Governing law provisions #
- WTO, AFAS, FTAs, VKFTA
- Decree 23/2007 / ND-CP dated February 12, 02
- Decree 35/2006 / ND-CP dated February 31, 3
Investment conditions for foreign investors: Distribution services #
1. WTO, AFAS, FTAs, VKFTA
a) The scope of activities of foreign-invested economic organizations includes:
- Commission agents (CPC 621, 61111, 6113, 6121);
- Wholesale (CPC 622, 61111, 6113, 6121);
- Retail (CPC 631 + 632, 61112, 6113, 6121) (including multi-level sales activities conducted by Vietnamese individual commission agents that have been trained and certified accordingly. this employee does not sell at fixed locations and receives remuneration for both sales and sales support services to contribute to the increase in sales of other distributors);
- Franchising (CPC 8929).
b) Do not exercise the right to distribute tobacco and cigars, books, newspapers and magazines, recorded articles, precious metals and gems, and pharmaceuticals (excluding nutritional products. non-pharmaceutical products in the form of tablets, capsules or powder), explosives, crude and processed oils, rice, cane sugar and beet sugar.
c) Conditions for setting up retail establishments: The establishment of retail establishments (other than the first retail establishment) by foreign-invested economic organizations will be considered on the basis of testing business needs. (ENT).
2. Vietnamese Law
a) For the establishment of retail establishments
- Foreign-invested economic organizations may set up the first retail establishment only after being licensed for distribution rights. The establishment of the first retail outlet is not required to apply for a license to establish a retail outlet.
- The establishment of retail establishments, including the first retail establishment, must comply with the provisions of law on state management of retail activities and in accordance with the relevant planning of the province or city. directly under the Central Government, where it is expected to set up retail establishments.
- Setting up a retail outlet outside the first retail establishment is considered on a case-by-case basis based on the economic needs test of the locality where the retail outlet is located according to the following criteria: retail, market stability, population density and size of the district where retail outlet is expected to be located. This provision does not apply to the establishment of retail establishments with an area of less than 500 m2 in an area planned by the province or centrally-run city for goods sale and purchase and the establishment of which establishment has been completed. infrastructure unless there is a change in planning and this condition no longer exists.
b) For commercial franchising
- The business system intended for franchise has been in operation for at least one (one) year.
- In case a Vietnamese trader is a primary franchisee from a foreign franchisor, such Vietnamese trader must have operated under the commercial franchise method for at least 01 (one) year in Vietnam before re-issuance commercial rights.