Why Vietnam ?
Important statistics for the retail sector include:
- 42 percent of Vietnamese are under the age of 25.
- There are a large amount of women (an important customer growth segment) in the workforce.
- Through November of 2013, Vietnam’s total retail turnover reached VND 2,386 trillion (around US$113 billion), an increase of 12.6 percent year-on-year.
Setting up of retail establishments
1. The setting up of retail establishments including the first retail establishments must abide by law regulations on state management for retail activities and be conformable with the related master plans of central-affiliated cities and provinces, where are expected for setting up of retail establishments.
2. The setting up of retail establishments in addition to the first retail establishments are considered for each specific case based on the examination on economic demand of each locality where place retail establishment under the criteria: Quantity of retail establishments, stability of market, residential density and scale of district-level localities where are expected for the setting up of retail establishments.
3. In case of setting up a retail establishment with area of less than 500m2 in area planned for goods trading activities by central-affiliated cities and provinces and already finished construction of infrastructure, it is not required to perform provision on checking the economic demand in clause 2 of this Article. This provision does not apply in cases of having changes on planning and this condition is not exist.
Economic Needs Test (ENT)
Currently, a foreign retailer must obtain a business licence, which entitles it to open a single retail outlet. Opening additional outlets will subject it to the ENT. During the ENT process, the licencing authority will examine the compatibility of the project with the population density, number of retail outlets and market stability in the district, as well as the district’s Master Plan and scale.
However, as of June 2013, a change via Circular No. 08 of the Ministry of Industry and Trade provided an ENT exemption for foreign investors looking to establish additional retail outlets of 500 square metres or less in an approved area and completed infrastructure. Whilst foreign investors are still required to obtain a business licence for additional retail outlets, the latest Circular provides a great improvement in the process and is a significant development in attracting foreign investors.
License to exercise the goods trading and directly related activities
The foreign investors with investment projects on exercise of goods trading and directly related activities in association with the setting up of enterprises must do procedures for grant of investment certificates.
a. A dossier comprises:
- Dossier of verification for grant of investment certificate as prescribed by law on investment;
- A written explanation about the satisfaction of conditions in exercise of goods trading and directly related activities according to the form MD-6 promulgated together with this Circular;
- Documents proving the financial capability and experiences of investor in exercise of operational target of goods trading and directly related activities.
b. After having acceptance opinion of the Ministry of Industry and Trade, the competent state agencies shall grant investment certificate. The investment certificate shall concurrently be business license.
c. Regulation on business trades in investment certificate shall exercise according to the form HD-1 promulgated together with this Circular.
If you have any question related to set up outlets or get license in Vietnam, feel free to contact us.
Get more info about Vietnamese retail market
Get more info about Vietnamese retail market
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