Section B: MARINE NAVIGATION SAFETY AND PREVENTION OF ENVIRONMENTAL POLLUTION

Article 17

A sea going vessel should be employed in accordance with the appropriation declared on registration provided that her construction, standing appliances and equipment, documents, complement and competence of crew comply, in every respect, with the requirements defined by the Minister of Transport and Communications concerning safety of ship navigation, and safety of life at sea as well as prevention of environmental pollution.

Article 18

A Vietnamese sea-going vessel may receive a certificate of technical condition safety after having been inspected and ascertained by the Vietnam Register of Shipping or by its foreign authorized classification societies that she complies with technical conditions of safety as per state norms in Vietnam or in relevant international treaties signed, or recognized by Vietnam.

Certificate of technical condition safety should specify the period of its validity. This period may be automatically extended by a period of time not exceeding ninety days if the vessel is actually unable to call for the periodical inspection at the port indicated and if her technical conditions prove to be safe. Such automatically extended period expires immediately on the vessels arrival at the port indicated for inspection.

Certificate of technical condition safety automatically becomes invalid if alterations in vessel have taken place which imperil her technical condition safety.

Where it has well-founded grounds to suspect the technical conditions of the vessels safety, the Vietnam Marine Safety Inspectorate has the right to interim cease her operation. This Inspectorate itself or the Vietnam Register of Shipping, upon demand, shall inspect the vessels technical conditions despite that she has authentic safety certificates.

Article 19

Shipowner and shipmaster are bound to create every favorable condition for inspection of marine navigation safety and of technical conditions of the vessel.

Before a vessel being put into operation, shipowner and shipmaster upon demand by the Vietnam Marine Safety Inspectorate or the Vietnam Register of Shipping are bound to repair or to make additional conditions of marine navigation safety.

Article 20

When on the sea or in waters connected therewith opened navigable for sea-going vessels, sea-going vessels including military ships of the Vietnam Armed Forces as well as vessels of inland navigation and sea-planes are bound to comply with the regulations for preventing collisions at sea issued by the Minister of Transport and Communications.

The structures, facilities built or installed on the sea and in waters connected with the sea, which are opened for sea-going vessels navigation and operation, should be equipped with sufficient safety warning devices in proper conformity with the regulations on marine warning signals stipulated by the Minister of Transport and Communications.

Article 21

In Vietnams inland and territorial waters regulations concerning marine navigation safety as in force are also applicable to foreign sea-going vessels unless otherwise provided by the agreement between Vietnam and the country of the flag.

The Vietnam Marine Safety Inspectorate has the right to inspect and punish administrative penalties in respect of violation made by foreign sea-going vessels when operating within Vietnams inland and territorial waters if this Inspectorate has sufficient grounds to suspect their seaworthiness or if they commit a breach of the provisions as to marine navigation safety in Vietnam.

Article 22

Inspection of marine navigation safety and of technical conditions of sea-going vessels as provided in the present code as well as search on board the vessels shall be carried out in conformity with relevant laws and regulations and without detriment to seaworthiness of the vessel.

Article 23 

When operating in sovereign waters of Vietnam, Vietnamese and foreign sea-going vessels are bound to properly implement provisions as to environmental protection in Vietnam and in international treaties signed, or recognized by Vietnam.

When operating in waters of sea ports and other navigable waters of Vietnam, Vietnamese and foreign sea-going vessels employed exclusively for transportation of oil products or other dangerous goods are bound to be covered by insurance policy as to the civil liability of shipowner for environmental pollution.

Foreign sea-going vessels run by nuclear power shall not be permitted to operate in inland and territorial waters of Vietnam unless approval is granted by the Chairman of the Council of Ministers.

Article 24

The Council of Minister shall determine the organization, and scope of activities of the Vietnam Marine Safety Inspectorate and of the Vietnam Register of Shipping.

Section C: INSPECTION OF TONNAGE OF VESSEL

Article 25

Vietnamese or foreign sea-going vessels when operating in waters belonging to Vietnamese sea-port areas and in Vietnam transit lane waters are bound to show authentic tonnage certificates issued by the Vietnam Register of Shipping or foreign register of shipping or foreign authentic tonnage measurement authority. The tonnage measurement certificates must be in conformity with the Vietnam State Norms or with norms in the international treaties signed, or recognized by Vietnam. 

