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New guidance on goods trading by foreign-invested enterprises

Update: May, 15/2013 - 09:33
Illustrative imgae.—VNA/VNS Photo

On April 22, the Ministry of Industry and Trade issued Circular 08/2013/TT-BCT.

Accordingly, foreign-invested enterprises are only allowed in accordance with Investment Certificate, Business License, Retail Outlet Establishment Permit of such enterprises and relevant regulations.

In particular, foreign-invested enterprises are allowed to carry out goods trading activities such as: Implementation of the rights of export, import, distribution; implementation of goods trading and directly related activities with export processing enterprises; establishment of retail outlets, branch for implementation of the goods trading and directly related activities; the foreign investors' contribution of capital to, and purchase of shares from, Vietnamese enterprises for implementation of the goods trading and directly related activities.

However, to implement such activities, the enterprises must comply with the conditions as specified in this Circular.

In addition, Circular 08 also provides that foreign-invested enterprises engaged in goods trading and directly related activities shall implement periodic and extraordinary reporting regimes in accordance with Vietnamese law and this Circular.

Circular 08 shall take effect on June 7, 2013. and replaces Circular 09/2007/TT-BTM and Circular 05/2008/TT-BCT.

Value of transactions must be reported to the State Bank

On April 18, the Prime Minister issued Decision 20/2013/QD-TTg on high value transactions subject to report ("Decision 20").

Decision 20 provides that financial institutions and organisations/individuals doing business in non-financial sectors shall report to the State Bank of Viet Nam on the transactions valued at VND300 million or more compared to the previously regulated VND 200 million under Decree 74/2005/ND-CP.

The relevant non-financial sectors include gambling and casino business; real estate management, real estate brokers and real estate trading floor business, precious metals and gems business; notary and accounting services, legal services; investment trust, corporate establishment and management service; and director and chief secretary subleasing service.

Decision 20 shall take effect on June 10.- BIZCONSULT LAW LLC

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