infringing upon public order and safety not caused by the carrier;
g. Acts of seizure by the people or forced seizure by courts or other competent state agencies;
h. Quarantine restriction;
i. Acts or omissions of the shipper or owner of the cargo, his/her agent or representative;
j. Strike or other similar actions of laborers due to whatever cause which hold up work in general or in part;
k. Riots or civil commotion;
l. Acts of saving life or property at sea;
m. Wastage in bulk or weight or any other loss of or damage to the cargo resulting from its quality, latent defects or other defects;
n. Insufficiency of packing;
o. Insufficiency or inadequacy of marking of the cargo;
p. Latent defects of the vessel which are not discoverable by responsible persons even though they have exercised due diligence;
q. Any other cause arising without the fault or the intention of the carrier or without the fault of his/her servants or agents.
Where it is provided for by law or agreed upon in the contract that a person is fully exempt from the liability of a carrier, such person must prove that the carrier has no fault or intention to cause the loss of or damage to the cargo nor his/her agents or servants.
3. Late delivery of cargo means failure to deliver cargo within the time limit agreed upon in the contract or, in the absence of such agreement, within a reasonable time limit necessary for a diligent carrier to deliver the cargo. The carrier shall not be liable for delayed delivery of cargo in the following cases:
a. Deviation from the designated route, which has been consented by the consignor;
b. Force majeure events;
c. Saving human life or aiding a vessel in distress where human life may be threatened;
d. Time is needed for rendering emergency aid to crewmen or persons on board.
Article 79.-Limitation of liability of carriers
1. Unless the kind and value of the cargo have been declared by the consignor or shipper before its loading or clearly stated in the bill of lading, the sea waybill or other carriage documents, the carrier shall not be obliged to compensate for the loss of or damage to or in connection with the cargo in an amount not exceeding the equivalent of 666.67 units of account per package or unit of cargo or to 2 units of accounts per kilo of gross weight of the cargo lost or damaged, depending on the value of the cargo.
The unit of account provided for in this Code is the currency determined by the International Monetary Fund and established as the Special Drawing Rights.
The compensation amount shall be converted into Vietnamese currency at the exchange rate at the time of payment of compensation.
2. When the cargo is packed into a container or similar tool, each package or unit of cargo indicated in the carriage document and packed in such tool shall be regarded as a package or unit of cargo set out in Clause 1 of this Article. Where the number of packages or units of cargo is not indicated in the carriage document, such container or tool shall be only regarded as a package or unit of cargo.
3. Where the kind and value of the cargo have been declared by the shipper before its loading and have been stated in the carriage document, the carrier shall be liable for any loss of or damage to the cargo on the basis of the so declared value and on the following principles:
a. For cargo lost, by the value declared;
b. For cargo damaged, by the difference between the value declared and the residual value of the cargo.
The residual value of the cargo shall be determined at the market price at the time when and place where the cargo is discharged or should have been discharged; where such value cannot be ascertained, it shall be based on the market price at the time when and place where the cargo has been loaded plus the costs of carriage of the cargo up to the port of delivery.
4. The liability of the carrier for the late delivery of cargo shall be limited to a sum 2.5 times the freight of the quantity of cargo that is lately delivered but shall not exceed the total freight payable under the contract of carriage of cargo by sea.
Article 80.-Loss of the right to limitation of liability of carriers
1. The carrier shall lose the right to limitation of liability of carriers provided for in Article 79 of this Code if the claimant can prove that the loss of or damage to the cargo is the consequence of the carrier’s intentional acts of causing such loss or damage, late delivery of the cargo or neglect and knowledge that such loss of, damage or late delivery of the cargo may occur.
2. Servants or agents of the carrier who perform their work with the intention to cause the loss of or damage to the cargo, delay the delivery of the cargo or with neglect and knowledge that such loss of, damage to or late delivery of the cargo may occur shall also not enjoy limitation of liability provided for in this Section.
Article 81.-Obligations of consignors and shippers
1. The consignor must ensure that the cargo be packed and marked according to regulations. The carrier may refuse to load on board the seagoing vessel cargo which fails to ensure necessary packing standards.
2. For explosive, inflammable or otherwise dangerous cargo or cargo which must be handled by special measures during loading, carriage, preservation and unloading, the consignor must furnish within a reasonable time limit to the carrier necessary documents and guidelines pertaining to the cargo.
The consignor must compensate for the loss or damage arising from the late supply of such necessary documents and guidelines or from irregularities or inaccuracies thereof.
3. The consignor or shipper shall be responsible to the carrier as well as passengers, crewmen and owners of other cargoes for the loss or damage arising from the inaccurate or untruthful declaration of the cargo, regardless of such declaration is intentional or unintentional, if the carrier proves that such loss or damage is caused by the fault of the consignor or shipper.
Article 82.-Carriage of dangerous cargo
1. The carrier, while retaining his/her right to the full freight, at his/her discretion, may discharge the cargo from the seagoing vessel, destroy or render it harmless without having to make compensation where the cargo being inflammable, explosive or otherwise dangerous has been falsely declared or where during the loading the carrier has not been warned about and could not ascertain the cargo’s dangerous nature on the basis of a common operational knowledge.
The consignor must be liable for losses resulting therefrom.
2. Although the dangerous nature of the cargo has been warned or known to the carrier on the basis of a common operational knowledge and the proper preservation measures have been applied according to regulations and the cargo has been loaded onto the seagoing vessel, but subsequently such cargo has imperiled the safety of the vessel, persons and cargo on board, the carrier may, at his discretion, handle it as provided for in Clause 1 of this Article. In this case, the carrier shall be liable for arisen losses on the general average principles while retaining his/her right to the distance freight.
Distance freight is the freight computed in the proportion of the whole agreed voyage distance to the part of the voyage actually covered by the cargo, as well as in the proportion of the costs and time, perils or troubles on the average related to the part of the voyage covered to what falls to the remaining part of the voyage to be completed.
Article 83.-Exemption of liability of consignors
The consignor shall be exempt from liability to compensate for any loss and damage caused to the carrier or the seagoing vessel if he/she proves that such loss or damage is not caused by the fault of his/her servants or agents.
Article 84.-Payment of freight
1. Upon taking delivery of the cargo, the consignee shall have to pay to the carrier the freight and all other charges stated in the carriage document is such amounts of money have not yet been paid to the carrier.
2. The carrier may refuse to deliver the cargo and retain it if the consignor and the consignee have not yet fully paid or properly secured the amounts being owed to the carrier.
These debts include the freight, other charges as provided for in Clause 1 of this Article and contribution of the cargo in general average and salvage remuneration falling on the cargo.
Interests, calculated according to the interest rate applied by the relevant transaction bank, shall be charged in addition to the debts which are not paid when falling due.
Article 85.-Freight in case of loss of cargoes
1. Freight shall be exempted for cargo lost during the carriage through any accident whatsoever, and the freight paid in advance shall be refunded. Where the cargo lost has subsequently been saved or recovered, the carrier shall have the right only to the distance freight if the party with interests in the cargo has gained no benefit from the cargo having been carried by the seagoing vessel over such distance.
2. Where, in the course of carriage the cargo has been damaged or wasted on account of its special nature or the carried live animals have died, the carrier shall have the right to the full freight.
Article 86.-Issuance of bills of lading
1. The carrier shall be obliged to issue the shipper, at the latter’s request, a set of bills of lading.
2. A bill of lading may be issued in the following forms:
a. To a named consignee, referred to as a straight bill of lading;
b. To the order of the shipper or of the person designated by the shipper, referred to as an order bill of lading;
c. To an unnamed consignee or unnamed person issuing the order, referred to as a bearer bill of lading.
3. Where in an order bill of lading the person, to whose order the bill of lading is made out, is not specified, such bill of lading shall be automatically deemed to be made out to the shipper.
Article 87.- Contents of a bill of lading
1. A bill of lading shall contain the following detals:
a. The name of the carrier and his/her head office;
b. The name of the consignor;
c. The name of the consignee, or a statement to the effect that the bill of lading has been made out to order or bearer;
d. The name of the seagoing vessel;
e. A description of the cargo, specifying its kind, measure, volume, quantity, number of pieces, weight or value where necessary;
f. A description of the apparent conditions of the cargo or its packing;
g. Marks, signs and particulars to identify the cargo, as furnished in writing by the shipper before commencement of loading and having been marked on individual pieces of the cargo or its packing;
h. Freight and other charges due to the carrier; method of the payment;
i. Place of loading and port of loading;
j. Port of delivery or a statement as to when and where the port of delivery will be indicated;
k. The number of copies of the original bill of lading issued to the shipper;
l. The date and the place of issue of the bill of lading;
m. The signature of the carrier or of the master or of the other competent representative of the carrier.
A bill of lading, though lacking one or more details specified in this Clause, shall still be legally valid if it complies with the provisions of Article 73 of this Code.
2. Where the carrier has not been specified in the bill of lading, the shipowner shall be assumed to be the carrier. Where in the bill of lading made out in accordance with Clause 1 of this Article, the carrier has been designated inaccurately or falsely, the shipowner shall be liable to losses resulting therefrom and then have the right to claim indemnity from the carrier.
Article 88.- Remarks in bills of lading
1. The carrier shall be entitled to insert in the bill of lading his/her remarks on the apparent conditions or the packing of the cargo where he/she has suspicion.
2. The carrier may refuse to enter in the bill of lading the cargo description when he/she has sufficient grounds to suspect the accuracy of the declaration made by the consignor or shipper at the moment of loading or he/she has no conditions to verify it.
3. The carrier may refuse to inset in the bill of lading the cargo signs and marks when they have not been clearly marked on individual pieces of cargo or of its packing in such a manner that they should remain legible until the end of the voyage.
4. Where the cargo has been packed before being supplied to the carrier, the carrier may insert in the bill of lading a remark to the effect that the contents are unknown to him/her.
5. In any case, the carrier shall not be liable for any loss of or damage to the cargo or losses in relation to the cargo where the kind and value of the cargo have been deliberately misstated by the shipper during loading and such misstated declaration has been inserted in the bill of lading.
Article 89.- Transfer of bills of lading
1. An order bill of lading may be transferred by endorsement. The last endorser who is entitled to issue a delivery order shall be the legitimate consignee.
2. A bearer bill of lading may be transferred by delivery of the bill of lading by the carrier to the transferee. The person who produces the bearer bill of lading shall be the legitimate consignee.
3. A straight bill of lading is non-transferable. The person whose name is specified in the straight bill of lading shall be the legitimate consignee.
Article 90.- Substitution of bills of lading by other carriage documents.
The shipper may reach agreement with the carrier on the substitution of the bill of lading by a sea waybill or another carriage document and on the contents and validity of these documents according to international maritime shipping custom.
Article 91.- Application to ocean through bills of lading
The provisions of this Code concerning bills of lading shall apply to ocean through bills of lading issued by the carrier, unless otherwise provided for by law.
Article 92.- Consignors’ right to dispose of cargoes
1. The consignor shall have the right to dispose of the cargo until its delivery to the legitimate consignee if this right has not been vested to another person; and before the commencement of the voyage he/she may request unloading of the cargo, and after the commencement of the voyage after his/her original indications as to the consignee and the port of delivery, provided that he/she shall compensate for all losses and related expenses. The carrier shall be obliged to follow the consignor’s instructions only after withdrawing all copies of the issued original bill of lading.
2. The rights specified in Clause 1 of this Article shall not be applied if the exercise thereof would cause a considerable delay in commencing the voyage, unless it has been so consented by the carrier.
Article 93.- The obligation to deliver cargoes
The carrier shall be obliged to deliver the cargo at the port of delivery to the legitimate consignee holding the bill of lading or the sea waybill or another carriage document valid for receipt of the cargo as provided for in Article 89 of this Code. After the delivery of the cargo, all the other copies of the carriage document shall no longer valid for receipt of cargo.
Article 94.- Handling of retained cargoes
1. Where the consignee does not claim delivery, or refuses to take delivery of the cargo, or delays the delivery, the carrier may discharge the cargo and place it in custody at a safe and suitable place and notify the consignee thereof. All costs and charges related thereto and losses resulting threfrom shall be paid by the consignee.
2. Where at the same time several holders of the bill of lading or ocean through bill of lading, sea waybill or another carriage document that is valid for receipt of cargo claim delivery of the cargo, the carrier may act as provided for in Clause 1 of this Article.
3. The indemnification for losses resulting from the detention of the vessel for discharging and placing the cargo in custody, as provided for Clause 1 of this Article, shall be settled as in the case of detention of the vessel during loading.
4. Where, within sixty days after the day of the vessel’s arrival at the port of delivery, the cargo placed in custody has not been collected or the consignee has failed to pay in full or provide a proper security for the outstanding debts, the carrier may sell the cargo by auction for clearing the debts. Such cargo may be sold even before the expiration of this time limit if the cargo incurs a risk of deterioration or its putting in custody costs more than the actual value of the cargo.
The carrier shall be obliged to notify the consignor of the cases specified in Clauses 1, 2 and 4 of this Article and also of his/her intention to sell the cargo for clearing debts.
5. The handling of cargoes retained by carriers at Vietnamese seaports provided for in this Article shall comply with regulations of the Government.
Article 95.- Proceeds from auctions of cargoes
1. After the debts of the consignee, costs of placing the cargo in custody and holding a auction as provided for in Article 94 of this Code are deducted, the remaining amount of the proceeds from the auction of the cargo must be deposited in a bank to be paid to the person(s) entitled thereto.
2. Where the proceeds from the auction of the cargo are not sufficient to cover in full the amounts specified in Clause 1 of this Article, the carrier shall be entitled to claim full payment thereof from the involved parties.
3. Where within the time limit of one hundred and eighty days counting from the date of auction of the cargo, nobody claims for the remaining amount, this amount shall be remitted into the state coffers.
Article 96.-Survey of cargoes and notification of losses of or damage to cargoes or late delivery of cargoes
1. The consignee, before taking delivery of the cargo, or the carrier, before delivering the cargo at the port of delivery, may request a surveying agency to conduct a survey thereof. The party that has ordered the survey shall be obliged to pay survey costs and also have the right to recourse against the damage-causing party for such costs.
2. The cargo shall be deemed to have been fully and completely delivered as indicated in the bill of lading, the sea waybill or another carriage document, unless the consignee has notified in writing the carrier of any loss of or damage to such cargo within three days at most after the time of taking delivery, in case of damage externally imperceptible; for cargoes already surveyed under the provisions of Clause 1 of this Article, written notification is unnecessary.
Any agreement contrary to this provision shall be invalid.
3. The consignee may issue notices on loss of cargo if he/she receives no cargo within sixty days after the date on which the cargo should have been delivered as agreed upon in the contract.
4. The carrier shall not have to compensate for losses resulting from the late delivery of the cargo, except for the case where a written notice on the late delivery of cargo is sent to the carrier within sixty days as from the date on which the cargo should have been delivered as agreed upon in the contract.
Article 97.- Statute of limitation for initiation of lawsuits about damage to or loss of cargoes
The statute of limitations for initiation of lawsuits about damage to or loss of cargo carried under carriage documents is one year from the date on which the cargo is delivered or should have been delivered to the consignee.
Section 3. VOYAGE CHARTERPARTY
Article 98.- Use of seagoing vessels under voyage charterparties
The carrier shall be obliged to use the seagoing vessel designated in the contract to carry the cargo, unless the charter has given his/her consent for the carrier to substitute the designated vessel by another.
Article 99.- Transfer of rights under voyage charterparties
The charterer may, without the carrier’s consent, transfer to a third party his/her rights under the contract of carriage but remains responsible for the performance of the contract already concluded.
Article 100.- Issuance bills of lading under voyage charterparties
Where the bill of lading is issued under a voyage charterparty and the holder of such bill of lading is other than the charterer, the rights and obligations of the carrier and the holder of the bill of lading shall be governed under the terms of the bill of lading; the terms of the voyage charterparty which have been inserted into the bill of lading shall be applied.
Article 101.- Ports of loading and places of loading
1. The carrier shall be obliged to direct his/her seagoing vessel to the port of loading, at the designated time and place; to place the seagoing vessel at the loading place under the terms agreed in the contract of carriage of cargo.
2. The carrier shall direct the seagoing vessel to the place designated by the charterer, which is safe and accessible without difficulty for the vessel to reach, to lie there and to leave unhindered with the cargo. Where there are several charterers who fail to reach agreement among them on the place of loading, or where the place of loading is not clearly designated by the charterer, the carrier will direct the vessel to a local customary place of loading.
3. Where the contract has no specific agreement on the loading place at the port of loading, the carrier shall direct the seagoing vessel to a local customary place of loading.
4. The charterer may request the carrier to change the place of loading even though this place has been clearly indicated in the contract. The charterer must pay in full all costs related to the satisfaction of this request.
Article 102.-Loading time
1. The loading time shall be agreed between the involved parties in the contract, and, in the absence of such agreement, it shall comply with local custom.
2. The time of interruption caused by the charterer and the time for changing the loading place at his/her request shall be counted in the loading time.
3. The time of interruption caused by the carrier, interruption caused by force majeure or by weather conditions which affect the technical correctness of the loading or endanger the loading shall not be counted in the loading time.
4. The charterer may reach agreement with the carrier on the dispatch for loading to be completed before the loading time expires or the demurrage for delaying the loading beyond the agreed period of time.
Article 103.- Demurrage time
1. The parties may reach agreement in the voyage charterparty on an additional period of loading beyond the loading time provided for in Article 102 of this Code (which hereinafter is referred to as demurrage time). Where the number of days or hours of the demurrage time is not specified in the voyage charterparty, the demurrage time shall be determined by the parties by local custom.
2. The demurrage money shall be agreed upon by the involved parties in the voyage charter party; in the absence of such agreement in the voyage charter party, it shall be determined by local custom. In the absence of such local custom, the amount of demurrage money shall be determined on the basis of the actual total sum of expenses for the maintenance of the seagoing vessel and its crew throughout the demurrage time.
3. After expiration of the loading time and demurrage time, the period of time during which the seagoing vessel is detained at the port of loading due to the charterer’s act is referred to as the detention time. The carrier shall be entitled to claim for compensation for losses caused by the detention of the vessel.
Article 104.- Notice of readiness
1. The carrier shall be obliged to notify in writing the charterer of the vessel’s arrival at the port of loading and readiness for the loading (hereinafter referred to as notice of readiness).
2. The day and hour in which a notice of readiness becomes effective shall be agreed upon by the parties in the voyage charter party; in the absence of such agreement, such day and hour shall be determined by local custom.
3. The carrier shall have to compensate for the loss resulting from the notice of readiness which at the time of its receipt by the charterer is not true to the facts.
Article 105.- Replacement of cargoes
1. The charterer shall have the right to supply, instead of the cargo specified in the contract of carriage of cargo, another cargo with similar characteristics, provided that the carriage of which will not affect the interests of the carrier and of other charterers.
2. The freight for the carriage of such cargo must not be lower than the agreed freight for the replaced cargo.
Article 106.- Loading and stowage of cargoes on board seagoing vessels
1. The cargo must be stowed on board the seagoing vessel in accordance with the cargo plan decided by the master. Stowage of cargo on deck shall be subject to written consent of the charterer.
2. The carrier shall be obliged to take due care of the loading, stowage, lashing and separation of the cargo on board the seagoing vessel. The related expenses shall be agreed upon by the two parties in the contract.
Article 107.- Vessels leaving ports of loading
1. After the expiration of the loading time and demurrage time as provided for in the voyage charterparty, or after the expiration of the date for supplying the cargo, the carrier may let his/her seagoing vessel leave the port of loading even though the whole agreed cargo or port thereof has not been loaded onto the vessel for reasons on the part of the charterer. In this case, the carrier shall still be entitled to the full freight including the freight falling on the cargo not loaded, which hereinafter is referred to as dead freight.
2. In case of lease of the whole space of the seagoing vessel, the carrier, while maintaining his/her right to the full freight, must comply with the following requests of the charterer:
a. To commence the voyage before the agreed date;
b. To load onto the seagoing vessel the cargo already supplied at the place of loading even though the demurrage time has expired, if the loading of such a cargo might cause detention of the vessel for no longer than fourteen days, while the carrier still enjoys the benefits specified in Clause 3, Article 103 of this Code.
3. In case of lease of part of the space of the seagoing vessel, the carrier shall be entitled to the full freight and to refuse the loading of the cargo which is supplied after the expiration of the agreed loading time or demurrage time due to the delay caused by the charterer.
Article 108.- Routes and time of carriage
1. The carrier must perform the carriage within a reasonable period of time by the route provided for in the contract or by the usual route, unless otherwise agreed in the contract.
2. A deviation from the route for the purpose of saving life or property at sea or for other plausible reasons does not constitute an infringement of the contract of carriage. The carrier shall not be liable for any damage to cargo resulting therefrom.
Article 109.- Substitute ports
1. Where the seagoing vessel cannot enter the port of delivery on account of insurmountable hindrances, the cessation of which cannot be anticipated within a reasonable time, the carrier may direct the seagoing vessel to the nearest safe substitute port and must notify the charterer thereof for further instructions.
2. In case of lease of the whole space of the seagoing vessel, the master must, depending on the specific circumstance, ask for and follow the instructions of the charterer; where its is imposible to follow the charterer’s instructions or where the charterer’s instructions have not been received within a reasonable time, the master may discharge the cargo or carry it back to the port of loading, which may, in his judgment, properly protect the interests of the charterer. The charterer must pay the carrier the distance freight and related costs.
3. In case of lease of part of the space of the seagoing vessel, the master may also act as stipulated in Clause 1 of this Article if the charterer’s instructions have not been received within five days from the time the notification for instructions is sent or if it is impossible to follow the charterer’s instructions. The charterer must pay the carrier the full freight and related costs.
Article 110.- Discharge and delivery of cargoes
1. The discharge of cargo shall be decided by the master. The carrier shall be obliged to take due care of the discharge of cargo.
2. The charterer shall be entitled to dispose of the cargo until its delivery to the legitimate consignee if this right has not been vested to another person; and before the commencement of the voyage he/she may request discharge of the cargo, and, after the commencement of the voyage, alter his/her original indications as to the consignee and the port of delivery, provided that he/she shall compensate for all losses resulting therefrom and related costs.
3. The rights stated in Clause 2 of this Article shall not be applied if the exercise thereof would cause a considerable delay in commencing the voyage, unless it has been so consented by the carrier.
Article 111.- Freight
1. Where a larger quantity of cargo has been loaded on board the vessel than agreed upon in the contract, the carrier shall be entitled to the freight also on the surplus as the freight rate agreed upon in the contract.
2. For cargo placed on board without permission of the carrier, the carrier shall be entitled to the double amount of freight due for the carriage from the port of loading to the port of delivery, as well as to compensate for losses resulting from the loading of such cargo on board without his/her permission. The carrier may discharge such cargo at any port, if deeming it necessary.
3. Upon receiving the cargo, the consignee must pay the carrier the freight, the compensation for retention of the vessel or other costs related to the carriage of the cargo, if such amount have not yet been paid.
Article 112.- Payment of freights, storage costs and handling of the proceeds from auction of cargoes
The provisions on the payment of freight, handling of detained cargoes and proceeds from auctions of cargoes under Articles 84, 85, 94 and 95 of this Code shall apply in the same manner to the carriage of cargoes under voyage charterparties.
Article 113.- Charterer’s right to terminate contracts
1. The charterer may terminate the contract in the following cases:
a. The carrier has failed to direct the vessel to the place of loading at the agreed date, or has delayed the loading of the cargo onto the vessel or the commencement of the voyage; in this case, the charterer shall be entitled to the compensation for losses resulting therefrom.
b. After the completion of the loading but still before the commencement of the voyage or during the voyage, the charterer may request discharge of the cargo but must pay the full freight and related costs to the carrier.
2. The carrier may refuse the charterer’s request to discharge the cargo as mentioned at Point b, Clause 1 of this Article where he/she deems that such would cause a delay of the voyage or affect the interests of the concerned parties on account of the alteration of the fixed schedule.
3. In case of lease of the whole space of the seagoing vessel, the charterer may terminate the contract before the commencement of the voyage but must compensate for costs arising therefrom and, depending on the moment of the termination of the contract, also pay the freight on the following principles:
a. Half of the freight, where he/she terminates the contract before the agreed loading time is counted;
b. The full freight, where he/she terminates the contract after the agreed loading time is counted or after the agreed demurrage time is counted if the contract has been concluded for a single voyage.
c. The full freight for the voyage, before the commencement of which he terminates the contract, and plus half of the freight for all subsequent voyages if the contract has been concluded for a number of voyages.
4. Where the charterer terminates the contract under the provisions of Clause 3 of this Article, the carrier shall be obliged to detain the vessel at the place of loading until the cargo discharge is completed even though this may detain the vessel beyond the loading and demurrage time.
5. In case of lease of part of the space of the vessel, the charterer may terminate the contract and must compensate for the costs arising therefrom, and, depending on the moment of the termination of the contract, also pay the freight on the following principles:
a. Half of the freight where he/she terminates the contract after the agreed time for supply of the cargo;
b. Full freight where he/she terminates the contract during the voyage.
Article 114.- Carriers’ right to terminate contracts
Where the quantity of cargo loaded on board the seagoing vessel is smaller than the contracted quantity and the total value of the quantity of such loaded cargo does not secure the freight and other amounts expended by the carrier on the cargo, the carrier may terminate the contract before the commencement of the voyage, unless the charterer has paid the full freight or provided an adequate security. The charterer must pay the expenses for the cargo discharge and half of the agreed freight.
Article 115.- Termination of contracts without compensation
1. Either party to the contract may terminate the contract without having to pay compensation if, before the departure of the vessel from the place of loading, the following events have occurred:
a. War has broken out, threatening the safety of the seagoing vessel or cargo; the port of loading or port of delivery has been declared blockaded;
b. The seagoing vessel has been detained by order of a competent state agency not due to the faults of the contractual parties;
c. The seagoing vessel has been requisitioned by the State;
d. A ban has been imposed on carriage of the cargo from the port of loading or into the port of delivery.
2. The party that terminates the contract in the cases specified in Clause 1 of this Article must bear the costs of discharge.
3. Upon the occurrence of the events specified in Clause 1 of this Article, either party may terminate the contract also during the voyage; in this case, the charterer shall be obliged to pay the distance freight and costs of discharge.
Article 116.- Automatic termination of contracts
1. The contract shall automatically terminate and neither party shall have to pay compensation after the conclusion of the contract and before the departure of the seagoing vessel from the place of loading for the following reasons for which neither party is at fault:
a. The seagoing vessel designated in the contract has been sunk, missing or captured;
b. The cargo designated in the contract has been lost;
c. The seagoing vessel designated in the contract is deemed to be so damaged that its repair is impossible or uneconomical.
2. Where the events specified in Clause 1 of this Article have occurred during the voyage, the carrier shall only be entitled to the distance freight; where only the vessel has been damaged while the cargo has been saved or returned, the carrier shall be entitled to the distance freight for the saved or returned cargo.
Article 117.- Preservation of cargoes upon termination of contracts
Where the contract is terminated under the provisions of this Section, the carrier shall still be obliged to take care of the cargo until it is delivered to the entitled consignee, except for the cases specified at Points a and b, Clause 1, Article 116 of this Code.
Article 118. – Statute of limitations for initiation of lawsuits regarding the performance of voyage charterparties
The statute of limitations for initiation of lawsuits regarding the performance of voyage charterparties is two years from the date the claimants know or must have known that their interests have been infringed upon.
Section 4. MULTIMODAL TRANSPORT CONTRACTS
Article 119.- Multimodal transport contracts
1. A multimodal transport contract is a contract concluded between a consignor and a multimodal transport dealer, whereby the multimodal transport dealer shall perform the carriage of cargo in return for a freight for the whole carriage process from the place of loading to the place of delivery of the cargo to a consignee by at least two modes of transport, one of which must be by sea.
2. A multimodal transport dealer is a person who personally concludes or authorizes another person to conclude a multimodal transport contract with a consignor.
3. A consignor is a person who personally concludes or authorizes another person to conclude a multimodal transport contract with a multimodal transport dealer.
4. A multimodal transport bill of lading constitutes evidence of a multimodal transport contract, certifying the multimodal transport dealer’s receipt of the cargo for carriage and commitment to deliver the cargo as agreed upon in the contract.
Article 120.- Liability of multimodal transport dealers
1. The multimodal transport dealer must be liable for the cargo carried under the multimodal transport contract from the time of its receipt to the time of its delivery.
2. The multimodal transport dealer may sign separate contracts with carriers of each mode of transport, clearly defining the responsibility of each involved party for each mode of transport. These separate contracts shall not affect the liability of the multimodal transport dealer for the whole carriage process.
Article 121.-Limitation of liability of multimodal transport dealers
1. Where the cargo is lost or damaged when it is carried by a certain mode of transport employed in the carriage process, the provisions of law relevant to such mode of multimodal transport shall be applied to the liability as well as limitation of liability of the multimodal transport dealer concerned.
2. Where the cargo is lost or damaged but it is impossible to determine by which mode of transport such loss or damage occurs, the multimodal transport dealer concerned shall have to pay compensation under the provisions of Articles 78 and 79 of this Code on exemption and limitation of liability of carriers.
Article 122.- Detailed provisions on multimodal transport
The Government shall provide in detail for multimodal transport.
Chapter VI

CONTRACTS OF CARRIAGE OF PASSENGERS AND LUGGAGE BY SEA

Article 123.-Carriage of passengers and luggage
1. A contract of carriage of passenger and luggage by sea is a contract concluded between a carrier and a passenger, whereby the carrier agrees to carry a passenger and his/her luggage by seagoing vessel, in return for passage money and a luggage freight to be paid by the passenger, from port of embarkment to port of disembarkment.
2. A carrier is the person who personally concludes or authorizes another person to conclude a contract of carriage of passenger and luggage with a passenger.
3. An actual carrier is a person entrusted by a carrier to perform the carriage of passengers and luggage in whole or in part.
4. A passenger is a person carried by seagoing vessel under a contract of carriage of passengers or a person who is permitted by a carrier to accompany a means of transport or live animals carried under a contract of carriage of cargo.
5. Luggage is objects or means of transport carried under a contract of carriage of passengers by sea, excluding the following cases:
a. Objects and means of transport carried under a contract of carriage of cargo;
b. Live animals;
6. Hand luggage is luggage kept by a passenger in his/her compartment or under his/her supervision, care and control.
Article 124.- Documents of carriage of passengers and luggage
1. Documents of carriage of passengers and luggage incude:
a. Tickets constituting evidence of the conclusion of a contract of carriage of passengers;
b. Luggage receipt coupons constituting evidence of the dispatch of passengers’ luggage.
2. The carrier may substitute tickets with equivalent vouchers, if passengers are carried on board a seagoing vessel other than a passenger vessel.
3. The carrier shall stipulate the exemption and reduction of fares, prioritized purchase and refund of passenger fares and luggage freight.
Article 125.-Rights and obligations of passengers
1. The passenger shall be entitled to all interests in compliance with the class of his/her ticket and not have to pay money for the carriage of his hand luggage within the limit of weight and kind designated by the carrier.
2. The passenger shall be entitled to terminate the contract of carriage before the commencement of the voyage at any port at which the vessel calls for passengers to embark or disembark and to refund of his/her fare or an amount of money equivalent to the unused part of his/her fare, less expenses or fine, if any.
3. The passenger shall be obliged to observe the command of the master and follow all rules and guidelines on board, and follow the instructions of responsible officers and crewmen.
4. Any agreement limiting the rights of the passenger of lessening or relieving the liability of the carrier provided for in this Code shall be null and void.
Article 126.-Obligations and rights of carriers
1. The carrier shall be obliged to exercise due diligence that the seagoing vessel is seaworthy, properly manned, furnished and supplied from the commencement of carriage, throughout the process of carriage to the port of disembarkment.
2. The carrier shall be obliged to take due care of and properly protect the passengers together their luggage from the time they have embarked on board the seagoing vessel up to the time they have safely together with their luggage left vessel at the port of disembarkment; where during the voyage an extraordinary and unexpected event has occurred, the carrier shall be liable to pay the fares necessary to cover the transportation of the passengers from and to the vessel as well as costs of meal, and necessary daily-life services for staying on board.
3. The carrier shall be obliged to buy carrier’s civil liability insurance for passengers.
4. The carrier may refuse to perform the contract without having to pay compensation if the following circumstances have occurred:
a. War has broken out or another event has occurred, posing a threat of possible arrest of the seagoing vessel;
b. The port of embarkment or port of disembarkment has been declared bloackded;
c. The seagoing vessel has been arrested or detained by decision of a competent state agency not due to the faults of the contractual parties;
d. The seagoing vessel has been requisitioned by the State;
e. A ban has been imposed on carriage of passengers from the port of embarkment or into the port of disembarkment.
5. Where the carrier refuses to perform the contract of carriage under the provisions of Clause 4 of this Article before the commencement of the voyage, he/she must refund the passengers the passage money and luggage freight.
Where the voyage has commenced, the carrier must refund the passengers part of the passage money corresponding to the remaining distance of the voyage; at the same time, he/she shall be obliged to return the passengers to the port of embarkment on his/her own money or compensate them an equivalent amount of money.
6. The carrier may not refund the collected passage money if the passenger is not present on board at the fixed time including the period of time the vessel calls at an en-route port during the voyage.
7. The carrier may postpone the time of commencement of the voyage, alter the route of transportation or alter the place of embarkment or disembarkment if the sanitary and epidemiological conditions in the place of commencement of the voyage, the place of destination or along the route of transportation are unfavorable or other circumstances have occurred beyond their control. The carrier must, at the request of the passengers, pay the expenses for returning the passengers to the port of embarkment or compensate them for reasonable actual losses.
8. The provisions of Clause 7 of this Article shall not restrict the passenger’s right to refuse to perform the contract of carriage.
Article 127.- Liability of carriers and actual carriers in the carriage of passengers
The liability of the carrier and the actual carrier in the carriage of passengers by sea shall comply with the provisions of Article 77 of this Code.
Article 128.- Exemption of carrier’s liability for arrest of passengers
The carrier shall be exempt from liability for the arrest of the passenger by a competent state agency during the voyage due to the fault of the passenger at the port at which the vessel has called.
Article 129.- Handling of passengers on board without a ticket
1. A passenger on board without a ticket is a person who has embarked the vessel without the carrier’s, master’s or responsible person’s permission when the vessel is in the port or at a place within the port area and remains on board the vessel after it leaves the port or the place within the port area.
2. A passenger on board without a ticket shall be obliged to pay in full the passage money for the covered distance plus a fine equal to such amount.
3. The master may disembark a passenger on board without a ticket or transfer him/her onto another vessel going to the port at which such person embarked the vessel and must inform a competent state agency of the name, age and citizenship of that person, the port at which he/she embarked and hid on the vessel.
4. Where a passenger on board without a ticket is accepted to be carried over the remaining distance, he/she must buy a ticket and shall have the rights and obligations like other passengers.
Article 130.- Carriers’ liability to compensate for damage
1. The carrier shall be liable for loss of life or personal injury and damage to health of the passengers as well as loss of or damage to their luggage if the causal incidents have occurred in the course of carriage due to the fault of the carrier or his/her servant or agent within the scope of his/her assigned jobs.
The fault of the carrier, his/her servant or agent shall be deemed natural unless he/she proves that the occurrence of loss of life or personal injury and damage to health of the passengers as well as loss of or damage to their hand luggage has been caused by collision, shipwreck, destruction, running aground, explosion, fire or any defect of the seagoing vessel.
The fault of the carrier, his/her servant or agent shall be deemed natural unless he/she proves that the occurrence of loss of or damage to other types of luggage does not depend on such causes of loss or damage.
In other cases, the burden of proof of a fault shall be borne by the claimants.
2. The burden of proof of damage and the extent of the loss or damage caused during the voyage by collision, shipwreck, destruction, running aground, explosion, fire or any defect of the seagoing vessel shall be borne by the claimants.
Article 131.- Process of carriage of passengers and luggage
1. The process of carriage of passengers by sea starts from the time the passenger embarks the seagoing vessel and ends when the passenger leaves the vessel, including the transportation of the passenger by water from land to vessel and vice versa, if the fare for such transportation is included in the piece of the ticket.
2. The process of carriage of hand luggage of passengers is similar to that provided in Clause 1 of this Article. The process of carriage of luggage other than hand luggage starts from the time the carrier, his/her servant or agent receives such luggage at the port of embarkment and ends when such luggage is returned to the passenger at the port of disembarkment.
Article 132.-Limitation of liability of carriers of passengers and luggage
1. The liability of the carrier for the death, personal injury or other damage to the health of a passenger shall not exceed 46,666 units of account per contract of carriage of passenger and luggage with the total compensation amount not exceeding 25,000,000 units of account; for cases where, the payment of compensation, by decision of courts, is made in installments, the total amount of such compensation money shall not also exceed the limit specified in this Clause.
2. The liability of the carrier for loss of or damage to hand luggage shall not exceed 833 units of account per passenger per contract of carriage of passenger and luggage.
3. The liability of the carrier for loss or damage to means of transport, including all luggage carried on board such means of transport, shall not exceed 3,333 units of account per means of transport per contract of carriage of passenger and luggage.
4. The liability of the carrier for loss of or damage to luggage other than luggage specified in Clauses 2 and 3 of this Article shall not exceed 1,200 units of account per passenger per contract of carriage of passenger and luggage.
5. The carrier and the passenger may agree to lessen the liability of the carrier by deducting no more than 117 units of account in case of damage to a means of transport and no more than 13 units of account per passenger in case of loss of damage to other kinds of luggage.
Article 133.- Loss of the right to liability of limitation
1. The carrier shall lose the right to limitation of liability provided for in Article 132 of this Code if the occurrence of the loss or damage is proved to be the consequence of the carrier’s intentional acts of causing such loss or damage or neglect and knowledge that such loss or damage may occur.
2. The provisions of Clause 1 of this Article shall be applied similarly to the carrier’s servants and agents.
Article 134.-Loss of and damage to valuables and other valuable property
For valuables, money, valuable documents, works of arts or other valuable property, the carrier shall be liable to compensate when on delivering such property for safe keeping the passenger has declared their characteristics and value to the master or the officer responsible for luggage.
Article 135.- Liens on luggage
1. The carrier, for securing his/her legitimate interests, may have a lien on the luggage of the passenger who has not yet paid in full his/her debts until when the passenger pay such debts or provide a proper security.
2. For the luggage which has not been collected, the carrier may take it ashore and deposit it in a safe and appropriate place and inform the passenger or his/her authorized person thereof. All costs and charges arising therefrom shall be paid by the passenger.
Article 136.- Notification of loss or damage to luggage
1. The passenger must inform in writing the carrier or his/her agent of the loss of or damage to luggage in the following cases:
a. Apparent damage to hand luggage must be informed before or when the passenger disembarks the vessel;
b. Apparent damage to luggage other than hand luggage must be notified before and at the time of delivery of the luggage;
c. Externally imperceptible loss of or damage to luggage must be notified within fifteen days after the date the passenger disembarks the vessel or the luggage should have been delivered.
2. Where the passenger fails to comply with the provisions of Clause 1 of this Article, his/her luggage shall be deemed to be delivered and received without any loss or damage, unless the contrary is proved.
3. The passenger shall not be required to make such notification in writing if upon delivery, the luggage has been jointly inspected or surveyed by the carrier and passenger.
Article 137.- Statute of limitations for initiation of lawsuits regarding the carriage of passengers and luggage.
1. The statute of limitations for initiation of lawsuits for compensation for loss of life, personal injury or damage to the health of passengers and for loss of or damage to luggage is two years.
2. The statute of limitations specified in Clause 1 of this Article shall be determined as follows:
a. In case of personal injury of the passenger, counting from the date the passenger disembarks the vessel;
b. In case of loss of life of the passenger during the voyage, counting from the date the passenger should have disembarked the vessel.
In case of personal injury of the passenger during the voyage resulting in his/her loss of life after disembarking the vessel, the statute of limitations shall start from the date such person was dead but must exceed three years as from the date of his/her disembarkment.
c. In case of loss of or damage to luggage, counting from the date the passenger disembarks the vessel or should have disembarked the vessel, depending on which date is later.
3. Not with standing the suspension or interruption of the statute of limitations for initiation of lawsuits for compensation specified in Clause 1 of this Article, the statute of limitations for initiation of lawsuits shall not exceed three years as from the date the passenger disembarks or should have disembarked the vessel, depending on which date is later.
Chapter VII

