As of 15 January 2018, Decree No. 09/2018/ND-CP (“Decree 09”) has replaced Decree No. 23/2007/ND-CP (“Decree 23”) on the regulations on trading of goods and activities directly relating to trading activities by foreign investors and foreign invested companies (“trading activities”).
Decree 09 defines trading activities as the following specific activities:
Below are some of the key changes introduced by Decree 09:
Previously, under decree 23, investors from countries that are not members of the World Trade Organization (“non-WTO members”) were not entitled to licences for trading activities in Vietnam (“Trading Licence”). Under Decree 09 however, such investors are eligible to obtain the Trading Licences following the fulfilment of the below criteria:
Decree 09 provides that foreign invested companies whose businesses revolve around the following trading activities are no longer required to obtain a Trading Licence:
Rather than Trading Licences, foreign invested companies conducting the abovementioned trading activities must register the appropriate business lines in their investment registration certificate and enterprise registration certificate to reflect their rights to conduct these businesses.
A new database will be launched to publish information relating to trading activities in Vietnam. This database will provide information on the applicable trading activity licences. Once the database is in place, members of the public will be able to access such information through the Ministry of Industry and Trade’s online portal (http://www.moit.gov.vn).
This alert is for general information only and is not a substitute for legal advice.