Purchasing and exchanging goods are ancient activities emerging from human’s demand of foods, drinks and other daily needs. Retailing and consumer goods distribution in Vietnam have developed rapidly in Vietnam driven by the growing of young mid-income consumer group in Vietnam. The retailing index has been high according to A.T.Keraney – a famous US consulting firm whom publishes regular report on Vietnam and other neighbouring countries. As a consequence, a number of foreign investors in retailing, and consumer goods distribution are eager to take part in this market. Our lawyers in Vietnam have always caught up with changes of laws and regulations in retailing and consumer goods distribution to give client best advice.
As defined in Decree no.23/2007/ND-CP, retailing means the sale of goods directly to the end consumer. It differs from wholesale which means the sale of goods to traders or other organizations, excluding the sale of goods directly to the end consumer. But both of them are the parts of distribution which covering all activities to take the goods to consumers. In Vietnam, distribution goods may be carried out by many forms, popularly traditionally wholesale and retail, besides more modern ones such as franchise, agency.
Currently, a Vietnamese person may conduct retailing easily by establishing a private enterprise, household or just small establishment without registration. The laws allow local retailing to enjoy special in taxation, audition, certificate issues. For very small business, tax can be based on revenue, not applying tax deduction method as usual.
However foreign owned enterprises investing in Vietnam in retailing and consumer goods distribution activity are bound by strict regulations. According to Decree No.23/2007/ND-CP and Circular 08/2013/TT-BTC especially guiding on foreign enterprises business in sale goods in Vietnam, sale goods and related activities of foreigners generally must meet the conditions: i) Being investor from a country or territory which has a treaty with and under which Vietnam has committed to open its market for good purchase, sale activities and related activities; ii) Making investment in a form conformable with provisions of Vietnam; iii) Dealing in goods and operating within a scope in accordance with Vietnam’s market-opening commitments and Vietnam laws; iv) Obtaining Business Certificate of provincial People’s Committee when granted already the Investment Certificate. The foreigners having allowed distributing in Vietnam and wishing to set up the first retail establishment must not submit for Business Certificate above. But they must comply with above certificate for the second and next retail establishments.
Pursuant to Vietnam’s entrance commitments to WTO, the market shall be more open in the near future, as such retailing and other activities of sale goods have been predicted to develop quickly. That is a great opportunity for both domestic and foreign investors.
Professionals at ANT Lawyers, a law firm in Vietnam work on a variety of the consumer goods and retail transactions and cases. Our attorney’s industry knowledge and expertise allow us to effectively support the consumer goods and retail sector. We deliver the experience and expertise needed to handle issues in both private practice and in corporate and regulatory bodies. ANT Lawyers provide relevant industry-focused advice, delivered quickly to ensure that we add value from day one. ANT Lawyers, your lawyers in Vietnam.