The term “retail outlet in addition to a retail outlet” specifically denotes a retail outlet in Vietnam that established by either a Company or foreign-invested economic organization already operating a retail outlet in Vietnam, or by a foreign-invested economic organization in Vietnam under the same name or brand as an existing retail outlet. Moreover, furthermore indicates that this type of establishment falls into the category described.

1. Conditions for the establishment of retail outlets

In order to establish the first retail outlet, the Company needs to fulfill several requirements. Firstly, it must have a financial plan in place for the establishment of the retail outlet. Additionally, it should not have any outstanding tax debts for a foreign-invested economic organization established in Vietnam for a period of one year or more. Lastly, the location chosen for the retail outlet must comply with the relevant master plan of the geographical market it is intended for.

2. When is an Economic Needs Test (ENT) required

The competent authority will apply ENT when the company registers to establish a retail outlet in addition to the first one, except for the following cases:
i. The property has an area of less than 500 m2
ii. Established in a commercial center
iii. Not belonging to a type of convenience store or mini supermarket. 

3. Fine and cancellation of permits

For this offense, the Company may face a fine of up to VND 40,000,000 (approximately USD 1,700) for operating outside the scope stated in the Retail Outlet License (ROL). This fine specifically applies to the organization.
Furthermore, the violating organization will have their Trading Permit and ROL revoked or suspended for a period ranging from one to three months, depending on the severity of the violation. Additionally, they will be required to repay any illegal profits obtained through the violation.

4. Conclusion

In conclusion, the regulations regarding retail outlets of Foreign Invested Enterprises (FIEs) in Vietnam play a crucial role in ensuring fair and transparent business practices. These regulations aim to protect the interests of both consumers and local businesses, as well as maintaining the integrity of the market. By strictly implementing and enforcing these regulations, in addition, the Vietnamese government seeks to create a level playing field for all businesses, and more importantly, encourage responsible investment.

For the full detail of this post, please reference on this link: http://hmlf.vn/retail-outlet-of-foreign-invested-enterprises/

Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn
Email: [email protected]