Exemption from trading license applicable to foreign companies in Vietnam.

Exemption from trading license applicable to foreign companies in Vietnam

The Vietnamese Government has just issued Decree No.09/2018/ND-CP dated January 15th, 2018 stipulating the exemption form trading license applicable to foreign companies in Vietnam, effective from January 15th, 2018 as follows:

1. Cases where trading licenses applicable to foreign companies in Vietnam:

Foreign companies must have trading license to carry out the following activities:

a / To exercise the right of  distribution of retail sales of goods, excluding goods of rice, sugar; photographed items; books, newspapers and magazines
b) To exercise the import rights, the distribution right of wholesale of petrol and lubricants
c) To exercise the distribution right of retail sales of goods of rice, sugar; photographed items; books, newspapers and magazines;s
d) Providing logistics services; except for the sub-sectors of logistics services which Vietnam has committed to open markets in treaties to which Vietnam is a contracting party;
e) Leasing goods, excluding financial leasing; except for the leasing of construction equipment with operators;
e) Providing trade promotion services, excluding advertising services;
g) Providing commercial intermediary services;
h / Providing e-commerce services;
i) Providing bidding services for goods and services.

2. Cases of exemption from trading  license applicable to foreign company in Vietnam:

Apart from the activities must have trading license prescribed above, foreign companies fall into cases specified at Points b and c Clause 1, Article 23 of Law in Investment shall be entitled to engage in the activities of purchase and sale of goods and related activities directly to the activities of purchase and sale of goods specified in Clause 1 Article 3 of Decree No.09/2018/ND-CP after registering such activities in the relevant papers as prescribed by the Investment Law and the Enterprise Law.

3. In cases other than activities of purchasing and selling goods in the above-said case, foreign companies shall be exempt from trading licenses.
Source: Decree No.09/2018/NĐ-CP dated 15th January 2018 of the Government providing detailed regulations on commercial law and foreign trade law on trading activities and activities directly related to purchase and sell goods of foreign investors, economic organizations with foreign investment in Vietnam,

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