Cases of termination of operations in Vietnam of foreign traders

General regulations on foreign traders conducting commercial activities in Vietnam

Pursuant to the provisions of Article 16 of the Commercial Law 2005, foreign traders mean traders established and making their business registrations according to the provisions of foreign laws or recognized by foreign laws.

- Foreign traders are entitled to set up their representative offices or branches in Vietnam; to establish in Vietnam foreign-invested enterprises in the forms provided for by Vietnamese law.

- Vietnam-based representative offices and branches of foreign traders have the rights and obligations specified by Vietnamese law. Foreign traders shall be held responsible before Vietnamese law for all activities of their Vietnam-based representative offices and branches.

- Foreign-invested enterprises established in Vietnam by foreign traders according to the provisions of Vietnamese law or international treaties to which the Socialist Republic of Vietnam is a contracting party shall be regarded as Vietnamese traders.

Cases of termination of operations in Vietnam of foreign traders (Internet image)

Competence to license foreign traders to conduct commercial activities in Vietnam 

Competence to license foreign traders to conduct commercial activities in Vietnam is specified in Article 22 of the Commercial Law 2005 as follows:

- The Government shall uniformly manage the licensing of commercial activities of foreign traders in Vietnam.

- The Planning and Investment Ministry shall be answerable to the Government for managing the issuance of licences to foreign traders investing in Vietnam according to the provisions of Vietnamese law.

- The Trade Ministry shall be answerable to the Government for managing the issuance of licences to set up Vietnam-based representative offices of foreign traders; or licenses to set up branches, joint-venture enterprises or enterprises with 100% foreign capital in Vietnam in cases where such traders are specialized in conducting activities of goods purchase and sale or other activities directly related to goods purchase and sale in compliance with Vietnamese law and treaties to which the Socialist Republic of Vietnam is a contracting party.

- Where a specialized law contains specific provisions on the competence of ministries or ministerial-level agencies, which are responsible before the Government for managing the issuance of licences to foreign traders for conducting commercial activities in Vietnam, the provisions of such specialized law shall apply.

Cases of termination of operations in Vietnam of foreign traders

Pursuant to the provisions of Article 23 of the Commercial Law 2005, foreign traders shall terminate their operations in Vietnam in the following cases:

- Upon expiration of the operation duration stipulated in their licenses;

- At the request of traders, which is approved by competent state management agencies;

- Under decisions of competent state management agencies as a sanction against their violations of law and their licenses;

- Where traders are declared bankrupt;

- Where foreign traders terminate their operations according to foreign laws, for representative offices, branches or foreign parties to business cooperation contracts with Vietnamese parties;

- Other cases provided for by law.

Before terminating their operations in Vietnam, foreign traders are obliged to pay debts and fulfill other obligations toward the State, concerned organizations and individuals in Vietnam.

Mai Thanh Loi

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