New regulations on commercial activities of foreign traders in vietnam

Accordingly, as from 15 January 2018, the commercial activities of foreign traders in Vietnam have some important changes as follows:

1. The scope of goods purchase and sale activities and the activities directly related to goods purchase and sale activities are supplemented with the e-commerce service business activities.

2. Economic organizations which have their retailer establishments in Vietnam, after receipt of capital contributions, will become (i) the economic organizations having foreign-invested capital; or (ii) economic organizations falling under the provisions of points (b) and (c) of clause 1 of Article 23 of the 2014 Law on Investment which must conduct procedures for the grant of a business license or the License of setting up a retailer establishment.

3. Foreign-invested economic organizations must register for the granting of business licenses when performing the following activities:

 a. To exercise the retailer distribution services;

 b. To exercise the right to import, to distribute wholesale goods being oil, grease; and

 c. Other services related to the purchase and sale of goods such as trade promotion, e-commerce, logistics, intermediary trade, organization for the procurement of goods and services.

In addition to the activities subject to be granted business license set forth above, the foreign-invested economic organizations and economic organizations defined in Points (b) and (c), clause 1, Article 23 of the 2014 Law on Investment have the right to conduct the purchase and sale of goods activities and the activities directly related to the purchase and sale of goods after registration for carrying out such activities at the relevant legal documents in accordance with the Law on Investment and the Law on Enterprises.

The above is the main content of the Decree No. 09/2018/ND-CP (the “Decree 09”) issued by the Government dated 15 January 2018 replacing for Decree No. 23/2007/ND-CP dated 12 February 2007 of the Government providing regulations for implementation of Commercial Law regarding purchase and sale of goods and activities directly related to the purchase and sale of goods by enterprises with foreign owned capital in Vietnam.

The Decree 09 has officially come into effect since the date of its promulgation.