Official Dispatch 8739/BCT-XNK 2023 sale and purchase of goods by foreign traders without presence in Vietnam

To: The General Department of Customs (the Ministry of Finance)

In response to Official Dispatch No. 4698/TCHQ-GSQL dated September 11, 2023, of the General Department of Customs, regarding the sale and purchase of goods by foreign traders without presence in Vietnam, the Ministry of Industry and Trade gives the following opinions:

1. Clause 3 Article 5 of the Law on Foreign Trade Management stipulates that:

“3. Foreign traders without presence in Vietnam and other related organizations and individuals of the countries and territories (below collectively referred to as countries) that are members of the World Trade Organization and countries that have concluded bilateral agreements with Vietnam have the right to export and the right to import as prescribed in the Vietnamese law and treaties to which the Socialist Republic of Vietnam is a contracting party.”

- Clause 3 Article 3 of the Government's Decree No. 90/2007/ND-CP dated May 31, 2007, providing for the import right and export right of foreign traders without presence in Vietnam prescribes that:

“3. Import and export activities, import right, export right and distribution right are defined in the Government’s Decree No. 23/2007/ND-CP of February 12, 2007.”

The Government’s Decree No. 23/2007/ND-CP dated February 12, 2007, was replaced by the Government’s Decree No. 09/2018/ND-CP dated January 15, 2018, detailing the Commercial Law and the Law on Foreign Trade Management regarding goods purchase and sale and related activities of foreign investors and foreign-invested economic organizations in Vietnam. Accordingly, Articles 2 and 3 of Decree No. 09/2018/ND-CP provides regulations on import right and export right as follows:

“2. Right to export means the right to purchase goods in Vietnam for export, covering the right to undersign exports declarations in order to carry out and take responsibility for export-related procedures.  The right to export does not cover the right to purchase goods from non-traders for export, unless otherwise prescribed by Vietnamese law or a relevant treaty to which Vietnam is a contracting party.

3. Right to import means the right to import goods from abroad into Vietnam for sale to traders that have the right to distribute such goods in Vietnam, covering the right to undersign imports declarations in order to carry out and take responsibility for import-related procedures.  The right to import does not cover the right to organize or participate in a network to distribute goods in Vietnam, unless otherwise prescribed by Vietnamese law or a relevant treaty to which Vietnam is a contracting party.”

A foreign trader without a presence in Vietnam may only trade goods in Vietnam within the scope of import and export rights specified in Decree No. 90/2007/ND-CP and Decree No. 09/2018/ND-CP as mentioned above, and must be granted with a certificate of registration of import and export right for foreign traders without a presence in Vietnam in accordance with Decree No. 90/2007/ND-CP.

2. A foreign trader placing an order for processing goods in Vietnam shall comply with Section I. Commercial processing, Chapter VI of the 2005 Commercial Law, Article51 of the Law on Foreign Trade Management, and Chapter V. Foreign-involved goods processing in the Government’s Decree No. 69/2018/ND-CP dated May 15, 2018, detailing a number of articles of the Law on Foreign Trade Management.

The Ministry of Industry and Trade hereby informs the General Department of Customs for synthesis./.