In case the vessels tonnage measurement certificates in every respect do not comply with prescribed requirements in item 1 of this Article, shipowner or master shall make application with the Vietnam Register of Shipping for inspection of her tonnage and pay relevant tonnage measurement fees.

Section D: DOCUMENTS OF VESSEL

Article 26

A Vietnamese sea-going vessel is bound to keep on board all sufficient log-books, certificates and other documents as well as certificates of crew as prescribed by the Minister of Transport and Communications.

Section E: OWNERSHIP OF VESSEL

Article 27

A contract for transfer of ownership of a vessel in Vietnam should be made in writing and certified by the public notary. If it is made abroad all procedures are subject to the law of the place where the contract is signed.

The transfer of ownership of a Vietnamese sea-going vessel may be effected only after it has been recorded in the Vietnam National Registry Book of ships at the place where the vessel was registered.

After the procedures of transfer are completed, together with the ownership of the vessel, her appurtenances also pass to the transferee unless otherwise agreed by and between the parties concerned.
 

Appurtenances of the vessel are all accessories which, while are not being component pars of the vessel, constitute her equipments.

Article 28  

The provisions concerning the transfer of ownership of a vessel are also applicable to the transfer if a share in the ownership of a vessel.

Article 29

Shipowner is entitled to hypothecate or mortgage his sea-going vessel to another person subject to provisions of law.

  
The mortgage and hypothecation of a Vietnamese sea-going vessel in Vietnam are subject to provisions of Vietnamese relevant laws. A contract for instituting a sea-going vessel mortgage and hypothecation should be made in writing and certified by the public notary.

 
The mortgage and hypothecation of a Vietnamese sea-going vessel abroad are subject to provisions of relevant law at the place where the contract for this purpose is signed.

 
The mortgage and hypothecation of a Vietnamese sea-going vessel may be effected only after it has been recorded in the Vietnam National Registry Book of ships.

Article 30

For securing privilege debts, creditors have statutory lien on the sea-going vessel with priority over other debts even she has been secured by a lien, mortgage, hypothecation arising from a contract or judicial decision.

 
Maritime lien is not effected by a change of the owner or operator of the vessel whether or not vessels purchaser knows she has been attached to a lien.

Statement of creditor concerning maritime lien on sea-going vessel may be effected only after it has been recorded in the National Registry Book of ships where the vessel was registered.

Article 31

The privilege debts are the debts to be settled in the following order with priority over other debts:

1. Indemnity for death of, or personal injuries to; indemnity for interests arising out from contract of labour.

2. Law costs and costs of judicial execution; expenses incurred in the common interest of the creditors in order to preserve the vessel or to procure her sale and the distribution of the proceeds of sale; harbour dues; costs of watching and preservation of the vessel arising from the time of her entry into the last port.

3. Salvage remuneration and the contribution of the vessel in general average;

4. Compensation for damage caused by collision of the vessel or by other marine accidents; and also for damage caused to harbour facilities, piers and berths, navigable ways, anchorage areas, docks, and for loss of or damage to cargo and baggage;

5. Claims arising out of contracts entered into or other acts done by the shipmaster acting within the scope of his statutory authority when the vessel is away from her home port and such contracts or acts are actually necessary for repair of the vessel or for the continuation of the voyage whether or not the shipmaster is at the same time operator or owner of the vessel, and whether the claim is his own or that of ship chandlers, persons repairing the vessel, lenders or other contracting parties with him. 

Article 32

The satisfaction of the creditor from the object encumbered with a maritime lien is effected by judicial decision.

 
Privilege debts are settled in turn in the order of groups from item 1 to item 5, Article 31 of the present Code.

 
Privilege debts arising from the same voyage and belonging to the same group stated in Article 31 of present Code are settled in proportion to their amount if the amount available for division is insufficient to satisfy the debts in full; however the debts belonging to groups mentioned in item 3 and item 5, Article 31 of the present Code are in each of the groups, settled in the inverse order of the dates on which they came into existence despite such debts arisen earlier.

