9 / 12
December 2014
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V
IETNAM
B
RIEFING
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9
How to Establish a Trading Company in Vietnam
Foreign investors who wish to engage in import/export activities
must obtain an IC, or follow the procedures for the adjustment of their
current IC. It should be noted that the IC also serves as the company’s
business license.The application comprises the followingdocuments:
• Dossier of verification for the granting of an Investment Certificate;
• A written explanation showing the satisfaction of the conditions
laid out in Form MD-6 for goods trading and directly related
activities
• Documents proving the financial capability and experience of the
investor in the exercise of the right to export and right to import
The application for a license to engage in the activities of goods
trading and directly related activities comprises the following
documents:
• A written explanation showing the satisfaction of the conditions
laid out in FormMD-6 relating to goods trading and other directly
related activities
• Documents proving the financial capability and professional
experience of the investor(s) in the exercise of operational targets
relating to goods trading and other directly related activities
Foreign invested enterprises (FIE) are allowed to set up one retail
establishment if they have received an Investment Certificate.
However, if the FIE wishes to set up multiple retail establishments,
it must apply for a license to set up these retail establishments. This
application comprises the following documents:
• Application for the license to set up a retail establishment
• Awritten explanation satisfying the conditions of the law on state
management for retail activities and conforming with the related
master plans of central-affiliated cities and provinces
• Document from the provincial People’s Committee approving the
economic demand of the additional retail establishment
• Completed Form BC-3
• Vouchers, which are issued by the relevant tax agencies, about
enterprise income tax liability for two consecutive years. If an
enterprise has no vouchers, it can issue a written explanation
clearly stating the reasons why
Once theMinistry of Industry andTrade has accepted the application,
the relevant state agency will grant the license for the setting up of
retail establishments.
Import and Export Licensing Procedures
Vietnam does not require a company to have an import/export
license in order to set up a trading company. However, in order
to be able to conduct import/export business, a foreign investor
must register with the Department of Planning and Investment
(DPI). Additionally, foreign investors who wish to engage in import/
export activities in Vietnam are required to obtain an Investment
Certificate. Companies that wish to expand their current business
operations in order to engage in import/export activities must
follow the procedures for adjusting their Investment Certificates.
According to Circular 34/2013/TT-BCT, there are certain goods that
foreign invested enterprises may not export from, or import into,
Vietnam. Goods banned for export include petroleum oil. Goods
banned from import into the country include cigars, tobacco,
petroleum oils, newspapers and journals, and aircraft.
Certain goods require the trading company to obtain import and
export permits from the government, these include:
• Goods subject to export control in accordance with international
treaties to which Vietnam is a contracting party
• Goods exported within quotas set by foreign countries
• Goods subject to import control in accordance with international
treaties to which Vietnam is a contracting party
• Explosive pre-substances and industrial explosives
All imports and exports must comply with the relevant government
regulations on quarantine, food safety, and quality standards, and
must be inspected by the relevant government agencies before
clearing customs.
Import/Export Duties
Most goods imported/exported across the borders of Vietnam, or
which pass between the domestic market and a non-tariff zone, are
subject to import/export duties. Exceptions to this include goods in
transit, goods exported abroad from a non-tariff zone, and goods
passing from one non-tariff zone to another.
Most goods and services being exported are exempt from tax. Export
duties (ranging from zero percent to 45 percent and computed on
free-on-board (FOB) price) are only charged on a few items, mainly
natural resources such as minerals, forest products, and scrapmetal.
Consumer goods, especially luxury goods, are subject to high import
duties, whilemachinery, equipment, materials and supplies needed
for production, especially those items which are not produced
domestically, enjoy lower rates of import duties, or even a zero
percent tax rate. Duty rates for imported goods include preferential
rates, special preferential rates, and standard rates depending on the
origin of the goods.
Import/export duties declaration are required upon registration of
customs declarations with the customs offices. Export duties must
be paid within 30 days of registration of customs declarations. For
imported goods, import duties must be paid before receipt of
consumer goods.