FROM 15 JANUARY 2018, SOME TRADING ACTIVITIES ARE NOT REQUIRED TO OBTAIN TRADING LICENSE

19/12/2018, 09:49 AM

Decree No. 09/2018/ND – CP of Government on guidelines for the Law on Commerce and the Law on Foreign Trade Management regarding trading activities and other activities directly related to trading activities of foreign investors and economic organizations with foreign invested capital in Vietnam coming into effect from 15 January 2018 (hereinafter referred to as “Decree 09/2018/ND – CP”) stipulates that export, import, wholesale distribution of ordinary goods are not required to obtain Trading Licenses, details are as follows:

The export rights

Foreign-invested enterprises (hereinafter referred to as (“FIEs”) are entitled to execute the export right after the FIEs registered exportation right in accordance with Law on Investment 2014 and Law on Enterprises 2014.

The import rights, wholesale distribution rights

FIEs are entitled to exercise the import right, the wholesale distribution right after the FIEs registered importation right, distribution right under Law on Investment 2014 and Law on Enterprises 2014, EXCEPTION FOR the goods are subject to oil and lubricants which must be issued Trading License before operation.

In addition, Decree No. 09/2018/ND – CP expands the cases that must obtain Trading Licenses as follows:

  • Provide logistics services excluding logistic services sub-sectors for which Vietnam has committed to open the market in international treaties of which Vietnam is a member;
  • Goods leasing excluding financial leasing; except for the leasing of construction equipment which includes operators;
  • Provide trade promotion services excluding advertising services;
  • Provide trade intermediation services;
  • Provide e-commerce services; and
  • Provide services of arranging tendering/bidding for goods and services.

It can be argued that although there are some welcome changes and easing registration procedures, Decree 09/2018/ND-CP imposes administrative burdens for the foreign investors engaging in logistics services, trading promotion, intermediation, e-commerce services when such activities previously were not required to obtain sub-licenses, other than the Investment Registration Certificate and the Enterprise Registration Certificate, but now they are subject to a Trading License.

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