CHARTERPARTIES

Section 1. GENERAL PROVISIONS
Article 138.-Charterparties
A charterparty is a contract concluded between a shipowner and a charterer, whereby the shipowner transfers the right to use his/her seagoing vessel to the charterer for a specified period of time and for a specified purpose agreed upon in the contract for remuneration paid by the charterer.
Article 139.- Forms of charterparties
1. A charterparty is concluded in the form of time charterparty or bareboat charterparty
2. A charterparty must be made in writing
Article 140.-Subletting of vessels
1. The charterer may sublet the vessel to a third party if there is such agreement in the contract but shall still be obliged to perform the contract concluded with the shipowner.
2. The rights and obligations of the shipowner provided for in this Chapter shall also apply to the charterer who sublets the vessel to a third party.
Article 141.- Principles for application of laws to charterparties
The provisions pertaining to the rights and obligations of the shipowner and the charter in this Chapter shall apply only when the shipowner and the charterer do not otherwise agree.
Article 142.-Statute of limitations for initiation of lawsuits regarding charterparties
The statute of limitations for initiation of lawsuits regarding the charterparty is two years from the date of termination of the charterparty.
Section 2. TIME CHARTER
Article 143.-Time charterparties
1. A time charterparty is a charterparty whereby a shipowner supplies a specific vessel together with its crew to a charterer.
2. A time charterparty contains the following details:
a. The name of the shipowner, the name of the charterer;
b. The name, nationality, class, tonnage engine capacity, capacity, speed and fuel consumption level of the vessel;
c. The operation area of the vessel, use purpose and term of the charterparty;
d. The time, place of and conditions on the delivery and return of the vessel;
e. The charter hire, mode of payment;
f. Other related contents.
Article 144.-Obligations of shipowners under time charter
1. The shiponwer shall be obliged to deliver to the charterer at the right agreed place and on the right agreed time the seagoing vessel in technically safe conditions, properly supplied and adapted for the purpose of employment agreed upon in the contract and maintain such throughout the currency of the charterparty.
2. The shiponwer shall be obliged to supply a complement of crew qualified for the purpose of employment of the vessel agreed upon in the contract and to pay the wages and secure the other legitimate interests of crewmen throughout the currency of the charterparty.
Article 145.- Rights of charterers under time charter
1. The charterer shall be entitled to dispose of the entire space in the vessel appropriated for the carriage of cargo, passengers and luggage.
2. The charterer must not dispose of the other space on board the vessel for the carriage of cargo, passengers and luggage, unless it is consented by the shipowner.
Article 146.-Obligations of charteres under time charter
1. The charterer shall be obliged to employ the vessel for the purposes as agreed upon in the contract and to take due care of the shiponwer’s interests.
2. The charterer shall be obliged to ensure that the vessel be employed only for the lawful carriage of cargo, passengers and luggage.
3. When the period for time charter terminates, the charterer shall be obligeid to redeliver the vessel to the shiponwer at the place and time and in technical conditions as agreed upon, except for the vessel’s natural wear.
Article 147.- Relations between shipowners, charterers and crew of vessels in time charter
1. During the term of a time charterparty, the master and other crewmen shall remain under the shipowner’s labor management. The shipowner shall be completely liable for all matters pertaining to crew.
2. In the operation of the vessel, the master shall be the representative of the charter and must comply with the instructions given by the charterer in accordance with the time charterparty.
3. For the acts of the master performed within his/her powers stated in Clause 2 of this Article, the shipowner shall be liable jointly with the charterer, unless the master has clearly stated his/her commitment that he/she exercises such powers in the name of the charterer.
Article 148.-Division of salvage remuneration under time charter
If during the term of a time charterparty the vessel involves in salvage operations, the remuneration shall be deivided equally between the shipowner and the charterer after deducting the sume covering expenses arising from salvage operations and the share of salvage remuneration due to the crew.
Article 149.- Beyond the term of time charter
If, according to reasonable calculations, the vessel shall complete the last voyage beyond the time for redelivery determined in the charterparty, the charterer may continue to employ the vessel till completion of such voyage; the charterer shall have to pay a hire for such excessive time at the rate determined in the charterparty; if the hire rate on the market is higher than that determined in the charterparty, the charterer shall have to pay the hire at the market price at the time of payment.
Article 150.- Payment of hire under time charter
1. The charterer shall have to pay the hire for the period from the date of receipt of the vessel to the date of its redelivery to the shipowner.
2. The charterer shall not have to pay to the shipowner the hire for any period during which the vessel is unfit for operation on account of technical breakdown, lack of supplies, or incompetent crew. In this case, the charterer shall be relieved of the obligation to pay the costs of the vessel’s maintenance.
3. Where the vessel’s unfitness for operation is due to the fault of the charterer, the shipowner shall still be entitled to the hire and to the compensation for the damage arising therefrom.
4. Where the chartered vessel is missing, the hire shall be calculated until the date when the last information on the vessel is received.
5. Where the charterer fails to pay the hire as agreed upon in the charterparty, the shipowner shall have the right to retain the cargo and property on board the vessel, provided that such cargo and property are under the ownership of the charterer.
Article 151.-Termination of time charterparties
1. Where the failure to perform the obligations specified in Article 144 of this Code is due to the fault of the shipowner, the charterer shall be entitled to terminate the contract and claim for compensation for the damage arising therefrom.
2. Either party may terminate the time charterparty without having to pay compensation to the other if the performance of the contract has been hindered by an outbreak of war, a riot or coercive measures taken by a competent state agency and such event is unable to come to an end within a reasonable time.
3. A charterparty shall automatically terminate when the vessel has been lost, sunk, destroyed or has been so damaged that its repair is impossible or uneconomical.
Section 3. BAREBOAT CHARTER
Article 152.- Bareboat charterparties
1. A bareboat charterparty is a charterparty whereby a shipowner supplies a specific vessel together without crew to a charterer.
2. A time charterparty contains the following details:
a. The name of the shipowner, the name of the charterer;
b. The name, nationality, class, tonnage and engine capacity of the vessel;
c. The operation area of the vessel, employment purpose and term of the charterparty;
d. The time, place of and conditions on the delivery and redelivery of the vessel;
e. Inspection, maintenance and repair of the vessel;
f. The charter hire, mode of payment;
g. Insurance of the vessel;
h. Time and conditions for termination of the charterparty;
i. Other related contents.
Article 153.- Obligations of shipowners under bareboat charter
1. The shipowner must perform with due diligence his/her obligations to deliver a seaworthy vessel together with its documents to the bareboat charterer at the place and time agreed upon in the charterparty.
2. During the term of a charterparty, without the charterer’s written consent, the shipowner shall not be allowed to mortgage the vessel; where the shipowner acts against this provision, he/she must compensate for the damage caused to the charterer.
3. Where the vessel is arrested on account of disputes over the ownership of the vessel or the shipowner’s debts, the shipowner must secure that the interests of the charterer not be affected and must compensate for the damage caused to the charterer.
Article 154.- Obligations of charterers under bareboat charter
1. The charterer shall be obliged to carry out the maintenance of the vessel and equipment on board during the currency of the bareboat charter.
2. The charterer shall be obliged to repair breakdowns of the vessel and to keep the shipowner informed thereof. The shipowner shall have to refund the repair costs occurred beyond the scope of the charterer’s liability.
3. During the currency of the bareboat charter, the charterer shall bear the costs of insurance for the vessel with the value and mode as agreed upon in the charterparty.
4. During the currency of the bareboat charter, if the employment and operation of the vessel by the charterer causes damage to the shipowner, he/she shall be obliged to remedy or compensate for such damage.
Article 155.- Obligation to redeliver vessels, employment of vessels beyond the term of the charter, and termination of bareboat charterparties.
The obligation to redeliver vessels, employment of vessels beyond the term of the charter, and termination of bareboat charterparties shall comply with the provisions of Clause 3 of Article 146, Article 149 and Article 151 of this Code.
Article 156.- Payment of hires under bareboat charter
The bareboat charterer shall have to pay the hire as agreed upon in the charterparty. Where the vessel suffers from total loss or is missing, the payment of the hire shall terminate from the time the vessel suffers from total loss or the date of receipt of the last information on the vessel. Part of the hire paid in advance must be refunded corresponding to the time the vessel is not employed.
Article 157.- Hire-purchase of vessels
Where there is a term on the hire-purchase of the vessel in the bareboat charterparty, the ownership of the vessel under the bareboat charterparty shall be transferred to the charterer as agreed upon in the contract.
Chapter VIII

SHIPPING AGENCY AND SHIP BROKERAGE

Section 1. SHIPPING AGENCY
Article 158.-Shipping agency
Shipping agency is a service whereby the shipping agent provides, in the name of the shipowner or operator of the vessel, services in connection with vessel’s operation at the port, including the arrangement of formalities for the seagoing vessel to enter and depart the port; conclusion of contracts of carriage, marine insurance contracts, contracts for cargo handling, charterparties, and and crew employment contracts; insurance of bills of lading or similar carriage documents, furnishment of supplies, fuel and food for the seagoing vessel, submission of sea protests, communication with the shipowner or operator of the vessel; provision of services related to crew; receipt and payment of all amounts related to the vessel’s operation; and settlement of disputes over contracts of carriage of maritime accidents, and other services related to seagoing vessels.
Article 159.- Shipping agents
1. A shipping agent is a person authorized to act as a representative to perform within the scope of authority designated by the authorizer shipping agency services at the seaport.
2. The shipping agent may, after obtaining the consent of the shipowner or operator of the vessel perform shipping agency services for the shipper, the charterer and other persons having contractual relations with the shipowner or the operator of the vessel.
Article 160.- Shipping agency contracts
A shipping agency contract is a contract concluded in writing between the principal and a shipping agent, whereby the principal authorizes the shipping agent to perform shipping agency services for a certain call or for a specified period of time.
Article 161.- Responsibilities of shipping agents
1. The shipping agent shall have to carry out necessary activities for taking due care of and protecting the legitimate rights and interests of the principal; comply with his/her orders and instructions; promptly provide him/her necessary information about development relating to the authorized work; and accurately calculate the amounts received and spent relating to the authorized work.
2. The shipping agent shall be obliged to indemnify the shipowner for losses and or damage resulting from his/her fault.
Article 162.- Responsibilities of principals
1. The principal shall have to instruct his/her shipping agent to perform the authorized service when necessary and to give the latter, on demand, adequate advances for covering expenses for the authorized service.
2. Where the shipping agent has performed an act beyond the scope of his/her authority, the said act is nevertheless binding upon the principal unless the latter has, immediately upon receipt of information on the act, notified the other related parties that he/she does not recognized this act of the shipping agent.
Article 163.- Shipping agency service charges
The shipping agency service charge shall be agreed upon by the involved parties, unless otherwise provided for by law.
Article 164.- Statute of limitations for initiation of lawsuits regarding performance of shipping agency contracts
Statute of limitations for initiation of lawsuit regarding performance of shipping agency contracts is two years as from the date of arising of disputes.
Article 165.- Shipping agency for foreign public duty vessels, fishing vessels, hydroplanes and military vessels visiting Vietnam.
The provisions of this Section shall apply to foreign public-duty vessels, fishing vessels, hydroplanes and military vessels visiting Vietnam.
Section 2. SHIP BROKERAGE
Article 166.- Ship brokerage and shipbrokers
1. Ship brokerage is a service whereby a shipbroker acts as an intermediary under a ship brokerage contract for the involved parties in the transaction, negotiation and conclusion of contracts of carriage, of marine insurance, of charter, of sale and purchase of seagoing vessels, seagoing vessel towage contracts, crew employment contracts and other contracts pertaining to maritime shipping activities.
2. The shipbroker is the person performing the ship brokerage service.
Article 167.- Rights and obligations of shipbrokers
1. To serve the contracting parties provided that he/she must inform each party thereof, to pay due attention to the legitimate rights and interests of the involved parties.
2. To enjoy brokerage commission when the contract has been concluded as a result of his/her efforts. The shipbroker’s commission shall be mutually agreed between the shipbroker and his principal; in the absence of such agreement, the shipbroker’s commission shall be determined by local custom.
3. To be obliged to perform brokerage in an honest manner.
4. To be responsible for the legal status of the principals during the time of brokerage.
5. The ship broker’s liability shall terminate when the contract between the involved parties has been concluded, unless otherwise agreed.
Article 168.- Statute of limitations for initiation of lawsuits regarding performance of ship brokerage contracts
The statute of limitations for initiation of lawsuits regarding performance of ship brokerage contracts is two years as from the date of arising of disputes.
Chapter IX

MARITIME PILOTAGE

Article 169.- Regime of maritime pilotage in Vietnam
1. The employment of pilots in Vietnam aims to ensure marine navigation safety, marine navigation security and prevention of environmental pollution, and contribute to protecting the national sovereignty as well as exercising national sovereign rights and jurisdiction.
2. For Vietnamese seagoing vessels and foreign seagoing vessels, when operating in the Vietnamese navigable areas where maritime pilotage is compulsory, pilots must be employed for their navigation and pilotage dues must be paid. In navigable areas where maritime pilotage is not compulsory, the master may, if deeming it necessary to ensure safety, request a Vietnamese pilot to steer the vessel.
The Government shall specify cases of exemption from employment of Vietnamese pilots for steering for vessels operating in Vietnamese navigable areas where maritime pilotage is compulsory.
Article 170.- Maritime pilotage organization
1. The maritime pilotage organization is an organization providing services of navigating seagoing vessels to enter or leave seaports and to operate in Vietnamese navigable areas where maritime pilotage is compulsory.
2. The Government shall provide for the organization and operation of maritime pilotage.
Article 171.- Legal status of maritime pilots
1. The maritime pilot shall advice the master on navigating the vessel in navigational conditions in the areas where the maritime pilot steers the vessel. The employment of maritime pilots shall not relieve the master of the responsibility to command the vessel.
2. The maritime pilot, while steering the vessel, shall be under the command of the master of the steered vessel.
3. The master shall have the right to choose a maritime pilot or to suspend the maritime pilot’s service and request his/her substitution.
Article 172.- Conditions for practicing pilotage
1. Being Vietnamese citizens
2. Being physically fit
3. Having a certificate of maritime pilotage competence.
4. Piloting vessels only in the maritime pilotage area in conformity with the granted maritime pilotage area certificate.
5. Being under the management of a maritime pilotage organization.
Article 173.- Rights and obligations of maritime pilots when steering vessels
1. The maritime pilot shall have the right to refuse to steer the vessel and inform the responsible port authority and maritime pilotage organization when the master deliberately disobeys his/her instructions or reasonable recommendations in the presence of a third party.
2. The maritime pilot shall be obliged to furnish the master with all instructions concerning the navigational conditions in the area of pilotage and to recommend the master on activities incompliant with regulations on marine navigation safety and other relevant provisions of law.
3. The maritime pilot shall be obliged to notify the port authority of the steering of the vessel and dangerous navigational changes which he/she has detected while steering the vessel.
4. The maritime pilot must exercise his/her obligations with due diligence. The maritime pilot’s steering duties shall terminate when securing the vessel at anchor, mooring it or safely taking it to the agreed place or being substituted by another pilot. The maritime pilot shall not be allowed to leave the vessel without the consent of the master.
Article 174.- Obligations of masters and shipowners when employing maritime pilots
1. The shipmaster shall be obliged to furnish the maritime pilot with accurate information on the navigational properties and characteristics of the vessel; to ensure the pilot’s safety when boarding and leaving the vessel; to provide the pilot with working and accommodation facilities throughout his/her stay on board the vessel.
2. The shipowner shall have to compensate for losses resulting from the maritime pilot’s mistakes while steering the vessel as for those resulting from mistakes of the vessel’s crewmen.
3. For the safety reason, if the maritime pilot cannot depart from the vessel after he/she has fulfilled his/her duties, the master must arrange the vessel to call at the nearest port for the maritime pilot’s departure. The shipowner or the operator of the vessel shall have to arrange for the maritime pilot’s return to the place where he/she was received and pay all the expenses arising therefrom.
Article 175.-Liabitlity of maritime pilots upon occurrence of losses resulting from steering mistakes
The maritime pilot shall only bear administrative or criminal liability for losses resulting from his/her steering mistakes in accordance with the provisions of law but not bear civil liability therefore.
Article 176.-Detailed regulations on maritime pilots
1. The Transport Minister shall provide for navigable areas where pilotage is compulsory, criteria for training, grant and withdrawal of maritime pilotage competence certificates and maritime pilotage area certificates.
2. The Finance Ministry shall provide for the maritime pilotage tariff in Vietnam after consulting the Transport Ministry.
Article 177.- Pilotage for foreign public-duty vessels, fishing vessels, inland waterway crafts, hydroplanes and military vessels
The provisions of this Section shall apply to foreign public-duty vessels, fishing vessels, inland waterway crafts, hydroplanes and military vessels visiting Vietnam.
Chapter X

TOWAGE OF SEAGOING VESSELS

Article 178.- Towage of seagoing vessels
1. Towage of seagoing vessels means towing, pulling away, pushing or standing by seagoing vessels or other floating objects on the sea and in seaport waters by towing vessels.
2. Towage of seagoing vessels includes towage on the sea and assisting towage in seaport waters.
Article 179.-Contracts for towage of seagoing vessels
1. A contract for towage of a seagoing vessel is a contract concluded in writing between the owner of a towing vessel and the towage hirer, except for assisting towage in seaport waters.
2. The seagoing – vessel towage service charges shall be agreed upon by the involved parties, unless otherwise provided for by law.
Article 180.- The right to command towage of seagoing vessels
1. The towing vessel and the seagoing vessel or other towed objects constitute a towage team. A towage team shall be set up as soon as the towing vessel and other vessels forming the towage team are ready to carry out necessary maneuvers on the order of the commander of the towage team, and it shall break up as soon as the last maneuver is completed and the vessels forming the towage team have sailed away one from another to a safe distance.
2. The commander of the towage team shall be determined by agreement between the parties to the contract for towage of the seagoing –vessel; in the absence of such agreement, he/she shall be determined by local custom.
3. The right to command assistance towage in seaport waters shall be vested in the master of the towed vessel.
Article 181.- Obligations of the parties to contracts for towage of seagoing vessels
1. The owner of the towing vessel shall be obliged to provide at the agreed time and place a towing vessel with technical conditions as agreed upon in the contract for towage of the seagoing vessel.
2. The towage hirer shall be obliged to prepare all safety conditions for vessels as agreed upon in the contract for towage of the seagoing vessel.
Article 182.- Liability to compensate for damage arising from towage of seagoing vessels
1. The owner of the vessel whose master is in navigational command of the towage team shall be liable for damage to another vessel in the team as well as to persons and properties on board such vessel, unless he/she proves that such damage has occurred beyond the scope of his/her liability.
2. A vessel which is under the navigational command of the master of another vessel shall not be relieved of the liability to take care of the safety of the towage team; the shipowner shall be liable for damage caused by his/her vessel’s fault to another vessel in the team as well as to persons and properties on board such vessel.
3. In the course of performance of the contract for towage of the seagoing vessel, if damage has been caused to a third party, the contractual parties shall have to compensate for such damage corresponding to the extent of each party’s fault.
Article 183.- Statute of limitations for initiation of lawsuits regarding performance of contracts for towage of seagoing vessels
The statute of limitations for initiation of lawsuits regarding performance of contracts for towage of seagoing vessels is two years as from the date of arising of disputes.
Article 184.- Towage of military vessels, public-duty vessels, fishing vessels, inland waterway crafts and hydroplanes
The provisions of this Section shall apply to military vessels, public-duty vessels, fishing vessels, inland waterway crafts and hydroplanes.
Chapter XI

MARITIME SALVAGE

Article 185.- Maritime salvage
1. Maritime salvage is an operation for saving a seagoing vessel or properties on board from danger or an action of rendering assistance to a seagoing vessel in peril at sea or in the seaport waters, which is undertaken under a maritime salvage contract.
2. A maritime salvage contract is a contract concluded between a salvor and the owner of the salvaged property on the salvage. The master of the seagoing vessel in distress may conclude on behalf of the shipowner a salvage contract. The master or shipowner of the seagoing vessel in distress may conclude on behalf of the owner of the cargo carried on board the vessela contract for salvage of such cargo.
3. A maritime salvage contract shall be concluded in the form as agreed upon by the involved parties.
4. The parties to a maritime salvage contract may request the cancellation or modification of the unreasonable conditions in the contract if they were agreed upon in an urgent and dangerous circumstance and under the influence of such circumstance or where the parties can prove that they were deceived or misled to have concluded the contract or where the salvage remuneration agreed upon is too lower or too higher than what is actually deserved.
Article 186.- Obligations of salvors, shipowners and masters
1. In the course of salvage, the salvor shall have the following obligations:
a. To conduct salvage with due diligence;
b. To apply appropriate measures to avert or reduce damage to the environment;
c. To request assistance from other salvors when necessary;
d. To accept salvage acts of other salvors at reasonable requests of the shipowner, the master of the seagoing vessel or the owner of the property in danger. In this case, the salvage remuneration of such salvor shall not be affected if the salvage by other salvors is unreasonable.
2. The shipowner, the master of the seagoing vessel or the owner of the property in danger shall have the following obligation:
a. To cooperate with the salvor throughout the process of salvage;
b. To act with due diligence to avert or reduce damage to the environment when being salved;
c. When the seagoing vessel or other property is taken to a safe place, to deliver such seagoing vessel or property to the salvor if the salvor has a reasonable request therefore.
Article 187.- The right to salvage remuneration
1. All operations of maritime salvage that have brought about useful results shall be entitled to reasonable salvage remuneration
2. The salvage remuneration comprises the salvage remuneration, salvage expenses, expenses incurred in the transportation and preservation of the salved vessel or property, and the remuneration reward.
3. The salvage remuneration is also paid in cases where the salvor has conducted direct or indirect salvage operations to assist the owner of the salvaged property in protecting his/her interests related to freight and passage money due for the carriage of passengers; and where the salved and the salving vessels belong to the same shipowner.
4. Salvage operations contrary to an express and reasonable decision of the master of the salved seagoing vessel shall not be entitled to salvage remuneration.
Article 188.- Principles for determination of salvage remuneration
1. The salvage remuneration shall be agreed upon in the salvage contract but must be reasonable and not exceed the value of the seagoing vessel or property salved.
2. Where the salvage remuneration is not agreed upon in the contract or is unreasonable, it shall be determined on the following basis:
a. The value of the salved seagoing vessel and property;
b. Skills and efforts of the salvor in averting or minimizing the environmental pollution damage;
c. The effect of the salvage by the salvor;
d. The nature and degree of danger of the accident;
e. Skills and efforts of the salvor in salving the seagoing vessel, people and property on board;
f. The time spent, expenses incurred and related losses suffered by the salvor;
g. The risk of liability and other risks faced by the salvor or the equipment employed for the salvage;
h. The timeliness of the salvage operations performed by the salvor;
i. The readiness and capability of the vessel(s) and other equipment employed for the salvage.
j. The readiness, effectiveness and value of the equipment employed for the salvage.
3. The salvage remuneration may be reduced or disallowed if the salvor has by his/her fault caused the necessity of the salvage or has committed theft, deceitful or fraudulent act when performing the salvage contract.
Article 189.- Special remuneration in maritime salvage
1. Where the salvor who has performed salvage operations related to the seagoing vessel or cargo on board threatening to cause damage to the environment is not entitled to the remuneration determined under Clauses 1 and 2, Article 188 of this Code, he/she shall have the right to a special remuneration paid by the shipowner.
2. The special remuneration stated in Clause 1 of this Article to be paid by the shipowner to the salvor shall not exceed 30% of the expenses incurred by the salvor. In cases where a lawsuits is initiated, if deeming it reasonable and on the basis of the provisions of Clause 2, Article 188 of this Code, the court or arbitration may decide to increase the special remuneration, which, however, must not exceed 100% of the expenses incurred by the salvor.
3. Expenses incurred by the salvor stated in Clause 1 and Clause 2 of this Article include reasonable expenses directly incurred by the salvor and other reasonable expenses arising from the actual employment of equipment and employees for the salvage operations. The determination of expenses incurred by the salvor shall comply with the provisions of Points h, i and j, Clause 2, Article 188 of this Code.
4. In all cases, the whole special remuneration provided for in this Article shall be paid only when it is bigger than the salvage remuneration the salvor may enjoy under the provisions of Article 188 of this Code and constitute the difference between the special remuneration and the salvage remuneration.
5. The salvor may not be entitled to part or the whole of such special remuneration if, due to his/her neglect, the environmental pollution damage cannot be averted or minimized.
6. The provisions of this Article shall not effect the shipowner’s right to recourse against the parties that have their seagoing vessels and/or property salved.
Article 190.- Principles for determining the value of seagoing vessels or property salved
The value of salved vessel or property is the actual value of the vessel or property at the place where it is kept after being salved or is the proceeds from the sale, the assessment of the property after deducting the costs of deposit, preservation and organization of the auction and other related expenses.
Article 191.- Life-saving reward in salvage remuneration
1. Persons whose lives have been saved shall not be obliged to pay any money to their rescuers.
2. A rescuer of human life shall be entitled to a fair reward in the remuneration or special remuneration due for the salvage of a property, if his/her life-saving acts have been related to the accident giving rise to the salvage of such property.
Article 192.- Salvage reward in other cases
Those who are performing the duties of maritime pilotage or towage of a seagoing vessel shall be entitled to a salvage reward if they have rendered exceptional assistance beyond the scope of their contract for salvage of such seagoing vessel.
Article 193.- Division of maritime salvage remuneration
1. The salvage remuneration shall be divided equally between the shipowner and the crew of the salving vessel after deducting expenses incurred and damage suffered by the vessel as well as expenses and losses on the part of the shipowner or the crew related to the salvage operations.
This principle shall not be applicable to vessels exclusively employed for professional salvage.
2. Where more than one vessel take part in the salvage, the division of the salvage remuneration shall comply with the provisions of Clause 2, Article 188 of this Code.
3. The Transport Minister shall provide for the division of the salvage remuneration among the crew of Vietnamese seagoing vessels.
Article 194.- The right to detain salved seagoing vessels or property
1. The salved seagoing vessel or property may be detained to secure the payment of the salvage remuneration and other costs related to the valuation and organization of an auction.
2. The salvor shall not permitted to exercise the right to detain the salved seagoing vessel or property if the shipowner or the owner of such property has provided an adequate security for his/her claim for payment of the salvage remuneration, including profits and related expenses.
Article 195.- Statute of limitations for initiation of lawsuits regarding performance of contracts for maritime salvage
The statute of limitations for inititation of lawsuits regarding performance of contracts for maritime salvage is two years as from the date of completion of salvage operations.
Article 196.- Maritime salvage of military vessels, public-duty vessels, fishing vessels, inland waterway crafts and hydroplanes
The provisions of this Section shall apply to military vessels, public-duty vessels, fishing vessels, inland waterway crafts and hydroplanes.
Chapter XII

RECOVERY OF SUNKEN PROPERTY

Article 197.- Sunken property
1. Sunken property means seagoing vessels, military vessels, public-duty vessels, fishing vessels, inland water crafts, hydroplanes, cargo or other objects sunken in the internal waters or territorial sea of Vietnam or floating on the sea or washed ashore the Vietnamese coast.
2. Dangerous sunken property means property that obstructs or imperils maritime shipping activities or marine resources; threatens people’s life and health; pollutes the environment.
Article 198.- Obligations of owners of sunken property
1. The owner of sunken property shall be obliged to recover his/her sunken property and bear all expenses arising therefrom, except for the case specified in Clause 2 of this Article. Where the owner of sunken property fails to recover the sunken property or cannot recover it within the time limit as requested, competent state agencies defined in Article 205 of this Code shall decide on the recovery of such property.
2. Where the sunken property is a segoing vessel, cargo or other objects from a seagoing vessel, the shipowner shall be obliged to recover the sunken property and bear all expenses arising therefrom. The manager, the operator of the seagoing vessel shall bear joint responsibility for such recovery and payment of expenses arising therefrom.
3. Where the sunken property causes environmental pollution, its owner shall have to take all measures to avert and limit the damage resulting therefrom and compensate for the environmental pollution damage according to the provisions of law.
Article 199.- Time limit for notification and recovery of sunken property
Except for the case specified in Article 200 of this Code, the time limit for notification and recovery of sunken property is specified as follows:
1. Within thirty days as from the date the property is sunk, its owner must notify the competent state agency specified in Article 2005 of this Code of the recovery and the expected date for completion of the recovery.
2. Within thirty days as from the date of receipt of the above-said notification, the competent sate agency specified in Article 2005 of this Code shall decide on the expected time for completion of recovery operations or fix the time limit within which the owner of the sunken property must complete recovery operations, provided that this time limit shall not exceed one year.
Article 200.- Recovery of dangerous sunken property
1. Immediately after an incident occurs, the owner of dangerous sunken property shall be obliged to notify it to the director of the port authority in the nearest place and must recover or destroy suc property within the time limit as decided by the Transport Minister. Where the owner fails to perform the recovery or the person designated by the owner is unable to recover the property within the specified time limit, the Transport Minister shall organize the recovery and fix for the owner a time limit for reimbursement of the costs incurred therefrom.
The owner must compensate for related losses and shall be penalized according to the provisions of law even when he/she has lost the ownership over his/her sunken property under the provisions of Clause 1, Article 202 of this Code.
2. After thirty days of receipt pf the notification of the recovery of his/her property, if the owner fails to claim delivery of the property or to pay the related costs within the fixed time limit, the Transport Minister shall decide to sell the property by auction. Where the dangerous sunken property is of an easy-to-deteriorate kind, the Transport Minister shall decide to sell it by auction immediately after its recovery. Such auction shall be conducted in accordance with the provisions of law.
3. Out of the proceeds from the auction, the balance must be deposited at a bank after deducting the costs of the recovery, expenses for the preservation and auction of the property as well as other reasonable expenses specified in Clause 2 of this Article, and notified to the owner of the property; after one hundred eighty days counting from the date of such notification, if the owner of the property fails to receive the balance, it and its interest shall be remitted into state coffers.
4. Where the proceeds obtained from the auction of the sunken property as provided for in Clause 3 of this Article is not enough to cover the costs and expenses incurred, the owner of the sunken property must fully pay the deficit within the time limit fixed by the agency that has decided on the recovery of such sunken property; if the owner of the sunken property is unable to pay or his unknown, the deficit shall be covered with the state budget.
Article 201.- Pre-emptive right to recovery of sunken property
Vietnamese organizations and individuals shall be prioritized to conclude contracts for recovery of property sunk in the Vietnamese internal waters or territorial sea.
Article 202.- Loss of ownership over sunken property
1. The owner of the sunken property shall lose his/her ownership over such property if he/she fails to notify or recover the property within the time limit specified in Articles 199 and 200 of this Code and, in the case, such sunken property shall automatically belong the Vietnamese state.
2. In the case stated in Clause 1 of this Article, competent state agencies specified in Article 205 of this Code shall decide on the disposal of the sunken property.
3. The owner of the dangerous sunken property who has lost his/her ownership under the provisions of Clause 1 of this Article shall still have to compensate for any damage and be penalized under the provision of law.
Article 203.- Disposal of sunken property which is incidentally recovered
1. Immediately after incidentally recovering property sunken in the Vietnamese internal waters or territorial sea or transporting incidentally recovered property into the Vietnamese internal waters or territorial sea, the recoverer must notify competent state agencies specified in Article 205 of this Code the time, place and relevant circumstances of the recovery of the property; protect such property till the delivery thereof to its owner or competent state agencies and, if conditions permit, notify the owner of the property thereof.
2. Where the recovered property mentioned in Clause 1 of this Article if of an easy-to-deteriorate kind, or where its preservation requires excessive costs, the recoverer may dispose of the property according to the provisions of Clauses 2 and 3, Article 200 of this Code.
3. Within fifteen days from the date of notification of the recovery, if the owner of the property fails to claim delivery of the property or to pay the amounts due, the recoverer shall be obliged to deliver the recovered property to competent state agencies specified in Article 205 of this Cose.
4. Within sixty days from the date of notification of the recovery, if the owner of the property mentioned in Clause 3 of this Article fails to have any actions to protect his/her interests, competent state agencies specified in Article 205 of this Code may dispose of the property according to the provisions of Clauses 2 and 3, Article 200 of this Code.
5. In the case specified in Clause 1 of this Article, the recoverer shall be entitled to a recovery remuneration and the reimbursement of related costs and expenses, the amount of which shall be determined on the principles applied to maritime salvage remuneration.
6. Where the owner of the sunken property is unknown, the recovered property shall be disposed of according to the provisions of law
Article 204.- Disposal of property floating on the sea or washed ashore
1. The disposal of property floating on the sea or washed ashore shall comply with the provisions of Clauses 1,2, 3, 4 and 6, Article 203 of this Code.
2. Those who have found, salved or participated in salving another person’s property floating on the sea shall be entitled to a remuneration on the principles applied to maritime salvage remuneration, provide that he/she has notified the owner of the property of his/her claim not later than the time of delivery of the property.
3. Those who have found and preserved property washed ashore shall be entitled to a reward and the reimbursement of preservation expenses not exceeding 30% of the market value of such property, provided that he/she has notified the owner of the property of his/her claim not later than the time of delivery of the property.
Article 205.- Competence to dispose of sunken property
1. The Transport Ministry shall assume the prime responsibility for organizing the disposal of dangerous sunken property.
2. The Cultural and Information Ministry shall assume the prime responsibility for organizing the disposal of sunken property being cultural heritage.
3. The Defense Ministry shall assume the prime responsibility for organizing the disposal of sunken property related to defense and security and of property sunken in military zones.
4. The People’s Committees of provinces or centrally-run cities shall assume the prime responsibility for organizing the disposal of sunken property other than those mentioned in Clauses 1, 2 and 3 of this Article.
5. The Government shall provide in detail for the disposal of sunken property.
Chapter XIII

