The Government has recently issued Decree 09/2018/ND-CP detailing the Commercial Law and the Law on Foreign Trade Management regarding trading of goods and other directly related activities of foreign investors and foreign-invested organizations in Vietnam (“Decree 09/2018/ND-CP”).
In comparison with Decree 23/2007/ND-CP dated 12th February, 2007 regarding trading of goods and other directly related activities of foreign-invested enterprises in Vietnam (“Decree 23/2007/ND-CP”), Decree 09/2018/ND-CP makes improvements and provides clearer explanation of trading of goods and other directly-related activities of foreign investors and foreign-invested organizations in Vietnam. Besides, the new decree governs more openly for foreign investors and foreign-invested enterprises carrying on trading goods and other directly related activities.
The decree is more open concerning granting business permit to foreign investors. This is apparently the decree’s impressive trait. Specifically, under the new decree, apart from foreign investors who belong to countries or territories that take part in international treaties Vietnam has joined with commitments to open its market for good trade, these two types of foreign investors are allowed to apply for business permit:
- Foreign investors who don’t belong to countries or territories that take part in international treaties Vietnam has joined;
- Foreign investors who belong to countries or territories that take part in international treaties Vietnam has joined but the goods/ services applied have not been committed to open by Vietnam.
Some export-import and wholesale distribution areas, previously business permit-needed, now shall not, except for lubricant according to Article 9.4.b Decree 09/2018/ND-CP.
As to retail distribution area, business permit shall be granted without the Ministry of Industry and Trade’s approval. The exception is upon rice, sugar, recording products, books and newspapers: The Ministry of Industry and Trade shall consider permitting the applying foreign investor to excercise distribution right through supermarket, mini supermarket or grocery store establishment.
Decree 09/2018/ND-CP also states that the jurisdiction of granting business permit belongs to the specific body of the province – the Industry and Trade Department, instead of the People’s Committee of the province pursuant to the old decree, making the procedure simpler and more efficient.
Decree 09/2018/ND-CP, albeit with positive modifications, requires coordination between the Ministry of Industry and Trade and appropriate specialized agencies in practice.
Decree 09/2018/ND-CP took effect from 15th January, 2018 replacing Decree 23/2007/ND-CP dated 12th February, 2007.
Vietthink News./.