On 15 January 2018, the Vietnamese Government issued Decree No. 08/2018/ND-CP on the conditions to invest in several trades under the state administration of the Ministry of Industry and Trade of Vietnam (“Decree 08”). Decree 08 appears to reduce the current pressure imposed on investors and facilitate the investment process into the relevant trades.
Decree 08 wholly or partly abolishes some of the particulars of the following trade areas:
|Trade areas||Particulars that have been removed or amended under Decree 08|
|Food business||The removal of investment conditions in several areas relating to milk production, beer production, vegetable oil production, food preservations in food production, equipment, production establishment, and business establishment.|
|E-commerce||The removal of investment conditions relating to:
a) the building of websites for e-commerce sales and e-commerce services, i.e., “having websites with valid domain names and complying with regulations on management of information on the Internet”;
b) the evaluation and certification of personal information protection policies in e-commerce, i.e.:
c) the certification of e-contracts, i.e. complying with “financial and technical requirements”.
|Franchising||The investment conditions imposed on the franchisors have been reduced from 3 conditions to 1 condition under Decree 08. Under such condition, traders are permitted to grant commercial rights if the business system intended for franchise has been in operation for at least 1 year.
Additionally, Decree 08 removes the following franchising conditions:
a) registration of franchise activities with the competent authorities to be permitted to grant commercial rights;
b) registration of proper business lines subject to commercial rights to receive commercial rights; and
c) goods and/or services to be permitted for commercial rights.
|Petrol and oil||Decree 08 removes several conditions of petrol and oil production, petrol and oil retail, and petrol and oil import and export businesses.|
Decree 08 has been in effect since 15 January 2018.
This alert is for general information only and is not a substitute for legal advice.