COLLISIONS

Article 206.- Collisions
Collisions means a collision which has occurred between seagoing vessels, between a seagoing vessel and an inland water craft or a hydroplane, or between other floating structures on the sea or in the seaport waters.
Article 207.- Obligations of masters when collisions occur
1. After a collision occurs, the master of each of the vessels in collision shall be obliged to render assistance to the other vessel, persons and property on board so far as he/she can do so without serious danger to his/her vessel as well as the persons and property on board his/her vessel.
2. Immediately after a collision occurs, the master of each of the vessels shall be obliged to inform the master of the other vessel the name of his/her own vessel, its call-sign, the port of registration and the names of the ports from which his/her vessel has come and to which it is bound.
3. The shipowner shall not be responsible for his/her master’s failure to perform the obligations specified in Clauses 1 and 2 of this Article.
Article 208.- Principles for identification of faults and compensation for losses resulting from collisions.
1. A vessel at fault in a collision is a vessel causing a collision as a result of its operation or omission in equipping, navigation and management of the vessel, in observing regulations on the prevention of collisions at sea and regulations on assurance of marine navigation safety or as a result of non-compliance with necessary professional customs.
2. The vessel at fault in a collision shall be liable for damage caused to another vessel or to persons and property involved in such collision. Where both or many vessels are at fault in a collision, each of them shall be liable in proportion to the degree of its fault; where the degree of the fault is equal or its is impossible to establish the specific degree of the fault of each vessel, the liability for compensation shall be equally divided to the involved vessels.
3. Where the fault is not clearly determined, no vessel shall be held liable for the collision.
4. In case of compensation for loss of life, personal injuries or other health damage, the vessels at fault in the collision shall bear joint liability. A vessel which has paid compensation in excess of its liability shall be entitled to recover from the other vessels the sum paid in excess.
5. A military vessel shall be relieve of the compensation liability only if it, due to its fault, has caused a collision when performing its duties in the military exercise areas or no-maritime shipping areas already declared, but its master must, if practical conditions permits, perform his/her obligations specified in Clauses 1 and 2, Article 207 of this Code.
6. Pursuant to the provisions of Clauses 1,2, 3, 4 and 5 of this Article, the parties involved in a collision may reach agreement on their own to determine the degrees of their faults and liabilities for compensation for losses resulting from the collision; if they cannot reach such agreement, they may initiate a lawsuit at an arbitration or a competent court.
Article 209.- Collisions due to force majeure, accidental events or unidentified fault
Where a collision has occurred by force majeure by an accidental event or where it is impossible to determine which vessel is at fault, the damage shall be borne by the vessel that has suffered it, even when the vessel is at anchor, moored to or alongside another vessel at the time of the collision.
Article 210.- Indirect collisions
The provisions of this Chapter shall be also applied when vessel has caused damage to another vessel or persons or property on board such vessel even though no direct collision has occurred.
Article 211.- Statute of limitations for initiation of lawsuits regarding collisions
1. The statute of limitations for initiation of lawsuits regarding collisions is two years as from the date of occurrence of collisions.
2. The statute of limitations for initiation of lawsuits regarding claims for reimbursement of excessive amounts stipulated in Clause 4, Article 208 of this Code is one year as from the date of payment of compensation money.
Article 212.- Collisions of military vessels, public-duty vessels, fishing vessels, inland waterway crafts and hydroplanes
The provisions of this Section shall apply to military vessels, public-duty vessels, fishing vessels, inland waterway crafts and hydroplanes.
Chapter XIV

GENERAL AVERAGE

Article 213.- General average
1. General average means extraordinary sacrifices or expenditure intentionally and reasonably made or incurred for the common safety for the purpose of preserving from a common peril the vessel, cargo, luggage, freight or passage money for the carriage of passengers.
2. Only losses, damage and expenses which are the direct consequence of the general average act may be accounted as general average.
3. All losses, damage and expenses which are related to damage to the environmental or the consequence of the leakage or discharge of pollutants from the property on board the vessel during its voyage shall not be accounted as general average in any circumstance.
4. Demurrage money and any loss or damage incurred or expenses paid for delay during or after the voyage and any direct damage shall not be accounted as general average.
5. Extra expenses in excess of the necessary expenses which would have been accounted as general average, but only within a reasonable limit on a case-by-case basis.
Article 214.- Apportion of general average
1. General average shall be apportioned in proportions between the value of the loss resulting from the action causing general average and the value saved at the place where and time when the vessel calls immediately after the general average occurs.
2. The provisions of Clause 1 of this Article shall be also applied to the case where the peril has been due to the fault of any party with interests in the general average or a third party.
3. The apportionment of general average shall not preclude the right of any involved party to claim compensation from the party at fault.
4. The principles applicable to a detailed adjustment of the loss value and contribution value shall be agreed by the parties in the contract. In the absence of such agreement, adjusters shall settle in accordance with the provisions of this Chapter and international custom.
Article 215.- Apportion of general average to cargoes loaded on board without permission
Any loss of the cargo loaded on board without permission or wrongly declared in terms of its kind and value shall not be accounted as general average; however, such cargo, if saved from a common peril, shall be subject to a corresponding contribution value.
Article 216.- Particular average
Any loss of or damage to the vessel, cargo luggage, freight and passage money for the carriage of passengers which is not allowed to be accounted as general average under the provisions of Article 213 of this Code shall be referred to as particular average. Those who suffer from such loss or damage shall not be entitled to compensation unless he/she proves that such loss or damage has been caused by another party’s fault.
Article 217.- Declaration of general average and appointment of general average adjusters
1. The identification of a general average, the assessment of the amount of general average and its apportionment shall be carried out by general average adjusters appointed by the shipowner.
2. The shipowner is the only person entitled to declare a general average and shall appoint his/her general average adjuster within thirty days after the date of declaration of general average occurrence.
Article 218.- Statute of limitations for initiation of lawsuits regarding general average
The statute of limitations for initiation of lawsuits regarding general average is two years as from the date of occurrence of general average. The period for apportion of general average shall not be counted in this statute of limitations.
Chapter XV

LIMITATION OF CIVIL LIABILITY FOR MARITIME CLAIMS

Article 219.- Persons entitled to limit civil liability
1. The shipowner shall be entitled to limit civil liability for maritime claims specified in Article 220 of this Code.
2. The shipowner’s right to limit civil liability shall be also applied on similar principles to the salvor, the operator, the charterer and the manager of the vessel where the shipowner or any of such persons must be liable for his/her act, neglect or fault.
3. Where the assured is entitled to limit his/her liability for maritime claims, the insurer liable for these maritime claims shall be also entitled to limit his/her liability like the assured.
4. The exercise of the right to limit liability does not mean that the person entitled to such right has acknowledged all liabilities.
5. The person entitled to limit liability under the provisions of this Chapter shall lose his/her right to limit civil liability if the loss is proved to be the consequence of his/her fault.
Article 220.- Maritime claims subject to limitation of civil liability
1. Claims in respect of loss of life, personal injury or another health damage; loss of or damage to property, including damage to harbor facilities, areas for anchorage and navigable channels and aids to navigation, occurring on board or in direct connection with the operation of the seagoing vessel or with salvage operations, and consequential loss resulting therefrom.
2. Claims in respect of loss resulting from delay in the carriage of cargo, passengers or their luggage by sea.
3. Claims in respect of other loss resulting from infringement of rights other than contractual rights, occurring in direct connection with the operation of the seagoing vessel or salvage operations.
4. Claims in respect of the recovery, removal, destruction or the rendering harmless of a seagoing vessel which is sunk, wrecked, destroyed or abandoned, including property that is or has been on board such vessel.
5. Claims in respect of the removal, destruction or the rendering harmless of the cargo on board the seagoing vessel.
6. Claims of a person other than the person who has civil liability in respect of measures taken by himself/herself in order to avert or minimize loss for which such person may limit his/her liability, and further loss caused by the application of such measures.
Article 221.- Maritime claims not subject to limitation of civil liability
1. Claims for salvage remuneration or contribution in general average
2. Claims for oil pollution damage
3. Claims for nuclear damage;
4. Claims by servants of the shipowner or salvor whose duties are related to the seagoing vessel or the salvage operations, including claims of their heirs, dependants or other persons entitled to make such claims, if under the law governing the labor contract between the shipowner or salvor and such servants the shipowner or salvor is not entitled to limit his/her civil liability for such claims, or if he/she is only permitted to limit his/her civil liability to an amount greater than that specified in Article 222 of this Code.
Article 222.- Limits of civil liability
1. The limits of civil liability for maritime claims in respect of loss of life, personal injury or health damage to passengers carried by sea and loss of or damage to their luggage shall comply with the provisions of Article 132 of this Code.
2. The limits of civil liability for maritime claims in respect of loss of life, personal injury or health damage to non-passengers are specified as follows:
a. 167,000 units of account for a seagoing vessel with a tonnage not exceeding 300 GT;
b. 333,000 units of account for a seagoing vessel with a tonnage of between 300 GT and 500 GT;
c. For a seagoing vessel with a tonnage over 500 GT, the following amount in addition to that mentioned at Point b of this Clause: for each GT from 501 to 3,000GT, 500 units of account; for each GT from 3,001 to 30,000 GT, 333 units of account; for each GT from 30,001 to 70,000 GT, 250 units of account; and for each GT in excess of 70,000GT, 167 units of account.
3. The limits of civil liability for other maritime claims are specified as follows:
a. 83,000 units of account for a seagoing vessel with a tonnage not exceeding 300GT;
b. 167,000 units of account for a seagoing vessel with a tonnage of between 300GT and 500GT;
c. For a ship with a tonnage in excess of 500 GT, the following amount in addition to that mentioned at Point b of this Clause: for each GT from 501 to 30,000 GT, 167 units of account; for each GT from 30,001 to 70,000 GT, 125 units of account; and for each GT in excess of 70,000GT, 83 units of account.
4. Where the total amount calculated under Clause 2 of this Article is insufficient to pay such maritime claims, the total amount calculated under Clause 3 of this Article shall b used to pay the unpaid balance of maritime claims under Clause 2 of this Article and such unpaid balance shall rank rateable with other maritime claims under Clause 2 of this Article.
5. Maritime claims specified in Clause 3 of this Article and related to damage to harbor facilities, areas for anchorage, navigable channels and aids to navigation shall be the first to be settled.
6. The limits of liability of the salvor not operating from any seagoing vessel or operating solely on the vessel to, or in respect of which he/she is rendering salvage services, shall be calculated according to a tonnage of 1,500 GT.
7. The limits of liability provided for in this Article shall apply to the total value of all claims which arise from a distinct case.
8. The limits of civil provided for in this Article shall be converted into Vietnam dong at the exchange rate applied at the time of payment.
9. Total tonnage is the seagoing vessel’s gross tonnage (GT) calculated in accordance with the 1969 International Convention on Tonnage Measurement of Ships
Article 223.- The compensation assurance fund
1. Those who are entitled to limit their civil liability under the provisions of this Code may constitute a compensation assurance fund for settlement of maritime claims for which they are entitled to limit their liability. The compensation assurance fund shall be constituted in the sum of such of the amounts specified in Article 222 of this Code together with interest thereon from the date of the occurrence giving rise to the maritime claims until the date of the constitution of the fund.
2. The compensation assurance fund shall be distributed among the claimants in proportion to their established claims against the total value of the fund.
3. A compensation assurance fund may be constituted by the shipowner’s depositing the sum or producing another financial guarantee acceptable by the court which has accepted the case.
4. After the compensation assurance fund has been constituted, nobody may infringe upon the interests or property of the liable person. The court shall have the right to release the seized property of the liable person or terminate similar guarantees already provided by the liable person.
5. If, before the compensation assurance fund is distributed, the person liable, or any of those who are entitled to limit their civil liability under the provisions of this Code, has settled a maritime claim falling within scope of compensation by the fund, such person shall, up to the amount he/she has paid, enjoy by subrogation all interests from the fund with respect to the settled maritime claim.
6. The constitution of a compensation assurance fund does not mean that the shipowner has acknowledged all liabilities.
Chapter XVI

CONTRACTS OF MARINE INSURANCE

Section 2. GENERAL PROVISIONS
Article 224.- Contracts of marine insurance
1. A contract of marine insurance is a contract of insurance for maritime perils whereby the insurer undertakes to indemnify the assured, in the manner and under the conditions agreed in it, against marine losses covered by insurance.
Maritime perils mean the perils incidental to the navigation of the sea, including perils of the seas, fires, explosions, war perils, pirates, thieves, attachments, captures, seizures, detentions, jettisons, acquisitions, requisitions, compulsory purchases, illegal acts and similar perils or any other perils as agreed upon in the insurance contract.
2. A contract of marine insurance may be extended in accordance with specific conditions or custom so as to protect the interests of the assured against losses occurring on inland waters or land or railway that may be incidental to a voyage.
3. The contract of marine insurance must be concluded in writing.
Article 225.- Subjects of marine insurance
A subject of marine insurance may be any material interest related to maritime shipping activities and appraisable in terms of money, including seagoing vessel, seagoing vessel in course of building, cargo, freight, passage money for the carriage of passengers, charter-hire, hire and purchase money, expected profit on cargo, commission, general average costs, obligations arising under civil liability and sums of money secured by vessel, cargo or freight.
Article 226.- Identification of insurable interests
1. A person with an insurable interest is a person who is interested in a subject of insurance in a sea voyage.
2. A person is interested in a sea voyage when he/she has grounds to prove that he/she has any relation to the voyage or to any subject of insurance at risk in it, in consequence of which such person may benefit by the safe and due arrival of the subject of insurance, or may not benefit by its loss or by damage to it or by the detention of it, or may incur liability in respect of it.
3. The assured must have interest in the subject of insurance at the time of occurrence of the loss though the assured need to be interested in the subject of insurance when the insurance is effected. When the subject of insurance is insured under the “lost or not lost” condition, the assured may recover although the assured may not have acquired that interest until after the loss occurred, unless the assured was aware of the loss and the insurer was not.
Where the assured has no interest in the subject of insurance at the time of occurrence of the loss, the assured cannot acquire interest by any act or selection after the assured is aware of the loss.
4. Where the buyer of goods has insured them, the buyer shall have an insurable interest, even though the buyer might have rejected the goods or have treated them as at the seller’s risk, by reason of the latter’s delay in making delivery or otherwise.
Article 227.- Reinsurance
1. The insurer may reinsure to another insurer the subject of insurance which the insurer has accepted to insure.
2. The contract of reinsurance is independent from the original contract of insurance while the original insurer shall be still responsible to the assured.
Article 228.- Marine policy, insurance certificate
1. At the request of the assured, the insurer shall be obliged to issue to him/her a marine policy or insurance certificate. The marine policy or certificate shall constitute en evidence of the conclusion of the contract of marine insurance.
2. A marine policy may be issued in the following forms:
a. Voyage policy, which is a policy issued to a subject of insurance from one place to another or others;
b. Time policy, which is a policy issued to a subject of insurance for a definite period of time;
c. Valued policy, which is a policy in which the insurer has agreed in advance to the value of the subject of insurance as specified in the policy, which is compatible with the insurable value and shall be used for indemnification for total or partial loss.
Unless the policy otherwise provides, the value specified in the policy and the provisions of Clause 1, Article 254 of this Code shall serve as a basis for determining whether there has been a constructive total loss.
d. Unvalued policy, which is a policy that does not specify the value of the subject of insurance, but, specifies the sum insured.
3. A marine policy should contain the following basic details:
a. The name of the assured, or of the assured’s representative;
b. The subject of insurance;
c. The insurance conditions;
d. The period of time covered by the insurance;
e. The sum insured;
f. The place, date and hour of issue of the policy;
g. The insurer’s signature for certification.
4. The forms and basic details of a marine policy shall apply to insurance certificates.
Article 229.-Obligations of the assured
1. The assured shall be obliged to inform the insurer of all information which the assured has known or should have known in relation to the conclusion of the contract of insurance, and may affect the assessment by the insurer of the possible risk or the decision by the insurer as to whether or not the insurance proposal and the terms of the contract should be accepted, except information which is common knowledge or has been known or should have been known to the insurer.
2. The obligation of the assured specified in Clause 1 of this Article shall be also applied to the assured’s representative.
Article 230.- Automatic invalidation of contracts of marine insurance
A contract of marine insurance shall automatically become invalid if at the time of its conclusion the peril covered by insurance has already occurred or where the possibility of its occurrence does not exist in reality; in this case, the insurer shall not have to indemnify but shall retain the right to the insurance premium as contracted, unless before concluding the contract, the insurer knew about such event.
Article 231.- The right to terminate contracts of marine insurance
1. Where the assured intentionally commits a breach of his/her obligation set out in Article 229 of this Code, the insurer shall have the right to terminate the contract. Where the assured fails to provide information or provides inaccurate information according to the provisions of Article 229 of this Code not due to his/her fault, the insurer shall have no right to terminate the contract, but may request a reasonable increase of the insurance premium.
2. Before the commencement of the insurance liability, the assured may request the termination of the contract of marine insurance, provided that he/she pays the insurer all administrative costs, and the insurer must refund the insurance premium to the assured.
3. The insurer and the assured must not terminate their contract once the insurance liability has commenced, unless otherwise agreed upon in the contract.
Where it is agreed in the contract that the contract may terminate after the insurance liability commences and the assured requests termination of the contract, the insurer shall have the right to the insurance premium from the date of commencement of the insurance liability to the date of termination of the contract, and the refunded premium shall correspond to the remaining time. Where the insure requests termination of the contract, the insurance premium amount of the remaining time shall be refunded to the assured for the period of time from the date of request for termination to the date of expiration of the contract.
4. The provisions of Clause 2 of this Article shall not apply to the case where the assured requests termination of the cargo or voyage policy for the seagoing vessel after the commencement of the insurance liability.
Section 2. INSURABLE VALUE AND SUM ASSURED
Article 232.- Insurable value
Insurable value is the real value of the subject of insurance and determined as follows:
1. The insurable value of the seagoing vessel is its total value at the commencement of the insurance. This value also includes the value of its machinery, equipment, spare parts and stores plus the whole insurance premium amount. The insurable value of the seagoing may also include money advanced for crew’s wages and other disbursements incurred to make the ship fit for the voyage as agreed upon in the policy.
2. The insurable value of the cargo is its value invoiced at the place of loading or its market value at the place and time of loadling plus the insurance premium, the freight and may include the expected profit;
3. The insurable value of the freight is the gross amount of freight plus the insurance premium. Where the charterer has the freight insured, this amount of freight is included in the insurable value of the cargo for insurance;
4. The insurable value of any other subject of insurance, except obligations arising under civil liability, is the value of the subject of insurance at the place and time of the commencement of the insurance, plus the insurance premium.
Article 233.- The insured sum
1. Upon concluding a contract of marine insurance, the assured must declare the sum for which the subject of insurance is insured (hereinafter referred to as the insured sum).
2. Where the insured sum as specified in the contract is lower than the insurable value, the insurer shall be liable for losses in such proportions as the insured amount bears to the insurable value, including other expenses under the insurance.
3. Where the insured sum as specified in the contract exceeds the insurable value, the amount in excess of the insured sum shall not be accepted.
Article 234.- Double insurance
1. Where two or more policies have been concluded by the assured or his/her representative for the same subject of insurance against the same maritime peril for the insured sums which in aggregate exceed the insurable value, the assured shall be deemed to have been overinsured by double insurance.
2. In case of double insurance mentioned in Clause 1 of this Article, all such insurers shall be liable only up to the amount of the insurable value, and within limit of that value each of them shall be liable in proportion to the insured sum accepted by such insurer.
Section 3. TRANSFER OF RIGHTS UNDER CONTRACTS OF MARINE INSURANCE
Article 235.- Transfer of marine policies
1. A marine policy is transferable unless it contains terms expressly prohibiting transfer. It may be transferred either before or after loss of the subject of insurance.
2. A person who has no interest in the subject of insurance shall not be allowed to transfer the policy.
Article 236.- Mode of transfer of marine policies
A marine policy may be transferred by the assured’s endorsement on it according to a commercial practice.
Section 4. FLOATING INSURANCE
Article 237.- Floating insurance
1. Floating insurance is a package insurance covering the subject of insurance of a kind or some kinds of cargo which the assured will dispatch or receive within a specified period of time.
2. In a contract of floating insurance, the insurer shall be obliged to issue, at the request of the assured , a policy or a certificate of insurance for each shipment or each unit of cargo.
Article 238.- Performance of contracts of floating insurance
1. The assured, who has concluded a contract of floating insurance, shall be obliged to notify to the insurer immediately upon receipt of information concerning the dispatch or receipt of the cargo and to specify each case the name of the seagoing vessel, the route, the cargo and the insured sum, even when the notice reaches the insurer, the cargo may have been dispatched or have arrived at the port of delivery.
2. Where the assured has intentionally or through his negligence failed to fulfil the obligation specified in Clause 1 of this Article, the insurer may terminate the contract while retaining the right to the insurance premium to which he would have been entitled had the contract been properly performed.
Article 239.- Termination of contracts of floating insurance
A contract of floating insurance may be terminated by either party subject to a ninety days’ notice.
Section 5. PERFORMANCE OF CONTRACTS OF MARINE INSURANCE
Article 240.- Payment of insurance premiums
The assured shall be obliged to pay the insurance premium to the insurer immediately after the conclusion of the contract or the issue of the policy or certificate of insurance, unless otherwise agreed by the involved parties.
Article 241.- Notification of increased risks
1. If, after the conclusion of the contract of insurance, there is any change in the insured perils, increasing their degree of risk, the assured shall have to notify the insurer of such change immediately after it is known to him/her.
2. Where the assured violates the provisions of Clause 1 of this Article, the insurer may refuse to indemnify part or the whole of the insured sum.
Article 242.- Obligations of the assured upon the occurrence of loss
1. Where a loss related to the maritime perils insured has occurred, the assured shall be obliged to take all necessary measures to avert the loss or lessen its extent as well as to secure the insurer’s exercise of the right to claim against the parties responsible for the loss. When performing this obligation, the assured must follow the reasonable instructions of the insurer.
2. When the assured intentionally or through gross negligence has failed to perform the obligation mentioned in Clause 1 of this Article, the insurer shall not be liable for losses caused thereby.
Article 243.- The insurer’s liability to refund
The insurer shall have to refund to the assured all reasonable and necessary expenses incurred for the purpose of averting the loss or lessening its extent; expenses incurred in the implementation of the instructions of the insurer as provided for in Article 242 of this Code, or expenses incurred for identifying the cause and extent of the loss within the scope of liability of the insurer, and expenses contributed to the general average. These expenses shall be refunded in such proportion as the insured sum bears to the insurable value.
Article 244.- The insurer’s liability for losses
1. Within the limit of the insured sum, the insurer shall be liable for losses resulting directly from the peril insured and have to refund the expenses as specified in Article 243 of this Code even though the aggregate amount to be paid to the assured may exceed the insured sum.
2. The insurer shall not be liable for losses arising from an intentional fault or a gross negligence of the assured , but still be liable for losses caused by the negligence or fault of the master who is also insured in navigation and management of the vessel as well as losses caused by the fault of another crewman or the maritime pilot.
3. The contract of insurance of ship hull may be extended to compensation for losses occurred in relation to liabilities in a collision, apart from his/her liability to compensate the assured for loss of or damage to the subject of insurance, the insurer shall be responsible for loss of or damage to a third party in the collision for which the assured is liable even though the aggregate amount of indemnity exceeds the insured sum.
4. Where the maritime perils insured under the contract of insurance occur, the insurer may indemnify the assured the total amount insured against the exemption of all other liabilities under the terms agreed in the contract. In this case, the insurer must notify the assured of his/her intention to do so within seven days from the date on which he/she receives the information from the assured about the occurrence of the maritime perils and their consequences; the insurer shall not be entitled to claim the ownership of the subject of insurance if the total insured sum is less than the insurable value.
In addition to the indemnification of the total insured sum, the insurer must also refund expenses incurred for the purpose of averting the loss or lessening is extent, as well as repairing and recovering the subject of insurance, which the assured had paid before he/she received the notice from the insurer.
Article 245.- Indemnification for successive losses
1. The insurer shall be liable for successive losses, even though the aggregate amount of losses may exceed the insured sum, unless otherwise agreed upon in the contract.
2. Where, a partial loss of the subject of insurance that has not been repaired or otherwise made good is followed by a total loss, the assured shall only recover in respect of the total loss.
3. The provisions of Clauses 2 and 2 of this Article shall not relieve the insurer of the liability for refunding the expenses related to the performance of the obligations provided for in Article 244 of this Code.
Article 246.- Exemption of the insurer’s liability
1. Unless otherwise agreed in the contract of insurance, in the insurance of a seagoing vessel and freight, the insurer shall not be liable for losses arising from:
a. The seagoing vessel being not seaworthy at the beginning of the voyage, unless this is due to latent defects of the vessel or caused by circumstances which could not have been prevented in spite of due diligence exercised by the assured.
b. Loading on board the seagoing vessel of explosive or inflammable materials or other dangerous cargoes without compliance with regulations on the carriage of cargoes of that kind, of which the assured was aware but the insurer was not.
2. Unless otherwise agreed in the contract of insurance, in the insurance of the cargo, the insurer shall not be liable for losses arising from:
a. The nature of the cargo;
b. Ordinary leakage, ordinary wear and tear of the cargo;
c. Improper packing of the cargo;
d. Delay in its supply.
3. Unless otherwise agreed in the contract of insurance, the insurer shall not be liable for losses of the subject of insurance arising from war or military activities of any nature and their consequences; from being appropriated; from civil commotion; strikes; or from acquisition, requisition, compulsory purchase, detention or destruction of the seagoing vessel or cargo under military orders or decisions of competent state agencies.
Section 6. TRANSFER OF THE RIGHT TO RECOURSE
Article 247.- Transfer of the right to recourse
After having indemnified the assured, the insurer shall have the right to recourse against the person who is responsible for such loss (hereinafter referred to as the third party) within the amount paid. The insurer shall exercise this right in accordance with the provisions applicable to the assured.
Article 248.- The assured’s obligations in the recourse against the third party
1. The assured shall be obliged to provide the insurer with all information, documents as well as proofs and to take necessary measures to enable the insurer to exercise the right to recourse against the third party.
2. Where the assured fails to perform the obligations specified in Clause 1 of this Article or he/she is at fault that makes the insurer’s right to recourse unexercisable, the insurer shall be exempt from the payment of the whole indemnify or enjoy a reasonable reduction of the payable indemnity.
3. If the assured has received the indemnity for losses from the third party, the insurer shall be obliged to pay only the difference between the indemnity amount according to the contract of insurance and the amount of money the assured received from the third party.
Article 249.- Guarantee for general average contributions
1. The insurer must guarantee for general average contributions within the limit of the insured sum on the basis of the assured’s commitment to general average contributions.
2. When adjusting general average, the assured shall be obliged to pay due attention to the insurer’s interests.
Section 7.- ABANDONMENT OF SUBJECTS OF INSURANCE
Article 250.- The right to abandon the subjects of insurance
1. The assured shall have the right to abandon the subject of insurance and surrender to the insurer of his/her rights and obligations related to the subject of insurance in return for the payment of the indemnity for total loss where the total loss of the subject of insurance is inevitable, or the aversion of such loss would entail expenditure so high in comparison with the value of the subject of insurance.
2. The right to abandon the subject of insurance may be applicable where the seagoing vessel has been sunk, appropriated or damaged in an accident in consequence of which it has become irreparable, or its cost of repair, recovery or redemption is economically inefficient.
3. The right to abandon the subject of insurance provided for in Clause 2 of this Article shall be also applied to cargo, even where the costs of its repair and delivery to the port of delivery would be so high in comparison with its market value at the port of delivery.
Article 251.- The mode and time limit for exercising the right to abandon the subjects of insurance
1. The exercise of the right to abandon the subject of insurance must be declared in writing, stating the grounds for the application of this right.
2. The declaration of the abandonment of the subject of insurance must be sent to the insurer within a reasonable time limit but not exceeding one hundred and eighty days, counting from the date on which the assured has learned of the circumstances used as grounds for the application of this right or within sixty days, counting from the date on which the insurance has expired in cases where the seagoing vessel or cargo has been appropriated or where the right to possession of the vessel or cargo has been lost for other reasons; after the time limit specified in this Clause, the assured shall lose the right to abandon the subject of insurance but shall still have the right to claim the indemnity for the loss.
3. The abandonment of the subject of insurance must be unconditional; if the abandonment has been accepted, neither the insurer nor the assured can change his/her decision.
Article 252.-The assured’s obligations when declaring the abandonment of the subject of insurance
When declaring the abandonment of the subject of insurance, the assured shall be obliged to provide the insurer with information on any proprietary rights related to the subject of insurance and on other insurance amounts and limitations known to the assured.
Article 253.- The time limit for the insurer to accept or refuse to accept the abandonment of the subject of insurance
1. Within thirty days, counting from the date of receipt of the declaration of abandonment of the subject of insurance, the insurer shall be obliged to notify in writing the assured of his/her acceptance or refusal of the abandonment. The insurer shall lose the right to refuse to accept the abandonment after the expiration of this time limit.
2. The rights and obligations related to the subject of insurance shall be transferred to the insurer immediately after he/she notifies that he/she accepts the abandonment; the insurer may not demand these rights.
3. Where the declaration of abandonment of the subject of insurance has been effected as provided for but the insurer refuses to accept the abandonment, the assured shall still retain the right to an indemnity.
Article 254.- Indemnity for total loss
1. A constructive total loss means loss resulting from the damage to the seagoing vessel or cargo whose actual total loss is deemed to be unavoidable or the cost of repairing or recovering the seagoing vessel would exceed the value of the vessel when repaired or exceed the market value of the cargo at the port of delivery; in this case, the assured must send the declaration of abandonment of the subject of insurance to the insurer before demanding the payment of the insured sum.
2. Actual total loss means loss resulting from the total destruction or damage of the seagoing vessel or cargo which renders the vessel or cargo unrecoverable or from the missing of the vessel together with the cargo on board thereof; in this case, the assured may demand from the insurer sum without having to declare abandonment of the subject of insurance.
3. Where the vessel found missing has been insured for a definite period of time, the insurer shall only be liable for the indemnity if he/she has last received the information of the vessel before the expiration of the insurance period. The insurer shall not be liable for the indemnity if he/she proves that the vessel has been found missing after the expiration of the insurance period.
Article 255.- Refund of indemnified amounts
Where the insurer has paid the indemnity, the seagoing vessel then escapes from the maritime peril, he/she shall be entitled to request the assured to continue his/her ownership of the seagoing vessel and refund the indemnity paid after deducting the indemnified amount for partial loss of the seagoing vessel provided that such partial loss is the direct consequence of the maritime peril insured.
Section 8.- SETTLEMENT OF INDEMNITY
Article 256.- Responsibility for settlement of indemnity
In payment of indemnified amounts for the loss of the subject of insurance, the insurer may request the assured to provide him/her with information on relevant circumstances, submit documents and other proofs necessary for assessing the circumstances and the extent of the loss.
Article 257.- Statute of limitations for initiation of lawsuits regarding contracts of marine insurance.
The statute of limitations for initiation of lawsuits regarding contracts of marine insurance is two years as from the date of arising of disputes.
Chapter XVII

SETTLEMENT OF MARITIME DISPUTES

Article 258.- Maritime disputes
Maritime disputes are disputes arising from maritime shipping activities
Article 259.- Principles for settlement of maritime disputes
1. The disputing parties may settle their maritime disputes through negotiation, agreement or initiation of lawsuits before an arbitration or a court.
2. Maritime disputes will be settled by arbitration or court in accordance with the jurisdiction and procedures provided for by law.
Article 260.- Settlement of maritime disputes involving at least one party being a foreign organization or individual
1. Where a contract has at least one party being a foreign organization or individual, the contracting parties may agree to refer their disputes to a foreign arbitration or court.
2. Where the parties to a maritime dispute are all foreign organizations and/or individuals and they have agreed in writing to refer their dispute to a Vietnamese arbitration, the Vietnamese arbitration shall be entitled to settled such dispute, even though the dispute occurred outside the Vietnamese territory.
3. A maritime dispute specified in Clause 2 of this Article may be also settled by a Vietnamese court if the grounds for establishment, modification or termination of the relations among the parties to such dispute comply with the Vietnamese law or the property connected with such relations is located in Vietnam.
Chapter XVIII

IMPLEMENTATION PROVISIONS

Article 261.- Implementation effect
1. This Code takes effect as from January 1, 2006
2. This Code supersedes the Vietnam Maritime Code of 1990.
This Code was passed the XIth National Assembly of the Socialist Republic of Vietnam at its 7th session on June 14, 2005.
 

The post The Vietnam Maritime Code No. 40/2005/QH11 of June 14, 2005. appeared first on MP Law Firm.

NATIONAL ASSEMBLY
——-

SOCIALIST REPUBLIC OF VIET NAM
Independence – Freedom – Happiness
———-

No. 61/2005/QH11

Hanoi, November 29,2005

LAW

ON TENDERING

NATIONAL ASSEMBLY OF THE SOCIALIST REPUBLIC OF VIETNAM

LEGISLATURE XI, SESSION 8

(from 18 October until 29 November 2005)
Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam as amended by Resolution 51-2001-QH10 passed by Legislature X of the National Assembly at its 10th Session on 25 December 2001;
This Law regulates tendering.
Chapter I

GENERAL PROVISIONS

Article 1 Governing scope
This Law regulates tendering activities in order to select contractors for provision of consultancy services, for procurement of goods, and for construction and installation for tender packages belonging to the following projects:
1. Investment and development projects financed by the State as to thirty (30) per cent or more, comprising:
(a) New construction and investment projects, and upgrading and expansion of construction projects in which investment has already been made;
(b) Investment projects for procurement of assets including equipment and machinery not required to be installed;
(c) Projects for planning for regional development, planning for industry development, and planning for construction of urban and rural areas;
(d) Projects for scientific research, for development of technology, and for technical assistance;
(dd) Other projects for purposes of investment and development.
2. Projects financed by the State for procurement of assets for the purpose of maintaining regular activities of State bodies, political organizations, socio-political organizations, socio-political-occupational organizations, social organizations, socio-occupational organizations and units of the armed forces.
3. Projects financed by the State for procurement of assets for the purpose of renovation or major repairs to equipment, production lines, building works and factories of State owned enterprises in which investment has already been made.
Article 2 Applicable entities
1. Domestic and foreign organizations and individuals participating in tendering activities for tender packages belonging to the projects stipulated in article 1 of this Law.
2. Organizations and individuals involved in tendering activities for tender packages belonging to the projects stipulated in article 1 of this Law.
3. Organizations and individuals with projects not within the governing scope of this Law may choose to apply this Law.
Article 3 Application of Law on Tendering, related laws, international treaties and international agreements
1. Tendering activities must comply with the provisions of this Law and other related laws.
2. If there are any special matters on tendering stipulated in any other Law, then such Law shall apply.
3. Tendering for projects using official development aid (abbreviated as ODA) shall be implemented on the basis of provisions in international treaties of which the Socialist Republic of Vietnam is a member or international agreements signed by authorized bodies or organizations on behalf of the Socialist Republic of Vietnam.
Article 4 Interpretation of terms
In this Law, the following terms shall be construed as follows:
1. Financed by the State means the use of State Budget funds, credit facilities guaranteed by the State, credit facilities for investment and development of the State, investment and development funds of State owned enterprises, and other capital funds managed by the State.
2. Tendering means the process of selecting a contractor who satisfies the requirements set by the party calling for tenders in order to implement a tender package belonging to a project stipulated in article 1 of this Law, on the basis of ensuring competitiveness, fairness, transparency and economic efficiency.
3. Tendering activities means activities of the parties involved in the process of selecting a contractor.
4. Sequence for implementation of tendering means the steps being preparation for tendering; organization of tendering; assessment of tenders; evaluation and approval of the results of tendering; notification of the results of tendering; and negotiation, finalization and signing of a contract.
5. Domestic tendering means the process of selection of a contractor who satisfies the requirements of the party calling for tenders, in which domestic tenderers participate.
6. International tendering means the process of selection of a contractor who satisfies the requirements of the party calling for tenders, in which both foreign and domestic tenderers participate.
7. Project means a set of proposals for implementing a part or the whole of works aimed at achieving an objective or requirement within a specified period of time and based on a specified financing source.
8. Authorized person means the person with the right pursuant to law to make project decisions. In the case of projects financed by the State as to thirty (30) per cent or more, excluding projects financed by the State as to hundred (100) per cent, the authorized person is the board of management or authorized representative of the capital contributing parties.
9. Investor means the entity owning the financing capital or the entity assigned responsibility to represent such owner, or the borrower directly managing and implementing any project as defined in clause 7 of this article.
10. Party calling for tenders means the investor or a professional organization with sufficient capability and experience in accordance with the law on tendering for the investor to hire in order to hold tendering.
11. Tenderer means any eligible organization or individual as stipulated in articles 7 and 8 of this Law.
12. Head contractor means a tenderer liable for its participation in tendering which gives its name to a tender, and which signs and implements a contract if selected (hereinafter referred to as a participating tenderer). A tenderer participating in tendering independently is referred to as an independent tenderer. A tenderer participating in tendering jointly with one or more other tenderers to submit the one tender is referred to as a partnership tenderer.
13. Consultancy tenderer means a tenderer participating in tendering for the supply of products, who satisfies the requirements on knowledge and professional experience stipulated in clause 34 of this article.
14. Supply tenderer means a tenderer participating in tendering for tender packages for the supply of goods as defined in clause 35 of this article.
15. Construction tenderer means a tenderer participating in tendering for tender packages for construction and installation as defined in clause 36 of this article.
16. EPC tenderer means a tenderer participating in tendering for the performance of an EPC tender package as defined in clause 21 of this article.
17. Sub-contractor means a contractor performing part of the work of a tender package on the basis of an agreement or contract signed with the head contractor. A sub-contractor is not a contractor liable for participation in tendering.
18. Domestic tenderer means any tenderer established and operating pursuant to the law of Vietnam.
19. Foreign tenderer means any tenderer established and operating pursuant to the law of the country of nationality of such tenderer.
20. Tender package means a part of a project, and in a number of special cases means the entire project; a tender package may comprise items for the procurement of similar goods for a number of projects or a one-off procurement in recurrent procurement of goods.
21. EPC tender package means a tender package which comprises the entire work of design, supply of equipment and materials, and construction and installation.
22. Pre-qualification invitation documents means all of the documents stipulating the requirements on capability and experience of tenderers as the legal basis for the party calling for tenders to select a list of tenderers to be invited to submit tenders.
23. Pre-qualification application means all of the documents prepared by a tenderer in accordance with the requirements of the pre-qualification invitation documents.
24. Tender invitation documents means all of the documents used for open or limited tendering stipulating the requirements for any one tender package and providing the legal basis for tenderers to prepare their tenders and for the party calling for tenders to assess tenders aimed at selection of a winning tenderer; and also providing the basis for negotiation, finalization and signing of a contract.
25. Tender means all of the documents prepared by a tenderer in accordance with the requirements of the tender invitation documents and submitted to the party calling for tenders in accordance with the provisions in the tender invitation documents.
26. Tender package price means the value of a tender package specified in the tendering plan based on the approved total invested capital, total estimated budget or estimated budget and current regulations.
27. Tender price means the price stated by a tenderer in its tender. If a tenderer provides a discount letter, then the tender price is the price after deducting the discount.
28. Proposed contract sum means the sum proposed by the party calling for tenders on the basis of the tender price of the tenderer selected to be awarded the contract after errors have been rectified and discrepancies have been adjusted as required by the tender invitation documents.
29. Winning tender price means the price approved in the results of selection of contractor as the basis for negotiation, finalization and signing of a contract.
30. Equal footing price means the tender price submitted by a tenderer to implement a tender package after errors have been rectified and discrepancies have been adjusted, and after adding all necessary operating and maintenance costs and other costs relating to the schedule, quality and origin of goods or construction works under the tender package for the entire use life. Equal footing prices shall be used to compare and rank tenders and are referred to as the assessment prices.
31. Contract means the document signed between the investor and the selected contractor based on the agreement reached between the parties. The contract must be in accordance with the decision approving the results of selection of contractor.
32. Tender guarantee means the tenderer provides security by one of the methods of paying a deposit, providing collateral or providing a letter of guarantee for a definite term as stipulated in the tender invitation documents, in order to secure the liability of the tenderer for its tender.
33. Contract performance guarantee means the tenderer provides security by one of the security methods of paying a deposit, providing collateral or providing a letter of guarantee for a definite term as stipulated in the tender invitation documents, in order to secure the liability of the winning tenderer to perform the contract.
34. Consultancy services comprise:
(a) Consultancy services on project preparation comprising formulation and assessment of planning reports, charts on overall development, architecture, pre-feasibility and feasibility study reports;
(b) Consultancy services on project implementation comprising surveying, design, total estimated budgets and estimated budgets, preparation of tender invitation documents, assessment of tenders, and supervision of execution of building and installation of equipment;
(c) Consultancy services on project management, arranging finance, training, technology transfer and other consultancy services.
35. Goods means machinery, equipment, raw materials, fuel, supplies, consumer goods, and services other than consultancy services.
36. Construction and installation comprises work which is part of the process of building and installing equipment in construction works and items of works, and of renovation and major repairs.
37. Protest regarding tendering means a request from any tenderer participating in tendering for reconsideration of the results of selection of contractor or regarding any other relevant matter during the tendering process when such tenderer considers his rights and interests have been adversely affected.
38. National tendering network means the system applying information technology set up and managed by the State administrative body for tendering in order to uniformly administer information about tendering and to service tendering activities.
39. Tendering evaluation means check and assessment by the body or organization in charge of the evaluation of tendering plans, tender invitation documents and results of selection of contractor as the basis for the authorized person to consider and make a decision in accordance with this Law. An evaluation of the results of selection of contractor is not a re-assessment of tenders.
Article 5 Information on tendering
1. The following information on tendering must be published in the Tendering Newsletter and on the tendering website of the State administrative body for tendering:
(a) Tendering plans;
(b) Notices inviting pre-qualification applications; results of pre-qualification;
(c) Invitations to tender in the case of open tendering;
(d) Lists of tenderers invited to participate in tendering;
(dd) Results of selection of contractor;
(e) Information on how breaches of the law on tendering have been dealt with;
(g) Current legal instruments on tendering;
(h) Other relevant information.
2. After the information stipulated in clause 1 of this article has been published in the Tendering Newsletter and on the tendering website, it may also be published on other mass media in order to facilitate access by interested organizations and individuals.
The Government shall provide detailed regulations on information on tendering.
Article 6 Tendering plans
1. The authorized person must provide written approval of a tendering plan after approval of the investment decision, or the tendering plan may be approved at the same time as the investment decision in cases where there are adequate conditions providing a legal basis for the investor to hold selection of a contractor, except for tender packages which must be implemented prior to an investment decision. The person approving a tendering plan shall be liable before the law for his decision.
2. A tendering plan must be formulated for the entire project; in cases where there are inadequate conditions to formulate a tendering plan for the entire project, it shall be permitted to formulate a tendering plan for some tender packages to be implemented in advance, but only when essential.
3. A tendering plan must set out clearly the number of tender packages and the contents of each tender package. The contents of each tender package shall comprise:
(a) Name of the tender package;
(b) Tender package price;
(c) Financing source;
(d) Form of selection of contractor; method of tendering;
(dd) Scheduled time for selection of contractor;
(e) Form of contract;
(g) Scheduled period for performance of the contract.
4. Division of the project into different tender packages shall be based on the technical nature of the project and the sequence for its implementation, ensuring unity within the project and that each tender package is of an appropriate size. There shall be only one set of tender invitation documents for any one tender package, and tendering shall only be held once. Each tender package shall be implemented by only one contract, except where a tender package is made up of several independent components in which case it may be implemented by more than one contract.
Article 7 Eligibility of tenderers being organizations
A tenderer being an organization shall be deemed to be eligible when it satisfies the following conditions:
1. It has a business registration certificate or investment certificate issued pursuant to law, or a decision on establishment in the case of a domestic tenderer which is an organization without business registration. A foreign tenderer must have registration for its operation issued by the competent authority of the country of nationality of the tenderer.
2. It is an independent cost accounting entity.
3. There is no decision by a competent body concluding that the tenderer has an unhealthy financial status; it is not bankrupt or insolvent, and it is not in the process of dissolution.
Article 8 Eligibility of tenderers being individuals
A tenderer being an individual shall be deemed to be eligible when he or she satisfies the following conditions:
1. Having full capacity for civil acts pursuant to the law of the country of which such individual is a citizen;
2. Having lawful registration for operation or an appropriate professional certificate issued by the competent authority;
3. The individual is not subject to investigation for a criminal offence.
Article 9 Requirements applicable to a party calling for tenders and to an expert tendering group
1. Individuals being members of a party calling for tenders must satisfy all the following conditions:
(a) Be knowledgeable about the law on tendering;
(b) Be knowledgeable about project management;
(c) Have professional expertise appropriate to the requirements of the tender package in technical, financial, commercial, administrative and legal fields.
(d) Have foreign language skills sufficient to satisfy the requirements for tender packages for which international tendering is held and for tender packages of ODA financed projects.
2. Depending on the nature and complexity of a tender package, the expert tendering group shall include experts in technical, financial, commercial, administrative, legal and other relevant fields. Members of an expert group must satisfy all of the following conditions:
(a) Have a certificate of attendance at a training course on tendering;
(b) Have professional expertise relevant to the tender package;
(c) Be knowledgeable about the specific contents of the tender package;
(d) Have at least three years’ working experience in fields relating to the economic and technical contents of the tender package.
Members of an expert tendering group do not necessarily have to be members of the party calling for tenders, and vice versa.
3. If an investor has sufficient personnel who satisfy the conditions stipulated in clause 1 of this article, the investor may itself act as the party calling for tenders. If the investor has insufficient personnel or if it has personnel but they fail to satisfy the conditions stipulated in clause 1 of this article, then the investor shall conduct a selection process in accordance with this Law to select a consultancy organization or a professional tendering organization with sufficient capability and experience to represent the investor in acting as the party calling for tenders. In all cases investors shall be liable for the process of selection of contractor and for signing a contract with the winning tenderer after negotiation and finalization of the contract pursuant to the provisions of this Law.
Article 10 Conditions for participation in tendering for any one tender package
Tenderers participating in tendering for any one tender package must satisfy all the following conditions:
1. Be eligible pursuant to articles 7 and 8 of this Law.
2. Submit only one tender, either as an independent tenderer or in partnership, for each tender package. In the case of a partnership there must be a written agreement between the partners specifying the person heading the partnership and the general and specific responsibilities of each partner with respect to the tender package works.
3. Satisfy the requirements set out in the notice inviting tenders or in the letter inviting tenders from the party calling for tenders;
4. Ensure competitiveness in tendering pursuant to the provisions in article 11 of this Law.
Article 11 Ensuring competitiveness in tendering
1. Any tenderer who participates in tendering for a tender package belonging to the projects stipulated in article 1 of this Law must satisfy the following requirements on competitiveness:
(a) A consultancy tenderer who prepared a feasibility study report shall not be permitted to participate in tendering for the provision of consultancy services to prepare the technical designs of the same project. Any consultancy tenderer who has already participated in the technical designs of a project shall not be permitted to participate in tendering for the subsequent steps, except in the case of an EPC tender package;
(b) Any tenderer participating in tendering must be organizationally independent of, financially independent from, and not under the control of the managing body of the consultancy tenderer who prepared the tender invitation documents or who will assess the tenders;
(c) A consultancy tenderer who supervises implementation of a contract must be organizationally independent of, financially independent from, and not under the control of the managing body of the consultancy tenderer who performs the contract;
(d) Tenderers participating in tendering for tender packages belonging to projects must be organizationally independent of, financially independent from, and not under the control of the managing body of the project investor.
2. The provisions in clause 1 of this article must be implemented at the latest by three years, in accordance with a schedule stipulated by the Government, from the date this Law takes effect.
The Government shall provide detailed regulations on ensuring competitiveness in tendering.
Article 12 Prohibited conduct in tendering
1. Giving, accepting or requesting any object of value by an individual or organization involved in the process of selection of contractor or of contractual performance, resulting in dishonest or partial behaviour when deciding on selection of contractor or when signing and implementing the contract.
2. Using personal influence to affect or to intervene in, or intentionally making a false or dishonest report about information thus distorting the result of selection of contractor or the signing and implementation of the contract.
3. Collaboration or collusion between the party calling for tenders and tenderers, or between the State administrative body and the party calling for tenders and/or tenderers in order to change tenders; collusion with the evaluating organization or an inspectorate in order to affect the collective or national interest.
4. Participation by an organization or individual in both assessment of tenders and in evaluation of the results of selection of contractor within the same tender package.
5. Imposition of specific requirements regarding brand names and country of origin of goods in tender invitation documents applicable to tendering for procurement of goods, for construction and installation and EPC tender packages.
6. Participation in the capacity of a tenderer in tendering for a tender package for which such participant is also the party calling for tenders.
7. Division of a project into tender packages contrary to the provisions in clause 4 of article 6 of this Law.
8. Participation by a tenderer in tendering for the supply of goods or for construction and installation in a tender package for which such participant has provided consultancy services, except for EPC tender packages.
9. Disclosure of the following data and information regarding tendering:
(a) Contents of tender invitation documents prior to the stipulated date for issuance of such documents;
(b) Contents of tenders, notebooks and minutes of tender consideration meetings, comments and assessments from experts and consultants regarding each tender prior to the announcement of the results of selection of contractor;
(c) Requests for clarification of tenders made by the party calling for tenders and responses of tenderers during the process of tender assessment prior to announcement of the results of selection of contractor;
(d) Reports by the party calling for tenders, by the expert group, by consultants or any professional organization involved in the tendering process, or consideration of tenders and evaluation prior to announcement of the results of selection of contractor;
(dd) Results of selection of contractor prior to the stipulated time for announcement;
(e) Other relevant tendering documents which are stamped “confidential” pursuant to the law on confidentiality.
10. An arrangement by a person so that his or her natural parent, parent-in-law, spouse, natural child, adopted child, son or daughter-in-law or sibling participates in tender packages for which such person is the party calling for tenders, a member the expert tendering group or expert group evaluating the results of selection of contractor or the person approving the results of selection of contractor.
11. Conduct contrary to the regulations on management of capital funds, or causing difficulties during the procedures for capital drawdown or for accounting finalization under any contract signed between an investor and a contractor.
12. An arrangement or collusion between two or more tenderers participating in tendering for the one tender package so that one of the tenderers will be awarded the contract; between the contractor implementing a tender package and the consultant supervising implementation; or between a contractor implementing a tender package with the body or organization assigned the task of check and acceptance of the results of implementation.
13. Provision of one’s name as the tenderer for a tender package belonging to a project of an organization or body for which such person worked, within a period of one year from the date on which such person ceased to work for such body or organization.
14. Permitting another tenderer to use one’s legal status in order to participate in tendering; or assignment by a contractor who is a winning tenderer of the performance of the contract to another contractor.
15. Using a protest regarding tendering in order to impede the tendering process and the signing of a contract, or to prevent other tenderers from participating in tendering.
16. Application of a form of selection of contractor other than open tendering when the conditions stipulated in articles 19 to 24 inclusive of this Law have not been satisfied.
17. Holding tendering when the financing source for the tender package has not yet been determined, resulting in insolvency of the contractor.
Article 13 International tendering
1. International tendering shall be held in the following cases:
(a) Tender packages belonging to projects using ODA in which the donor stipulates that international tendering must be held;
(b) Tender packages for procurement of goods where the goods are not yet able to be manufactured domestically;
(c) Tender packages in which domestic tenderers are incapable of satisfying the requirements of the party calling for tenders, or in which domestic tendering has been held but without selection of a winning tenderer.
2. In a case where a winning foreign tenderer fails to correctly fulfil undertakings in the partnership agreement or fails to employ a Vietnamese contractor (if any) to perform the volume and value of work assigned to the party being the Vietnamese contractor and as stipulated in the tender, such tenderer shall be rejected.
3. Any foreign tenderer who is a winning tenderer for implementation of a tender package in Vietnam must comply with regulations of the Government of Vietnam on management of foreign contractors.
Article 14 Preferential treatment in international tendering
Entities entitled to preferential treatment in international tendering shall comprise:
1. Tenderers being enterprises established and operating in Vietnam pursuant to the Law on Enterprises and the Law on Investment.
2. Partnership tenderers where one of the partners being an entity prescribed in clause 1 of this article undertakes work valued at over fifty (50) per cent of a tender package for consultancy services or for construction and installation, or of an EPC tender package.
3. Tenderers participating in tendering for tender packages for procurement of goods where the ratio of the domestic manufacturing costs of such goods is thirty (30) per cent or more.
The Government shall provide detailed regulations on preferential treatment in international tendering.
Article 15 Currency to be used in tendering
1. The currency to be used in tendering shall be stipulated in the tender invitation documents on the principle of one currency for any one volume offered.
2. During the process of assessment of tenders, the conversion to a common currency for purposes of comparison must be based on the exchange rate between Vietnamese dong and foreign currencies in accordance with the clauses set out in the tender invitation documents.
3. All types of domestic costs must be quoted in Vietnamese dong.
Article 16 Language to be used in tendering
The language to be used in tender invitation documents, tenders and data exchanged between the party calling for tenders and tenderers shall be Vietnamese in the case of domestic tendering, and Vietnamese and English in the case of international tendering.
Article 17 Expenses for tendering
1. Expenses for preparation of tenders and participation in tendering shall be borne by tenderers.
2. Expenses of the process of selection of contractor shall be included in the total invested capital or total estimated budget of the project.
3. Tender invitation documents may be sold to tenderers.
The Government shall provide detailed regulations on costs of tendering.
Chapter II

SELECTION OF CONTRACTORS

SECTION 1. FORMS OF SELECTION OF CONTRACTORS
Article 18 Open tendering
1. The form of open tendering must be held for the selection of a contractor to implement a tender package belonging to the projects stipulated in article 1 of this Law, except in the circumstances stipulated in articles 19 to 24 inclusive of this Law.
2. In open tendering, the number of participating tenders shall be unrestricted. Prior to issuing the tender invitation documents, the party calling for tenders must publish a notice inviting tenders in accordance with article 5 of this Law so that tenderers will have information about participation. The party calling for tenders must supply tender invitation documents to any tenderer who wishes to participate in the tendering. The tender invitation documents must not include any term or condition aimed at restricting the participation of tenderers or favouring one or more tenderers thereby causing unfair competition.
Article 19 Limited tendering
1. Limited tendering shall apply in the following cases:
(a) Where a foreign donor providing the financing source for the tender package so requests;
(b) Where the tender package has highly technical requirements or technical peculiarities; or in the case of tender packages of a research or experimental nature for which only a limited number of tenderers are capable of satisfying the requirements of the tender package.
2. When limited tendering is held, a minimum of five tenderers considered to have the capability and experience to participate in the tendering must be invited; if in fact there are less than five tenderers, the investor must make a submission to the authorized person for his consideration and decision on permission to continue to hold limited tendering or to apply another form of selection of contractor.
Article 20 Direct appointment of contractor
1. Direct appointment of a contractor shall apply in the following cases:
(a) In the case of an event of force majeure due to a natural disaster, war or a breakdown which should be immediately dealt with. The investor or the body responsible for managing the building works or assets affected shall be permitted to immediately appoint a contractor to carry out the work. Within a time-limit not to exceed fifteen (15) days as from the date of making a direct appointment, the investor or the body responsible for management of the building works or assets affected must, together with the appointed contractor, carry out the stipulated procedures for appointment of a contractor;
(b) Tender packages in which the foreign donor stipulates that there shall be direct appointment of a contractor;
(c) Tender packages belonging to national confidential projects; and urgent projects in the national interest or for the safety and security of energy as decided by the Prime Minister of the Government when deemed necessary;
(d) Tender packages for the procurement of any type of materials and equipment in order to restore, maintain or expand the capacity of equipment and technological production lines which were previously purchased from the one supplier, and in order to ensure compatibility of facilities and technology it is not possible to purchase such materials and equipment from other supply tenderers;
(dd) Tender packages for consultancy services with a tender package price of less than five hundred million dong, tender packages for the procurement of goods or for construction and installation with a tender package price of less than one billion dong belonging to projects for investment and development; tender packages for the procurement of goods with a tender package price of less than one hundred million dong belonging to a project or estimated budget for recurrent procurement; however tendering shall still be held when deemed necessary.
2. When conducting direct appointment of a contractor, the selection must be of a contractor who is determined as having sufficient capability and experience to satisfy the requirements of the tender package and there must be compliance with the procedures stipulated by the Government for carrying out direct appointment of a contractor.
3. Prior to directly appointing a contractor in the cases stipulated in sub-clauses (b), (c), (d) and (dd) of clause 1 of this article, the estimated budget of the tender package must be approved in accordance with regulations.
Article 21 Direct procurement
1. Direct procurement shall apply when a contract was signed for a tender package with similar contents within the previous six (6) months.
2. When conducting direct procurement, it shall be permitted to invite the tenderer who was selected via tendering to implement the earlier tender package with similar contents.
3. The unit price of the items of a tender package for which the form of direct procurement is applied shall not exceed the unit price of the corresponding items of the previous tender package for which a contract was signed.
4. Direct procurement may apply in order to implement a similar tender package belonging to the same or another project.
Article 22 Competitive quotation in procurement of goods
1. The form of competitive quotation shall apply in cases which satisfy all the following conditions:
(a) The tender package price is less than two billion dong;
(b) The items to be purchased are commonly used goods which are readily available on the market, which have standardized technical features and which are similar to each other in quality.
2. When conducting competitive quotation, a request to provide a quotation must be sent to tenderers. Tenderers may send their quotation directly to the party calling for tenders, by fax or via the post office. Each tender package must have a minimum of three quotations from three different tenderers.
Article 23 Self-implementation
1. The form of self-implementation shall apply where the investor is also a contractor with sufficient capability and experience to implement the tender package belonging to the project which such investor manages and uses.
2. The estimated budget for the tender package must be approved in accordance with regulations in order to apply the form of self-implementation. The entity supervising the implementation of the tender package must be organizationally and financially independent of the investor.
Article 24 Selection of contractor in special cases
In the case of a tender package with particular requirements for which the forms of selection of contractor stipulated in articles 18 to 23 inclusive of this Law cannot be applied, the investor shall prepare a plan for selection of contractor which ensures competitiveness and economic effectiveness and submit same to the Prime Minister of the Government for his consideration and decision.
SECTION 2. GENERAL PROVISIONS ON TENDERING
Article 25 Conditions for issuance of tender invitation documents
Tender invitation documents shall be issued when the following conditions have been satisfied:
1. The tendering plan has been approved.
2. The tender invitation documents have been approved.
3. The notice inviting tenders or the list of tenderers invited to participate in tendering has been published pursuant to the provisions in article 5 of this Law
Article 26 Methods of tendering
1. The single envelope method of tendering shall apply to the forms of open tendering and limited tendering for tender packages for the procurement of goods and for construction and installation, and to EPC tender packages. A tenderer shall submit his tender in one envelope including his technical and financial proposals in accordance with the requirements set out in the tender invitation documents. There shall only be one opening of tenders.
2. The dual envelope method of tendering shall apply to both open tendering and limited tendering for the provision of consultancy services. A tenderer shall submit his technical proposals and financial proposals in two separate envelopes in accordance with the requirements set out in the tender invitation documents. There shall be two openings of tenders: first the technical proposals shall be opened for assessment, and then the financial proposals of all tenderers whose technical proposals have been assessed as satisfying the requirements shall be opened in order to make an overall assessment. In the case of tender packages with high technical requirements, the financial proposals of the tenderer who is awarded the highest technical score shall be opened for consideration and negotiation.
3. Two-phase tendering shall apply to the forms of open tendering and limited tendering for tender packages for the procurement of goods and for construction and installation, and for EPC tender packages with technical, new technological, complex and diversified requirements. The sequence of two-phase tendering shall be as follows:
(a) In the first phase, tenderers shall submit their technical and financial proposals without a tender price, in accordance with the phase one tender invitation documents; the phase two tender invitation documents shall be settled on the basis of discussions held with each tenderer who participated in phase one.
(b) In the second phase, in accordance with the phase two tender invitation documents, the tenderers who participated in the first phase shall be invited to submit stage two tenders comprising technical proposals, financial proposals with a tender price, and a method for securing their tender.
Article 27 Tender guarantee
1. Tenderers participating in tendering for tender packages for the procurement of goods, for construction and installation and for EPC tender packages must provide a tender guarantee prior to the deadline for tender closing. In cases of two phase tendering, tenderers must provide a tender guarantee during phase two.
2. The specific amount of the tender guarantee shall be stipulated in the tender invitation documents depending on the particular nature of each tender package, but shall not exceed three per cent of the approved tender package price.
3. The term of validity of a tender guarantee shall be equal to the term of validity of the tender plus thirty (30) days.
4. Where it is necessary to extend the period of validity of tenders, the party calling for tenders shall require tenderers to extend the period of validity of their tender guarantees for an equivalent term; in such a case, tenderers shall not be permitted to change the contents of their submitted tenders including tender prices, and tenderers shall then extend the period of validity of their tender guarantees. If any tenderer refuses to extend the period of validity of his tender, the party calling for tenders shall return the tender guarantee to the tenderer.
5. Tender guarantees shall be returned to non-winning tenderers within a time-limit not to exceed thirty (30) days as from the date of notification of results of tendering. The tender guarantee of the winning tenderer shall be returned to such tenderer after provision of a contract performance guarantee pursuant to article 55 of this Law.
6. A tenderer shall not be refunded his tender guarantee in the following cases:
(a) Withdrawal of tender after tender closing when the tender still remains valid;
(b) Within a period of thirty (30) days from the date of receipt of notification of winning tenderer from the party calling for tenders, the tenderer refuses or fails to negotiate and finalize the contract, or having negotiated and finalized the contract refuses to sign the contract without a legitimate reason;
(c) Failure to provide a contract performance guarantee pursuant to article 55 of this Law.
Article 28 Principles for assessment of tenders
1. Assessment of tenders must be based on the criteria for assessment of tenders and other requirements stipulated in the tender invitation documents, in order to ensure selection of a contractor with adequate capability and experience and with feasible solutions for implementation of the tender package.
2. In addition to the bases stipulated in clause 1 of this article, assessment of tenders must also be based on the submitted tenders and any statements from tenderers clarifying their tenders.
3. The sequence of assessment of tenders shall be implemented in accordance with the provisions in article 35 of this Law.
Article 29 Method of assessment of tenders
1. The method of assessment of tenders must be conducted in accordance with the assessment criteria stipulated in the tender invitation documents. Criteria of assessment of tenders shall comprise assessment criteria of capability and experience when pre-qualification does not apply, assessment criteria of technical aspects, and overall assessment criteria in the case of a tender package for consultancy services or of items in order to convert prices regarding technical, financial and commercial aspects to an equal footing basis for the purpose of comparing and ranking tenders in the case of tender packages for the procurement of goods, for construction and installation, and EPC tender packages.
2. Technical assessment of tender packages for consultancy services shall be carried out by the method of marking a score. Assessment criteria as formulated in the tender invitation documents must stipulate a minimum technical requirement which shall not be less than seventy (70) per cent of the total points for technical aspects; in the case of a tender package with high technical requirements, the minimum technical requirement must be stipulated as not less than eighty (80) per cent of the total points for technical aspects. The formulation of assessment criteria in order to compare and rank tenders shall be implemented in accordance with the following provisions:
(a) In the case of a tender package for consultancy services in which the technical requirements are not high, an overall point score shall be used in order to rank tenders. Points for technical aspects shall not account for less than seventy (70) per cent of the overall points score. The tender of the tenderer with the highest overall points score shall be ranked first;
(b) In the case of a tender package for consultancy services with high technical requirements, the tenderer with the tender which is awarded the highest technical points shall be ranked first and thereafter the financial proposals of such tenderer shall be considered.
3. In the case of tender packages for the procurement of goods, for construction and installation and EPC tender packages, technical aspects shall be assessed by using the method of marking a score or by using the criterion of pass or fail. If the overall points score is formulated as the method of assessing technical aspects, it must stipulate a minimum level for technical requirements of not less than seventy (70) per cent of the total points for technical aspects; in the case of high technical requirements, this minimum level for technical requirements must be stipulated as not less than eighty (80) per cent of the total points for technical aspects. The equal footing prices for technical, financial and commercial aspects of tenders which have passed the technical assessment stage shall then be compared and ranked. The tender of the tenderer which has the lowest price on an equal footing basis shall be ranked first.
The Government shall provide detailed regulations on assessment of tenders.
Article 30 Tendering via the internet
Tendering may be conducted on-line using the internet. The publication of notices inviting tenders, the issuance of tender invitation documents, the submission of tenders, the assessment of tenders and the announcement of results of selection of contractor shall be conducted on the national tendering network set up and uniformly administered by the State administrative body for tendering.
The Government shall provide detailed regulations on application of the form of tendering via the internet.
Article 31 Regulations on time-limits applicable during tendering
Depending on the nature of each tender package, the authorized person shall make a specific decision on the time-limits applicable during tendering in accordance with the following provisions:
1. The maximum permissible duration for pre-qualification as from the date of issuance of pre-qualification invitation documents up until the date of approved results of pre-qualification shall be thirty (30) days in the case of domestic tendering and forty five (45) days in the case of international tendering.
2. The minimum duration of advertising a notice inviting tenders shall be for ten (10) days prior to the date of issuance of tender invitation documents.
3. The minimum period allowed for preparation of tenders shall be fifteen (15) days as from the date of issuance of tender invitation documents up until the tender closing date in the case of domestic tendering, and thirty (30) days in the case of international tendering.
4. The maximum period of validity of a tender shall be one hundred and eighty (180) days as from the tender closing date; in necessary cases a tenderer may request extension of the period of validity of his tender, but an extension shall not exceed thirty (30) days.
5. The maximum time allowed for assessment of tenders shall be forty five (45) days in the case of domestic tendering and sixty (60) days in the case of international tendering as from the date of tender opening up until the date the investor submits a report on tendering results to the authorized person for his consideration and decision.
6. The maximum time allowed for evaluation shall be twenty (20) days applicable to evaluation of each item in a tendering plan, tender invitation documents, and of the results of selection of contractor. In the case of tender packages for which the Prime Minister of the Government must approve evaluations, the maximum time allowed shall be thirty (30) days for an evaluation of each item in a tendering plan and the results of selection of contractor.
SECTION 3. SEQUENCE FOR IMPLEMENTATION OF TENDERING
Article 32 Preparation for tendering
1. Pre-qualification of tenderers:
Pre-qualification of tenderers shall be conducted in accordance with the following provisions:
(a) Pre-qualification of tenderers shall be conducted prior to holding tendering in order to select a list of tenderers with the capability and experience required for the tender package in order to invite them to participate in tendering; pre-qualification of tenderers shall be mandatory in the case of tender packages for the procurement of goods and EPC tender packages with a tender package price of three hundred billion dong or more, and in the case of tender packages for construction and installation with a tender package price of two hundred billion dong or more;
(b) The sequence for conducting pre-qualification of tenderers shall be as follows: Formulation of pre-qualification invitation documents; notice inviting pre-qualification applications; receipt and retention of pre-qualification applications; assessment of pre-qualification applications; submission and approval of pre-qualification results; and notification of results of pre-qualification;
(c) The criteria for evaluation of pre-qualification applications must be set out in the pre-qualification invitation documents in accordance with the sample pre-qualification invitation documents regulated by the Government and shall include criteria on technical capability, and standards on financial capability and experience.
2. Preparation of pre-qualification invitation documents:
Pre-qualification invitation documents shall be formulated in accordance with the sample form regulated by the Government and shall comprise the following contents:
(a) Technical requirements:
In the case of tender packages for consultancy services, the technical requirements shall include requirements on the knowledge and professional experience of experts (terms of reference);
In the case of tender packages for procurement of goods, the technical requirements shall include requirements on the scope of supply; on the quantity and quality of goods determined via specifications, technical parameters, technological standards and manufacturing standards; the period of warranty; environmental requirements, and other necessary requirements.
In the case of tender packages for construction and installation, the technical requirements shall include the requirements set out in the technical design file, and shall include cost estimates, technical instructions and other necessary requirements;
(b) The financial and commercial requirements shall comprise costs for implementing the tender package, the offered price and a detailed price list, delivery terms, method and terms of payment, financing source, tendering currency, and the other clauses and conditions which will be set out in the general and specific provisions of the contract.
(c) Assessment criteria, important requirements, preferential conditions (if any), tax, insurance and other requirements.
3. Invitation to submit tenders:
Invitations to submit tenders shall be conducted in accordance with the following provisions:
(a) Notification of invitation to submit tenders in the case of open tendering;
(b) Sending of letters inviting submission of tenders in the case of limited tendering or in the case of open tendering for which pre-qualification has been conducted.
Article 33 Organization of tendering
1. Issuance of tender invitation documents:
The tender invitation documents shall be issued to all tenderers participating in open tendering, to all tenderers on the list of tenderers to be invited to participate in limited tendering, or to all tenderers who have passed the pre-qualification stage.
If there needs to be an amendment to the tender invitation documents after they have been issued, a notice must be sent to all tenderers who received the tender invitation documents at least ten (10) days prior to the deadline for tender closing.
2. Receipt and retention of tenders:
The party calling for tenders shall accept all tenders which are submitted in accordance with the requirements set out in the tender invitation documents, and shall retain the tenders in accordance with the regime for retention of confidential documents.
3. Tender opening:
All tenders which have been submitted in accordance with the requirements set out in the tender invitation documents shall be opened publicly immediately after the deadline for tender closing.
The main information set out in the tenders of each tenderer must be announced at the tender opening session and must be recorded in the minutes of the tender opening and signed by the representative of the party calling for tenders, the representatives of the tenderers and the representatives of any relevant bodies present.
Article 34 Clarification of tender invitation documents
1. If any tenderer requires clarification of the tender invitation documents, he shall send a written request to the party calling for tenders for the latter’s consideration and action.
2. Clarification of tender invitation documents shall be conducted by the party calling for tenders by one of the following methods:
(a) By sending a letter clarifying the tender invitation documents to all the tenderers who have received tender invitation documents;
(b) In necessary cases, by holding a pre-tendering meeting in order to discuss the contents of the tender invitation documents which are unclear to tenderers. All issues discussed at the pre-tendering meeting must be recorded in minutes and a letter of clarification of the tender invitation documents must be sent to all tenderers.
3. The letter of clarification of tender invitation documents shall form an integral part of such tender invitation documents.
Article 35 Sequence of assessment of tenders
1. A preliminary assessment of tenders shall be held in order to eliminate tenders which are invalid or which fail to satisfy the important requirements of the tender invitation documents.
2. A detailed assessment of tenders shall be held in accordance with the following provisions:
(a) A technical assessment of tenders shall be held in order to confirm which tenders basically satisfy the requirements of the tender invitation documents;
(b) In the case of tender packages for procurement of goods, for construction and installation, and EPC tender packages, there shall be a conversion of prices to an equal footing basis as regards technical, financial and commercial aspects in order to compare and rank tenders. In the case of tender packages for provision of consultancy services, an overall assessment shall be made in order to compare and rank tenders; and in the case of tender packages for provision of consultancy services with high technical requirements, the financial proposals of the tenderer who is given the highest technical ranking shall be considered.
Article 36 Clarification of tenders
1. Tenderers shall not be permitted to amend or supplement their tenders after the deadline for tender closing.
2. After opening of tenders, tenderers shall be responsible to clarify their tenders on request from the party calling for tenders. The clarification of a tender may be made either by direct or indirect communication, but must ensure that there is no change to the main substance of the submitted tender and tender price. Any item of clarification of a tender must be made in writing, and the party calling for tenders must retain it as an integral part of the tender.
3. Clarification of tenders shall only be made as between the party calling for tenders and a tenderer who has a tender which needs to be clarified.
Article 37 Consideration for recommendation as the winning tenderer in the case of tendering for provision of consultancy services
A consultancy tenderer who satisfies all the following conditions shall be considered for recommendation as the winning tenderer:
1. Having a valid tender.
2. Having technical proposals comprising capability, experience, solutions and personnel which have been assessed as satisfying the requirements.
3. Having the highest overall score for technical aspects and for financial aspects; in the case of a tender package with high technical requirements, having the highest score for technical aspects.
4. The proposed contract sum does not exceed the approved tender package price.
Article 38 Consideration for recommendation as the winning tenderer in the case of tendering for procurement of goods, and for construction and installation
A supply tenderer, construction tenderer or an EPC tenderer who satisfies all the following conditions shall be considered for recommendation as the winning tenderer:
1. Having a valid tender.
2. The tenderer is assessed as having satisfied the requirements on capability and experience.
3. Having technical proposals which have been assessed as satisfying the requirements pursuant to the method of marking a score or pursuant to the criterion of pass or fail.
4. Having the lowest price on an equal footing basis.
5. The proposed contract sum does not exceed the approved tender package price.
Article 39 Submission for approval and evaluation of the results of tendering
1. The party calling for tenders shall prepare a report on the results of tendering in order for the investor to submit it to the person authorized to consider and make a decision thereon, and also send it to the body or organization responsible to make the evaluation.
2. The body or organization assigned the task of making the evaluation shall be responsible to prepare a report on evaluation of the results of tendering on the basis of the report from the investor, in order to submit it to the authorized person to consider and make a decision thereon.
Article 40 Approval of the results of tendering
1. The authorized person shall be responsible to consider and approve the results of tendering on the basis of the report on results of tendering and the report on evaluation of the results of tendering.
2. Where there is a winning tenderer, the document approving the results of tendering shall include the following particulars:
(a) Name of the winning tenderer;
(b) Winning tender price;
(c) Form of contract;
(d) Duration for implementation of contract;
(dd) Other items which need to be noted (if any).
3. In a case where there is no winning tenderer the document approving the results of tendering must state this fact, and cancel the tendering in order to conduct selection of contractor in accordance with the provisions in this Law.
Article 41 Notification of the results of tendering
1. The results of tendering shall be notified immediately after there is a decision by the authorized person approving the results of tendering.
2. The notification of the results of tendering shall not include an item explaining the reasons why there were unsuccessful tenderers.
Article 42 Negotiation, finalization and signing of the contract
1. The negotiation and finalization of a contract for signing with the winning tenderer shall be based on the following matters:
(a) Approved results of tendering;
(b) Sample contract form in which specific information about the tender package has been filled in;
(c) Requirements stipulated in the tender invitation documents;
(d) Contents of the tender and any clarification provided by the tenderer;
(dd) Contractual items which require to be negotiated and finalized as between the party calling for tenders and the winning tenderer.
2. The results of negotiation and finalization of the contract shall be the basis on which the investor and the tenderer shall conduct signing of the contract.
3. If negotiation and finalization of the contract is unsuccessful, the investor must provide a report to the authorized person for his consideration to select the next-ranking tenderer. If the next-ranking tenderer also fails to satisfy the requirements, the investor shall report to the authorized person for his consideration and decision.
SECTION 4. CANCELLATION OF TENDERING AND REJECTION OF TENDERS
Article 43 Cancellation of tendering
1. Cancellation of tendering shall apply in any one of the following cases:
(a) Alteration of the objectives or scope of the investment stated in the tender invitation documents;
(b) There is evidence showing that the party calling for tenders colluded with tenderers;
(c) All tenders failed to satisfy the basic requirements of the tender invitation documents;
(d) There is evidence to show that all tenderers colluded to adversely effect the interests of the party calling for tenders.
2. Based on the decision of the authorized person, the party calling for tenders shall be responsible for notifying all tenderers who participated in the tendering of the cancellation of the tendering.
Article 44 Financial liabilities when tendering is cancelled
1. In a case of cancellation of tendering not due to the fault of tenderers, the party calling for tenders shall be responsible to compensate tenderers for their costs of participation in the tendering on the basis of the current State regime and cost levels, except in a case where the tendering was cancelled because no tenderer satisfied the requirements of the tender invitation documents.
2. If the tendering was cancelled because of an alteration of the objective or scope of the investment, the authorized person shall make a decision on compensation for costs which shall be paid from the project budget. If the tendering was cancelled for any other reason due to the fault of the party calling for tenders, individual members of such party calling for tenders shall be liable to pay compensation for costs.
3. If tendering was cancelled due to collusion by the party calling for tenders with one or more tenderers, the individuals responsible for such collusion shall be liable to compensate the other tenderers for their costs.
Article 45 Rejection of tenders
Tenders shall be rejected in the following cases:
1. A tender fails to satisfy the important requirements set out in the tender invitation documents.
2. A tender fails to satisfy the technical requirements based on the assessment criteria.
3. A tender contains arithmetical errors with a total absolute value of more than ten (10) per cent of the tender price, except for tender packages for consultancy services or except where a tenderer does not accept the arithmetical error identified by the party calling for tenders.
4. A tender contains discrepancies with a total absolute value of more than ten (10) per cent of the tender price, except for tender packages for consultancy services.
Chapter III

