FDI enterprises may have licenses revoked for over 12 months of unreported suspension

On September 3, 2026, the Government issued Decree No. 342/2026/ND-CP on goods purchase and sale activities of foreign investors and foreign-invested economic organizations in Vietnam.

According to Point d, Clause 1, Article 42 of Decree No. 342/2026/ND-CP, a business license of a foreign-invested economic organization shall be revoked if business in goods purchase and sale and related activities has been terminated for more than 12 months without reporting thereon to the licensing agency.

For retail sales activities, Point dd, Clause 2, Article 42 of Decree No. 342/2026/ND-CP provides that a license for establishing a retail sales outlet shall be revoked if the operation of the retail sales outlet has been terminated for more than 12 months without reporting thereon to the licensing agency.
 

Regarding the order of revocation, Point d, Clause 3, Article 42 of Decree No. 342/2026/ND-CP provides that, in the above cases, the licensing agency shall send a written request for the foreign-invested economic organization to give written explanations for the reasons of violating regulations, clearly specifying the time limit for explanation.

After 14 working days from the expiration of the time limit for explanation, if the licensing agency receives no written explanation from the foreign-invested economic organization or the explanation content is unsatisfactory, the licensing agency shall issue a decision to revoke the business license or the license for establishing a retail sales outlet.

In addition, under Clause 2, Article 40 of Decree No. 342/2026/ND-CP, a foreign-invested economic organization may temporarily suspend goods purchase and sale activities and related activities, or the operation of a retail sales outlet, for a period of not more than 12 months.

During the temporary suspension, the enterprise is also required to comply with the notification requirements prescribed by law and, where required by law, send a copy of the certification issued by the business registration agency to the licensing agency.