Foreign Direct Investment (FDI) plays a pivotal role in driving Vietnam’s economic growth, notably evident in the growing number of foreign-invested enterprises (FIE). As these enterprises continue to expand their operations, gaining a thorough understanding of the regulations governing their importation of goods into separate customs areas in Vietnam becomes crucial.
Import and export rights of FDI enterprises
Pursuant to Clause 1, Article 7 of Decree 09/2018/ND-CP stipulating the performance of goods purchase and sale activities and activities directly related to the purchase and sale of goods. Accordingly, foreign-invested enterprises (FDI) may import goods into a separate customs area when meeting the following conditions:
– Exported goods are not on the list of goods banned from export in international treaties to which Vietnam is a contracting party;
– Not on the list of goods temporarily suspended from export in international treaties to which Vietnam is a contracting party;
– Exported goods are not on the list of goods not entitled to export in international treaties to which Vietnam is a contracting party;
– For exported goods on the list of goods exported under permits and conditions, foreign-invested economic organizations must obtain permits or satisfy all conditions as prescribed by law.
Conditions for granting business licenses to foreign-invested enterprises
According to the provisions of Article 9 of Decree 09/2018/ND-CP on the conditions for granting business licenses to foreign-invested enterprises as follows:
(1) In case a foreign investor belongs to a country or territory that is a contracting party to an international treaty to which Vietnam is a contracting party, there is a commitment to open the market for goods trading and directly related activities come buy and sell goods
– Satisfy the conditions on market access in international treaties to which Vietnam is a contracting party;
– Having a financial plan to carry out the activities requested for a business license;
– No more overdue tax debt in case it has been established in Vietnam for 01 year or more.
(2) In case the foreign investor does not belong to a country or territory participating in an international treaty to which Vietnam is a contracting party
– Conditions specified at Points b and c, Clause 1 of this Article;
– Meet the following criteria:
It is important to comply with the provisions of specialized laws. Additionally, it is crucial to ensure that the level of competition of domestic enterprises in the same field of operation is consistent. Moreover, the ability to create jobs for domestic workers is a key consideration. Lastly, assessing the ability and level of contribution to the state budget is also essential.
(3) Where business services have not been committed to market opening in international treaties to which Vietnam is a contracting party:
Conditions specified in Clause 2 of this Article.
(4) In case of trading goods that have not been committed to market opening in international treaties to which Vietnam is a contracting party:
Lubricating oil and grease; rice; road; recorded items; books, newspapers and magazines
– Conditions specified in Clause 2 of this Article;
– For goods being lubricating oil and grease: Consider granting a license to exercise the right to import or wholesale distribution to a foreign-invested economic organization that performs one of the following activities:
In Vietnam, it is advisable to consider both the production of lubricating oil and grease, as well as obtaining permission to distribute machinery, equipment, and goods that require a specific type of lubricating oil and grease.
– To distribute goods such as rice, road, recorded items, books, newspapers, and magazines, we recommend considering the option of licensing retail distribution rights to foreign-invested economic organizations that currently operate supermarkets, mini-marts, and convenience stores. This will enable these organizations to utilize their existing retail establishments for the distribution of the mentioned goods.
Custom dossier
– Customs declaration
– Commercial invoice or voucher of equivalent value in case the buyer has to pay the seller: 01 photocopy
– The list of forest products for export of raw wood according to the regulations of the Ministry of Agriculture and Rural Development: 01 original
– Export license or written permission to export from a competent agency according to the law on foreign trade management for exported goods under the management under the license.
– If exporting once: 01 original
– If exporting many times: 01 original when exporting for the first time
– Notice of exemption from examination or notice of specialized examination results or other documents as prescribed by law on specialized inspection and management: 01 original
– Entrustment contract: 01 copy for the case of entrusting the export of goods subject to an export license, certificate of specialized inspection or documents proving that the organization or individual is qualified export of goods in accordance with the law on investment that the trustee uses the license or certification of the trustee
– Investment certificate on goods purchase and sale activities and activities related to goods purchase and sale of foreign-invested traders who have registered the right to export or import for exported goods; Imported by foreign-invested enterprises: 01 photocopy.
Conclusion
In conclusion, FIE companies can establish separate customs areas in Vietnam’s designated zones to import goods and raw materials without being subject to customs inspections. However, the company must adhere to the regulations and procedures of Vietnam and obtain approval from the Vietnam Customs Department to avail this benefit. By following the necessary procedures, FDI companies can benefit from this provision and contribute to Vietnam’s growth and development.
HMLF is always available to offer assistance in understanding the procedures with authorities.
Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn Email: miller@hmlf.vn