CONTRACTS

Article 46 Principles for formulation of contracts
1. Contracts must comply with the provisions of this Law and other relevant laws.
2. In the case of a partnership tender, the contract signed with the investor must contain the signatures of all partners.
3. The contract sum shall not exceed the winning tender price, except for the case stipulated in clause 4 of this article.
4. In cases where a volume of works or a quantity of goods arises which exceeds the scope of the tender invitation documents leading to the contract sum exceeding the winning tender price, then the authorized person shall consider and make a decision thereon.
Article 47 Contents of contracts
1. Subject of the contract.
2. Quantity or volume of the contract.3. Specifications, quality and other technical requirements.
4. Contract sum.
5. Form of contract.
6. Duration of and schedule for implementation.
7. Terms and conditions on, and method of payment.
8. Terms and conditions on check and acceptance, and on hand-over.
9. Warranty applicable to goods to be procured, or to items to be constructed and installed.
10. Rights and obligations of the parties.
11. Liability for breach of contract.
12. Term of validity of the contract.
13. Other items depending on each form of contract.
Article 48 Forms of contract
1. Lump-sum contract.
2. Unit price contract.
3. Time based contract.
4. Percentage based contract.
Article 49 Lump-sum contract
1. The form of lump-sum contract shall apply to items of works which are clearly definable in terms of quantity or volume.
2. The contract sum shall not be altered throughout the entire duration for implementation of the contract. The investor shall pay the contractor the correct amount being the sum stated in the contract, after the contractor has discharged all his contractual obligations.
Article 50 Form of unit price contract
1. The form of unit price contract shall apply to those items of works which cannot yet be clearly defined in terms of quantity or volume.
2. The investor shall pay the contractor in accordance with the actual quantity or volume of work completed on the basis of the unit price stipulated in the contract or on the basis of the unit price adjusted and approved in accordance with article 57 of this Law.
Article 51 Form of time based contract
1. The form of time based contract shall apply to those items of works being complex research, design consultancy, supervision of execution of building, training and capacity building.
2. The investor shall pay the contractor in accordance with the actual time worked calculated in months, weeks, days and hours on the basis of the expert remuneration rates stipulated in the contract or on the basis of remuneration rates adjusted and approved in accordance with article 57 of this Law.
Article 52 Form of percentage based contract
1. The form of percentage based contract shall apply to common and simple consultancy work.
2. The contract sum shall not be altered throughout the entire duration for implementation of the contract. The contract sum shall be calculated as a percentage of the value of the works or of the volume of works. The investor shall pay the contractor the correct amount being the sum stated in the contract, after the contractor has discharged all his contractual obligations.
Article 53 Multiple contractual forms within the one contract
1. If any one contract contains one or more components being forms of contract stipulated in articles 49 to 52 inclusive of this Law, then the payment principles stipulated in the corresponding articles shall apply.
Article 54 Signing of contract
1. The signing of the contract shall be based on the following documents:
(a) Results of negotiation and finalization of the contract;
(b) Decision on approval and notice of results of selection of contractor;
(c) Tender and any documents clarifying the tender provided by the selected contractor;
(d) Tender.
2. The signing of the contract must ensure compliance with the following conditions:
(a) The tender of the selected contractor still remains valid;
(b) The information on the technical and financial capability of the contractor has been updated as at the date of signing the contract and satisfies the requirements set out in the tender invitation documents.
Article 55 Contract performance guarantee
1. The winning tenderer must provide a contract performance guarantee prior to the date on which the contract takes effect, except in the case of tendering for the provision of consultancy services and except in the case of self-implementation of a contract.
2. The value of a contract performance guarantee shall be stipulated in the tender invitation documents and shall be a maximum of ten (10) per cent of the contract sum; in cases where there is a need to guard against high risks, then the value of the contract performance guarantee shall be higher but shall not exceed thirty (30) per cent of the contract sum and in such case there must be permission from the authorized person.
3. The term of validity of a contract performance guarantee must extend until the date of transfer of warranty obligations (if any).
4. The contractor shall not be entitled to the return of the contract performance guarantee if the contractor refuses to perform the contract after the date the contract takes effect.
Article 56 Warranty
Any contract containing contents being goods to be procured or items to be constructed and installed must contain a warranty provision. The term of the warranty, the amounts payable pursuant to the warranty, and other clauses and conditions of the warranty shall be set out in the contract and must be based on provisions of law.
The Government shall provide detailed regulations on the warranty applicable to contractual contents being goods to be procured or items to be constructed and installed.
Article 57 Adjustment to contracts
1. Adjustment to contracts shall only apply to unit price contracts and time based contracts, and shall be carried out as follows:
(a) When there is a change in State policy in relation to tax or wages which directly impacts on the contract sum, the contract shall be adjusted in accordance with such policy as from the date the policy take effect;
(b) When there are increases or decreases in the volume or quantity of works throughout the process of contractual performance, but such changes are within the scope of the tender invitation documents and are not caused by the fault of the tenderer, then the calculation of the value of such increases or decreases shall be based on the unit price of the contract;
(c) When there are major fluctuations in State controlled prices of fuel, supplies and equipment as set out in the contract and such fluctuations directly impact on contractual performance, then such situation must be reported to the authorized person for his consideration and decision.
2. Adjustments to a contract shall only be applied within the period for implementation of the contract as set out in the signed contract and the authorized person must consider and make a decision on any adjustment. The adjusted contract sum shall not exceed the total estimated budget, estimated budget or tender package price set out in the approved tendering plan, unless the authorized person otherwise permits.
3. Where additional work beyond the scope of the tendering invitation documents reasonably arises, the investor shall reach agreement with the contractor who signed the contract on calculation of such additional work and shall report to the authorized person for his consideration and decision. If discussions between the investor and the contractor are unsuccessful, the additional items of work shall be treated as a new tender package for which selection of a contractor shall be conducted in accordance with the provisions in this Law.
Article 58 Contract payment
The contract sum and the specific terms and conditions on payment as set out in the contract shall be the basis on which the investor shall make payment to the contractor.
Article 59 Supervision of implementation of contract, check and acceptance, and liquidation of the contract
1. Supervision of implementation of the contract shall be carried out in accordance with the following provisions:
(a) The investor shall be responsible to supervise the contractor throughout performance of the contract;
(b) Any individual assigned the task of supervision of implementation of the contract must ensure that he or she is disinterested, honest, objective, capable, experienced and has the professional knowledge necessary to carry out such supervision, and such individual shall be liable before the investor and the law for carrying out the tasks;
(c) If any consultant supervising execution of building is irresponsible or colludes with the construction contractor to certify an incorrect quantity or quality of works, then both the consultancy contractor and the construction contractor must pay compensation for loss and damage and shall be dealt with in accordance with article 75 of this Law and other relevant laws;
(d) The community of citizens shall participate in supervision of tendering activities in accordance with regulations of the Government.
2. Check and acceptance of the contract shall be implemented in accordance with the following provisions:
(a) The acceptance of each part of the contract or of the entire contract must be conducted in accordance with the terms and conditions set out in the signed contract;
(b) Any individual assigned the task of supervision of implementation of the contract must ensure that he or she is disinterested, honest, objective, capable, experienced and has the professional knowledge necessary to carry out such supervision, and such individual shall be liable before the investor and the law for carrying out the tasks;
3. Liquidation of the contract shall be completed within a time-limit of forty five (45) days from the date on which the investor and the contractor fully discharge their contractual obligations; in the case of a very complex tender package, it shall be permissible to extend the time-limit for liquidation of the contract but not in excess of ninety (90) days.
Chapter IV

RIGHTS AND OBLIGATIONS OF PARTIES IN TENDERING

Article 60 Responsibilities of the authorized person
1. To approve the tendering plan.
2. To approve, or to delegate authority to another to approve, the tender invitation documents.
3. To approve, or to delegate authority to another to approve, the results of selection of contractor.
4. To make a decision dealing with any exceptional situation during tendering.
5. To resolve protests regarding tendering.
6. To deal with breaches of the Law on Tendering pursuant to article 75 of this Law and other relevant laws.
7. To be legally liable for his or her decisions.
Article 61 Rights and obligations of investors
1. To make a decision on items relevant to pre-qualification of tenderers.
2. To approve a list of participating tenderers.
3. To establish an expert tendering group; to select a consultancy organization or a professional tendering organization pursuant to this Law to represent the investor in acting as the party calling for tenders.
4. To approve the list of tenderers who have satisfied the technical requirements, and the list ranking the tenderers.
5. To approve the results of direct appointment of contractor in the cases stipulated in sub-clauses (a) and (dd) of clause 1 of article 20 of this Law.
6. To be responsible to formulate the requirements applicable to a direct appointment tender package.
7. To be liable for the contents of contracts, for signing a contract with the selected contractor, and for fulfilling undertakings set out in the contract signed with the contractor.
8. To be legally liable for the process of selection of contractor pursuant to this Law.
9. To pay compensation for loss and damage to related parties pursuant to this Law if such loss and damage was caused by the investor’s fault.
10. To provide information to the Tendering Newsletter and to the tendering website.
11. To resolve protests regarding tendering.
12. To maintain confidentiality of documents on tendering pursuant to the provisions of this Law.
Article 62 Rights and obligations of parties calling for tenders
1. A party calling for tenders shall have the following rights and obligations:
(a) To conduct preparations for tendering, to organize tendering, and to assess tenders in accordance with this Law;
(b) To request tenderers to clarify their tenders during the process of assessment of tenders;
(c) To prepare an overall report on the process of selection of contractor and to provide reports to the investor on both the results of pre-qualification and on the results of selection of contractor;
(d) To negotiate and finalize a contract on the basis of the approved results of selection of contractor;
(dd) To prepare the contents of the contract in order for the investor to consider such contents and sign the contract;
(e) To ensure honesty, objectivity and impartiality throughout the process of tendering;
(g) To pay compensation for loss and damage to relevant parties pursuant to this Law if such loss and damage was caused by the fault of the party calling for tenders;
(h) To provide information to the Tendering Newsletter and to the tendering website;
(i) To resolve protests regarding tendering;
(k) To maintain confidentiality of documents on tendering pursuant to this Law.
2. In a case where the party calling for tenders is concurrently the investor, then in addition to the rights and obligations stipulated in clause 1 of this article the party calling for tenders must also comply with article 61 of this Law.
Article 63 Rights and obligations of expert tendering groups
1. To conduct assessments of tenders correctly in accordance with the requirements and assessment criteria set out in the tender invitation documents.
2. To maintain confidentiality of documents regarding tendering pursuant to this Law throughout the process of implementation of their duties.
3. To reserve their own opinions.
4. To be honest, objective and impartial throughout the process of assessment of tenders and reporting on the results of assessment.
5. To pay compensation for loss and damage to relevant parties pursuant to this Law if such loss and damage was caused by the fault of the expert tendering group.
6. To exercise other rights and to discharge other obligations in accordance with law.
Article 64 Rights and obligations of tenderers
1. To participate in tendering in the capacity of an independent tenderer or a partnership tenderer.
2. To request the party calling for tenders to clarify the tender invitation documents.
3. To fulfil the contractual undertakings provided to the investor and to sub-contractors (if any).
4. To lodge protests, to make complaints and denunciations regarding tendering.
5. To comply with the provisions of the law on tendering.
6. To be honest and accurate during the process of participation in tendering and whilst lodging protests or making complaints and denunciations regarding tendering.
7. To pay compensation pursuant to law for loss and damage to relevant parties, if such loss and damage was caused by the fault of the tenderer.
Article 65 Rights and obligations of evaluating bodies or organizations
1. To act independently and to comply with the provisions of this Law and other relevant laws when conducting evaluations.
2. To request the investor and the party calling for tenders to provide all relevant documents and data.
3. To maintain confidentiality of documents and data throughout the process of evaluation.
4. To be honest, objective and impartial throughout the process of evaluation.
5. To reserve their own opinion and to bear liability for their evaluation report.
6. To exercise other rights and to discharge other obligations in accordance with law.
Chapter V

ADMINISTRATION OF TENDERING ACTIVITIES

Article 66 Contents of State administration of tendering
1. Promulgating, disseminating, guiding and organizing implementation of legal instruments and policies on tendering.
2. Training and capacity building for senior personnel engaged in tendering work.
3. Summarizing, assessing and reporting on the status of implementation of tendering activities.
4. Administering on a nationwide basis the tendering information system comprising the Tendering Newsletter, the tendering website and the national tendering network.
5. Conducting international co-operation regarding tendering.
6. Conducting checks and inspections; resolving protests, complaints and denunciations regarding tendering, and dealing with breaches of the law on tendering in accordance with this Law and other relevant laws.
Article 67 Responsibilities and powers of the Government and of the Prime Minister of the Government
1. The Government shall exercise unified administration of tendering throughout the country.
2. The Prime Minister of the Government shall discharge the following responsibilities and exercise the following powers:
(a) Direct the work of conducting inspections and of resolving protests about tendering in accordance with this Law and the law on inspections;
(b) Regulate which evaluating body and/or organization shall assist the authorized person throughout the process of consideration and approval of tendering issues;
(c) In the case of investment projects formulated pursuant to resolutions of the National Assembly, make decisions on the tendering issues stipulated in article 60 of this Law.
(d) Discharge other responsibilities and exercise other powers in accordance with this Law and other relevant laws.
Article 68 Responsibilities and powers of the Ministry of Planning and Investment
1. To be responsible before the Government for the exercise of State administration of tendering activities.
2. To evaluate tendering plans and results of selection of contractor in tender packages belonging to projects within the decision-making power of the Prime Minister of the Government and stipulated in sub-clause (c) of clause 2 of article 67 of this Law.
3. To establish and administer the Tendering Newsletter, the tendering website and the national tendering network.
4. To act as the co-ordinator assisting the Government and the Prime Minister of the Government in conducting international co-operation in the tendering sector.
5. To organize training and capacity building for senior personnel engaged in tendering work.
6. To summarize, assess and provide reports on the status of implementation of tendering activities.
7. To resolve, within the scope of its authority, protests regarding tendering.
8. To preside over co-ordination with other relevant bodies in conducting checks and inspection of tendering on a nationwide basis.
9. To implement other duties regarding tendering as assigned to it by the Government.
Article 69 Responsibilities and powers of ministries, ministerial equivalent bodies, and all level people’s committees
Ministries, ministerial equivalent bodies and people’s committees at all levels shall, within the scope of their respective duties and powers, have the following responsibilities and duties:
1. To exercise administration of tendering work.
2. To organize training and capacity building for senior personnel engaged in tendering work.
3. To summarize and assess the status of implementation of tendering activities.
4. To provide reports on tendering activities pursuant to regulations of the Government.
5. To resolve protests regarding tendering pursuant to this Law.
6. To conduct checks and inspections of tendering.
7. To deal with breaches of the law on tendering by organizations and individuals involved in tendering activities.
8. In cases where a minister, head of a ministerial equivalent body or chairman of a people’s committee at any level is concurrently the authorized person, then such minister, head or chairman must also discharge the responsibilities stipulated in article 60 of this Law.
Article 70 Dealing with exceptional situations in tendering
1. Exceptional situations in tendering shall be dealt with in compliance with the following principles:
(a) Ensuring competitiveness, fairness, transparency and economic efficiency;
(b) Acting on the basis of the approved tendering plan, of the contents of the tender invitation documents and of the tenders of the tenderers participating in the tendering;
(c) The authorized person shall be the person making a decision on dealing with any exceptional situation in tendering, and shall be responsible before the law for his decision.
2. Categories of exceptional situations shall comprise:
(a) Regarding preparation for and organization of tendering: items adjusting a tendering plan, a tender package price or other contents of a tender package; amendments to tender invitation documents; submission of tenders if tenders are submitted out of time or if too few tenders have been submitted; and amendments to the number of participating tenderers;
(b) Regarding assessment of tenders: situations in which tender prices exceed the tender package price, and tender prices made up of unusual unit prices;
(c) Regarding recommendation of winning tenderer and signing of the contract: situations in which the winning tender price is below fifty (50) per cent of the tender package price or the approved estimated budget; situations in which two tenders are both assessed as the best price and are identical, or where the proposed contract sum exceeds the approved winning tender price;
(d) Regarding the procedures and sequence for implementation of tendering.
The Government shall provide detailed regulations on dealing with exceptional situations in tendering.
Article 71 Tendering Inspectorate
1. Tendering inspections shall be carried out of organizations and individuals who are involved in tendering activities in order to implement a tender package belonging to any of the projects stipulated in article 1 of this Law.
2. The Tendering Inspectorate shall be the specialized inspectorate for the tendering sector. The organization and operations of the Tendering Inspectorate shall be implemented in accordance with the law on inspections.
Article 72 Resolution of protests regarding tendering
1. Tenderers shall have the right to protest about the results of selection of contractor and about other relevant matters during the tendering process.
2. The entities responsible for resolution of a protest made by a tenderer during the tendering process shall be the party calling for tenders, the investor and the authorized person. The authorized person shall resolve any protest by a tenderer regarding results of selection of contractor on the basis of a report from the Consulting Council for Resolution of Protests pursuant to article 73 of this Law.
3. With regard to protests about relevant matters during the tendering process other than the results of selection of contractor, the time-limit for lodging a protest shall be calculated as from the date the event protested about arose until the date of the notification of results of tendering. The time-limit for lodging a protest about the results of selection of contractor shall be a maximum of ten (10) days after the date of notification of results of tendering.
Article 73 Procedures for resolution of protests regarding tendering
1. The resolution of protests about relevant matters during the tendering process shall be implemented as follows:
(a) The party calling for tenders shall be responsible to resolve a protest regarding tendering made by a tenderer within a time-limit of a maximum five (5) working days from the date of receipt of the written protest of the tenderer. If the party calling for tenders is unable to resolve the protest or if the tenderer disagrees with the resolution as made by the party calling for tenders, the tenderer shall have the right to lodge the protest with the investor for the latter’s consideration and resolution in accordance with the provisions in sub-clause (b) of this clause.
(b) The investor shall be responsible to resolve a protest regarding tendering made by a tenderer within a time-limit of a maximum seven (7) working days from the date of receipt of the written protest of the tenderer. If the investor is unable to resolve the protest or if the tenderer disagrees with the resolution as made by the investor, the tenderer shall have the right to lodge the protest with the authorized person for the latter’s consideration and resolution in accordance with the provisions in sub-clause (c) of this clause.
(c) The authorized person shall be responsible to resolve a protest regarding tendering made by a tenderer within a time-limit of a maximum fifteen (15) working days from the date of receipt of the written protest of the tenderer. If the authorized person is unable to resolve the protest or if the tenderer disagrees with the resolution as made by the authorized person, the tenderer shall have the right to institute court proceedings.
2. The resolution of protests about results of selection of contractor shall be implemented as follows:
(a) In accordance with the provisions in sub-clause (a) of clause 1 of this article.
(b) In accordance with the provisions in sub-clause (b) of clause 1 of this article. If the investor is unable to resolve the protest or if the tenderer disagrees with the resolution as made by the investor, the tenderer shall have the right to concurrently submit the written protest to the authorized person and to the chairman of the Consulting Council for Resolution of Protests for consideration and resolution pursuant to sub-clause (c) of this clause.
(c) The Consulting Council for Resolution of Protests (hereinafter referred to as the Consulting Council) shall be responsible to request the tenderer, the investor and other bodies involved in the tendering to provide necessary information, data and opinions in order to formulate a report on the results of the tendering work. If necessary, the Consulting Council may work directly with the parties involved in order to clarify issues. The time-limit within which the Consulting Council shall provide it’s report shall be a maximum twenty (20) days after the date of receipt of the written protest of the tenderer. The chairman of the Consulting Council shall be a representative of the State administrative body for tendering, and members of the Consulting shall include a representative of the authorized person and a representative of the relevant occupational organization concerned. The authorized person shall be responsible to issue a decision on resolution of the protest of the tenderer within a time-limit of a maximum five (5) working days after the date of receipt of the report on results of tendering work from the Consulting Council. If the tenderer disagrees with the resolution made by the authorized person, the tenderer shall have the right to institute court proceedings.
3. A tenderer who wishes to make a protest regarding tendering shall have the right to institute court proceedings. If the tenderer chooses not to institute court proceedings, then the protest shall be resolved in accordance with clauses 1 and 2 of this article.
The Government shall provide detailed regulations on resolution of protests and on the operation of the Consulting Council.
Article 74 Complaints and denunciations about tendering
The making of complaints and denunciations about tendering and the resolution of such complaints and denunciations shall be implemented in accordance with the law on complaints and denunciations.
Article 75 Dealing with breaches of the law on tendering
1. Any organization or individual who breaches the law on tendering shall be dealt with by one of the following forms:
(a) A warning shall apply to any organization or individual in breach of the provisions of the Law on Tendering other than the breaches stipulated in article 12 of this Law;
(b) A fine shall be imposed on any organization or individual who acts in breach of the Law on Tendering and causes loss and damage to the interests of related parties;
(c) The penalty of prohibition from participation in tendering shall apply to any organization or individual who commits a breach being one of the acts stipulated in article 12 of this Law.
2. Any individual who commits a breach of the Law on Tendering where such conduct also constitutes a criminal offence shall be dealt with in accordance with the criminal law.
3. Any breach of the Law on Tendering by an organization or individual shall, in addition to being dealt with pursuant to the provisions in clause 1 of this article, be listed in the Tendering Newsletter and on the tendering website.
The Government shall provide detailed regulations on dealing with breaches of the law on tendering.
Chapter VI

IMPLEMENTING PROVISIONS

Article 76
The Government shall provide detailed regulations and guidelines for implementation of this Law.
Article 77
This Law shall be of full force and effect as of 1 April 2006.
This Law was passed by Legislature XI of the National Assembly of the Socialist Republic of Vietnam at its 8th Session on 29 November 2005.
 

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THE NATIONAL ASSEMBLY

SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom – Happiness

Law No. 44/2005/QH11

LAW ON TOURISM

(Law No. 44/2005/QH11)

Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No. 51/2001/QH10 of the Xth National Assembly, 10^th session, on December 25, 2001;
This law provides for tourism.
Chapter I

GENERAL PROVISIONS

Article 1.- Scope of application
This Law provides for tourism resources and activities; rights and obligations of tourists, organizations and individuals doing tourism business and other organizations and individuals engaged in tourism-related activities.
Article 2.- Subjects of application
1. Vietnamese and foreign organizations and individuals engaged in tourism activities in the territory of Vietnam;
2. Agencies, organizations, individuals and local communities engaged in tourism-related activities.
Article 3.- Application of the law on tourism
1. The subjects stipulated in Article 2 of this Law shall abide by the provisions of this Law and other relevant provisions of Vietnamese law.
2. Where the treaties to which the Socialist Republic of Vietnam is a contracting party contain provisions different from those of this Law, the provisions of such treaties shall apply. In cases where the Vietnam laws or treaties to which the Socialist Republic of Vietnam is a contracting party do not stipulate, parties engaged in tourism activities may agree to apply international customs provided that as they are not against the fundamental principles of Vietnamese law.
Article 4.- Interpretation of terms
In this Law, the following terms are construed as follows:
1. Tourism means activities connected with trips taken by people outside their habitual residences aimed at satisfying their needs for sightseeing, study, leisure or recreation in a certain period of time.
2. Tourist means a person who travels for either tourism or for other purposes combined with tourism, except for those who go to study, work or practice their professions to get paid at the places of destination.
3. Tourism activity means activities of tourists, organizations and individuals doing tourism business, local communities, agencies, organizations and individuals engaged in tourism-related activities.
4. Tourism resources mean natural landscapes, natural elements, historical or cultural relics, works of creative human labor or humanity value which can be utilized to meet tourist needs and constitute a fundamental factor to form tourist resorts, tourist spots, tourist routes or tourist cities.
5. Sightseeing means activities of a tourist during a day at a tourism-resourced area in order to experience and appreciate the values of tourism resources.
6. Tourist city is a city having advantages to develop tourism and in which tourism plays an important part in its activities.
7. Tourist resort is an area which has attractive tourism resources, with natural tourism resources as its advantage, and has been properly planned and invested for development with the aim of meeting the various demands of tourists and bringing about socio-economic and environmental benefits.
8. Tourist spot means a place having attractive tourism resources that satisfy the sightseeing demand of tourists.
9. Tourist route means an itinerary which links various tourist resorts, tourist spots and tourist service-providing establishments associated with land, rail, waterway and air transport routes.
10. Tourist product means a combination of necessary services provided in order to meet the needs of tourists during a trip.
11. Tourist service means the provision of services in travel, transportation, accommodation, meals and drinks, entertainment, information, guidance and other services to satisfy the needs of tourists.
12. Tourist accommodation establishment means an establishment which rents rooms and beds and provides other related services for guests, of which hotels constitute a major form.
13. Tour program comprises an itinerary and services at tour price which has been fixed in advance for a tourists trip from its beginning to end.
14. Travel business means the formulation, sale and organization of a part or the whole of a tour program for tourists.
15. Tourist guiding means an activity of guiding tourists under a tour program.
A person who conducts the guiding activity is called a tourist guide and is paid for the tour guiding service.
16. Specialized means of transport of tourists is a means with sufficient conditions to cater tourist services, which is used to carry tourists under a tour program.
17. Tourism promotion means an activity of public information, publicity and marketing aimed at seeking and stimulating opportunities for tourism development.
18. Sustainable tourism means development of tourism that meets the needs of the present without harming the ability of the future to meet tourism needs.
19. Eco-tourism means a type of tourism that is based on nature, connected with the local cultural identity and with the participation of local communities for the sake of sustainable development.
20. Cultural tourism means a type of tourism that is based on the national cultural identity with the participation of local communities in order to preserve and bring into full play their traditional cultural values.
21. Tourist environment consists of natural and social ones where tourist activities take place.
Article 5.- Principles of tourism development
1. To develop sustainable tourism in line with master plans and plans, ensuring harmony between socio-economic development and environmental protection; develop cultural and historical tourism and eco-tourism in priority and key regions; and conserve, embellish and promote the values of tourism resources.
2. To ensure national sovereignty, national defense, security, social order and safety.
3. To ensure national and community interests, legitimate interests, security and safety of tourists, and the lawful rights and interests of organizations and individuals doing tourism business.
4. To ensure the participation of all economic sectors and people of all strata in the cause of tourism development.
5. To contribute to expanding foreign relations and international exchanges in order to promote the image of the country and people of Vietnam.
6. To develop both domestic and international tourism with a view to attracting increasing numbers of foreign tourists to Vietnam.
Article 6.- Tourism development policies
1. The State shall create mechanisms and adopt policies to mobilize every resource for increased investment in tourism development to ensure tourism is a national spearhead industry.
2. The State shall implement incentive and preferential policies on land, finance and credit for foreign and domestic individuals and organizations investing in the following fields:
a/ Protection and embellishment of tourism resources and environment;
b/ Tourism publicity and promotion;
c/ Training and development of human resources in tourism;
d/ Research into, and investment and development of, new tourism products;
e/ Modernization of tourism activities;
f/ Construction of tourism infrastructure, physical and technical facilities, importation of high-quality means for transportation of tourists and modern equipment exclusively used for high-graded tourist accommodation establishments and national tourist resorts.
g/ Development of tourism in remote and isolated areas and in areas with socio-economic difficulties where there are tourism potentials so as to make use of the labor force, goods and services in the spot, contributing to raising the peoples intellectual level and to hunger elimination and poverty reduction.
3. The State shall allocate budget for planning work; support investment in building infrastructures in tourist cities, tourist resorts and tourist spots and support tourism publicity and promotion, protection and embellishment of tourism resources and environment, research and application of science and technology, and training and development of human resources in tourism.
4. The State shall create favorable conditions for foreigners and overseas Vietnamese to visit Vietnam for tourist purposes, for Vietnamese citizens and foreigners living in Vietnam to travel in and out of the country for tourist purposes, respecting and protecting the lawful rights and interests of tourists.
5. The State shall create favorable conditions for organizations and individuals of all economic sectors and people of all strata to take part in tourism activities and enhance international exchanges and cooperation in tourism between Vietnam and other countries in the region and the world.
6. The State shall encourage and create favorable conditions for the establishment of a Tourism Development Assistance Fund from the source of contributions of those who benefit from tourism activities as well as voluntary contributions of organizations and individuals at home and abroad.
The State shall specify tourism development policies provided for in this Article.
Article 7.- Participation of local communities in tourism development
1. Local communities shall have the rights to participate in and enjoy lawful benefits from tourism activities; be responsible for preserving tourism resources and nurturing the local cultural identity; and maintaining security, safety, social order and environmental sanitation to generate the attractiveness of tourism.
2. Local communities shall be provided with conditions to invest in tourism development, restoration and promotion of various traditional cultures, folklore arts, crafts, and production of local goods in service of tourists, contributing to raising the material and spiritual life of local inhabitants.
Article 8.- Tourism association
1. The tourism association shall be established on the basis of voluntary participation of individuals and organizations engaged in tourism-related activities, protecting the lawful rights and interests and contributing to the development of its members.
2. The tourism association shall take part in organizing tourism publicity and promotion activities and in formulating and disseminating the provisions of law on tourism.
3. The organization and operation of the tourism association shall comply with the provisions of law on associations.
Article 9.- Protection of the tourism environment
1. The natural and social humanity environment shall be protected, enhanced and developed with the aim of ensuring a green, clean, sound, safe, secure, wholesome and civilized tourism environment.
2. Ministries and ministerial-level agencies shall, within the scope of their duties and powers, issue regulations in order to protect, enhance and develop the tourism environment.
3. Peoples Committees at all levels shall take measures to protect, enhance and develop the tourism environment in conformity with local conditions.
4. Organizations and individuals doing tourism business must collect and treat wastes discharged during their business operations; remedy negative impacts on the environment caused by their business operations; and take measures to prevent and fight against social evils in their business establishments.
5. Tourists, local communities and other organizations and individuals must protect and preserve landscapes, the environment, national cultural identity and fine national customs and practices, and behave in polite and civilized manners in order to promote the image of the country, people and tourism of Vietnam.
Article 10.- Scope of State administration of tourism
1. To formulate, and direct the implementation of, tourism strategies, master plans, plans and policies on tourism development;
2. To formulate, issue and direct the implementation of, legal documents, economic and technical norms and standards in tourism activities;
3. To propagate, disseminate and educate laws and regulations, and provide information on tourism;
4. To organize and manage the training of human resources, research into and application of sciences and technology.
5. To conduct surveys and evaluation of tourism resources in order to formulate tourism master plans and identify tourist resorts, tourist spots, tourist routes and tourist cities;
6. To undertake international cooperation in tourism and tourism promotion activities inside and outside Vietnam;
7. To provide for the apparatus of state administration of tourism and coordination among relevant state agencies in state administration of tourism;
8. To issue and withdraw licenses and certificates of tourism;
9. To monitor, inspect and settle complaints and denunciations and handle violations of tourism law.
Article 11.- Responsibility for State administration of tourism
1. The Government shall perform uniform State administration of tourism.
2. The State administrative agency in charge of tourism at the central level shall be responsible for assisting the Government in performing State administration of tourism and organizing and coordinating with other state agencies in performing State administration of tourism.
3. Ministries and ministerial-level agencies shall, within the scope of their duties and powers, and under the assignment of the Government, be responsible for coordinating with the central-level State administrative agency in charge of tourism in performing State administration of tourism.
4. Peoples Committees of provinces and centrally-run cities (hereinafter referred to as provincial-level Peoples Committees) must, within the scope of their duties and powers and under decentralization of the Government, perform State administration of tourism in their localities; formalize tourism development strategies, master plans, plans, mechanisms and policies in conformity with local conditions; and take measures to ensure security, social order and safety, and environmental sanitation at tourist resorts, tourist spots, tourist routes and tourist cities.
Article 12.- Prohibited acts
1. Causing harm to national sovereignty, national interests, defense, security, social order and safety, cultural traditions, ethics and fine national customs and practices.
2. Constructing tourism projects which are not in compliance with approved tourism plans.
3. Damaging tourism resources and environment;
4. Discriminating against tourists and making illicit profits from tourists.
5. Scrambling for customers or insisting on or forcing customers to purchase goods or services.
6. Running a tourism business without license and registration or out of their registered business line or scope.
7. Abusing the legal status of other organizations or allowing other persons to use their legal status to do illegal business.
8. Abusing ones position and powers to take bribes from, harass or trouble organizations or individuals doing tourism business or tourists.
Chapter II

TOURISM RESOURCES

Article 13.- Categories of tourism resources
1. Tourism resources consist of natural and humanity tourism resources which are under exploitation or not yet exploited.
Natural tourism resources include elements of geology, topography, geomorphology, climate, hydrography, ecosystems and natural landscapes which can be used for tourism purposes.
Humanity tourism resources include cultural traditions; cultural factors; folk literature; historical, revolutionary, archaeological, and architectural relics; creative works by human beings; and other tangible and intangible cultural heritage which can be used for tourism purposes.
2. Tourism resources may come under the ownership of the State or of organizations and individuals.
Article 14.- Surveys of tourism resources
The central-level State administrative agency in charge of tourism shall assume the prime responsibility for and coordinate with relevant State administrate agencies and provincial-level Peoples Committees in conducting surveys, evaluation and classification of tourism resources for the formulation of tourism development master plans and to identify and promulgate tourist resorts, tourist spots, tourist routes and tourist cities.
Article 15.- Principles of protection and development of tourism resources
1. Tourism resources shall be properly protected, enhanced and rationally exploited for effective utilization and sustainable tourism development.
2. The State shall perform the uniform administration of tourism resources throughout the country and implement policies and take measures to protect, enhance and rationally exploit tourism resources.
Article 16.- Responsibility for administration, protection, embellishment and development of tourism resources
1. The central-level State administrative agency in charge of tourism, ministries, ministerial-level agencies and Peoples Committees at all levels shall manage tourism resources and coordinate with one another in protecting, rationally exploiting, utilizing, and developing tourism resources.
2. State agencies, organizations and individuals that own or manage tourism resources shall protect, invest in and enhance these resources, and create conditions for tourists to visit and appreciate their values according to the provisions of law.
3. Tourists, organizations, individuals doing tourism business and local communities must protect tourism resources.
4. Organizations and individuals that own or manage tourism resources shall coordinate with competent state agencies in charge of tourism in utilizing and exploiting tourism resources for any other economic purposes, ensuring that these activities shall not lessen the attractiveness of tourism resources.
Chapter III

TOURISM DEVELOPMENT PLANS

Article 17.- Categories of tourism development plans
1. Tourism development plans shall be of the tourism industry, including master plans and specific plans for tourism development.
Master plans for tourism development shall be made for the whole country, tourist zones, key tourist areas, provinces, centrally-run cities and national tourist resorts.
3. Specific plans for tourism development shall be made for functional areas within national tourist resorts, local tourist resorts and national tourist spots having natural tourism resources.
Article 18.- Principles for formulation of tourism development plans
1. Compliance with the national socio-economic development strategy and master plan and with the strategy for tourism development.
2. Assurance of national sovereignty, defense, security, social order and safety.
3. Protection and development of tourism resources and environment and preservation and promotion of the national cultural identity.
4. Feasibility and balance between supply and demand in tourism.
5. Promotion of strengths of each region and locality to create unique tourist products for the purpose of rationally and efficiently utilizing tourism resources.
6. Publicity during the formulation and promulgation of plans.
Article 19.- Contents of tourism development plans
1. The contents of a master plan for tourism development shall include:
a/ The position, role and advantages of tourism in the socio-economic development of the locality, region and country;
b/ Analysis and evaluation of potentials and current status of tourism resources, tourism markets and resources for tourism development;
c/ Viewpoints, objectives, characteristics and scale of development for the area covered by the plan, including forecast target data and justifications of alternatives for tourism development;
d/ Organization of the tourism space and infrastructure and physical-technical facilities for tourism;
e/ List of prioritized areas and projects for investment and needs for land use, investment capital and manpower in tourism;
f/ Assessment of environmental impact and solutions to protecting both tourism resources and the environment; and,
g/ Proposed mechanisms, policies and measures for tourism management and development according to the plan.
2. A specific plan for tourism development shall, in addition to the contents specified in Clause 1 of this Article, include the following principal contents:
a/ Functional areas, ground scheme, infrastructure works, physical-technical facilities for tourism, and land use alternatives;
b/ List of investment projects and investment schedule;
c/ Analysis of socio-economic and environmental benefits; and,
d/ Recommendations on measures for management and implementation of the plan.
Article 20.- Competence to formulate, approve and decide on tourism development plans
1. The central-level State administrative agency in charge of tourism shall assume the prime responsibility for formulating master plans for development of the tourism industry and development of tourist zones, key tourist areas and national tourist resorts and submit them to the Government and the Prime Minister for approval according to competence.
2. Provincial-level Peoples Committee shall formulate master plans for tourism development for their provinces or centrally-run cities and submit them to the Peoples Councils of the same level for decision after obtaining the opinions of the central-level State administrative agency in charge of tourism.
Specific plans of functional zones within national tourist resorts, local tourist resorts and national tourist spots having natural tourism resources shall be decided by provincial-level Peoples Committee after obtaining the opinions of the central-level state administrative agency in charge of tourism.
3. The agency which is empowered to approve or decide on any tourism development plan shall be competent to approve and decide on the revision of such tourism development plan.
Article 21.- Management and implementation of tourism development plans
1. After a tourism development plan has been decided upon and approved, the formulating agency shall have to announce and provide necessary information about the plan to concerned organizations and individuals for implementation and implementation monitoring.
2. The formulation and implementation of tourism development projects, projects having impacts on tourism resources and other tourism-related projects shall comply with the tourism development plans which have been approved by competent state agencies and be subject to the endorsement of competent state agencies in charge of tourism.
3. Provincial-level Peoples Committees shall allocate land for tourism infrastructure works, physical-technical facilities in tourist cities, tourist resorts and tourist spots in accordance with decided, approved and promulgated tourism development plans; and shall not assign or lease land to investment projects which are contrary to tourism development plans or investment projects or which will exert negative impacts on tourism resources and environment.
4. All organizations and individuals must strictly follow the approved, decided tourism development plans and shall neither encroach upon or illegally use land areas already planned for tourism development.
Chapter IV

TOURIST RESORTS, TOURIST SPOTS, TOURIST ROUTES AND TOURIST CITIES

Section 1. TOURIST RESORTS, TOURIST SPOTS, TOURIST ROUTES
Article 22.- Classification of tourist resorts, tourist spots, tourist routes
Tourist resorts, tourist spots, and tourist routes shall be classified at the national or local level based on their scale, attractiveness to tourists, service-provision capability and service quality.
Article 23.- Conditions for recognition as a tourist resort
1. A tourist resort that fully meets the following conditions shall be recognized as a national tourist resort:
a/ Having particularly attractive tourism resources with natural landscapes as an advantage and capable of attracting a large number of tourists.
b/ Having an area of at least 1,000 hectares, including a necessary area for construction of tourist service works and facilities in conformity with the landscape and environment of the tourist resort, although in particular cases where the area is narrower, the central-level State administrative agency in charge of tourism shall submit a proposal to the Prime Minister for consideration and approval; and,
c/ Having comprehensive infrastructure and tourist physical-technical facilities, capable of providing services for at least one million tourist arrivals a year, including necessary accommodation and tourism service facilities suitable to the characteristics of the tourist resort.
2. A tourist resort that fully meets the following conditions shall be recognized as a local tourist resort:
a/ Having appealing tourism resources capable of attracting tourists;
b/ Having an area of at least 200 hectares, including a necessary area for construction of tourist service works and facilities; and,
c/ Having necessary infrastructure, tourist physical-technical facilities, accommodation and tourist service facilities suitable to the characteristics of the locality and capable of providing services for at least 100,000 tourist arrivals a year.
Article 24.- Conditions for recognition as a tourist spot
1. A tourist spot that fully meets the following conditions shall be recognized as a national tourist spot:
a/ Having particularly attractive tourism resources to meet tourists sightseeing needs;
b/ Having necessary infrastructure and tourist service facilities capable of providing services for at least 100,000 tourist arrivals a year.
2. A tourist spot that fully meets the following conditions shall be recognized as a local tourist spot:
a/ Having attractive tourism resources to meet tourists sightseeing needs;
b/ Having necessary infrastructure and tourist service facilities capable of providing services for at least 10,000 tourist arrivals a year.
Article 25.- Conditions for recognition as a tourist route
1. A tourist route that fully meets the following conditions shall be recognized as a national tourist route:
a/ Linking various tourist resorts and tourist spots, including national, inter-regional and inter-provincial tourist resorts and tourist spots, and linked to international border gates; and,
b/ Taking measures to preserve landscapes, environment and service facilities for tourists along the route.
2. A tourist route that fully meets the following conditions shall be recognized as a local tourist route:
a/ Connecting tourist resorts and tourist spots within a locality; and,
b/ Taking measures to preserve landscapes, environment and service facilities for tourists along the route.
Article 26.- Dossiers for recognition as tourist resorts, tourist spots or tourist routes
1. A dossier for recognition as a tourist resort shall consist of:
a/ A written statement, requesting recognition as a tourist resort, made by a competent State administrative agency in charge of tourism; and,
b/ A report on the master plan or specific plan for development of the tourist resort, enclosed with the decision of a competent State administrative agency as stipulated at Article 20 of this Law.
2. A dossier for recognition as a tourist spot shall consist of:
a/ A written statement, requesting recognition as a tourist spot, made by a competent State administrative agency in charge of tourism; and,
b/ An explanatory document on the tourist spot proposed for recognition.
3. A dossier for recognition as a tourist route shall consist of:
a/ A written statement, requesting recognition as a tourist route, made by a competent State administrative agency in charge of tourism; and,
b/ A map of the tourist route at a scale of 1/1,500,000 for a national tourist route, or a scale of 1/100,000 for a local tourist route, and an explanatory document on the proposed tourist route.
Article 27.- Competence to recognize tourist resorts, tourist spots, tourist routes
1. The Prime Minister shall decide on the recognition of national tourist resorts, national tourist spots, and national tourist routes at the proposal of the central-level State administrative agency in charge of tourism.
2. The presidents of provincial-level Peoples Committee shall decide on the recognition of local tourist resorts, local tourist spots, and local tourist routes at the proposal of provincial-level State administrative agencies in charge of tourism.
3. The central-level State administrative agency in charge of tourism shall announce national tourist resorts, national tourist spots, and national tourist routes upon receipt of the decisions of their recognition.
4. Provincial-level Peoples Committees shall announce local tourist resorts, local tourist spots, and local tourist routes upon receipt of the decisions of their recognition.
Article 28.- Management of tourist resorts
1. Scope of management of tourist resorts shall include:
a/ Management of development planning and investment work;
b/ Management of business service activities;
c/ Protection of tourism resources and assurance of environmental hygiene, social order and safety; and,
d/ Implementation of relevant provisions of law.
2. The management of tourist resorts is organized as follows:
a/ A Management Board must be established for a tourist resort, but where a tourist resort is assigned to an investor being an enterprise, the investor must manage the tourist resort in accordance with the scope specified in Clause 1 of this Article;
b/ The presidents of provincial-level Peoples Committees shall decide on the establishment of the Management Board of tourist resorts located within the administrative boundaries of their provinces.
Where a tourist resort lies within the administrative territories of two or more provinces or centrally-run cities, the president of the Peoples Committee of each province or centrally-run city shall decide on the establishment of the Management Board within the administrative boundary of his/her province or city. The Management Boards shall coordinate their activities according to the Regulation on management of tourist resorts issued by the central-level State administrative agency in charge of tourism and the master plan for development of the tourist resort already approved by a competent state agency.
Where a tourist resort is associated with an area endowed with natural tourism resources or historical and cultural relics for which a specialized management board has been established, its management board must include a representative from that specialized management board.
3. For a tourist resort with its tourism resources managed by another state agency through a specialized management board already established, the specialized management board shall have to coordinate with the tourist resorts management board in order to facilitate the rational exploitation and utilization of tourism resources in service of visitors and tourists.
Article 29.- Management of tourist spots
Depending on the scale and nature of tourist spots, ministries or agencies in charge of state administration of natural resources and provincial-level People Committees shall provide for the mode of management thereof, ensuring the following:
1. Protection and development of tourism resources and assurance of environmental sanitation;
2. Creation of favorable conditions for the sightseeing visits of tourists;
3. Assurance of the participation by local communities in tourism activities; and,
4. Maintenance of security, social order and safety and assurance of safety of tourists.
Article 30.- Management of tourist routes
Provincial-level Peoples Committees shall, within the scope of their duties and powers, coordinate with the Transport Ministry in managing local tourist routes and the portion of national tourist routes within the territories of their provincial or centrally-run cities, ensuring the following:
1. Protection of security, order, landscapes and environment along the tourist routes.
2. Creation of favorable conditions for the traffic circulation of the specialized means of transport of tourists.
3. Management of investment and construction of tourist service facilities along the tourist routes in line with the plans which have been approved and decided by competent state agencies.
Section 2. TOURIST CITIES
Article 31.– Criteria for recognition as a tourist city
A city that fully meets the following criteria shall be recognized as a tourist city:
1. Having appealing tourism resources within its boundary or within the boundary of the city and its adjacent areas.
2. Having comprehensive infrastructure and tourist physical and technical facilities, meeting the diversified needs of tourists, and having a labor structure suitable to requirements of tourism development.
3. Tourism plays an important role in the economic structure, achieving a ratio between tourism revenue and the total revenues of services as stipulated by the Government.
Article 32.- Dossiers, procedures and competence for recognition of tourist cities
1. A dossiers for recognition as a tourist city shall consist of:
a/ A written statement requesting recognition as a tourist city, made by the provincial-level Peoples Committee and submitted to the Prime Minister;
b/ A copy of the provinces or centrally-run citys master plan on tourism development; and,
c/ A project proposal for recognition as a tourist city, made according to the provisions of Article 31 of this Law.
2. Provincial-level Peoples Committees shall submit the dossiers for recognition as tourist cities to the Prime Minister and send copies to the Ministry of Construction and central-level State administrative agency in charge of tourism.
The Ministry of Construction shall assume the prime responsibility for, and coordinate with the central-level State administrative agency in charge of tourism and relevant agencies in, evaluating these dossiers and submit their evaluations to the Prime Minister.
3. The Prime Minister shall consider and decide the recognition as tourist cities, and the central-level State administrative agency in charge of tourism shall make public the tourist-city status.
Article 33.- Management of tourist city development
1. The management of tourist city development must ensure the following:
a/ Management of the planning and construction of the tourist city in line with the tourism development orientations set forth by competent state agencies;
b/ Management of investment projects for tourism development in conformity with the approved plans;
c/ Protection of tourism resources, landscapes, and environment, and maintenance of security, social order and safety;
d/ Assurance of the quality of goods and services to be provided for tourists; and,
e/ Mobilization of all resources of the city for the sake of tourism development.
2. The Peoples Committees of provinces or centrally-run cities in which tourist cities are located shall formulate and submit regulations on the management of tourist cities to the Prime Minister for promulgation. These regulations must be in conformity with the requirements on protection of tourism resources, landscapes, environment and tourism development orientations of the cities.
Chapter V

TOURISTS

Article 34.- Tourists
1. Tourists include domestic and international visitors.
2. Domestic tourists are Vietnamese citizens and foreigners permanently residing in Vietnam who travel for tourist purposes within the territory of Vietnam.
3. International tourists are foreigners, overseas Vietnamese visiting Vietnam for tourist purposes and Vietnamese citizens and foreigners permanently residing in Vietnam making overseas trips for tourist purposes.
Article 35.- Rights of tourists
1. To choose the form of travel either by individual or group; to choose a part of or whole of a tour program or tourist services provided by organizations or individuals doing tourism business.
2. To request organizations or individuals doing tourism business to supply necessary information on tour programs and tourist services.
3. To be facilitated in the clearance of entry, exit, transit, customs and stay procedures; to be allowed to travel within the territory of Vietnam except in prohibited areas for the purpose of excursion and tourism.
4. To be provided with sufficient tourism services according to contracts between them and organizations or individuals doing tourism business; be covered with tourism insurance and other types of insurance according to the provisions of law;
5. To be treated equally, to request organizations or individuals doing tourism business to take measures to ensure the safety of their lives, health and property while using tourism services; to be provided with relief aid and rescued in case of emergency during their travel within the territory of Vietnam.
6. To be compensated for the damage caused by the fault of organizations or individuals doing tourism business in accordance with the provisions of law.
7. To complain, denounce or file lawsuits against acts of violation of tourism law.
Article 36.- Obligations of tourists
1. To observe the Vietnamese laws on security, social order and safety; to respect and preserve natural landscapes, places of scenic beauty, environment, tourism resources, cultural identity, and fine traditional habits and customs in places of tourist destination.
2. To abide by rules and regulations of tourist resorts, spots, cities and tourist accommodation establishments.
3. To pay tourist services charges as contracted and other fees and charges in accordance with the provisions of law.
To compensate for the damage caused by their fault to organizations and individuals doing tourism business.
Article 37.- Assurance of safety for tourists
1. State agencies shall, within the scope of their duties and powers, take necessary measures to prevent risks and ensure the safety of life, health and property of tourists and to stop acts of making illicit profits from tourists.
2. In cases of emergency, competent state agencies shall take timely and necessary salvage and rescue measures in order to minimize the damage to tourists.
3. Tourist resorts, tourist spots and tourist cities shall take preventive measures against risks and establish units to provide guard, rescue, salvage and emergency aid services for tourists.
4. Organizations and individuals doing tourism business must inform tourists of emergency cases, epidemics and dangers; and take necessary measures and collaborate with the related agencies in providing rescue, salvage and emergency aid for tourists.
Chapter VI

TOURISM BUSINESS

Section 1. GENERAL PROVISIONS ON TOURISM BUSINESS
Article 38.- Tourism business lines
Tourism business is a trade in services, including the following lines:
1. Travel business;
2. Tourist accommodation business;
3. Tourist transportation business;
4. Business in development of tourist resorts or tourist spots; and,
5. Business in other tourist services.
Article 39.- Rights of organizations or individuals doing tourism business
1. To select tourism business lines and register for one or more tourism business lines.
2. To be protected by the State in lawful tourism business activities.
3. To organize and take part in tourism promotion activities and be included in the common promotion list of the tourism industry.
4. To join domestic and international tourism associations and professional organizations.
Article 40.- Obligations of organizations or individuals doing tourism business
1. To set up a tourist enterprise and register for the tourism business in accordance with the provisions of law.
2. To run tourism business in line with the specifications stated in their business registration certificates or tourism business licenses for trades where licensing is required.
3. To notify competent tourism state agencies in writing of the time to start their business or of any changes in the content of their business registration certificates or tourism business licenses.
4. To publicize clearly and honestly the quantity, quality and price of services and goods to be supplied to tourists and to fulfil all of the obligations committed to tourists and to compensate for losses which they have caused to tourists.
5. To take measures to assure safety of life, health and property of tourists and to promptly inform competent agencies of accidents or dangers and risks which may occur to tourists.
6. To comply with regulations on reporting, statistics and record-keeping in accordance with the provisions of law.
Article 41.- Overseas branches and representative offices of Vietnamese tourist enterprises
The establishment of overseas branches and representative offices of Vietnamese tourist enterprises shall comply with the laws of Vietnam and host countries and with the treaties to which the Socialist Republic of Vietnam is a contracting party.
Vietnamese tourist enterprises which have overseas branches and/or representative offices shall take responsibility for the operation of such branches and/or representative offices before the laws of Vietnam and host countries.
Article 42. – Vietnam-based branches and representative offices of foreign tourist enterprises
The establishment and operation of branches and representative offices of foreign tourist enterprises in Vietnam shall comply with regulations of the Government.
Section 2. TRAVEL BUSINESS
Article 43.- Travel enterprises
1. Any organizations or individuals wishing to do travel business must set up an enterprise.
2. Travel enterprises include domestic travel enterprises and international travel enterprises.
3. International travel enterprises may do domestic travel business. Domestic travel enterprise shall not be allowed to do international travel business.
Article 44.- Conditions for doing domestic travel business
1. Having domestic travel business registered at a competent business registry.
2. Having business plans for domestic tourist operations, offering tour programs for domestic tourists.
3. Operators of domestic travel business must have at least three years of experience in doing travel operations.
Article 45. – Rights and obligations of domestic travel enterprises
Apart from the rights and obligations of organizations or individuals doing tourism business provided for in Article 39 and Article 40 of this Law, domestic tourist enterprises shall have the following rights and obligations:
1. To develop, advertise, sell and conduct tour programs for domestic tourists.
2. To secure tourism insurance for domestic tourists during the tour at their requests.
3. To abide by, disseminate and guide tourists to observe State laws and regulations on security, social order and safety, and environment protection; preserve national identity, fine traditional habits and customs of the people; and observe rules at places of tourist destination.
4. To employ tourist guides to serve tourists at their requests; be responsible for tourist guides performance during the tour as contracted with the enterprises.
Article 46.- Conditions for doing international travel business
1. Having an international travel business license granted by the central-level State administrative agency in charge of tourism.
2. Having plans for travel business operations; having tour programs prepared for international tourists within the scope of travel business provided for in Clause 1, Article 47 of this Law.
3. Operators of international travel business must have at least four years of experience in travel operations.
4. Employing at least three tourist guides accredited as tourist guides for international tourists.
5. Having deposited capital as stipulated by the Government.
Article 47.- International travel business licenses
1. International travel business licenses shall be granted according to the scope of business, covering:
a/ Travel business for inbound tourists.
b/ Travel business for outbound tourists.
c/ Travel business for inbound and outbound tourists.
2. International travel business licenses shall not be granted to the following:
a/ Enterprises which have been administratively sanctioned for illegal travel business activities within 12 months before the date they apply for a license;
b/ Enterprises which have had their international travel business licenses withdrawn within 12 months before the date they apply for a renewed license.
3. International travel business licenses shall be withdrawn in the following cases:
a/ The enterprise stops its operations;
b/ The enterprise does not carry out any international travel business activities for consecutive 18 months;
c/ The enterprise seriously violates the provisions of this Law; or
d) The enterprise commits acts of violation which are subject to withdrawal of license according to law;
4. The collection and remittance of the fee for the grant of international travel business licenses shall comply with the provisions of law on fees and charges.
Article 48.- Dossiers and procedure for the grant of international travel business licenses
1. A dossier of application for an international travel business license shall consists of
a/ An application for an international travel business license;
b/ Copies of the international travel business registration certificate, plans for international travel business operations, papers evidencing the operators working experience in travel business, copies of the tourist guides cards and labor contracts between the tourist guides and the enterprise, and a certificate of deposited amount.
2. Procedures for the grant of an international travel business license are stipulated as follows:
a/ The enterprise submits the dossier of application for an international travel business license to the provincial-level state agency in charge of tourism in the place where the enterprise is headquartered;
b/ Within 10 working days after the receipt of the valid dossier, the provincial-level state agency in charge of tourism shall complete an evaluation thereof and forward a proposal document together with the dossier to the central-level State administrative agency in charge of tourism for consideration and grant of a license; in case of ineligibility for a license, the provincial-level state agency in charge of tourism shall issue a written notice to the enterprise, clearly stating the reason therefor.
c/ Within 10 working days after the receipt of the dossier and the proposal from the provincial-level state agency in charge of tourism, the central-level State administrative agency in charge of tourism shall consider the dossier and grant an international travel business license to the enterprise; in case of refusal, it shall have to issue a written notice to the provincial tourism administration and the enterprise, clearly stating the reason therefor.
Article 49.- Change of international travel business licenses
1. Change to an international travel business license can be made in the following cases:
a/ Change in the scope of international travel business;
b/ Change in the at-law representative of the enterprise;
c/ Change in the name, transaction name or abbreviated name of the enterprise; or,
d/ Change in the form of the enterprise.
2. A dossier of application for change of an international travel business license shall consist of:
a/ An application for change of the international travel business license;
b/ The granted international travel business license; and,
c/ Documents related to the changes stated in Clause 1 of this Article.
3. The procedure for changing an international travel business license is stipulated as follows:
a/ Within 30 days after the date on which there is a change in one of the contents mentioned in Clause 1 of this Article, the enterprise shall submit the dossier of application for a new international travel business license to the central-level State administrative agency in charge of tourism;
b/ Within 15 working days after the date of receiving the valid dossier as provided for in Clause 2 of this Article, the central-level State administrative agency in charge of tourism shall consider and change the license and inform the concerned provincial-level state administration agency in charge of tourism.
Article 50.- Rights and obligations of international travel enterprises
In addition to the rights and obligations of individuals and organizations doing tourism business specified in Articles 39 and 40 of this Law, international travel enterprises shall have the following rights and obligations:
1. Travel business for inbound tourists:
a/ To develop, advertise, sell and operate tours for inbound tourists and domestic tourists;
b/ To assist tourists in clearing entry, exit, transit and customs procedures;
c/ To abide by, disseminate and instruct tourists to observe the laws and regulations of the State of Vietnam on security and social order, to protect the environment and preserve Vietnamese cultural identity and fine customs and practices, and observe the rules of the places of tourist destination; and,
d/ To employ tourist guides to guide foreign tourists and take responsibility for their guiding operations during the time of their contracts with the enterprise.
2. Travel business for outbound tourists:
a/ To develop, advertise, sell and operate tours for outbound tourists and domestic tourists;
b/ To buy tourism insurance for Vietnamese tourists when they take outbound trips;
c/ To assist tourists in clearing entry, exit, transit and customs procedures;
d/ To abide by, disseminate and instruct tourists to observe laws and regulations of the visited country;
e/ To manage tourists in accordance with the tour program signed with them.
Article 51.- Foreign-invested travel enterprises
1. Foreign enterprise may do travel business in Vietnam in the form of a joint venture or other forms in accordance with the provisions of, and concrete roadmaps stipulated in, treaties to which the Socialist Republic of Vietnam is a contracting party.
In case of a joint venture with a Vietnamese enterprise, the Vietnamese enterprise must have international travel business licenses.
2. Foreign-invested travel enterprises must satisfy the conditions on international travel business specified in Clauses 2, 3, 4 and 5, Article 46 of this Law and shall have the rights and obligations specified in Articles 39, 40 and 50 of this Law and in accordance with the scope of international travel business stated in their investment licenses.
Article 52.- Contracts of travel
1. A contract of travel is an agreement between the travel enterprise and a tourist or his/her representative on the performance of a tour program.
2. Contracts of travel shall be made in writing.
3. Besides contents as provided by civil law, a contract of travel shall contain the following details:
a/ Description of the quantity, quality, time, and mode of provision of services during the tour;
b/ A provision on responsibility for default in the case of force majeure;
c/ Financial conditions and liability relating to the change, supplementation and cancellation of the contract; and,
d/ Provisions on insurance for the tourist.
4. When a tourist buys a tour program through a travel agent, the contract of travel shall be the one concluded between the tourist and the principal travel enterprise, in which the name and address of that authorized travel agent shall be also indicated.
Article 53.- Conditions on travel agency business
1. Travel agency business is a business whereby organizations or individuals sell for commissions tour programs designed by travel enterprises to tourists. Travel agents shall not be allowed to operate tours.
2. Organizations or individuals doing travel agency business must meet the following conditions:
a/ Having travel agency business registered at a competent registry; and,
b/ Having a contract of agency signed with the travel enterprise.
Article 54.- Contract of travel agency
1. A contract of travel agency shall be made in writing between a principal being a travel enterprise and a travel agent being an individual or organization that meets the condition specified at Point a, Clause 2, Article 53 of this Law.
2. A contract of travel agency shall contain the following principal details:
a/ The names and addresses of the principal and the agent;
b/ Tour programs and prices of tour programs to be handled by the agent;
c/ The rate of agency commission and timing of payment by the principal to the agent;
d/ The term of the contract.
Article 55.- Responsibilities of travel principals
1. To check and supervise the performance of the contract by the agent.
2. To conduct the tour programs that have been sold by its travel agent; to bear responsibility to tourists for tour programs sold by the travel agent;
3. To guide and provide the travel agent with information relating to the tour programs.
Article 56.- Responsibilities of travel agents
1. Not to copy tour programs designed by the principal in any form.
2. To file and keep records of the tours sold to tourists.
3. Not to sell tours higher than the price offered by the principal.
4. To display the travel agents signboard at an easy-to-notice position at its office.
5. To inform the provincial-level state agency in charge of tourism of the time to start their operation.
Section 3. TOURIST TRANSPORTATION BUSINESS
Article 57.- Tourist transportation business
1. Tourist transportation business is the provision of transportation services for tourists along tourist routes, according to tour programs and at tourist resorts, tourist spots and tourist cities.
2. Individuals and organizations doing tourist transportation business shall have to register and meet the conditions for doing business in the carriage of passengers according to the provisions of law.
Article 58.- Conditions on tourist transportation business
1. Having specialized means of transport for tourists up to standards and given a particular logo as provided in Article 59 of this Law.
2. Employing drivers and other staff on the specialized means of transport for tourists who have professional qualifications, are physically fit and have been trained in tourism services.
3. Taking measures to ensure tourists life, health and property during the process of transportation; and to buy passenger insurance for tourists on board the means of transport.
Article 59.- Issuance of logos for specialized means of transport of tourists
1. Specialized means of transport for tourists must meet standards of technical safety, environmental protection and service quality and display a particular logo in a uniform form issued by the Ministry of Transport after consulting the central-level State administrative agency in charge of tourism.
2. The Ministry of Transport shall organize the issuance of logos for specialized means of transport of tourists after obtaining the opinions of the central-level State administrative agency in charge of tourism.
3. Means of transport for tourists with their particular logos shall be prioritized to have places to stop and park for pickup and discharge of tourists at bus stations, railway stations, airports, seaports, tourist resorts, tourist spots and tourist accommodation establishments.
Article 60.- Rights and obligations of organizations and individuals doing tourist transportation business
Apart from the rights and obligations of organizations and individuals doing tourism business specified in Article 39 and Article 40 of this Law, organizations and individuals doing tourist transportation business shall have the following rights and obligations:
1. To select means of transport of tourists;
2. To transport tourists following tourist routes and under the contracts signed with tourists or travel enterprises;
3. To ensure the conditions specified in Article 58 of this Law in the process of doing business;
4. To purchase passenger insurance for tourists carried on means of transport;
5. To display the logos of specialized transportation of tourists in an easy-to-notice position on the means of transport.
Section 4. TOURIST ACCOMMODATION BUSINESS
Article 61.- Organizations, individuals doing tourist accommodation business
1. Individuals and organizations that fully meet the conditions specified in Article 64 of this Law may do tourist accommodation business.
2. Individuals and organizations may do tourist accommodation business at one or many tourist accommodation establishments simultaneously.
Article 62.- Types of tourist accommodation establishments
Types of tourist accommodation establishments include:
1. Hotel;
2. Tourist village;
3. Tourist villa;
4. Tourist apartment;
5. Tourist campsite;
6. Tourist guest house;
7. Houses with rooms for tourist rental; and,
8. Other tourist accommodation.
Article 63.- Classification of tourist accommodation establishments
1. Tourist accommodation establishment mentioned in Article 62 of this Law shall be classified according to quality standards, including:
a/ Hotels and tourist villages shall be classified in 5 categories which are 1 star, 2 stars, 3 stars, 4 stars and 5 stars;
b/ Tourist villas or tourist apartments shall be classified in two categories of standard and high standard; and,
c/ Tourist campsites, tourist guest houses, houses with rooms for tourist rent, and other tourist accommodation establishments shall be classified in one category which meets the standard of tourist accommodation business.
2. Criteria for classifying tourist accommodation establishments shall be issued by the central-level State administrative agency in charge of tourism and uniformly applicable nationwide.
3. The central-level State administrative agency in charge of tourism shall appraise and classify hotels and tourist villages of 3-, 4- and 5-star categories; and tourist villas and tourist apartments of high-standard category.
Provincial-level State agencies in charge of tourism shall appraise and classify hotels and tourist villages of 1 and 2-star categories; and tourist villas, tourist apartments of business standard category; campsites, tourist guest houses, houses with rooms for tourist rental and other tourist accommodation establishments of business standard category.
4. The collection, remittance and use of classification charges on tourist accommodation establishments shall comply with the provisions of law on fees and charges.
5. After every three years of operation, a graded tourist accommodation establishment shall be appraised to renew its grade in accordance with the current conditions of its physical facilities and services.
Article 64.- Conditions for doing tourist accommodation business
To do tourist accommodation business, organizations and individuals shall have to fully satisfy the following conditions:
1. General conditions:
a/ Having registered tourist accommodation business; and,
b/ Taking measures to ensure security and order, environmental sanitation, safety, fire prevention and extinguishing in compliance with the provisions of law on tourist accommodation establishments.
2. Specific conditions:
a/ Hotels and tourist villages must have construction, facilities and equipment, services, and professional and foreign language skills of managers and staff which meet the minimum standard as required for each type and grade of the establishment;
b/ Tourist villas and tourist apartments must have facilities, equipment and services which meet the minimum standard as required for each type and grade of the establishment;
c/ Tourist campsites, tourist guest houses, houses with rooms for tourist rental and other tourist accommodation establishments shall have facilities and equipment which meet the minimum standard as required for tourist accommodation business.
Article 65.- Registration of classes of tourist accommodation establishments
1. Within three months after commencement of operation, the owners of tourist accommodation establishments shall submit dossiers of registration of the class of tourist accommodation establishments to competent state agencies in charge of tourism for appraisal and classification of their establishments.
2. Dossiers and procedures for classification of tourist accommodation establishments shall be prescribed by the central-level State administrative agency in charge of tourism.
Article 66.- Rights and obligations of organizations and individuals doing tourist accommodation business
1. Besides the rights specified in Article 39 of this Law, organizations and individuals doing tourist accommodation business shall have the following rights:
a/ To hire foreign and domestic individuals or organizations to manage, execute and work in the tourist accommodation establishments;
b/ To issue internal rules and regulations of the tourist accommodation establishments;
c/ To refuse to receive tourists or cancel the accommodation contracts with tourists in cases where tourists commit illegal acts, acts of violation of internal rules of the establishments, or where the establishment is no longer capable of accommodating or the tourists needs are beyond the ability of the establishment; and,
d/ To select types of services and products not contrary to the provisions of law for sale at the establishments premises.
2. Besides the obligations specified in Article 40 of this Law, organizations and individuals doing tourist accommodation business shall have the following obligations:
a/ To abide by the provisions of law pertaining to tourist accommodation business activities and conduct business operations as registered;
b/ To display the name, type and class of the tourist accommodation establishment and advertise the type and class of the tourist accommodation establishment exactly as recognized by a competent state agency in charge of tourism;
c/ To publicly post the sale prices of goods and services and the internal rules and regulations of the tourist accommodation establishment in Vietnamese and foreign language; to inform tourists clearly of sale promotion campaigns to be launched in each period of time;
d/ To guarantee the quality of services and facilities in a stable manner and maintain the standards of the tourist accommodation establishment corresponding to its type and class already certified by a competent state agency in charge of tourism;
e/ To take measures to ensure environmental sanitation, food hygiene and safety, and equipment safety; to strictly observe regulations on fire prevention and extinguishing, ensuring the safety of tourists life, health and property;
f/ To adhere to the regulations of State administrative agencies in charge of health in case of discovering tourists infected with contagious disease;
g/ To declare a tourists temporary stay as provided for by law; and,
h/ To compensate tourists for losses caused by the fault of the tourist accommodation business.
3. For tourist accommodation establishments provided for in Clauses 1, 2, 3 and 4, Article 62 of this Law which have been classified to be of star class or high level, when dealing in conditional goods and services, they shall not be required to obtain business licenses for each type of such goods and services but must register with a competent state agency before doing so.
Section 5. BUSINESS IN DEVELOPMENT OF TOURIST RESORTS, TOURIST SPOTS
Article 67.- Business in development of tourist resorts and tourist spots
1. Business in development of tourist resorts and tourist spots shall include investment in conservation and upgrade of existing tourism resources; exploitation of potential tourism resources; development of new tourist resorts and sports facilities; construction and commercial operation of tourist infrastructure and tourist physical and technical facilities.
2. Organizations and individuals doing business in development of tourist resorts and tourist spots shall formulate projects in compliance with tourism development plans and submit them to competent state agencies for approval
3. Procedures for approval of projects shall comply with the provisions of law on investment and other relevant provisions of law.
Article 68.- Rights and obligations of organizations and individuals doing business in development of tourist resorts and tourist spots
Besides the rights and obligations specified in Article 39 and Article 40 of this Law, organizations and individuals doing business in development of tourist resorts and tourist spots shall have the following rights and obligations:
1. To be granted investment preferences and provided land with tourism resources which are suitable to the projects approved by competent state agencies according to the provisions of law;
2. To collect charges in accordance with the provisions of law on fees and charges;
3. To manage and protect tourism resources and environment, and ensure security, social order and safety; and,
4. To manage service business in accordance with this Law and other relevant provisions of law.
Section 6. BUSINESS IN TOURIST SERVICES IN TOURIST RESORTS, TOURIST SPOTS AND TOURIST CITIES
Article 69.- Business in tourist services in tourist resorts, tourist spots and tourist cities
Business in tourist services in tourist resorts, tourist spots and tourist cities shall include businesses in travel, tourist accommodation, tourist transportation, restaurant, shopping, sports, entertainment, information and other services provided for tourists.
Article 70.- Issuance of signboards of satisfaction of tourist service standards
1. The central-level State administrative agency in charge of tourism shall provide the criteria and form of the signboard of satisfaction of tourist service standards to be issued to establishments which provide tourist services in tourist resorts, tourist spots and tourist cities.
2. Provincial-level state agency in charge of tourism shall appraise and issue signboards of satisfaction of tourist service standards to establishments which provide tourist services in tourist resorts, tourist spots and tourist cities under their administration.
Article 71.- Rights and obligations of organizations and individuals doing tourist service business in tourist resorts, tourist spots and tourist cities
1. Organizations and individuals doing travel, tourist accommodation, and tourist transportation businesses shall have the rights and obligations specified in Articles 39 and 40 of this Law and relevant rights and obligations specified in Articles 45, 50, 60 and 66 of this Law.
2. Organizations and individuals doing tourism service business in tourist resorts, tourist spots and tourist cities, which are not regulated in Clause 1 of this Article, besides the rights and obligations specified in Articles 39 and 40 of this Law, shall have the following rights and obligations:
a/ To bear signboards of satisfaction of tourist service standards;
b/ To be chosen by travel enterprises as a partner to provide services and goods for their clients;
c/ To maintain tourist service standards throughout the course of doing business;
d/ To observe regulations at tourist resorts, tourist spots and tourist cities issued by competent agencies.
Chapter VII

TOURIST GUIDING

Article 72.- Tourist guides, tourist guides cards
1. Tourist guides include guides for domestic tourists and guides for international tourists.
International tourist guides may guide both international tourists and domestic tourists; domestic tourist guides may guide domestic tourists who are Vietnamese but not foreign tourists.
2. Tourist guides cards include domestic tourist guides cards and international tourist guides cards. Tourist guides cards shall be valid for three years and effective nationwide.
Article 73.- Conditions for practicing as a tourist guide and criteria for issuance of tourist guides cards
1. Tourist guides may practice once they have obtained a tourist guides card and signed a contract with a travel enterprise.
2. A person who fully meets the following criteria shall be issued a domestic tourist guides card:
a/ Having Vietnamese nationality, residing in Vietnam and having full civil act capacity;
b/ Having no contagious diseases and not using any addictive substances; and,
c/ Having a vocational secondary or higher degree in tourist guiding, or, if having a degree in another discipline, a certificate of a tourist guides professional skills issued by a competent training establishment is required.
3. A person who fully meets the following criteria shall be issued an international tourist guides card:
a/ Having Vietnamese nationality, residing in Vietnam and have full civil act capacity;
b/ Having no contagious diseases and not using any addictive substances;
c/ Having a bachelors or higher degree in tourist guiding, or, if having a bachelors degree in another discipline, a certificate of a tourist guides professional skills issued by a competent training establishment is required.
d/ Having a good command of at least one foreign language.
Article 74.- Issuance of tourist guides cards
1. A dossier of application for a tourist guides card shall consist of:
a/ An application for a tourist guides card;
b/ Curriculum vitae attested by the Peoples Committee of the commune, ward or township where the applicant resides or by the agency where he/she is working;
c/ Notarized copies of documents stated at Point c, Clause 2, Article 73 of this Law for those who apply for domestic tourist guides cards or Point c and d, Clause 3 of Article 73 of this Law for those who apply for international tourist guides cards;
d/ Health certificates issued by a competent health establishment within three months before the time of submission of the application; and,
e/ Two photos of 4 x 6 cm taken within three months before the time of submission of the application.
2. Within fifteen days after the date of receipt of a full and valid dossier, the provincial-level state agency in charge of tourism shall have to examine the dossier and issue a tourist guides card to the applicant; in case of refusal, it shall have to reply to the applicant in writing, clearly stating the reason therefor.
3. The provincial-level state agency in charge of tourism shall organize the issuance of international tourist guide and domestic tourist guides cards according to common forms set by the central-level state agency in charge of tourism.
Article 75.- Renewal, re-issuance and revocation of tourist guides cards
1. Renewal of tourist guides cards is stipulated as follows:
a/ At least 30 days before the card expires, the tourist guide shall have to complete procedures to renew it;
b/ A dossier of application for change of a tourist guides card shall consist of an application for changing the card; certificate of periodic refresher training in tour guiding skills issued by a competent state agency in charge of tourism; and a copy of the expired tourist guides card;
c/ The applicant for renewing the tourist guides card shall submit the dossier to the provincial-level state agency in charge of tourism.
2. The reissuance of tourist guides cards is stipulated as follows:
a/ Tourist guides cards shall be reissued in case of loss or damage;
b/ Applicants for the reissuance of tourist guides cards shall submit a dossier consisting of an application for reissuance of a card enclosed with 2 photos as stated in Clause 1, Article 74 of this Law, and the certification of the loss of the card or the damaged card to the provincial-level state agency in charge of tourism.
3. Within fifteen days after the date of receipt of full dossiers, the provincial-level state agency in charge of tourism shall have to examine the dossiers, and renew or re-issue the tourist guides cards for the applicants; in case of refusal, it shall have to reply to the applicant in writing, clearly stating the reason therefor.
4. Withdrawal of a tourist guides card is stipulated as follows:
a/ Tourist guides shall have their cards withdrawn if they violate any of the provisions of Article 77 of this Law.
b/ Tourist guides with their cards withdrawn shall be considered for reissuance of the cards only after the passage of six months following the date of withdrawal of their cards. In this case, dossiers and procedures for issuance of tourist guides cards shall be the same as in the case of issuance of new tourist guides cards.
Article 76.- Rights and obligations of tourist guides
1. Tourist guides shall have the following rights:
a/ To guide tourists under assigned duties or under a contract signed with a travel enterprise;
b/ To join occupational organizations and associations of tourist guiding;
c/ To receive wages or honoraria as contracted with travel enterprises;
d/ To sit for exams for recruitment of tourist guides and for accreditation of tourist guides professional ranks; and,
e/ In case of emergency or force majeure, tourist guides may adjust tour programs and standards of services provided for tourists, provided that they must inform the competent person thereof as soon as conditions permit, and be accountable for their decision.
2. Tourist guides shall have the following obligations:
a/ To abide by and instruct tourists to abide by laws, internal rules and regulations at visiting places and respect local customs and practices;
b/ To provide tourists with information about the tour program and itinerary and their lawful interests;
c/ To guide tourists in conformity with the tour program, be civilized, caring, and wholehearted to tourists; in case of a tourists request for detour, to report it to a competent person for decision;
d/ To be responsible for ensuring the safety of life, health and property of tourists;
e/ To act within the scope specified in Clause 1, Article 72 of this Law, to wear the tourist guides card when working as a tourist guide;
f/ To take part in periodical training courses for tourist guides organized by competent state agencies; and,
g/ To compensate for losses caused by their fault to tourists and travel enterprises.
Article 77.- Prohibited acts of tourist guides
1. Providing information detrimental to national sovereignty, security, defense, social order and safety.
2. Committing acts that cause negative effects to the image, tradition, morality and fine customs and habits of the nation; misrepresenting the historical and cultural values of Vietnam.
3. To take tourists to restricted areas.
4. To gain illicit profits from tourists or force tourists to buy goods and services.
5. To arbitrarily change tour programs, or provide tourists with services of lower standards than they are entitled to.
6. To discriminate against tourists.
7. To lend their tourist guides cards to others or use others cards or use expired tourist guides cards.
Article 78.- Narrators
1. Narrators are persons who deliver on-site narration to tourists at tourist resorts or tourist spots.
2. Narrators must have good knowledge of tourist resorts and tourist spots, and skills of communication with tourists and cultured behavior.
3. Competent state agencies in charge of tourist resorts and tourist spots shall stipulate the training in professional knowledge and skills and criteria for narrators, as well as issuance and withdrawal of narrators certificates.
Chapter VIII

TOURIST PROMOTION

Article 79.- Content of tourism promotion
The State shall organize and guide tourism promotion activities with the following main contents:
1. To propagate and widely introduce the country and the people of Vietnam; beautiful landscapes; historical, revolutionary and cultural relics; man-made creative works; and national cultural identity to people in the country and in international communities.
2. To improve social awareness of tourism, and create a civilized, healthy and safe tourism environment, bringing into play the nations traditions of hospitality.
3. To mobilize various resources to invest in tourist cities, tourist resorts, and tourist spots in order to make them diversified, unique, high-quality and deeply imbued with national cultural identities in each locality and region and the whole country; develop infrastructure and physical-technical facilities for tourism; and diversify and improve the quality of tourist services.
4. Conduct research into tourist markets and develop tourist products which meet tourists needs; propagate and promote tourist products.
Article 80.- Tourism promotion policies
1. The State shall stipulate mechanisms for coordination between central and local State administrative agencies in charge of tourism and organizations and individuals doing tourism business in carrying out tourism information, publicity and promotion activities.
2. Ministries, branches and media agencies shall, within the scope of their respective duties and powers, coordinate with the central-level State administrative agency in charge of tourism in carrying out tourism information, publicity and promotion activities domestically and abroad.
3. The State shall create favorable conditions for the employment of foreign experts and mass media in tourism publicity and promotion activities to enhance the image of the people, country and tourism of Vietnam.
4. The State shall encourage and take measures to raise the awareness of tourism among all levels, branches and people.
Article 81.- Tourism promotion activities of State administrative agencies in charge of tourism
1. The central-level State administrative agency in charge of tourism shall assume the prime responsibility for, and coordinate with related ministries and branches in, formulating national strategies, plans and programs for tourism promotion, with provincial-level Peoples Committees and the involvement of tourist enterprises, in conducting tourism promotion activities domestically and abroad; and coordinate inter-regional and inter-provincial tourism promotion activities.
2. The central-level State administrative agency in charge of tourism shall establish overseas Vietnam tourist representative offices in key tourist markets to promote tourism in accordance with regulations of the Government.
3. The central-level State administrative agency in charge of tourism shall develop a national tourist database and organize the supply of tourist information at international border crossings.
4. Provincial-level Peoples Committees shall develop plans and programs for tourism promotion in their localities; organize the implementation of tourism promotion activities in their localities; coordinate with the central-level State administrative agency in charge of tourism and other local state administration agencies in charge of tourism in conducting tourism promotion activities.
Article 82.- Tourism promotion activities of tourist enterprises
Tourist enterprises may, on their own initiative or in cooperation with other organizations and individuals, conduct promotion activities domestically and abroad, and take part in the national tourism promotion programs. The costs of tourism promotion shall be accounted as enterprise business expenses.
Chapter IX

INTERNATIONAL COOPERATION IN TOURISM

Article 83.- Policies of international cooperation in tourism
The State shall promote international cooperation in tourism with other countries and international organizations on the basis of equality and mutual benefit, in conformity with the laws of each party and international laws and customs so as to develop tourism, attach the Vietnamese tourist market to regional and international tourist markets, and contribute to enhancing the cooperative relationship, friendship and understanding between nations.
Article 84.- Relations with national tourism agencies of other countries and regional and international tourism organizations
1. The central-level State administrative agency in charge of tourism shall base itself on their functions and within the scope of decentralization exercise the rights and responsibilities of representing Vietnam in bilateral and multilateral cooperation in tourism with national tourism agencies of other countries, and with regional and international tourism organizations.
2. The establishment of representative offices in Vietnam of foreign national tourism agencies and regional and international tourism organizations shall be decided by the Prime Minister.
Chapter X

TOURISM INSPECTORATE, SETTLEMENT OF TOURIST CLAIMS AND PETITIONS

Article 85.- Tourism inspectorate
1. The tourism inspectorate shall perform the functions of specialized inspection in tourism.
2. The organization and operation of the specialized tourism inspectorate shall comply with the provisions of law.
Article 86.- Settlement of tourist claims and petitions
1. Tourist claims and petitions must be received and promptly settled in accordance with the provisions of law so as to protect the legitimate rights and interests of tourists.
2. In tourist cities and tourist resorts visited by large numbers of tourists, the provincial-level state agencies in charge of tourism shall organize the receipt of tourist claims and petitions.
3. Tourist claims and petitions shall be sent to organizations and individuals doing tourism business or the agencies responsible for receiving tourist claims and petitions specified Clause 2 of this Article for settlement or for reference to relevant competent state agencies for settlement. In cases where organizations or individuals doing tourism business or the agencies responsible for receiving tourist claims and petitions specified Clause 2 of this Article fail to settle tourist claims or petitions or the tourists do not agree with their settlement decisions, the tourists may lodge complaints or initiate lawsuits in accordance with the provisions of law.
Chapter XI

IMPLEMENTATION PROVISION

Article 87.- Implementation provisions
1. This Law takes effect as of January 1, 2006.
2. The Tourism Ordinance of February 8, 1999, shall cease to be effective as of the date on which this Law takes effect.
3. National tourist zones and tourist cities which have been recognized; tourist accommodation establishments which have been classified; organizations and individuals doing tourism business which have been granted international travel business licenses; and tourist guides who have been granted tourist guides cards before this Law takes effect and not in contravention of the provisions of this Law shall continue to be valid; in cases of non-compliance with the provisions of this Law, adjustment must be made to ensure compliance.
Article 88.- Detailing and guidance of implementation
The Government shall detail and guide the implementation of this Law
This Law was passed on June 14, 2005 by the 11^th National Assembly of the Socialist Republic of Vietnam.

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THE NATIONAL ASSEMBLY

SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom – Happiness

Law No: 38/2005/QH11

EDUCATION LAW

Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented following the Resolution No. 51/2001/QH10 of 25/12/2001 of the National Assembly Tenth Legislature, Tenth Session; This Law provides regulations on Education.
Chapter I

GENERAL REGULATIONS

Article 1. Scope of regulations
The Education Law regulates the national educational system; schools, other educational institutions of the national educational system; of state agencies; of political organisations; socio-political organisations; of people’s armed forces; organisations and individuals taking parts in educational activities.
Article 2. Goals of education
The goals of educational are to educate the Vietnamese into comprehensively developed persons who possess ethics, knowledge, physical health, aesthetic sense and profession, loyal to the ideology of national independence and socialism; to shape and cultivate one’s dignity, civil qualifications and competence, satisfying the demands of the construction and defense of the Fatherland.
Article 3. Characteristics and principles of education
1. The Vietnamese education is a socialist education with popular, national, scientific, and modern characteristics, based on Marxism-Leninism and Ho Chi Minh’s Thoughts.
2. Educational activities must be conducted on the principles of learning coupled with practice, education linked to production, theories connected to practicability, and education at school combined with education in the family and in the society.
Article 4. National educational system
1. The national educational system consists of formal education and continuing education.
2. Educational levels and training qualifications of the national educational system include:
a) Early childhood education with crÌches and kindergartens;
b) General education with primary education, lower secondary education, and upper secondary education;
c) Professional education with professional secondary education and vocational training;
d) Undergraduate and postgraduate education (hereinafter referred to as higher education) with college, undergraduate, master and doctoral degrees.
Article 5. Requirements on contents and methods of education
1. Contents of education must ensure the basic, comprehensive, practical, modern, and systematic characters; with importance attached to ideological and civic conscious education; preserving and developing the good traditions and the national cultural identity, absorbing the essence of the mankind culture; and conforming to the psycho-physiology development of various age groups of learners.
2. Methods of education must bring into full play the activeness, the consciousness, the self-motivation, and the creative thinking of learners; foster the self-study ability, the practical ability, the learning eagerness and the will to advance forward.
Article 6. Educational programme
1. Educational programme shall reflect the goals of education; set the standards for knowledge, skills, scope and structure of educational contents, for methods and forms of organising educational activities, for evaluation methods of educational outcomes for each subject of every grade and level or educational qualifications.
2. Educational programme must ensure the modernity, stability, consistency, and inheritability among different levels and different educational qualifications, facilitating the streaming and transferability among educational qualifications, specialisations and forms of the national educational system.
3. Requirements on knowledge and skill contents defined in the educational programme must be concretised in textbooks used for general education, in syllabi and teaching materials used for professional education, higher education, and continuing education. Textbooks, syllabi and teaching materials must meet the requirements on educational methods.
4. Educational programme shall be implemented based on school year for early childhood education and general education, and based either on school year or on credit accumulation for professional education and higher education.
Study results of subjects or credits accumulated by learners after pursuing their studies in an educational programme are considered for transferable values for respective subjects or credits of other educational programmes when learners change their educational specialisations, forms of studies, or follow higher educational levels or qualifications.
The Minister of Education and Training shall stipulate the realisation of educational programme in the form of credit accumulation, the recognition for considering the transferable values of study results of subjects or credits.
Article 7. Languages used in schools and other educational institutions; teaching and learning of spoken and written languages of ethnic minorities; teaching of foreign languages
1. Vietnamese is the official language to be used in schools and other educational institutions. Based on the goals of educational and specific needs on the educational contents, the Prime Minister shall stipulate the teaching and learning via foreign languages in schools and other educational institutions.
2. The State shall enable ethnic minority people to learn their spoken and written languages in order to preserve and develop their ethnic cultural identity, helping pupils from ethnic minorities easily absorb knowledge when they study in schools and other educational institutions. The teaching and learning of these languages shall be conducted in accordance with the Government regulations.
3. Foreign languages defined in educational programme are the languages used commonly in international communication. The teaching of foreign languages in schools and other educational institutions should guarantee learners with continuing and effective learning process.
Article 8. Degrees/diplomas and certificates
1. Degrees/diplomas of the national educational system are conferred to learners upon successful completion of the level or degree of education as stipulated by this Law.
Degrees/diplomas of the national educational system consist of the following: lower secondary diploma, upper secondary diploma, professional secondary education diploma, college diploma, university degree, master degree and doctoral degree.
2. Certificates of the national educational system are granted to learners to acknowledge their learning results upon successful completion of courses for knowledge or professional upgrading.
Article 9. Educational development
Educational development is the first national priority with a view to improving people’s knowledge, training manpower, and fostering talents.
Educational development must be linked with the requirements of socio-economic development, to the scientific-technological advances, and to the consolidation of national defence and security; must implement standardisation, modernisation, and socialisation; must ensure the balance in terms of qualifications, professional and regional structure; must expand scale on the basis of quality and efficiency assurance; and must link education with employment.
Article 10. Rights and obligations to learn of citizens
Learning is the right and obligation of every citizen.
Every citizen, regardless of ethnic origins, religions, beliefs, gender, family background, social status or economic conditions, has equal rights of access to learning opportunities.
The State shall undertake social equity in education and enable everyone to get access to education. The State and the community shall help the poor have access to education, enabling gifted people to develop their talents.
The State shall give priority in enabling children of ethnic minorities, children of families in areas with special socio-economic difficulties, targeted groups of socially prioritised policies, disabled and handicapped persons and beneficiaries
of other social policies to realise their learning rights and obligations.
Article 11. Universalisation of education
1. Primary education and lower secondary education are universal education levels. The State shall make decisions on plans of universal education; shall assure conditions to implement the universalisation of education throughout the country.
2. All citizens within the defined age group shall have the obligation to learn in order
to obtain the level of universalised education.
3. Families shall have the responsibilities of facilitating or their members in the defined age group to pursue learning in order to obtain the level of universalised education.
Article 12. Socialisation of the cause of education
To develop education and to build a learning society are the responsibilities of the
State and of the whole population.
The State shall play the dominant role in developing the cause of education; carry out the diversification of schooling types and modes of education; encourage, promote and facilitate organisations and individuals to take part in the development of the cause of education.
It is the responsibility of all organisations, families and citizens to take care of education, to cooperate with schools in realising the goals of education, and to build a sound and safe educational environment.
Article 13. Investment for education
Investment for education is an investment for development.
The State shall give priority to the investment for education, encourage and protect the legal rights and benefits of Vietnamese organisations and individuals, overseas Vietnamese, foreign organisations and individuals to invest in education.
The State budget must hold the key role in the total resources invested in education.
Article 14. State management of education
The State shall carry out the unified management of the national educational system in terms of goals, programmes, contents, educational plans, teachers’ standards, examination regulations and system of degrees/diplomas; focus on the management of educational quality, exercise decentralisation on educational management; strengthen the autonomy and accountabilities of educational institutions.
Article 15. Roles and responsibilities of teachers
Teachers play the decisive role in ensuring the quality of education.
Teachers must study and improve themselves continuously to set examples for learners.
The State shall organise education and training for teachers, issuing policies on employment and rewards, ensuring necessary material and spiritual conditions for teachers to fulfil their roles and responsibilities, preserving and developing the tradition of respecting teachers and honouring the teaching profession.
Article 16. Roles and responsibilities of educational management staff
Educational management staff play an important role in organising, managing and directing educational activities.
Educational management staff must study and improve themselves continuously
in terms of moral standards, qualifications, management competence and personal responsibility.
The State shall have plan to build and improve the quality of educational management staff in order to promote roles and responsibilities of educational management staff, ensuring the development of the cause of education.
Article 17. Educational quality accreditation
Educational quality accreditation is the major measure to define the level of achieving educational objectives, programmes, and contents for schools and other educational institutions.
Educational quality accreditation is conducted regularly throughout the country and for every educational institution. Results of the educational quality accreditation are publicly announced for the information and monitoring purposes of the whole society.
The Minister of Educational and Training shall be responsible for directing the implementation of educational quality accreditation.
Article 18. Scientific research
1. The State shall facilitate schools and other educational institutions in organising scientific-technological research, application, and dissemination; in combining education with research and production so as to improve educational quality, gradually implementing the role of a cultural, scientific and technological centre for the locality or the whole country.
2. Schools and other educational institutions shall cooperate with scientific research organisations, production-trade-service units to carry out education, scientific research and technology transfer for socio-economic development.
3. The State shall elaborate priority policy for the development of research, application and dissemination of educational sciences. Guidelines and policies concerning education must be formulated based on the results of scientific research, appropriate to the Vietnamese reality.
Article 19. No religious propagating in schools and other educational institutions
Neither religious propagating nor religious rituals are to be conducted in schools and other educational institutions of the national educational system, of the State agencies, of political organisations, of socio-political organisations and of the people’s armed forces.
Article 20. Prohibition of making corrupt use of educational activities
It is prohibited to make corrupt use of educational activities to distort State guidelines, policies, legislation; to oppose the Socialist Republic of Vietnam, to separate the block of great national solidarity, to incite violence, to propagate invasion war, to arose the good traditions and customs, to publicise superstitious beliefs and bad customs, or to attract learners into social evils.
It is prohibited to make corrupt use of educational activities for self-interest purposes.
Chapter II

THE NATIONAL EDUCATIONAL SYSTEM

Section 1. EARLY CHILDHOOD EDUCATION
Article 21. Early childhood education
Early childhood education carries out the nurturing, caring, and educating children from three months to six years of age.
Article 22. Objectives of early childhood education
The objectives of early childhood education are to help children develop physically, emotionally, intellectually and aesthetically, in order to shape the initial elements of personality as well as to prepare children for the first grade.
Article 23. Requirements on contents and methods of early childhood education
1. The contents of early childhood education must be suited to the psycho- physiological development of children, balanced between nurturing, caring and educating, with a view to helping children develop a harmonious, healthy, and active body; know how to respect, love and regard grand-parents, parents, teachers, and elderly persons; be attached to brothers, sisters, and friends; be frank, forthright, natural, aesthetically sensitive and intellectually inquisitive.
2. The main method in early childhood education is to help children develop comprehensively through organising play activities while giving special attention to example posing, encouraging and promoting.
Article 24. Educational programme of early childhood education
1. Programme of early childhood education shall reflect the objectives of early childhood education; concretising requirements on nurturing, caring, and educating children at different age groups; regulating the organisation of activities in order to facilitate children to develop physically, emotionally, intellectually and aesthetically; providing guidelines to evaluate the development of children at early childhood age.
2. The Minister of Education and Training, based on the appraisals made by the National Review Council for Appraising Curricula of Early Childhood Education, shall make decisions on the issuance of programme for early childhood education.
Article 25. Institutions of early childhood education
Institutions of early childhood education include:
1. Crèches for children from 3 months to 3 years of age;
2. Kindergarten schools and classes for children from 3 years to 6 years of age;
3. Young sprout schools are those that combine crèches and kindergartens, for children from 3 months to 6 years of age.
Section 2. GENERAL EDUCATION
Article 26. General education
1. General education consists of:
a. Primary education is conducted in five years of schooling, from the first to the fifth grade. The age of commencement to the first class is six;
b. Lower secondary education is conducted in four years of schooling, from the sixth to the ninth grade. Pupils entering the sixth grade must complete the primary educational programme, at the age of eleven;
c. Upper secondary education is conducted in three years of schooling, from the tenth to the twelfth grade. Pupils entering the tenth grade must have a Lower Secondary Education Diploma, at the age of fifteen.
2. The Minister of Education and Training shall make provisions on cases where schooling could be commenced at lower ages for pupils with early intellectual development, at ages higher for pupils living at disadvantaged socio-economic regions, pupils belonging to ethnic minorities, disabled and handicapped pupils, pupils with physical and intellectual disadvantage, orphan pupils, pupils of poor households according to the State regulations, pupils returning from overseas; pupils leaping grades; pupils repeating classes; on Vietnamese studies for children of ethnic minorities before entering the first grade.
Article 27. Objectives of general education
1. The objectives of general education are to help pupils develop comprehensively by acquiring morals, knowledge, physical health, aesthetic values and other basic skills, develop personal ability, flexibility and creativeness, with a view to forming the socialist Vietnamese personality, to building the civic conduct and duty, to preparing them for further studies or entering the work force, participating in the building and defending of the Fatherland.
2. Primary education aims to help the pupils form initial foundations for a correct and long-lasting moral, intellectual, physical and aesthetic developments, along with the development of basic skills for them to enter lower secondary education.
3. Lower secondary education is directed towards the pupils’ consolidation and development of the outcomes of primary education, provision of a general and basic knowledge along with initial understanding on techniques and career orientation to enter upper secondary education, professional secondary education, vocational training or the workforce.
4. Upper secondary education is directed towards the pupils’ consolidation and development of the outcomes of lower secondary education, completion of the general education and common understanding on techniques and career orientation, provision of conditions for pupils to develop their personal ability in order to choose their development direction, to enter universities, colleges, professional secondary education schools, vocational training schools or the workforce.
Article 28. Requirements on contents and methods of general education
1. The contents of general education must ensure the popular, basic, comprehensive, career-orienting, and systematic characteristics, linking or with the realities of life, appropriateness to the psycho-physiological characteristics of pupils, and meeting the objectives of education at each level.
Primary education must guarantee pupils to acquire simple and necessary knowledge about nature, society and human being; with basic skills in listening, reading, speaking, writing and calculating, with habits of physical exercise and hygiene; and with initial understanding of singing, dancing, music and arts.
Lower secondary education must consolidate and develop the contents learned in primary education, guarantee pupils the basic general knowledge in Vietnamese, mathematics, national history, other knowledge in social sciences, natural sciences, law, informatics, foreign languages; with necessary minimum understanding on techniques and career-orientation.
Upper secondary education must consolidate and develop the contents learned in lower secondary education and complete the contents of general education. Besides guaranteeing the general, basic, comprehensive, career-orienting knowledge for all pupils, there shall be advanced teaching in some subjects for developing the pupils’ abilities and satisfying their needs.
2. The methods of general education are to promote the activeness, consciousness, initiatives and creativeness of pupils; to be appropriate to the characteristics of each grade and subject; to nurture the methods of self-study and the ability to work in team, to drill the ability of applying learned knowledge into practice; to have impact on pupils’ emotional development, to bring them joy and pleasure of learning.
Article 29. Educational programme of general education, textbooks
1. Educational programme of general education must reflect the objectives of general education, setting the standards of knowledge, skills, scope and structure of the contents of general education, methods and forms of organising educational activities, evaluation methods for educational results for each subject of all grades and levels of general education.
2. Textbooks must concretise the requirements on knowledge contents and skills as defined in the educational programme of subjects of each grade of general education, meeting the requirements on methods of general education.
3. The Minister of Education and Training, based on appraisals made by the National Review Council for Appraising Educational Programme of General Educational and Textbooks, shall approve educational programme of general education and textbooks for official, uniformed and steady use in teaching and learning at general educational institutions.
Article 30. Institutions of general education
The institutions of general education include:
1. Primary schools;
2. Lower secondary schools;
3. Upper secondary schools;
4. Multi-level general schools;
5. Centres for general techniques and career orientation.
Article 31. Certification for completion of primary education and issuance of lower secondary diploma and upper secondary diploma
1. Pupils who complete primary education, meeting the requirements set by the Minister of Education and Training, will be certified in their school records by the principle of the primary school that they have completed the primary education.
2. Pupils who complete lower secondary educational programme, meeting the requirements set by the Minister of Education and Training, will be issued with diplomas of lower secondary education by the Head of the Bureau of Education and Training in the district, precinct, town or city under provincial administration (will be referred to as district level).
3. Pupils who complete upper secondary educational programme, meeting the requirements set by the Minister of Education and Training, will be eligible to take the examination and those who pass the examination are issued with diplomas of upper secondary education by the Director of the Department of Education and Training in province, city under central administration (will be referred to as provincial level).
Section 3. PROFESSIONAL EDUCATION
Article 32. Professional education
Professional education consists of:
1. Professional upper secondary education which is conducted from three to four years of studies for learners with lower secondary education diplomas; from one
to two years of studies for those with upper secondary education diplomas;
2. Vocational training which is conducted in less than one year for preliminary vocational programme and from one to three years for vocational upper secondary and college programme.
Article 33. Objectives of professional education
The objectives of professional education are to educate potential labourers who will be equipped with knowledge, professional skills at different levels, with morals, professional ethics, discipline awareness, industrialised habits and physical health, thus providing working people with employability, self- employability or ability to further study to improve professional qualifications, meeting the needs of socio-economic development, national defence and security.
Professional upper secondary education is directed towards the training of working people with basic knowledge and practical skills of a profession, having ability to work independently and creatively as well as to apply technology into work.
Vocational training is directed towards the training of technical workers directly participating in production and service to have the practical ability of a profession adequate to the relevant training qualification.
Article 34. Requirements on contents and methods of professional education
1. The contents of professional education must focus on the training of vocational abilities, paying attention to moral and physical education, as well as improving skills as required by each profession, improving educational qualification levels as required.
2. The methods of professional education must combine practical skill drilling and theoretical teaching, enabling learners to practice and to develop profession as required by each profession.
Article 35. Educational programme and syllabi of professional education
1. Educational programme professional education of professional education reflects the objectives of setting standards for knowledge, skills, scope and structure of the contents of professional education, methods and form of training, ways of evaluating training results for each subject, field, profession, training qualification of professional education; ensuring the demand for transferability with other educational programmes.
The Minister of Education and Training, in co-ordination with other relevant Ministers and Heads of ministry-equivalent agencies, based on the appraisals of the Sector Review Council for Programme of Professional Upper Secondary Education, shall define the core programme for professional upper secondary education which includes content structure, number of subjects, duration of the subjects, proportion of theory and practice, ensuring the objectives for each subject and profession to be trained. Professional upper secondary education schools shall define their own training programmes based on the core programme.
Head of the State agency in charge of management of vocational training, in co- ordination with other relevant ministers and heads of agencies equivalent to ministry, based on the review of the Sector Review Council for Programme of Vocational Training, shall define the core programme for each vocational training level, including content structure, number of subjects, duration of the subjects, proportion of theory and practice, ensuring the objectives for each subject and profession to be trained. Vocational training institutions shall define their own vocational training programmes based on the core programme.
2. Syllabi of professional education shall concretise requirements on contents of knowledge and skills defined in educational programme for each subject, field, profession, and training qualification of professional education, meeting the requirements of methods of professional education.
The preparation and approval of textbooks for official use as teaching and learning materials in professional educational institutions are to be organised by the head of school or director of vocational training centre based on the review of Textbook Review Councils appointed by the head of school or director of vocational training centre.
Article 36. Institutions of professional education
1. Institutions of professional education include:
a) Professional upper secondary education schools;
b) Vocational training colleges, vocational upper secondary schools, vocational training centres, vocational training classes (referred to as vocational training institutions).
2. Vocational training institutions could be organised independently or linked with production units, businesses or other educational institutions.
Article 37. Diplomas and certificates of professional education
1. Learners who complete preliminary vocational training programme, vocational skill upgrading programme, if meeting the requirements set by head of the state agency in charge of management of vocational training, will be eligible to take the test for the certificate. Learners who pass the test are issued with certificates by head of professional educational institution.
2. Learners who complete professional upper secondary education programme, if meeting the requirements set by the Minister of Education and Training, will be eligible to take the examination. Learners who pass the examination are issued with professional upper secondary education diplomas by head of school.
3. Learners who complete vocational upper secondary programme, meeting the requirements set by head of the state agency in charge of management of vocational training, will be eligible to take the examination. Learners who pass the examination are issued with vocational upper secondary diplomas by head of school. Learners who complete vocational training college programme, meeting the requirements set by head of the state agency in charge of management of vocational training, will be eligible to take the examination. Learners who pass the examination are issued with vocational college diplomas by head of school.
Section 4. HIGHER EDUCATION
Article 38. Higher education
Higher education includes:
1. College education is conducted, depending on the discipline, from two to three years of study for persons with upper secondary education diplomas or professional secondary education diplomas; and from one and a half to two years of study for persons with professional secondary education diplomas in the same discipline;
2. University education is conducted, depending on the discipline, from four to six years of study for persons with upper secondary education diplomas or professional secondary educational diplomas; and from two and a half to four years of study for persons with professional secondary education diplomas in the same discipline; from one and a half to two years of study for persons with college diplomas in the same discipline;
3. Master education is conducted from one to two years of study for persons with university degrees;
4. Doctoral education is conducted over four years of study for persons with university degrees; and from two to three years of study for persons with master degrees. In special cases, the duration of doctoral education could be extended as stipulated by the Minister of Education and Training.
The Prime Minister shall give specific provisions for the equivalent qualifications to the master and doctoral education in some special fields of education.
Article 39. Objectives of higher education
1. The objectives of higher education are to educate learners in acquiring political and moral qualities, endeavour to serve the people, professional knowledge and practical skills relevant to the educational levels, and physical health, meeting the needs of construction and defense of the Fatherland.
2. College education shall equip students with professional knowledge and basic practical skills in one profession with the ability to solve common problems in the field of study.
3. University education shall help students acquire in-depth professional knowledge and fluently practical skills in one profession with the ability to work independently and creatively as well as to solve problems in the field of study.
4. Master education shall help students master theories, acquire advanced practical skills with the ability to work independently and creatively, as well as to identify and solve problems in the field of study.
5. Doctoral education shall help students acquire advanced level in theory and practice with the ability to conduct independent and creative research, to identify and solve emerging issues relating to science and technology, to guide scientific research and professional activities.
Article 40. Requirements on contents and methods of higher education
1. Requirements on contents of higher education:
The contents of higher education must have modern and developmental characteristics, ensuring a rational balance between basic knowledge, foreign languages and information technology, professional knowledge and subjects in Marxism-Leninism and Ho Chi Minh Thoughts; must inherit and develop further the good traditions and national cultural identity; up to the international and regional level.
College education must guarantee students basic scientific knowledge and necessary professional knowledge, focusing on drilling of basic skills and the ability to implement professional activities.
University education must guarantee students basic scientific knowledge and relatively complete professional knowledge, scientific working methodology and the ability to apply theory into professional activities.
Master education must ensure the supplementing and upgrading of students’ knowledge obtained in undergraduate education; enhance interdisciplinary knowledge and the capability of conducting professional activities and research in their fields of study.
Doctoral education must ensure the completion and upgrading of students’ basic scientific knowledge; provide in-depth understanding in specialised knowledge; and develop the capacity of conducting independent research and being creative in their professional activities.
2. Requirements on methods of higher education:
Methods of college and university education must pay attention to the advancement of self-consciousness in study, of ability for self-study, self-taught, developing creative thinking, drilling of practical skills, facilitating students in participating in research, experimentation and application.
Methods of master education shall be realised by combination of various modes of in-class study and self-study, self-research; with special attention to the improvement of practical skills and abilities to identify and solve professional problems.
Methods of doctoral education shall be mainly self-study, self-research under the supervision of instructors and scientists; with focus on the development of scientific research habits and creativity in identifying and solving professional problems.
Article 41. Educational programme and syllabi of higher education
1. Educational programme of higher education reflects objectives of higher education; setting standards for knowledge, skills, scope and structure of the contents of higher education, methods and forms of training, ways of evaluating training results for each subject, field, profession, training qualification of higher education; ensuring the demand of transferability with other            educational programmes.
The Minister of Education and Training, based on the review of the Sector Review National Council for Programme of Higher Education, shall define the core programme for each field of education for college and university education, including content structure of all subjects, duration of education, proportion of education duration among different subjects, of theory and practice, internship. Colleges and universities shall design their own programmes based on the core programme.
The Minister of Education and Training shall define knowledge quantity, programme structure, thesis, and dissertation for master and doctoral education.
2. Syllabi of higher education concretise requirements on knowledge contents and skills as defined in the educational programme for each subject, field, and educational qualifications.
Heads of colleges and universities shall be responsible for the compilation and approval of syllabi for official use for each college, each university based on the review of the Syllabi Appraising Council appointed by the head of the institution, ensuring sufficient syllabi for teaching and learning.
The Minister of Education and Training shall be responsible for the compilation and approval of syllabi for common use by colleges or universities.
Article 42. Institutions of higher education
1. Institutions of higher education include:
a) Colleges providing college education;
b) Universities providing college,           university education; master and            doctoral education as assigned by the Prime Minister;
Research institutes providing doctoral education, co-operating with universities to offer master education as assigned by the Prime Minister.
2. Institutions of higher education will be assigned the task of doctoral education if they meet the following conditions:
a) To have sufficient quantity of professors, associate professors, and doctors with ability to build and conduct educational programmes, organising thesis evaluation council.
b) To have sufficient infrastructure and equipment, meeting the requirements of doctoral education;
c) To have experience in scientific research activities, having conducted research tasks of scientific subject of scientific programmes at State level, having experience in educating and fostering people for scientific research activities.
3. The specific organisational models of various types of higher educational institutions shall be stipulated by the Government.
Article 43. Degrees of higher education
1. Students who have completed the college programme and have met the criteria are eligible to take the examination and if meeting the requirements as stipulated by the Minister of Education and Training will be awarded with college diploma by head of college or rector of university.
2. Students who have completed the university programme and have met the criteria are eligible to take the examination or to defend the graduation theses or projects, and if meeting the requirements as stipulated by the Minister of Education and Training will be awarded with university degree by rector of university.
University degrees of technical fields are called engineer degree; of architecture are called architect degree, of medicines and pharmaceuticals are called medical doctor, pharmacist and bachelor degree; of basic sciences, education, law, economics are called bachelor degree, of all other fields are called university degree.
3. Students who have completed the master’s training programme and have met the criteria are eligible to defend the graduation theses, and if meeting the requirements as stipulated by the Minister of Education and Training will be awarded with master degree by rector of university.
4. Students who have completed the doctoral educational programme and have met the criteria are eligible to defend the dissertations, and if meeting the requirements as stipulated by the Minister of Education and Training will be awarded with doctoral degree by rector of university or head of scientific research institute.
5. The Minister of Education and Training shall define the responsibility and authority for degree granting of local higher educational institutions stipulated in the paragraph 1 of the Article 42 of this Law when the institution is involved in joint educational programmes with foreign higher education institutions.
6. The Prime Minister shall give provisions for the equivalent qualifications to master and doctoral degrees in some special fields of training.
Section 5. CONTINUING EDUCATION
Article 44. Continuing education
Continuing education enables people to learn while in-service, to learn continuously and for lifelong for refinement of their personality, broadening their understanding, and for educational, professional, operational enhancement with a view to improving their quality of life, employability, self-employability, and adaptation to the social life.
The State shall make policies to develop continuing education, to implement education for all, to build a learning society.
Article 45. Requirements on educational programme, contents and methods of continuing education
1. The contents of continuing education are reflected in the following programmes:
a) Illiteracy eradication and continuing post-literacy education;
b) Educational programme responding to the needs of learners, updating of knowledge and skills, transferring of technology;
c) Training and upgrading programmes, programmes for enhancement of qualifications and professions.
d) Programmes leading to diplomas of the national educational system.
2. Forms to conduct continuing educational programmes leading to diplomas of the national educational system are as follows:
a) In-service learning;
b) Distance learning;
c) Guided self-learning.
3. The educational contents of the programmes as defined in items a, b, and c, paragraph 1 of this Article must guarantee the usefulness, and help the learners improve their working productivity and quality of life.
The educational contents of the programme as defined in item d, paragraph 1 of this Article, must guarantee the requirements on contents of the educational programme of the same educational level and educational qualifications defined in Articles 29, 35, and 41 of this Law.
4. The methods of continuing education must promote the initiatives and take advantage of the experience of learners, with an emphasis on the development of their self-taught ability, using modern facilities and information technology to improve quality and efficiency of teaching and learning.
5. The Minister of Education and Training, Head of the State agency in charge of management on vocational training, within their authority, shall give specific provisions on programme, syllabi, textbooks and materials of continuing education.
Article 46. Institutions of continuing education
1. Institutions of continuing education include:
a) Centres for continuing education organised at province and district levels;
b) Community learning centres organised at commune, ward, town (referred to as commune level);
2. Programmes of continuing education are also conducted at general educational institutions, professional educational institutions, higher educational institutions and through mass media.
3. Centres of continuing education that conduct programmes of continuing education as defined in paragraph 1, Article 45 of this Law are not eligible to conduct educational programmes leading to professional upper secondary education diploma, college diploma, or university degree. Community learning centres conduct educational programmes as defined in items a and c, paragraph 1, Article 45 of this Law.
4. General education institutions, professional education institutions, higher education institutions conducting programmes of continuing education must ensure the fulfilment of their own formal educational duties; they can only implement the programmes as defined in item d, paragraph 1, Article 45 of this Law as permitted by competent State educational authorities. Higher education institutions conducting programmes of continuing education leading to college or university degrees can link with local education institutions of universities, colleges, professional secondary schools, provincial continuing educational centres with conditions that local education institutions guarantee requirements on material facilities, equipment and management staff appropriate to college and university education levels.
Article 47. Diplomas and certificates of continuing education
1. Learners who complete lower secondary education programme, meeting the requirements set by the Minister of Education and Training, will be issued with diplomas of lower secondary education Besides, learners who have completed educational programmes as defined in item d, paragraph 1, Article 45 of this Law are eligible to take the examination for diplomas if they meet the following requirements:
a) Being registered at an educational institution authorised to provide the training at the relevant levels, in relevant qualifications;
b) Having completed the programme, fulfilled requirements on learning assessment and evaluation, and attested by the educational institution as eligible to take the examination according to the regulations set out by the Minister of Education and Training.
The authority in issuing continuing education diplomas is the same as provided for that defined in Article 31, 37, and 43 of this Law.
2. Learners who have completed educational programmes as defined in items a, b, and c, paragraph 1, Article 45 of this Law, and have met the criteria set out by the Ministry of Education and Training are eligible to take the examination; and if meeting the requirements will be issued with the continuing education certificates.
Directors of centres of continuing education shall issue continuing education certificates.
Chapter III

SCHOOLS AND OTHER EDUCATIONAL INSTITUTIONS

Section 1. SCHOOL ORGANISATION AND ACTIVITIES
Article 48. Schools in the national educational system
1. Schools in the national educational system are organised in the following forms:
a) Public schools are established, invested for infrastructure, covered financially for regular expenditures by the State;
b) People-founded schools are established, invested for infrastructure, covered financially for operating costs by local community;
c) Private schools are established, invested for infrastructure, covered financially for operating costs by social organisations, social-professional organisations, economic organisations, or individuals with non-state budget funding.
2. Schools in the national educational system of all forms are established according to the State plans aiming at development of the cause of education. The State shall facilitate public schools to take the leading role in the national educational system.
Conditions, procedures and authority to establish schools or to give permission for school establishment are defined in Article 50 and 51 of this Law.
Article 49. Schools of State agencies, political organisations, socio-political organisations and people’s armed forces
1. Schools of State agencies, political organisations, socio-political organisations have the responsibility to educate and train civil servants. Schools of people’s armed forces have the responsibility to educate and train officers, non- commissioned officers, professional staff and defence workers; to foster leaders and state managers on functions and knowledge of national defence and security.
2. The Government shall give detailed provisions on schools of State agencies, political organisations, socio-political organisations and people’s armed forces.
Article 50. School establishment
1. Conditions for school establishment
a) Have management and teaching staff sufficient in quantity and structure, qualified in moral quality and educational qualifications, ensuring the implementation of educational objectives and programmes;
b) Have sufficient infrastructure, equipment and financial sources, capable of meeting the requirements of school activities.
2. Those that have authority as defined in Article 51 of this Law, based on the needs of educational development, shall make decision on school establishment for public schools, or on giving permission for establishment of people-founded and private schools.
Article 51. Authority in the establishment, permission for establishment, termination, merging, separation, and dissolution of schools
1. Authority in the establishment of public schools and authority of giving permission for establishment of people-founded and private schools are as follows:
a) Chairman of district People’s Committee shall make decisions for crÌches, kindergartens, primary schools, lower secondary schools, and semi-boarding general education schools for ethnic children;
b) Chairman of provincial People’s Committee shall make decisions for upper secondary schools, boarding general education schools for ethnic children; professional upper secondary education schools under provincial administration.
c) Ministers, heads of ministry-equivalent agencies shall make decisions for professional upper secondary educational schools under the concerned agency’s administration.
d) The Minister of Education and Training shall make decisions for colleges, pre- university schools; Head of the State agency in charge of management of vocational training shall make decisions for vocational colleges;
dd) The Prime Minister shall make decisions for universities.
2. Those that have authority to establish or give permissions to establish schools shall have the authority to terminate, merge, separate or dissolve respective schools.
The Prime Minister shall give detailed provisions on procedures of establishment, termination, merging, separation, and dissolution of university.
The Minister of Education and Training, Head of the State agency in charge of management of vocational training, according to their authorities, shall define procedures of establishment, termination, merging, separation, and dissolution of schools of other educational levels in the national educational system.
Article 52. School charter
1. Schools are organised and operated according to the regulations of this Law and the school charter.
2. School charter must include the following components:
a) Tasks and rights of the school;
b) Organisation of educational activities in the school;
c) Duties and rights of teachers;
d) Duties and rights of learners;
dd) Organisation and management of the school;
e) Financing and properties of the school;
g) Relationships among school, family and society.
3. The Prime Minister shall promulgate the University Charter, the Minister of Education and Training and Head of the State agency in charge of management of vocational training shall promulgate school charters at other levels of education according to their authorities.
Article 53. School council
1. School council of public schools or board of directors of people-founded and private schools (hereinafter referred to as school council) is the body responsible for making decisions on the directions of school activities, mobilising and monitoring the use of resources for the school, linking the school with community and society, ensuring the realisation of educational objectives.
2. School council has the following tasks:
a) To pass a resolution on the objectives, strategies, projects and development plans of the school;
b) To pass a resolution on or to make supplements and amendments of regulations on organisation and operation of the school to submit to the competent authorities for approval;
c) To pass a resolution on policies on using financial sources, properties of the school;
d) To monitor the implementation of the resolution of the school council, of democratic regulations of school activities.
3. Detailed establishment procedures, organisation structures, rights and duties of school council shall be defined in the school charter.
Article 54. School head
1. School head is appointed or recognised by the competent State managerial authority, and is responsible for managing the school’s operations.
2. Heads of schools in the national educational system must be trained and upgraded in school management.
3. Criteria, functions and rights, procedures for appointment, recognition of heads of universities shall be stipulated by the Prime Minister, and by the Minister of Education and Training with regard to schools at all other levels, by State management authority for vocational training with regard to vocational training institutions.
Article 55. Advisory board in school
Advisory board in school is set up by the school head in order to gather opinions from educational managers, teachers, representatives of organisations at the school in realising tasks under the duties and rights of the school head. Organisation and activities of the advisory board is stipulated in the school charter.
Article 56. Party organisation in school
Organisation of the Communist Party of Vietnam within the school shall lead the school and operate according to the Constitution and laws.
Article 57. Mass and social organisations in school
Mass and social organisations shall operate in school according to the laws and are responsible for contributing to the realisation of educational objectives as defined in this Law.
Section 2. FUNCTIONS AND RIGHTS OF SCHOOLS
Article 58. Functions and rights of schools
Schools have the following functions and rights:
1. To organise teaching, studies and other educational activities according to educational objectives and programme; to ratify or issue diplomas, certificates within its authorities.
2. To recruit, administer teachers and staff; to participate in the process of personnel mobilisation by competent state agencies for teachers and staff;
3. To enrol and administer learners;
4. To mobilise, manage and utilise resources according to the laws;
5. To build up infrastructure in conformity with the requirements of standardisation and modernisation;
6. To co-ordinate with learners’ families, organisations and individuals in educational activities;
7. To arrange for teachers, staff and learners to participate in social activities;
8. To conduct quality self-evaluation and is subject to accreditation by competent quality accreditation agency;
9. Other functions and rights as regulated by laws.
Article 59. Functions and rights of professional upper secondary schools, colleges and universities in scientific research and social services
1. In conjunction with the functions described in Article 58 of this Law, professional upper secondary schools, colleges, universities have the following additional functions:
a) To perform scientific research; application, development and transfer of technology and to participate in solving socio-economic problems of the localities and the country;
b) To perform scientific services, production and business in accordance with laws.
2. In implementing functions defined in paragraph 1 of this Article, professional upper secondary schools, colleges and universities have the following rights:
a) To receive land allocation or rental, infrastructure allocation or rental by the State, to benefit tax reduction or exemption, to receive loans as regulated by laws;
b) To associate with economic, educational, cultural, sporting, athletics, medical and research organisations to improve educational quality, to link training with use, to serve socio-economic development and to generate extra financial sources for institutions;
c) To spend incomes from economic activities to invest in the institution’s infrastructure, to expand production and business activities and to compensate for educational activities as regulated by laws.
Article 60. Autonomy and self-accountability of professional upper secondary schools, colleges and universities
Professional upper secondary schools, colleges and universities are given autonomy and self-accountability as defined by laws and by their charters in the following aspects:
1. Developing educational programmes, syllabi, teaching and learning plans for authorised educational fields;
2. Planning enrolment quota, conducting enrolment, organisation of educational process, recognition of graduation and issuance of degrees/diplomas;
3. Organising the institution’s organisational structure; recruiting, administering, using and compensating faculty and staff members;
4. Mobilising, managing and utilising resources;
5. Co-operating with domestic and international economic, educational, cultural, sporting, athletics, medical, and research organisations according to governmental regulations.
Section 3. TYPES OF SPECIAL SCHOOLS
Article 61. Boarding general education schools and semi-boarding general education schools for ethnic minorities, pre-university schools
1. The State shall establish boarding general education schools, semi-boarding general education schools, and pre-university schools for ethnic minority children, and/or children of long-term resident families in areas with extreme socio- economic difficulties to help prepare human resources for these areas.
2. Boarding general education schools, semi-boarding general education schools, and pre-university schools for ethnic minorities shall be given priority in allocation of teachers, infrastructure, equipment and budget.
Article 62. Specialised schools, schools for gifted students
1. Specialised schools are established at upper secondary level for pupils with excellent achievements in learning to develop their talents in certain subjects while assuring comprehensive general education.
Schools for gifted students in arts, sports and athletics are established to develop talented pupils in these fields.
2. The State shall give priority in allocating teachers, infrastructure, equipment and budget to specialised schools and schools for gifted students established by the State and give incentives to schools for gifted students established by individuals or organisations.
3. The Minister of Education and Training shall, in co-operation with other related ministers and heads of governmental agencies, promulgate educational programmes, organisational regulations for specialised schools and schools for gifted students.
Article 63. Schools and classes for disabled and handicapped people
1. The State shall establish and encourage organisations and individuals to establish schools and classes for disabled and handicapped people to enable them to restore their functions, to receive education and vocational training and to integrate into the communities.
2. The State shall give priority in allocating teachers, infrastructure, equipment and budget to schools and classes for disabled and handicapped people established by the State and give incentives to schools and classes for disabled and handicapped people established by individuals or organisations.
Article 64. Re-education schools
1. Re-education schools are responsible for educating juvenile offenders to enable them to correct, develop and become good citizens, capable of re-integrating into the society.
2. The Minister of Public Security shall have the responsibility for co-operating with the Minister of Education and Training and the Minister of Labour, War Invalids and Social Affairs to stipulate educational programme for re-educational schools.
Section 4. POLICIES FOR PEOPLE-FOUNDED AND PRIVATE INSTITUTIONS
Article 65. Duties and rights of people-founded and private institutions
1. People-founded and private institutions shall have equal rights as those of public institutions concerning the implementation of educational objectives, contents, programmes, methods, and other regulations on admissions, teaching, learning, testing, examinations, recognition of graduation, issuance of degrees, diplomas and certificates.
2. People-founded and private institutions are autonomous and self-accountable for their planning, institutional development plan, organisation of educational activities, development of teaching staff, mobilisation, utilisation and management of other resources to implement educational objectives.
3. Degrees, diplomas and certificates issued by people-founded, private or public institutions shall have equal legal values.
4. People-founded and private institutions are subject to the management of State management bodies for education as regulated by the Government.
Article 66. Financial regulations
1. People-founded and private institutions shall operate on the principle of financial autonomy, self-balancing of revenue and expenditure, in compliance with regulations of laws on accounting and auditing.
2. Incomes of people-founded and private institutions shall be used for expenditures of the institution’s necessary operations, fulfilment of duties to the State budget, establishment of investment development funds and other funds of the institution. The remained incomes shall be distributed to the  members according to their contribution of capital.
3. People-founded and private institutions shall follow transparent financial practices and are responsible for producing annual financial reports for the competent State management agencies for education and for the financial agencies where they are located.
Article 67. Rights on ownership of properties, withdrawal and transfer of capital
Properties, finance of people-founded institutions shall fall under collective ownership of local community; properties, finance of private institutions shall fall under ownership of its shareholders. Properties and finance of people-founded and private institutions are protected by the State as regulated by laws.
Withdrawal and transfer of capital of private institutions shall be made in accordance with the Government’s regulations, to ensure the institution’s stability and development.
Article 68. Preferential policies
People-founded and private institutions shall receive land allocation or rental, infrastructure allocation or rental by the State, receive budget support when implementing duties requested by the State, and benefit from preferential polices on taxes and credits. People-founded, private institutions shall receive financial assurance by the State in order to implement policies for learners as stipulated in Article 89 of this Law.
The Government shall provide detailed regulations on preferential policies for people-founded and private institutions.
Section 5. ORGANISATION AND OPERATION OF OTHER EDUCATIONAL INSTITUTIONS
Article 69. Other educational institutions
1. Other educational institutions in the national educational system consist of:
a) Groups of baby sitters, crÌche; independent classes include kindergarten classes, illiteracy eradication classes, foreign language classes, informatics classes, classes for disadvantaged children who are unable to attend schools, classes for disabled and handicapped children, vocational training classes and professional upper secondary education classes organised within production, business and service enterprises.
b) Centres for general technical education and professional orientation; vocational training centres; continuing educational centres; community learning centres;
c) Scientific research institutes with permission to offer programs at doctoral level, or in co-ordination with universities to offer programs at master level.
2. Scientific research institutes, upon receiving the Government’s permission to co- ordinate with universities to offer programs at master level, are responsible to sign contracts with the universities to implement their educational programmes.
3. The Minister of Education and Training shall promulgate regulations on the organisation and operation of other educational institutions as defined in point b, paragraph 1 of this Article; regulations on the organisational and operational principles of other educational institutions as defined in point a, paragraph 1 of this Article; regulations on training co-ordination principles of other educational institutions as defined in point c, paragraph 1 of this Article.
Chapter IV

TEACHERS

Section 1. DUTIES AND RIGHTS OF TEACHERS
Article 70. Teachers
1. Teachers are persons who carry out teaching, educating at schools or other educational institutions.
2. Teachers must possess the following criteria:
a) Having good moral, mental and ideological qualifications;
b) Having obtained the standardised level in the profession;
c) Having good health as required by the profession;
d) Having a clear curriculum vitae.
3. Teachers working at institutions of pre-school education, general education, professional education are called teachers, at institutions of higher education are called lecturers.
Article 71. Professors and associate professors
Professors and associate professors are titles of teachers teaching at institutions of higher education.
The Prime Minister shall determine criteria and procedures for appointing and dismissing the titles of professor and associate professor.
Article 72. Teachers’ duties
Teachers have the following duties:
1. Educating and teaching according to educational objectives, principles and curriculum;
2. Being exemplary in the fulfilment of civic duties, regulations of law and school charters;
3. Maintaining moral quality, prestige and honour of teacher, respecting learners’ dignity, to treat learners equally, and protect legitimate rights and interests of learners;
4. Studying continuously to improve moral quality, ethics, professional qualification and being good example for learners.
5. Performing other duties as regulated by laws.
Article 73. Rights of teachers
Teachers have the following rights:
1. To teach according to their educated specialisation;
2. To receive further education and training to improve qualifications;
3. To work under contract as visiting teacher and/or researcher in other schools, educational and research institutions provided that they fulfil their tasks assigned by their school;
4. To be protected with regard to their honour and dignity;
5. To have summer vacation, Lunar New Year holidays, and semester holidays as stipulated by the Minister of Education and Training and other holidays as stipulated in the Labour Law.
Article 74. Visiting teaching
1. Educational institutions are entitled to invite persons meeting criteria as stipulated in paragraph 2, Article 65 of this Law to teach as visiting teachers;
2. Visiting teacher must perform duties as defined in Article 72 of this Law;
3. Visiting teacher, if being civil servants, must first assure the fulfilment of tasks at his/her organisations.
Article 75. Prohibited behaviours of teachers
Teachers are prohibited from having the following behaviours:
1. Disrespect the honour, dignity of learners, hurt or abuse them physically;
2. Fraudulent in admission, examinations, intentionally mis-evaluating learners’ study and training results;
3. Distort educational contents;
4. Force learners to take extra classes for money
Article 76. Vietnamese Teachers’ Day
Annually, the 20th of November is the Vietnamese Teachers’ Day.
Section 2. EDUCATION AND TRAINING FOR TEACHERS
Article 77. Standardised educational qualifications of teachers
1. The standardised educational qualifications of teachers are defined as follows:
a) Pre-school and primary education teachers must possess upper secondary pedagogical diploma;
b) Lower secondary education teachers must possess pedagogical college diploma
or college diploma and certificate of pedagogy training;
c) Upper secondary education teachers must possess pedagogical university degree and certificate of pedagogy training;
d) Teachers guiding practice at vocational training institutions must possess diploma from professional upper secondary school; vocational training college or be qualified artisans, high skilled technical workers;
dd) Professional upper secondary teachers must possess pedagogical university degree or university degree and certificate of pedagogy training;
e) Teachers at colleges and universities must possess university degree or higher and certificate of pedagogy training; master degree or higher for teaching specialised subjects or supervising master thesis, doctoral degree for teaching specialised subjects or supervising doctoral thesis.
2. The Minister of Education and Training and heads of the State management agencies for vocational training, according to their competence, shall stipulate further education and training for teachers who have not met the required standards.
Article 78. Pedagogical institutions
1. Pedagogical institutions are established by the State to educate and train teachers and educational management staff.
2. Pedagogical institutions shall be given priority in teacher recruitment, allocation of administrators, investment in infrastructure and dormitories, as well as availability of funding.
3. Pedagogical institutions have dormitories, schools or establishments for trainee- teachers’ practice.
Article 79. Teachers of colleges and universities
Teachers of colleges and universities are recruited based on preferential recruitment of good and excellent graduates with good personal quality and those with undergraduate, master, or doctoral qualifications, practical experience and desire to become teacher. Prior to their teaching assignment, college and university teachers must receive pedagogy training. These training programs shall be regulated by the Minister of Education and Training.
Section 3. POLICIES FOR TEACHERS
Article 80. Professional and pedagogical enhancement
The State shall elaborate policies for upgrading teachers professionally and pedagogically so as to enhance their qualifications and bring them up to the required standards.
Teachers nominated to attend processional and pedagogical enhancement programmes will receive salary and subsidies as regulated by the Government.
Article 81. Salary
Teachers will receive salary, professional allowances and other allowances regulated by the Government.
Article 82. Policies for teachers, educational administrators working at special schools, in areas with extreme socio-economic difficulties
1. Teachers and educational administrators working at specialised schools, schools for gifted students, boarding general education schools or semi-boarding general education schools for ethnic minorities, pre-university schools, schools for disabled and handicapped persons, re-education schools and other special schools shall receive allowances and other preferential rewards as stipulated by the Government.
2. Teachers and educational administrators working in areas with extreme socio- economic difficulties shall be facilitated by the People’s Committees at various levels concerning housing and shall receive allowances and other preferential rewards as stipulated by the Government.
3. The State shall elaborate policies to rotate teachers and educational administrators working in areas with extreme socio-economic difficulties, encourage and provide preferential rewards to teachers and educational administrators working in more favourable areas to move into areas with extreme socio-economic difficulties; facilitate teachers in these areas to settle to their work, provide training of ethnic minority languages for teachers and educational administrators working in ethnic minority areas to improve teaching and learning quality.
Chapter V

LEARNERS

Section 1. DUTIES AND RIGHTS OF LEARNERS
Article 83. Learners
1. Learners are persons currently learning at educational institutions of the national educational system. Learners include:
a) Children at pre-school education institutions;
b) Pupils at general education establishments, vocational training            classes, vocational training centres, professional upper secondary schools and pre- university schools;
c) Students at colleges and universities;
d) Students at institutions providing master education ;
dd) Doctoral candidates at institutions providing doctoral education ;
e) Learners in continuing educational programmes.
2. The stipulations in the Articles 85,86, 87, 88, 89, 90, 91, 92 of this Law are only applicable to learners mentioned in the points b, c, d, đ and e, paragraph 1 of this Article.
Article 84. Rights of and policies for children at pre-school institutions
1. Children at pre-education institutions have the following rights:
a) To receive care, nurture, educational according to the objectives, pre-education plans of the Ministry of Education and Training;
b) To benefit from the primary health care service, free medical examinations, treatment at the public health care establishments;
c) To benefit from discounted public entertainment services.
2. The Government shall define policies for children at pre-school institutions.
Article 85. Duties of learners
Learners have the following duties:
1. To perform learning and training tasks according to the educational programmes and plans of schools or other educational institutions;
2. To respect teachers, staff of the school and of other educational institutions; to maintain solidarity and mutual support in learning and training, to comply with State’s laws and conform to school regulations and charters;
3. To participate in working and social activities, environmental protection activities appropriate to their age group, health and ability;
4. To preserve and protect properties of the school and of other educational institutions;
5. To contribute to building, protection and development of the tradition of the school and of other educational institutions.
Article 86. Rights of learners
Learners have the following rights:
1. To receive respect, equal treatment and full provision of adequate information concerning their own learning and training by schools or other educational institutions;
2. To have the possibility of learning at earlier ages, leaping grades, shortening program duration, learning at the age higher than regulated, extending program duration or repetition;
3. To be awarded degrees, diplomas or certificates after graduation at academic and training levels as regulated by laws;
4. To participate in activities of mass organisations and social organisations in schools and other educational institutions in accordance with laws;
5. To use equipment and facilities assigned to learning, cultural, sporting, athletic activities at schools or other educational institutions;
6. To submit, directly or through their legal representatives, to schools or other educational institutions measures for the school improvement, to protect learners’ legitimate rights and interests;
7. To benefit from preferential State policies in recruitment into State agencies upon merit graduation with excellent records and good conduct.
Article 87. Obligations to work for time-bound duration according to the State’s placements
1. Students at public colleges and universities who receive scholarships or funding from the State or foreign countries under agreement with the State, upon graduation, must comply to job placements for time-bound duration by the State; in case of non-compliance, education costs and scholarships must be refunded by the students.
2. The Government shall provide detailed provisions on the specific duration of job under placement of relevant authorities, on the duration of waiting for job placement and on the amount of refunding as defined in paragraph 1 of this Article.
Article 88. Prohibited behaviours of learners
Learners are prohibited from having the following behaviours:
1. Disrespect honour, dignity or infringe physically upon school’s teachers, staff and other learners;
2. Fraudulent in learning, tests, examinations, admission exams;
3. Smoke or drink alcohol during class; cause disorders and disturbances at the school or in public areas.
Section 2. POLICIES FOR LEARNERS
Article 89. Scholarships and social subsidies
1. The State shall elaborate policies on granting academic scholarships to pupils with excellent scholastic achievements at specialised schools, schools for gifted students as stipulated in Article 62 of this Law or to learners with good academic and training results at vocational education institutions and at universities; on granting policy scholarships to students enrolled by form of nomination, pupils at pre-university schools, boarding schools for ethnic minorities, vocational training schools for war invalids, disabled and handicapped people.
2. The State shall elaborate policies on subsidy and reduction/exemption of tuition for learners from social policy targeted groups, ethnic minorities in areas with extreme socio-economic difficulties, homeless orphans, disabled and handicapped people with economic difficulties, people who overcome their exceptional economic difficulties to gain excellent study results.
3. Students at pedagogical institutions and learners following teacher training courses are exempted from tuition, and receive preferential treatment in the consideration for scholarships and/or social subsidies as defined in Items 1 and 2 of this Article.
4. The State shall encourage organisations and individuals to grant scholarships or allowances to learners as prescribed by laws.
Article 90. Admission by form of nomination
1. The State shall grant admission for students in areas with extreme socio- economic difficulties into colleges, universities or professional upper secondary schools by means of nomination, in order to educate human resources, civil servants for these areas;
The State shall set aside nomination quotas for some ethnic minorities with no or few officials having obtained degrees/diplomas from colleges, universities or professional upper secondary schools; make policies to create admission source based on favourable conditions for students of these ethnic minorities to enter general education ethnic boarding-schools and increase pre-university period.
2. People’s Committee at provincial level, based on the need of the province, shall
be responsible for proposing nomination quotas, allocating nomination quotas according to appropriate fields and disciplines, selecting persons according to approved quotas and set criteria, assigning jobs for learners after graduation.
3. Students of this nomination mode, upon graduation, must comply with job placement by the competent State agency sending them to study.
The Government shall regulate criteria and beneficiaries of nomination mode, implementation of nomination mode, refunding of the scholarships and educational costs to be made by the students if they fail to comply with the job placement.
Article 91. Educational credits
The State shall elaborate preferential credit policies concerning interest rates, credit’s conditions and duration to enable learners from low-income families to study.
Article 92. Reduction, exemption of public service fees for pupils and students
Pupils and students qualify for fee reduction or exemption when using public services in health care, transportation, entertainment, and visits to museums, historical relics and cultural attractions as stipulated by the Government.
Chapter VI
SCHOOL, FAMILY AND SOCIETY
Article 93. Responsibility of schools
Schools shall be responsible for active liaison with families and society to implement the educational objectives and principles.
Other regulations related to schools in this Chapter will be applied for other educational institutions.
Article 94. Responsibility of families
1. Parents or guardians shall be responsible for nurturing, caring and facilitating their children or persons under their guardianship in learning, training and participation in school activities.
2. All family members shall be responsible for creation of a cultural family and a favourable environment for comprehensively moral, intellectual, physical and aesthetic development of their children; adults are responsible for educating, setting examples, and working with schools to improve quality and efficiency of education.
Article 95. Rights of parents or guardians of students
Parents or guardians shall have the following rights:
1. To request schools to inform them about results in learning and training of their children or persons under their guardianship;
2. To take part in educational activities according to school’ plans ; to participate in activities for parents or guardians at schools;
3. To request schools and/or educational management agencies to respond to issues related to the education of their children or persons under their guardianship by laws.
Article 96. Representative committee of pupils’ parents
Representative committee for the pupils’ parents is annually established at pre- school and general education level, nominated by parents or guardians in each class or school to liaison with schools in the implementation of its educational operations. This committee shall not be established at inter-school or administrative level.
Article 97. Responsibility of society
1. State agencies, political organisations,           socio-political organisations, socio- political-professional organisations, social organisations, socio-professional organisations, professional organisations, economic organisations, people’s armed forces units and all citizens shall have the following responsibilities:
a) Helping schools in organising educational and research activities; facilitating teachers and learners in visits, practice and research;
b) Contributing to the creation of a healthy learning movement and educational environment, while preventing activities with possible negative affects on youth and children;
c) Facilitating learners in healthy recreational, cultural, sporting and athletic activities;
d) Contributing labours, resources and finance for the cause of educational development according their capacities.
2. The Vietnam Fatherland Front Committee and its member organisations shall be responsible for mobilising the population to take care of the cause of education.
3. The Ho Chi Minh Communist Youth Union shall be responsible for co-ordinating with schools in the education of the youth and children; mobilising its members and youth to set examples in learning, training and participating in the development of the cause of education.
Article 98. Learning promotion funds, educational sponsoring funds
The State shall encourage organisations and individuals in setting up learning promotion funds, educational sponsoring funds that operate in accordance with laws.
Chapter VII

STATE MANAGEMENT OF EDUCATION

Section 1. CONTENTS OF STATE MANAGEMENT AND STATE AGENCIES IN CHARGE OF MANAGEMENT OF EDUCATION
Article 99. Contents of State management of education
Contents of State management of education shall comprise:
1. Formulating and directing the implementation of strategies, plans and policies on educational development;
2. Promulgating and organising the execution of legal documents on education; school charters and regulations concerning organisation and operations of other educational institutions;
3. Defining objectives, programmes, contents of education; teacher standards; standards on infrastructure and equipment of school; compilation, publication, printing and distribution of textbooks, teaching manuals, regulations on examination and awards of degrees/diplomas/certificates;
4. Organising and managing educational quality assurance and accreditation;
5. Conducting statistical works on educational organisation and operations;
6. Organising educational management apparatus;
7. Organising and directing the training, enhancement and management of teachers and educational administrators;
8. Mobilizing, managing and utilizing resources for educational development;
9. Organizing and managing scientific and technological research and application in education sector;
10. Organizing and managing international cooperation in education;
11. Regulating the issuance of honorary titles for people with outstanding contributions to the cause of education;
12. Inspecting and supervising the law compliance concerning education; settlement of complaints, denunciations and violations of the laws on education.
Article 100. State agencies in charge of management of education
1. The Government shall exercise the unified State management of education.
The Government shall submit to the National Assembly for decision of major guidelines affecting learning rights and duties of citizens nation-wide, orientations for reform of educational contents related to a whole educational level; annually report to the National Assembly on educational operations and educational budgetary execution.
2. The Ministry of Education and Training is accountable to the Government for the implementation of State management of education.
3. Other ministries and ministerial-level agencies are responsible for co-operating with the Ministry of Education and Training to exercise the State management of education according to their competence.
4. The People’s Committees at various levels shall implement State management of education according to the Government’s delegation and are responsible for ensuring financial conditions, infrastructure, teachers, teaching equipment for public institutions under their management, meeting the demand of scale expansion, improvement of educational quality and efficiency in their localities.
Section 2. INVESTMENT IN EDUCATION
Article 101. Financial sources of investment in education
Financial sources of investment in education comprise:
1. State budget;
2. Tuition; admission fees; incomes from consulting, technology transfer, production, business and service activities of educational institutions; investments from domestic and international organisations and individuals for educational development registration fees; other funding from domestic and international organisations and individuals as regulated by laws.
Article 102. State budget for education
1. The State shall give first priority to the allocation of budget for education, ensuring that the increasing proportion of the State budget for education shall be higher than that of the whole State budget.
2. The State budget for education must be allocated on the principle of transpency, democratic centralisation, based on the educational scale, socio-economic development conditions of each region, reflecting the State’s priority policy for universalised education, educational development in ethnic minority areas and areas with extreme socio-economic difficulties.
3. Financial agencies shall be responsible for allocating fully, timely educational expenditures in conformity with the progress of the school year. Agencies in charge of educational management shall be responsible for managing and using efficiently the allocated budgets and other incomes as regulated by laws.
Article 103. Priority in finance and land allocation for building schools
Ministries, ministerial-level agencies, People’s Councils and People’s Committees at all levels shall be responsible for incorporating the construction of schools, sporting, athletic, cultural, artistic facilities in service of education into the planning and socio-economic development plan of their sectors and localities; and shall give priority in finance and land allocation for the construction of schools, dormitories in their socio-economic development plans.
Article 104. Encouragement to investment in education
1. The State shall encourage and facilitate organisations and individuals to contribute their intellects, labour and financial resources to education.
2. Investments, contributions, grants from economic organisations made on the establishments of training school and classes at their enterprises, co-ordination in training with educational institutions, sending staff for training and acquiring new technologies in service of their own needs shall be accounted as legitimate expenditures and will be deducted from corporate income taxable amounts according to the Law on Corporate Income Tax.
3. Contributions, grants made by individuals to education shall be considered for reduction of income tax applicable to for people with high income as regulated by the Government.
4. Organisations and individuals investing in construction of infrastructure catering to education; contribution and funding in kind or cash for educational development shall be recognised by appropriate forms.
Article 105. Tuition, admission fees
1. Tuition, admission fees are contributions made by learners’ families or learners for supporting educational activities. Pupils at primary education level in public schools are not required to pay tuition. Except for tuition and admission fees, learners and learners’ families are not required to make any other forms of contribution.
2. The Government shall set tuition collecting and using mechanisms for all types of schools and other educational institutions.
The Minister of Finance, in co-ordination with the Minister of Education and Training and heads of the State management agencies for vocational training shall set the rate of tuition and admission fees for public educational institutions under the administration of central authorities.
The Provincial People’s Councils shall set the rate of tuition and admission fees for public educational institutions under the administration of the province, at the proposal of the People’s Committee at the same level.
People-founded and private educational institutions are entitled to setting the rate of their tuition and admission fees.
Article 106. Tax incentive in the publication of textbooks and production of equipment, teaching aids and toys
The State shall elaborate incentive tax policies in the publication of textbooks, teaching manuals, teaching materials; in the production and supply of teaching equipment, children toys; in the import of books, periodicals, teaching aids and research equipment to be used in schools and other educational institutions.
Section 3. INTERNATIONAL COOPERATION IN EDUCATION
Article 107. International co-operation in education
The State shall expand and develop international co-operations in education on the principle of respect for national independence and sovereignty, equality and mutual benefit.
Article 108. Encouragement to co-operation in education with other countries
1. The State shall encourage and facilitate Vietnamese schools and other educational institutions to cooperate with foreign organisations, individuals, and overseas residing Vietnamese in teaching, learning and scientific research.
2. The State shall encourage and facilitate Vietnamese citizens to participate in studying, teaching, research and academic exchange abroad, either at their own expenses or by funding from domestic or foreign organisations and individuals.
3. The State shall set aside its budget to send persons meeting criteria in quality, morals and qualification to study/or conduct research abroad in key areas and fields serving the construction and defence of the Fatherland.
Article 109. Encouragement to co-operation in education with Vietnam
1. The Vietnamese State shall encourage and facilitate foreign organisations and individuals, international organisations, overseas residing Vietnamese to conduct teaching, studying, investment, funding, co-operation, scientific application, technology transfer to Vietnamese education; their legitimate rights and benefits are protected in accordance with Vietnamese laws and the international conventions signed or acceded by the Socialist Republic of Vietnam.
2. The co-operation in education, establishment of school or other educational institutions by overseas residing Vietnamese, or by foreign organisations and/or individuals, international organisations within the Vietnamese territories shall be regulated by the Government.
Article 110. Recognition of foreign degrees/diplomas
1. Foreign degrees/diplomas granted to Vietnamese shall be recognised according to regulations by the Minister of Education and Training and international conventions signed or acceded by the Socialist Republic of Vietnam.
2. The Minister of Education and Training shall be responsible for signing agreements with other countries and international organisations    on the equivalence or mutual recognition of degrees/diplomas.
Section 4. EDUCATIONAL INSPECTORATE
Article 111. Educational inspectorate
1. Educational inspectorate shall implement inspection rights within the State management of education, in order to ensure law enforcement, promotion of positive elements, prevent and handle violations, protect interests of the State, legitimate rights and interests of organisations and individuals in education.
2. Educational inspectorate shall have the following functions:
a) Inspecting of compliance with educational laws;
b) Inspecting the implementation of educational objectives, plans, programme, contents and methods, professional regulations, the compliance with regulations on examinations, diploma and certificate issuance; the completion of necessary conditions of educational quality assurance at educational institutions;
c) Performance of complaint and denunciation settlement in education according to regulations of laws on complaints and denunciations;
d) Handling of administrative violations in education in accordance with the law on administrative violation handling;
dd) Performance of corruption prevention and anti-corruption in education in accordance with regulations of laws on anti-corruption;
e) Proposal of measures to ensure educational law enforcement; amendments and supplements to the State’s policies and regulations on education;
g) Performance of other duties in accordance with other regulations of laws.
Article 112. Rights and duties of the educational inspectorate
Educational inspectorate shall have rights and duties as stipulated in the Law on Inspection.
When performing inspection, within the authorities of the heads of educational management agencies at the same level, educational inspectorate shall have rights to temporarily suspend all illegal/illegitimate activities in education, report to competent agencies for handling and is responsible for their decision regarding this temporary suspension.
Article 113. Organisation and operation of educational inspectorate
1. Agencies in charge of educational inspection shall comprise:
a) Educational inspectorate of the Ministry of Education and Training;
b) Educational inspectorate of Departments of Education and Training;
2. Operations of educational inspection shall be implemented in accordance with regulations of the Law on Inspection.
Operations of educational inspectorate at district level shall be put under direct responsibility of Directors of Education and Training Office, with technical guidance from educational inspectorate of Departments of Education and Training.
Operations of educational inspectorate at vocational training institutions, higher educational institutions shall be put under direct responsibility of heads of the institution, in accordance with regulations of the Minister of Education and Training, heads of State management agencies for vocational training.
Chapter VIII

AWARDS AND HANDLING OF VIOLATIONS

Article 114. Awarding of titles of “People’s Teacher” and “Outstanding Teacher”
Teachers, educational administrators and educational researchers who meet the criteria set by law shall be awarded the titles of “People’s Teacher” or “Outstanding Teacher” by the State.
Article 115. Awards for organisations and individuals with outstanding contributions to education
Organisations and individuals with outstanding contributions to the cause of educational shall be awarded in accordance with laws.
Article 116. Awards for learners
Learners with excellent achievements in learning and training shall be awarded by schools, other educational institutions or educational authorities. In case of exceptional achievements, the awards shall be issued as regulated by laws.
Article 117. Awards of honorary doctor title
Political and social activists of international prestige, teachers and scientists who are overseas residing Vietnamese or foreign nationals with major contributions to the cause of education and science in Vietnam shall be awarded by universities the title of Honorary Doctor in accordance with the Government’s regulations.
Article 118. Handling of violations
1. A person who commits one of the following violations shall, depending on the nature and extent of the breach, be subject to a disciplinary penalty, administrative sanction or penal liabilities; if the violation causes damages, compensation must be paid according to regulations of laws:
a) To illegally establish an educational institution or to illegally organise educational operations;
b) To violate regulations on organisation, operations of schools or other educational institutions;
c) To add or remove, without authorisation, subjects and/or contents of teaching as defined in the curricula;
d) To publish, print and distribute textbooks illegally;
dd) To make falsified dossiers; to violate regulations on school admission; examination and degree, diploma, certificate issuance;
e) To infringe physically upon teachers or their dignity; maltreat and persecute learners;
g) To cause disorder and disturbances in schools or other educational institutions;
h) To cause losses of educational budget, to make corrupt use of educational operations for illegitimately collecting money;
i) To cause damages to schools or other educational institutions’ properties;
k) Other violations of the Educational Law.
2. The Government shall provide concrete regulations to settle violations in educational sector.

Chapter IX

IMPLEMENTING PROVISIONS
Article 119. Implementation effect
This Law takes effect from 1st January 2006. This Law will replace the 1998 Education Law.
Article 120. Guidance on implementation
The Government shall provide detailed guidance on the implementation of this Law.
This Law was passed by the National Assembly of the Socialist Republic of Vietnam, Eleventh Legislature, Seventh Session, 14th June 2005.
 

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