SBLAW would like to provide some information about specific queries on establishment of 100% foreign invested company doing business scope in goods importing and trading activities as follows:
1.For the importing activities of Import Company:
The newly set-up company shall have right to import products from overseas and sell to other traders who are already licensed for operating in wholesale business but the company shall not be allowed to directly sell products to end-customers (retails).
Thus, after being fulfilled customs clearance procedures, the products shall be directly transported to ordered wholesale clients or transported to warehouse of the Company for storage then deliver to clients by committed delivery schedule with such clients.
The Company will not have right to open any outlet store for retail and also wholesale distribution.
In addition, please be noted that HS Codes of products is not provided in the List of restricted-trading products according to Vietnam Law and the latest update of Road-map for implementation of goods trading in Vietnam.
2.For the trading activities:
Pursuant to prevailing regulations of laws of Vietnam, distribution activities shall comprise two scopes of operation: wholesale and retail.
With respect to wholesale activities, the newly set up company shall have right to import products from overseas or buy in the territory of Vietnam and sell to other traders who are already licensed for operating in retail business but Client shall not be allowed to directly sell products to end-customers.
Notwithstanding, with respect to retail activities, the Client shall be permitted to import and then directly distribute products to end-customers.
With respect to retail distribution, the newly set up company could choice between implementing the retail activity either through or not a retail establishment.
The modality and cycle of import and distribution of products without retail establishment will be based on commercial contracts with partners, products transported to ports of Vietnam, after being fulfilled customs clearance procedures shall be directly transported to ordered clients or transported to warehouses of the company for storage then deliver to clients by committed delivery schedule with such clients.
The newly set up company will not have to open any outlet store for retail and also wholesale distribution.
In case Client decide to register a retail establishment for retail activities, then it is necessary to request the lessor who is licensed the real estate business to provide the Certificate of Construction Ownership of the warehouse or retail shop. Besides, to use the warehouse, the investor must obtain the acceptance from the District People’s Committee, approval from Fire Fighting and Exemption Police Department.
