More trading rights for FIEs

The Ministry of Trade will announce a roadmap on import activities for foreign-invested enterprises (FIE) soon, allowing them to engage in direct goods distribution in Vietnam.

A senior official from the planning and investment department of the Trade Ministry said that the draft for the roadmap has been completed and will be announced soon.

“We have reviewed all regulations relating to Vietnam’s commitments under the WTO to make inputs for the draft decision. The roadmap decision will specify the timeline for importing goods for local distribution in specific sectors,” he said.

Besides the roadmap, the Trade Ministry is also prepared to issue a circular for implementation of Government’s Decree 23/2007 on FIEs’ rights to import goods for sale in Vietnam. The decree issued by the Government on February 12, 2007, has captured strong interest from FIEs, as it allows these enterprises to establish distribution outlets in Vietnam. The key condition is that their investment in Vietnam must be in line with Vietnam’s commitments under international treaties and conventions to which Vietnam is a signatory.

Such enterprises are allowed to open the first retail outlet, but the establishment of the second outlet falls under the authority of provincial governments with guidance from the Ministry of Trade, according to the decree. Therefore, many have expected that the Trade Ministry’s forthcoming circular will also provide concrete conditions for FIEs to open more outlets in Vietnam.

The ministry is also preparing a draft decree on allowing FIEs without a commercial presence in Vietnam to engage in import-export trading in the country. The draft decree, however, will set concrete terms and conditions for such trading rights.

Vietnam has committed to full market opening to international competition as from January 1, 2009.

(Source: SGT)