Vietnam: Is it illegal to trade in public places without a business license?

LAWNET would like to answer Ms. Thuy’s question as follows:

According to current regulations, specifically Articles 2 and 3 of Decree No. 39/2007/NĐ-CP of Vietnam’s Government, individuals doing trade independently and regularly and other organizations and individuals related to trade activities of individuals doing trade are cases not subject to business registration.

Specifically, individuals doing trade mean individuals who everyday themselves conduct one, several or all activities allowed by law on goods purchase and sale, service provision and other activities with purpose of profitability but do not register their business as prescribed by law on business registration and not be called as “trader” as prescribed by the Commercial Law of Vietnam. Particularly including individuals doing the following trade activities:

- Street trading (trading in public places) means activities of purchase and sale without a fixed location (purchase on street, sale on street or both purchase and sale on street), includes even the receipt of books, news, magazines, cultural products of traders allowed doing business in these products as prescribed by law, for sale on street;

- Petty trading means purchase and sale of small and odd items with or without a fixed location;

- Petty-food trading means sale of fruits, cakes, candies, drinks (beverage) with or without a fixed locations;

- The consignment trading means purchase of goods from other places according to each consignment to sell for wholesalers or retailers;

- Providing services: Polishing shoes, selling lottery tickets, repairing key, repairing vehicles, safekeeping for vehicles, washing for vehicles, barber, painting, taking photo and other services with or without fixed locations;

- Other commercial activities done independently and regularly do not have to register for business.

Currently, Ms. Thuy is selling fruits on street - which is one of the cases where business registration is not required according to the above regulations. Therefore, the fact that Ms. Thuy does not have a business license in this case is not a violation of the law.

Nguyen Trinh

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE