On 15 December 2025, the United Nations General Assembly adopted the United Nations Convention on Negotiable Cargo Documents (NCD - also known as the Accra Convention). This marks a significant milestone in the modernization of international trade law, at a time when global supply chains are rapidly shifting toward multimodal, digitalized, and trade-finance-integrated models.
Unlike many earlier international conventions, the NCD Convention does not impose a replacement legal framework, nor does it require States to immediately modify existing commercial practices. Instead, the Convention addresses a long-standing legal bottleneck: the legal status of negotiable cargo documents, particularly in multimodal transport and in electronic form.
This cautious, neutral, and practice-based approach makes the NCD Convention particularly suitable for economies that are in the process of integrating into global trade like Vietnam.
Under the Convention, it will enter into force upon ratification by at least ten States; the signing ceremony is expected to take place in Accra (Ghana) in the second half of 2026. Vietnam’s early participation would carry not only legal significance but also demonstrate a proactive commitment to institutional reform and international trade integration.
SIX CORE VALUES OF THE NCD CONVENTION AND THEIR SIGNIFICANCE FOR VIETNAM
1. Extending negotiability beyond maritime transport
For decades, negotiable documents have been predominantly limited to maritime transport. However, modern international trade increasingly relies on multimodal transport combining sea, road, rail, and inland waterways.
The NCD Convention establishes, for the first time, unified legal recognition of negotiable cargo documents across all modes of transport, thereby aligning legal frameworks with modern supply-chain realities. This is particularly relevant for Vietnam, which is rapidly developing logistics corridors linking seaports, industrial zones, and cross-border transport routes within ASEAN.
2. Formal recognition of electronic negotiable cargo documents
Vietnam is actively promoting digital transformation in customs, logistics, and finance. Nevertheless, the cross-border use of electronic negotiable documents has faced obstacles due to the absence of a clear legal basis.
The NCD Convention directly addresses this issue by explicitly recognising electronic NCDs, ensuring legal equivalence between paper and electronic cargo documents, while not requiring immediate digitalization. This approach allows markets to adopt digital solutions according to their level of readiness.
3. Technology neutrality and policy flexibility
The Convention does not mandate any specific platform, technology, or service provider. Instead, it defines the legal outcomes to be achieved.
This technology-neutral approach allows each State to adopt solutions suited to its domestic conditions while maintaining interoperability with international trade and legal systems.
4. Voluntary application driven by commercial choice
A distinctive feature of the NCD Convention is its non-mandatory nature. The Convention applies only when the parties agree to its application, typically through a simple notation on the document. This allows the Convention to coexist with existing documentary practices without disrupting commercial operations.
For Vietnam, this is a key factor in avoiding a “legal shock” while expanding options for businesses participating in global supply chains.
5. Facilitating trade finance activities
One of the major challenges facing import and export enterprises, particularly small and medium-sized ones, is access to trade finance. This constraint arises not only from financial capacity but also from legal risks associated with documentation.
Although the NCD Convention does not directly regulate banking or credit operations, it establishes a clear legal framework governing ownership rights, control rights, and enforceability in relation to goods in transit. This creates a secure legal basis for negotiable cargo documents to be used in trade finance.
As a result, the Convention reduces legal risks for financial institutions, thereby facilitating the expansion of trade credit, promoting exports, and strengthening the competitiveness of Vietnamese enterprises.
6. Complementing rather than replacing existing legal frameworks
The NCD Convention does not interfere with existing transport liability regimes, invalidate mandatory national laws, or replace existing transport conventions. Instead, it serves as a complementary function by filling legal gaps concerning negotiable cargo documents.
This constitutes an important assurance for legislators and regulators, as participation in the Convention does not undermine legal sovereignty or disrupt existing legal systems.
CORE LEGAL FEATURES: CLEAR, BALANCED, AND SECURE
The NCD Convention establishes a fundamental principle: rights under an NCD may only be exercised by its holder, and those rights are transferred together with the transfer of the document. The issuance and transfer of an NCD have the same legal effect as the physical handing over of the goods, for the purpose of acquiring rights to the goods.
In addition, the Convention:
Importantly, NCDs are issued only when mutually agreed upon by the relevant parties, thereby ensuring the principle of freedom of contract and limiting risks of abuse.
SIGNING THE NCD CONVENTION: A STRATEGIC CHOICE
As Vietnam aims to become a major regional logistics and trade hub, early signature and ratification of the NCD Convention would represent a strategic step forward. The Convention does not compel immediate change, does not impose but enables, and does not replace but complements.
Early participation would help Vietnam:
In an era where commercial practices advance faster than legal frameworks, the NCD Convention stands among the rare legal instruments designed to keep pace with commercial practice rather than be left behind by it. Vietnam should therefore not remain outside this opportunity.
Lawyer Ngo Khac Le, Deputy Secretary-General of Vietnam Logistics Business Association (VLA), Arbitrator at the Vietnam International Arbitration Centre (VIAC), Mediator at the Vietnam Mediation Centre (VMC).
According to the Vietnam Logistics Business Association (VLA)
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