 
Debts arising from one and the same occurrence are deemed to have come into existence at the same time.

 
Maritime lien on sea-going vessel arising from the last voyage has priority over that from previous voyages.

 
Debts arising from one and the same contract of labour relating to several voyages are settled paralelly with the debts arising from the last voyage.

Article 33  

A creditor is entitled to have a maritime lien on the following amount of money:

• The freight payable for carriage of cargo, baggage or the money due for the carriage of passengers belonging to the voyage during which there occurred the debts or belonging to all the other voyages performed during the currency of the same contract of labour if it is secured for settlement of debts arising from contract of labour;

• Compensation due to the vessel for damages sustained by her, if not repaired, and for losses on freight;

• Contribution due to the vessel by way of general average wherein it includes the amount of money mentioned in point b of this Article;

• Remuneration due to the vessel for salvage after deduction of awards exclusively falling to the master and crew and other persons engaged in the service of he vessel.

Maritime lien defined in item 1 of this Article does not extend to insurance indemnities due to the vessel.

Article 34  

Maritime liens for securing settlement of the privilege debts defined in item 5 of Article 31 of the present Code extinguish at the expiration of one hundred and eighty days; of the other debts, this period extinguishes at the expiration of one year.

The time-limit for a maritime lien is indicated as follows:

• Salvage remuneration-from the day of termination of the salvage;

• Compensation for damage caused by collision of vessel or by other marine accident-from the day when such damage was caused;

• Compensation for loss of or damage to cargo or baggage-from the day of delivery of cargo or baggage, or from the day when such should have been delivered;

• Amount due to the debts defined in item 5 of Article 31 of the present Code-from the day when the debt occurred;

• Amount due to other debt-from the day when they fell due.

Maritime lien on amounts due to the debts as defined in Article 33 of the present Code extinguishes when they are fully paid by shipowner. But such lien remains in force as long as the sum of money paid is still in the hand of the master or other person who is authorized on behalf of the owner or operator of the vessel to withhold the sum.

When courts fail to effect a maritime lien attachment on the vessel in Vietnamese internal waters or on Vietnamese territorial sea to protect the interests of a creditor having its residence or principal place in Vietnam, the time-limits defined in items 1, 2, 3 and 4 of this Article cannot terminate earlier than thirty days from the day the vessel entered the first Vietnamese port, and maximum not later than two years from the day when the debt occurred.

Article 35  

Upon application made by the creditor, the Director of Port Authority may temporarily, for a period not exceeding seventy two hours, detain the following properties:

• A sea-going vessel-for the purpose of securing the claim against her in respect of port charges or damages caused to the port facilities, piers and berths, navigable ways, areas for anchorage, and dock;

• Wreck or other objects which have been hindering navigation-for the purpose of securing the claim in respect of its removal and demolition.

The creditor is fully liable for all consequences arising as a result of his temporary detention defined in item 1 of this Article. Claim against this detention are barred at the expiration of two years from the day when they came into existence.

After seventy two hours the property detained temporarily by the provisions in item 1 of this Article is released unless otherwise decided by the Court.

Article 36

If necessary, for the purpose of security of the settlement of the dispute under trial, the Peoples Courts of Provinces and municipal-level cities of central authority or similar administrative units are entitled to issue the warrant of arrest of sea-going vessels.

At the request of a foreign court, a foreign vessel can be arrested in Vietnamese internal waters or on the Vietnamese territorial sea to secure the settlement of the cause tried by such foreign court.

Not later than at expiration of thirty days from the day when the master receives the warrant of arrest if the shipowner fails to provide adequate security the court which has issued the warrant of arrest shall be entitled to public auction of the vessel.

Article 37

When the owner or operator of the vessel has provided adequate security or paid full amount of debt the vessel under arrest, temporary detention or maritime lien shall be immediately released. The claimants shall not be entitled to have any action to the prejudice of property or other interests of the owner or operator of the vessel.

A sea-going vessel may be released at the application made by those who themselves had made application for her seizure, temporary detention or maritime lien. The relevant charges are covered by such persons.