Conditions for issuing business license to a foreign-invested business entity in Vietnam

Conditions for issuing business license to a foreign-invested business entity in Vietnam (Internet image)

Regarding the problem, LawNet would like to answer as follows:

1. Case of granting a business license to a foreign-invested business entity in Vietnam

A business license to be issued to a foreign-invested business entity in Vietnam to:

- Perform the retail distribution right, excluding goods prescribed in Point Clause 4 Article 9 of Decree 09/2018/ND-CP;

- Perform importation right, wholesale distribution right prescribed in Point b Clause 4 Article 9 of Decree 09/2018/ND-CP;

- Perform the retail distribution right as prescribed in Point Clause 4 Article 9 of Decree 09/2018/ND-CP;

- Offer logistics services; other than sub-sectors of logistics for which Vietnam has committed to open its market as specified in international treaties to which Vietnam is a signatory.

- Good rental, excluding finance lease; other than lease of construction equipment with operators;

- Provide commercial promotion services, excluding advertising services;

- Provide commercial intermediary services;

- Provide electronic commerce services;

- Providing bid-holding services.

(Clause 1, Article 5 of Decree 09/2018/ND-CP)

2. Conditions for issuing business license to a foreign-invested business entity in Vietnam

(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 Article 9 of Decree 09/2018/ND-CP;

- 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 Article 9 of Decree 09/2018/ND-CP 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 Article 9 of Decree 09/2018/ND-CP 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.

(Article 9 of Decree 09/2018/ND-CP)

Diem My

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE