More Right of Export for Foreign - Invested Enterprises
At the conference to disseminate provisions of Circular 08/2013/TT-BCT (effective since June 7th, 2013) detailing the goods trading and directly related activities of foreign-invested enterprises in Vietnam, Mr Pham Dinh Thuong, Deputy Director of Legal Affairs, Ministry of Industry and Trade, said subjects that FDI enterprises have the right to purchase commodities from are Vietnamese businessmen that have registered the trading of, or have the right to import or distribute goods for export. In addition, FDI enterprises are not allowed to organise goods purchasing networks in Vietnam for export, including opening venues for purchasing goods for export.
Circular 08 stipulates that FDI companies, which already licensed to exercise the right to import without having the right to distribute, may sell imported goods to Vietnamese traders that have registered the trading of, or have the right to export, distribute the goods. FDI enterprises are not allowed to set up establishments for the distribution of imported goods in Vietnam. Besides, export processing FDI enterprises will be allowed to distribute goods for export processing enterprises and enterprises outside the export processing zones (EPZs).
To protect domestic businesses and avoid the massive participation of FDI enterprises in “sensitive” sectors, Circular 08 also provides that the establishment of second retail outlet with area of less than 500 square metres in area planned for goods trading activities by centrally affiliated cities and provinces and already finished construction of infrastructure is not required to perform provision of the examination on economic demand. This provision does not apply in cases of having changes on planning and this condition does not exist. This provision is partly loosened compared with WTO commitments, facilitating FDI enterprises in setting up small-scale retail outlets.
Hien Hung
Vietnamese
