1. Legal Based:

WTO, FTAs, VKFTA

Decree 23/2007/ND-CP dated 12/02/2007

Decree No. 35/2006/ND-CP dated March 31, 2006

2. Detailing Conditions

2.1. WTO, AFAS, FTAs, VKFTA:

a) The scope of operation of a foreign-invested economic organization includes:

– Commission agent (CPC 621, 61111, 6113, 6121);

– Wholesale (CPC 622, 61111, 6113, 6121);

– Retail (CPC 631 + 632, 61112, 6113, 6121) (including multi-level selling activities);

– Franchising (CPC 8929).

b) No distribution of: cigarettes and cigars, books, newspapers and magazines, recorded articles, precious metals and gems, pharmaceuticals, explosives, crude and processed oils, rice, cane sugar and beet sugar.

c) Conditions for setting up retail establishments: The establishment of retail establishments (besides the first retail establishment) of foreign-invested economic organizations will be considered on the basis of examining business needs. economic (ENT).

2.2. The law of Vietnam:

a) The case of establishment of a retail establishment

– Foreign-invested economic organizations may only set up their first retail store when they have been licensed for distribution rights. The establishment of the first retail establishment is not required to carry out procedures for issuance of a License to establish a retail establishment.

– The establishment of a retail establishment, including the first retail establishment, must comply with the provisions of law on state management of retail activities and in accordance with the relevant planning of the province or city. centrally-affiliated city, where the retail establishment is expected to be established.

– The establishment of a retail establishment other than the first retail establishment shall be considered on a case-by-case basis based on the examination of economic needs of the area where the retail establishment is located according to the following criteria: number of establishments; retail, market stability, population density and size of the district-level area where the retail establishment is expected to be located. This regulation does not apply in the case of setting up a retail establishment with an area of ​​less than 500 m2 in an area that has been planned by a province or centrally run city for goods trading and has completed the construction of a retail establishment. infrastructure unless there is a change in planning and this condition no longer exists.

b) The case of franchising activities

– The business system intended to be used for franchising has been in operation for at least 01 (one) year.

– In case a Vietnamese trader is a primary franchisee from a foreign franchisor, that Vietnamese trader must do business under the mode of commercial franchising for at least 01 (one) year in Vietnam before issuing a franchise. commercial rights.