Operating a road freight transport business in Vietnam is a conditional business activity. Since 01/01/2025, the governing framework is Decree 158/2024/ND-CP, which fully replaced Decree 10/2020/ND-CP. Any enterprise or cooperative transporting goods for hire must hold a Transport Business License, and each commercial vehicle must display a prescribed badge. This article summarizes the key points foreign investors and logistics operators need to know.
1. Who needs a transport business license
Organizations and individuals transporting goods by automobile for hire (charging freight fees) must obtain a Transport Business License before putting vehicles into operation. Purely in-house transport serving a company’s own production — with no freight charges — is not covered; but once you carry goods for third parties for a fee, a license is mandatory.
2. Legal framework and validity (as of 14/10/2026)
- Decree 158/2024/ND-CP (effective 01/01/2025) — regulates automobile transport business; fully replaces Decree 10/2020/ND-CP.
- Law on Roads 35/2024/QH15 and Law on Road Traffic Order and Safety 36/2024/QH15 — the new framework laws replacing the 2008 Law on Road Traffic.
- Decree 168/2024/ND-CP (amended by Decree 238/2026/ND-CP) — administrative sanctions for road traffic violations.
- Circular 36/2024/TT-BGTVT, Circular 72/2025/TT-BXD — sector guidance (note: state management of transport moved from the Ministry of Transport to the Ministry of Construction).
3. Licensing authority: the Department of Construction
Transport Business Licenses are issued by the Department of Construction — the specialized agency of the provincial People’s Committee. Following administrative restructuring, local transport management functions sit with the Department of Construction; there is no longer a Department of Transport. Applications are filed with the Department of Construction where the enterprise’s head office is located (confirm the exact local office).
4. Licensing conditions
Under Decree 158/2024/ND-CP, applicants must satisfy core conditions including:
- Vehicles: owned by the business or under a compliant lease contract; meeting service-life, technical safety and environmental standards.
- Drivers: holding driving licenses appropriate to the vehicle class; meeting health requirements and not under license suspension.
- Traffic safety management unit: the transport business must maintain a unit monitoring traffic-safety conditions as prescribed.
- Journey monitoring devices: commercial vehicles must be fitted with journey monitoring devices, kept operational with data transmission maintained.
5. Vehicle badges
Commercial freight vehicles must be granted a badge matching their operation type (“TRUCK” badge, container-truck badge, tractor badge, etc.) and display it in the prescribed position. Badges are valid in line with the license term or the vehicle’s inspection cycle. Operating without a badge, or with an expired badge, is a violation punishable under Decree 168/2024/ND-CP.
6. Application dossier (general framework)
The dossier generally includes: the license application form, a copy of the enterprise registration certificate, the vehicle list with ownership/lease documents, the driver list with driving licenses, and the traffic-safety management plan. The Department of Construction receives, appraises and issues the license within the statutory time limit set by Decree 158/2024/ND-CP and guiding documents.
7. Risks of operating without a license or badge
Operating without a license, or with vehicles lacking valid badges, triggers administrative sanctions under Decree 168/2024/ND-CP (as amended by Decree 238/2026/ND-CP). Beyond fines, remedial measures may apply, including badge suspension. There are also contractual risks: in freight disputes or accidents, operating without proper legal standing weakens the carrier’s position.
8. Practical recommendations
- Audit your entire fleet: license validity, badge expiry dates, journey monitoring devices in working order.
- Do not cite Decree 10/2020 or the 2008 Law on Road Traffic in dossiers or contracts — both have been replaced.
- File with the Department of Construction, not the former Department of Transport.
- Keep vehicle, driver and monitoring-data records for inspections.
9. FAQs
Does a company’s own truck carrying its own goods need a transport license?
No, if it only serves the company’s own operations without charging freight. Carrying goods for third parties for hire requires a license.
How long is a truck badge valid?
Badge validity follows the transport business license term or the vehicle’s inspection cycle. Renew before expiry.
Where do I apply for the license?
At the Department of Construction of the province/city where the enterprise’s head office is located.
What are the penalties for unlicensed transport operations?
Administrative sanctions under Decree 168/2024/ND-CP (as amended by Decree 238/2026/ND-CP), plus remedial measures as prescribed.
Is Decree 10/2020 still in force?
No. Decree 158/2024/ND-CP fully replaced Decree 10/2020/ND-CP effective 01/01/2025.
10. Legal sources
- Decree 158/2024/ND-CP on automobile transport business (effective 01/01/2025)
- Law on Roads 35/2024/QH15; Law on Road Traffic Order and Safety 36/2024/QH15
- Decree 168/2024/ND-CP (amended by Decree 238/2026/ND-CP) on road-traffic administrative sanctions
- Circular 36/2024/TT-BGTVT; Circular 72/2025/TT-BXD
Contact FLAT Law Firm: For advice on transport business licensing, vehicle badges or handling road-traffic violations in Vietnam, please contact FLAT Law Firm.
Disclaimer: This article provides general legal information only and does not constitute legal advice for any specific case. Laws and regulations may change; please consult a lawyer before applying.
Transparency notice: This article was prepared by our editorial team with quality review (QA) support from the AI Legal Council; it has not been reviewed or approved by a human lawyer.