Hong Bang Law has 10 years of consulting experience in the field of investment and business. We have supported many foreign and domestic investors to set up companies and accompany them during the implementation of investment projects and activities in Vietnam.

According to Decree 09/2018/ND-CP, foreign-invested economic organizations that want to set up retail establishments in Vietnam need to be granted a retail establishment license.

Therefore, Hong Bang Law would like to share with you some essential information about setting up retail outlets for foreign investors in Vietnam. 

Legal basis: 

Decree 09/2018/ND-CP guidelines for the Law on Commerce and the Law on Foreign Trade Management regarding sale of goods and other activities directly related to sale of goods of foreign investors and foreign-invested business entities in Vietnam

General regulation: 

Retailing involves selling goods to individuals, households, and other organizations for consumption purposes.

Retail outlet means the place where retailing is conducted.

Retail outlet other than the first retail outlet is the outlet established by the same foreign investor or foreign-invested entity that already has a retail outlet in Vietnam, or sharing the same name or brand name with at least a retail outlet established by a foreign-invested entity in Vietnam.

Requirements: 

• Conditions for setting up the first retail outlet

• Acquire a financial plan for setting up retail outlet;
• Incur no overdue tax in a case where it has been established in Vietnam for at least 1 year;
• The location where the retail outlet is set up is conformable with the relevant planning in the relevant geographic market.

• Conditions for setting up retail outlet other than the first retail outlet

• In case of without requiring compliance with an economic needs test: meet all the requirements as setting up the first retail outlet
• In case of requiring compliance with an economic needs test: meet all the requirements as setting up the first retail outlet and fulfill Economic needs test criteria.

Application

• An application form for a license of setting up a retail outlet.
• A representation specifying:

The location: Address of retail outlet; description of general area, relevant area and area for setting up retail outlet; representation of fulfillment of conditions prescribed in Point c Clause 1 Article 22 of this Decree; and enclosed retail outlet documentation;

Business plan at retail outlet: Presentation of business plan and market development; labor need; evaluation of the implications and socio-economic effectiveness of the business plan;

Financial plan for setting up retail outlet: An income statement made on the basis of the last audited financial statement if the enterprise has been established in Vietnam for at least 1 year; representation of capital, sources of funds and fundraising plans; enclosed with other financial documents.

• A document justifying that the enterprise incurs no overdue tax issued by the tax authority.
• Copies: Business registration certificate, certificate of registration for project setting up retail outlet (if any), business license.
• A representation of ENT criteria prescribed in Points c, d and dd Clause 2 Article 23 hereof, in case of requiring compliance with ENT.

Procedures: 

Step 1: Submit applications to Ministry of Industry and Trade

Step 2: Within 3 working days, the Department of Industry and Trade will check and request amendments and supplements if the application is not valid

Step 3: Within 10 working days after receiving the complete and valid dossier, the Department of Industry and Trade shall check the satisfaction of the conditions of the foreign investor and send the dossier together with the written opinion of the Ministry of Industry and Trade.

Step 4: Within 07 working days, the Ministry of Industry and Trade issues a written approval for the grant of a license to set up a retail establishment

Step 5: Within 03 working days from the date of receiving the written approval from the Ministry of Industry and Trade, the Department of Industry and Trade shall issue a license to set up a retail establishment.

Services provided by Hong Bang Law

Hong Bang Law will accompany customers in the whole process of carrying out the procedure with consulting and support services such as:

• Advising customers on conditions, documents and procedures for setting up retail establishments;
• Receive information provided by enterprises; Drafting documents and records in accordance with the law and;
• An authorized representative of the client to carry out procedures at a competent state agency;
• Monitor the processing of dossiers by competent state agencies, explain to state agencies the issues related to dossiers.

If you need more detailed advice and answers as well as how to access this service, please contact directly our Lawyer Nhat Nam via hotline: 0912.35.65.75, 0912.35.53.53 or call the toll free legal consultation hotline 1900.6575 or send a service request via email: lienheluathongbang@gmail.com

Wishing you and your family good health, peace and success!

Best regards!