Page 250 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

petroleum products and lubricants; (3) Transportation services A retail license is valid for the remaining period of
excluding transport businesses that the Vietnam agrees projects where the outlet is located, as shown in
to liberalize to comply with international conventions the investment registration certificate of a company
it has ratified; (4) Lease of goods except financial leases involved. In an event that the company involved
and leases of construction equipment to entrepreneurs; does not have an investment registration certificate,
(5) Promotion services except advertising; (6) Trade its retail license shall be valid in accordance with
intermediary services; (7) E-commerce services and the time mentioned in the document issued to
(8) Bidding services. Enterprises invested by investors the place where the retail outlet is located.
that engage in trading activities outside the scope
of the aforementioned activities, for example export, The provincial department of industry and trade
import, and transportation (except petroleum products in provinces where retail outlets are located have
and lubricants) do not need to obtain a trade license. the power to issue retail licenses. The review process for
the license to set up the first outlet, takes 20 working days
A trade license is valid for five years in events (there is no need to determine economic needs first).
that investors do not come from countries that have The review process for the license to set up other retail outlets
ratified the same international conventions as Vietnam, takes 58 days (check of economic needs is mandatory).
or in events that their business activities are not covered In all events, the provincial department of industry and
by those conventions, or in events that their traded trade must consult the opinions of the Ministry of Industry
products are not on the list of items entitled to market and Trade prior to issuing or amending retail licenses.
access under those conventions. The Decree 09 does not
mention the validity of trade license for other trading An enterprise invested by foreigners that operates
activities. without a retail license is liable to (1) a fine of up to
80,000,000 Vietnamese dong (or about 3,404 US dollar);
The provincial department of industry and trade in (2) up to six months of business suspension; and
provinces where enterprises invested by foreigners are (3) confiscation of revenue from their illegal businesses.
located have the power to issue their trade license.
The review process for a trade license takes 28 working days 5.3 Liquor Trade
(including the time used to consult the opinions of the
Ministry of Industry and Trade and relevant authorities). The current regulation on the control of liquor production
and trade is the Decree No. 105/2017/ND-CP,
An enterprise invested by foreign investors that operates which was issued by the government on 14 September
without a trade license shall be liable to a fine of up to 2017 (“Decree 105”). This law governs activities related to
20,000,000 Vietnamese dong (or about 862 US dollar). liquor trade, covering the production, import, distribution,
wholesaling, retailing, and selling for immediate
5.2 Retail License consumption at designated space.

Under the Decree 23, enterprises invested by foreigners Alcohol-beverage trade is subject to legal stipulations.
did not need to obtain a separate retail license for Decree 105 stipulates that a business selling alcohol
the establishment of their first retail outlet. However, (including distribution, whole selling and retailing)
the Decree 09 now stipulates that enterprises invested must obtain a license to sell alcohol from the Ministry of
by foreigners shall have to seek and obtain a retail Industry and Trade or the local department of industry and
license for each of their outlets including their first outlets. trade (depending on each case). An enterprise shall have
In addition, before opening new outlets except for the right to sell alcohol from the day of license
their first outlets, economic needs for such outlets must granting. Under Decree 105, there are three types of
be determined first except in events that the new retail licenses to sell alcohol namely alcohol selling licenses,
outlets have less than 500 square meters of space each alcohol-wholesaling licenses, and alcohol-retailing licenses
or are located inside department stores and are not (collectively referred to as “licenses to sell alcohol”).
a convenience store or a mini supermarket. Alcohol sellers must comply with legal requirements

250 Annual Report 2021 (Form 56-1 One-Report)