FIEs not allowed to distribute imports

11:30' 24/07/2007 (GMT+7)

VietNamNet Bridge – Foreign invested enterprises (FIEs) have the right to import goods directly, but they are not allowed to set up bases to distribute the imports, the Ministry of Trade (MoT) said. FIEs have the right to import, but they cannot set up bases to distribute the imports The ministry has promulgated the Circular No 09 guiding the implementation of the Decree No 23 stipulating the goods trading and other activities by FIEs in Vietnam. Under the circular, FIEs have the right to import, but they cannot set up bases to distribute the imports. The FIEs, that are licensed to implement the right for import, will be allowed to import the goods not listed as prohibited items. FIEs will be able to make customs declaration at border gates’ customs agencies in according to the Vietnamese laws. However, FIEs can sell the imports of every group to one businessman who has the right to distribute the group of products. FIEs can select their partners themselves, who will distribute the imports, provided that they make registration at the management authorities. As for the FIEs, which have been licensed to implement the right for distribution, they will be allowed to wholesale, retail, make franchise, act as the agents, selling Vietnam-made and imported products. However, the FIEs will not be able to retail in other places rather than the licensed places. They must ask for permission if they want to set up other retail points. State management authorities will license new distribution points after considering supply and demand, the number of retail points in the localities, the population, and they have the right to refuse licensing if they find out that no more distribution points are needed in the localities, or the projects on setting up more distribution points do not come in line with the local development strategy. According to the Ministry of Trade, the circular is a very important step in the implementation of WTO commitments. The Decree 23 was promulgated by the Government in February, while the guiding document has just been enacted. The tardiness in promulgating guiding documents has made the FIE community anxious, they had urged the MoT many times to promulgate the document soon, so that they could move ahead with their business plans. In a recent interview, Minister of Trade Truong Dinh Tuyen acknowledged that it took time to compile the document guiding the implementation of the right for import by FIEs. He said that the right to distribute in the domestic market is always a tough problem, even at negotiations, and not only the problem of Vietnam. Phuoc Ha, Viet Nam Net