Foreign-invested enterprises granted more rights of distribution

VNGOP- The foreign-invested enterprises, licensed to engage in import activities, will be allowed selling imports to many distributors rather than to a single vendor as stipulated in the current regulations.

A foreign-invested enterprise will be licensed to have many domestic distributors.

This is the key point in Circular 05/2008/TT-BTC released by the Ministry of Industry and Trade, instructing some regulations on commodity trading and other related activities conducted by foreign-invested enterprises in Việt Nam.

Under the Circular, a foreign-invested enterprise is permitted to have a large number of domestic distributors who have registered their business activities or are licensed to distribute the commodities.

The new circular stipulates that foreign-invested enterprises which are not licensed to engage in distribution activities will not have any right to found distribution agents. Quarterly, prior to the 15th day of the first month in the next quarter, they have to submit a report on their import vendor to competent offices in charge of issuing licenses.
By Vũ Thúy