English
New trading regulations for foreign firms in Vietnam
The Hanoitimes – The Government has recently issued a decree detailing the Commercial Law and the Law on Foreign Trade Management, which monitors foreign trade in line with Vietnam’s laws and international conventions the country has joined.
The Decree 09/2018/NĐ-CP, which has taken effect since January 15 this year, regulates the trading of goods and other related activities by foreign firms and organizations in Vietnam.
According to the decree, foreign firms and organizations, which are licensed for exports, are allowed to export three kinds of goods to foreign countries or customs areas. The goods are those purchased in Vietnam, processed by such foreign firms and organizations in Vietnam, or imported legally into Vietnam.
The decree also regulates conditions for granting business licenses to foreign investors in the field. Specifically, foreign investors will be qualified for the license if they belong to countries or territories that take part in international treaties Vietnam has joined in with commitments to open its market for trade and other related activities.
If not, foreign firms and organizations must meet other specific regulations required in certain cases, according to the decree.
Besides, the foreign investors are also required to meet conditions related finance and tax arrears in case their firms are set up in Vietnam for more than one year.
According to Nguyen Sinh Nhat Tan, Director of the Ministry of Industry and Trade’s Legal Department, the export and import rights of the FDI enterprises under the Law on Foreign Trade Management have been implemented in accordance with the commitments on opening the Vietnamese market when signing and joining the international agreements.
The law, which has taken effect since January 1 this year, consists of eight chapters with 113 articles, stipulating measures on foreign trade management, the development of foreign trade activities and applying measures on foreign trade management.
Specifically, it regulates issues related to the State management on foreign trade, prohibitions on foreign trade, measures to prevent exports and imports, exports and imports quotas and conditions, goods transits, technical and quarantine measures and commercial prevention measures.
The law defines that the State monitors foreign trade in line with Vietnam’s laws and international conventions Vietnam has joined.
It also ensures transparency, publicity, equality and simplification of administrative procedures, guarantee the legal rights and benefits of the State and businessmen at all economic sectors and promote domestic production and exports in accordance with controlling imports.
The decree also regulates conditions for granting business licenses to foreign investors in the field. Specifically, foreign investors will be qualified for the license if they belong to countries or territories that take part in international treaties Vietnam has joined in with commitments to open its market for trade and other related activities.
If not, foreign firms and organizations must meet other specific regulations required in certain cases, according to the decree.
Besides, the foreign investors are also required to meet conditions related finance and tax arrears in case their firms are set up in Vietnam for more than one year.
According to Nguyen Sinh Nhat Tan, Director of the Ministry of Industry and Trade’s Legal Department, the export and import rights of the FDI enterprises under the Law on Foreign Trade Management have been implemented in accordance with the commitments on opening the Vietnamese market when signing and joining the international agreements.
The law, which has taken effect since January 1 this year, consists of eight chapters with 113 articles, stipulating measures on foreign trade management, the development of foreign trade activities and applying measures on foreign trade management.
Specifically, it regulates issues related to the State management on foreign trade, prohibitions on foreign trade, measures to prevent exports and imports, exports and imports quotas and conditions, goods transits, technical and quarantine measures and commercial prevention measures.
The law defines that the State monitors foreign trade in line with Vietnam’s laws and international conventions Vietnam has joined.
It also ensures transparency, publicity, equality and simplification of administrative procedures, guarantee the legal rights and benefits of the State and businessmen at all economic sectors and promote domestic production and exports in accordance with controlling imports.
Source: http://www.hanoitimes.vn/investment/2018/01/81E0C0A4/new-trading-regulations-for-foreign-firms-in-vietnam/