VIETNAM MARITIME CODE

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  

1.         Shipowner is entitled to hypothecate or mortgage his sea-going vessel to another person subject to provisions of law.
2.         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.
3.         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.
4.         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

1.         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.
2.         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.
3.         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

1.         The satisfaction of the creditor from the object encumbered with a maritime lien is effected by judicial decision.
2.         Privilege debts are settled in turn in the order of groups from item 1 to item 5, Article 31 of the present Code.
3.         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.
4.         Debts arising from one and the same occurrence are deemed to have come into existence at the same time.
5.         Maritime lien on sea-going vessel arising from the last voyage has priority over that from previous voyages.
6.         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  

1.         A creditor is entitled to have a maritime lien on the following amount of money:
a)           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;
b)          Compensation due to the vessel for damages sustained by her, if not repaired, and for losses on freight;
c)           Contribution due to the vessel by way of general average wherein it includes the amount of money mentioned in point b of this Article;
d)          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.

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

            Article 34  

1.         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.

2.         The time-limit for a maritime lien is indicated as follows:
a)           Salvage remuneration-from the day of termination of the salvage;
b)          Compensation for damage caused by collision of vessel or by other marine accident-from the day when such damage was caused;
c)           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;
d)          Amount due to the debts defined in item 5 of Article 31 of the present Code-from the day when the debt occurred;
e)           Amount due to other debt-from the day when they fell due.

3.         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.
4.         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  

1.         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)           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;

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

2.         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.

3.         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

1.         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.

2.         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.

3.         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

1.         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.

2.         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.

CHAPTER III

SHIPCREW  

            Article 38  

          Shipcrew shall consist of shipmaster, officers and other persons working on board within the ships complement, hereinafter referred to as crew.

            Article 39  

          Crew working on board Vietnamese sea-going vessels should be Vietnam citizens. Vietnamese crew may be permitted to work on board foreign sea-going vessels and foreign crew-on board Vietnamese sea-going vessel subject to provisions of the Minister of Transport and Communications.

            Article 40  

          Crew working on board Vietnamese sea-going vessel should have sufficient certificates of health and certificates of competency as provided for by the Minister of Transport and Communications.

            Article 41  

1.         Crew working on board Vietnamese sea-going vessels are bound to carry out their duties in conformity with their ranks.

2.         Minister of Transport and Communications shall define ranks, ranking duties and disciplines applied to crew working on board Vietnamese sea-going vessel. Such ranks, ranking duties and disciplines applied to crew working on board sea-going vessels exclusively employed for exploitation and processing of sea products shall be defined by the Minister of Fishery.

3.         The owner of vessel shall define those ranks, ranking duties and disciplines applied to crew which are not yet provided for by the Minister of Transport and Communications and Minister of Fishery.

            Article 42

  1.         Labour regulations, duties and rights of Vietnamese crew working on board Vietnamese sea-going vessels are subject to the laws in force in Vietnam.

2.         In case Vietnamese crew must leave the vessel as ordered by the shipowner or the shipmaster, the shipowner is bound to cover living and traveling costs necessary for sending back crew to the place laid down in the contract of labour or to the port where crew joined the vessel unless otherwise stipulated in the contract of labour.

3.         When the loss of or damage to the legitimate own properly of crew is caused by accident occurred to the vessel, shipowner is bound to compensate such property as per market price ruling at the place and time where the accident is settled. If the accidents has occurred by approximate cause on the part of crew, they loose the right to claim for loss of or damage.

4.         Labour regulation on obligations and interests of the Vietnamese crew working onboard the foreign sea-going vessels, and of foreign crew-on board Vietnamese sea-going vessels, is defined on the basis of recruitment agreements.

            Article 43

            The master exercises the highest command of the vessel. All persons on board the vessel are bound to conform to the orders given by the master.

            Article 44

1.         The master must not leave the vessel which is on her course or in danger unless that is required by an absolute necessity.

2.         The master is bound to be in personal command of the vessel when leaving, entering ports, canals and river navigable ways as well as when the vessel under his command is operating within port waters areas and in any case involving special difficulty or danger.

3.         The master is bound to employ the services of a pilot or of a tug boat where such services are required by regulations of for the safety of the vessel.

          The employment of the services of pilots does not relieve the master of the obligation laid down in item 2 of this Article.

            Article 45

1.         The master is bound to exercise due diligence of a conscientious shipmaster when carrying out his obligations pertaining to service activities.

2.         Before the commencement of and during a voyage the master is bound to take due care that the vessel in every necessary respect be seaworthy, and comply with the professional principles of goods seamanship and with the regulations as regards the adequate equipments, ships hull, proper manning and other respects relating to marine navigation safety for the vessel and people on board.

3.         The master is entitled not to let the vessel commence the voyage if he has grounds to ascertain that the vessel under his command has insufficient necessary conditions of seaworthiness.

4.         The master is empowered to keep the crew under his command to follow the disciplines or to give the reward to them; to refuse to recruit or to force to leave his ship those crew who are unqualified in ranks assigned to them or who have broke the disciplines.

            Article 46

1.         The master is bound o take due care that the cargo be properly loaded, stowed and preserved, discharged even though such operations have been entrusted to persons who are bound to be engaged in such activities.

2.         The master is bound to take due care that the cargo be not damaged or lost; to take such action as may be necessary to protect the interests of persons interested in the cargo; to use all possible means to inform them of particular occurrences concerning the cargo.

            Article 47

1.         The master is bound to take all necessary measures to protect the vessel, persons and other properties on board.

2.         In the event of a danger of war or blockade at the port of destination the master is bound to call at the nearest safe port and to take all necessary measure to protect the vessel, persons, properties and documents of the vessel.

3.         In case the vessel is threatened with sinking or with destruction the master is bound to take all available measure to save first the passenger and them the crew.

          The master is the last to leave the vessel after he has made use of all means possible to save the log-books, charts, other documents of the vessel, high valuable objects and money belonging to the vessel.