Cases of revocation of business licenses for foreign investors and economic organizations with foreign investment in Vietnam

Cases of revocation of business licenses for foreign investors and economic organizations with foreign investment in Vietnam​ (Image from the Internet)

1. Conditions for issuance of business licenses to foreign investors and economic organizations with foreign investment in Vietnam

The conditions for issuing business licenses to foreign investors and economic organizations with foreign investment are specified in Article 9 of Decree 09/2018/ND-CP as follows:

- For foreign investors from countries or territories that are parties to international treaties to which Vietnam is a signatory, with commitments to market opening for trading activities and activities directly related to trading:

+ Meeting market access conditions specified in the international treaties of which Vietnam is a member;

+ Having a financial plan for carrying out activities proposed for business license issuance;

+ Not having overdue tax debts if the entity has been established in Vietnam for over one year.

- For foreign investors not from countries or territories that are parties to international treaties of which Vietnam is a signatory:

+ Conditions specified at points b and c, clause 1, Article 9 of Decree 09/2018/ND-CP;

+ Meeting the following criteria:

++  Compliance  with  the  regulations  of  specialized  laws;

++  Suitability  to  the  domestic  competition  level  in  the  same  field  of  activity;

++  Ability  to  create  jobs  for  local  labor;

++  Ability  and  level  of  contribution  to  the  state  budget.

- For business services not committed to market opening in the international treaties of which Vietnam is a member: Conditions specified in clause 2, Article 9 of Decree 09/2018/ND-CP.

- For goods not committed to market opening in the international treaties of which Vietnam is a member: Lubricating oil, rice, sugar, recorded items, books, newspapers, and magazines

+ Conditions specified in clause 2, Article 9 of Decree 09/2018/ND-CP;

+ For goods such as lubricating oil: Consider granting permits for the right to import and wholesale distribution to economic organizations with foreign investment engaged in one of the following activities:

++ Manufacture  of  lubricating  oil  in  Vietnam;

++  Manufacture  or  authorized  distribution  in  Vietnam  of  machinery,  equipment,  goods  using  specific  types  of  lubricating  oil.

+ For goods such as rice; sugar; recorded items; books, newspapers, and magazines: Consider granting retail distribution rights to economic organizations with foreign investment already having retail establishments in the form of supermarkets, mini-supermarkets, convenience stores for retail at those locations.

2. Cases of revocation of business licenses for foreign investors and economic organizations with foreign investment in Vietnam

According to clause 1, Article 43 of Decree 09/2018/ND-CP, business licenses will be revoked in the following cases:

- The business registration certificate is revoked;

- The investment registration certificate of the project with objectives involving trading activities and activities directly related to trading is revoked;

- The declaration content in the application, reissuance, or adjustment of the business license is falsified;

- Cease trading activities and activities directly related to trading for over 12 months without reporting to the licensing authority;

- Failure to comply with periodic reporting policies as stipulated in point a, clause 1, Article 40 of Decree 09/2018/ND-CP for 24 consecutive months;

Point a, clause 1, Article 40 of Decree 09/2018/ND-CP specifies that annually, before January 31, economic organizations with foreign investment are responsible for reporting on the situation of trading activities and activities directly related to trading according to Form No. 13 in the Annex issued with Decree 09/2018/ND-CP.

- Failure to submit reports, documents, or explanations as stipulated in point b, clause 1, Article 40 of Decree 09/2018/ND-CP after a period of 3 months from the expiry date as required.

Point b, clause 1, Article 40 of Decree 09/2018/ND-CP stipulates that economic organizations with foreign investment have the obligation to report, provide documents, or explain issues related to trading activities and activities directly related to trading, operations at retail establishments as requested by the competent state management agency.

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