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Clarification regarding the distinction between wholesale and retail for foreign investment (Official Letter 4248/BCT-KH 2018)

Date of issue: 30/05/2018 Effective date: 30/05/2018
Document type: Official document Status: In accordance with Decree 09/2018/ND-CP
MINISTRY OF INDUSTRY AND TRADE SOCIAL REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
Number: 4248/BCT-KH
Regarding the resolution of difficulties in the implementation of Decree 09/2018/ND-CP
Hanoi, date 30 month 05 year 2018

Dear: IPIC Law Firm

(Room 401, 169 Nguyen Ngoc Vu Building, Cau Giay District, Hanoi)

In response to the petition from IPIC Law Firm Co., Ltd. published on the Government's Electronic Information Portal, as requested by the Government Office in Official Letter No. 4316/VPCP-ĐMDN dated May 10, 2018, concerning the provisions of Government Decree 09/2018/NĐ-CP dated January 15, 2018, the Ministry of Industry and Trade has the following opinion:

1. According to Clauses 6 and 7 of Article 3 of Decree 09/2018/ND-CP, the concepts of wholesale and retail are understood as follows:

- Wholesale refers to the activity of selling goods to other merchants or organizations, excluding direct sales to buyers for personal or family consumption.

– Retail is the activity of selling directly to the end consumer for personal and household use.

Accordingly, the regulations have clearly distinguished between the concepts of wholesale and retail buyers of goods.

2. The distribution of consumer goods (food, office equipment, stationery, work safety clothing, etc.) to customers such as factories, businesses, and organizations, for the purpose of equipping their employees or serving the organization's operations, is understood as exercising the right to wholesale distribution and falls under the category of activities that do not require a business license.

The Ministry of Industry and Trade hereby informs the Company./.

Recipients:
– As above;
– Government Office (for reporting);
– Deputy Minister Do Thang Hai (to give a report);
– Department of Information Technology, Department of Legal Affairs;
– Save: VT, KH.

TL. MINISTER
HEAD OF PLANNING DEPARTMENT




Duong Duy Hung

 

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