What are the conditions for issuing a business license in Vietnam to a foreign invested enterprise? What are the bases for approving the issuance of business license by the Ministry of Industry and Trade?
What are the conditions for issuing a business license in Vietnam to a foreign invested enterprise?
According to the provisions of Article 9 of Decree 09/2018/ND-CP of Vietnam on the conditions for issuing business licenses to foreign-invested enterprises as follows:
(1) A foreign investor from a country or territory which has acceded to a treaty to which Vietnam is a signatory and under which Vietnam has committed to open its market for sale of goods and other related activities shall:
- Meet market access conditions prescribed in international treaties to which Vietnam is a signatory;
- Acquire a financial plan deemed qualified to apply for a business license;
- Incur no overdue tax in a case where it has been established in Vietnam for at least 1 year.
(2) A foreign investor not from a country or territory which has acceded to a treaty to which Vietnam is a signatory shall:
- Meet conditions prescribed in Points b and c Clause 1 of this Article;
- Meet the criteria below:
+ In accordance with special law;
+ In conformity with the extent of competitiveness of domestic enterprises within the same sector;
+ Employment creation for domestic workers;
+ Potential and actual contribution to state budget.
(3) In case of services for which Vietnam has not committed to open its market as specified in international treaties to which Vietnam is a signatory: Conditions prescribed in Clause 2 of this Article shall be met.
(4) In case of goods for which Vietnam has not committed to open its market as specified in international treaties to which Vietnam is a signatory, including: Lubricants; rice; sugar; recorded items; books, newspapers and magazines
- Conditions prescribed in Clause 2 of this Article shall be met;
- In case of lubricants: Consider issuing importation right and wholesale distribution right to a foreign-invested business entity performing one of following activities:
+ Manufacturing lubricants in Vietnam;
+ Manufacturing or distributing machinery, equipment or goods using particular lubricants in Vietnam.
- In case of rice; sugar; recorded items; books, newspapers and magazines: Consider issuing retail distribution right to a foreign-invested business entity having retail outlets in forms of supermarkets, mini supermarket, convenience stores to sell above goods.
What are the conditions for issuing a business license in Vietnam to a foreign invested enterprise? What are the bases for approving the issuance of business license by the Ministry of Industry and Trade?
What are the bases for approving the issuance of business license by the Ministry of Industry and Trade?
According to the provisions of Article 10 of Decree 09/2018/ND-CP of Vietnam on the bases for approving the issuance of business license as follows:
The Ministry of Industry and Trade and a managing Ministry shall base on the following to consider approving the issuance of a business license in case of circumstances prescribed in Clauses 2, 3 and 4 Article 9 of this Decree:
- The conformity with sector development planning and strategies of the region or country.
- Vietnamese market opening negotiation process.
- Vietnamese market opening need.
- Vietnam and foreign partner cooperation strategies.
- Diplomatic relations, national security, social safety and order in case of foreign investors not from a country or territory which has acceded to a treaty to which Vietnam is a signatory.
Can foreign invested enterprises (FDI) import goods into a separate customs zone?
Pursuant to Clause 1, Article 7 of Decree 09/2018/ND-CP of Vietnam stipulating the sale of goods and other related activities as follows:
Sale of goods and other related activities
1. If a foreign-invested business entity meets the following conditions, it is entitled to export goods purchased in Vietnam; goods processed in Vietnam and goods legitimately imported in Vietnam to a foreign country or a separate customs zone:
a) The exports are not included in the lists of goods banned from export; the list of goods temporarily ceased from export; the list of goods not eligible for export as specified in international treaties to which Vietnam is a signatory;
b) In case of exports under the lists of goods to be exported with required licenses or certain conditions, the foreign-invested business entity shall obtain such licenses or meet such conditions as prescribed.
Thus, foreign-invested enterprises (FDI) may import goods into a separate customs zone when meeting the following conditions:
- The exports are not included in the lists of goods banned from export;
- The list of goods temporarily ceased from export;
- The list of goods not eligible for export as specified in international treaties to which Vietnam is a signatory;
- In case of exports under the lists of goods to be exported with required licenses or certain conditions, the foreign-invested business entity shall obtain such licenses or meet such conditions as prescribed.
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