Buying and Selling Activities of Foreign Traders with No Presence in Vietnam

1. Legal basis

Pursuant to Official Dispatch No. 8739/BCT-XNK dated December 7, 2023:

"first. Clause 3, Article 5 of the Law on Foreign Trade Management stipulates as follows:

“3. Foreign traders not present in Vietnam, other relevant organizations and individuals from countries and territories (hereinafter referred to as countries) that are members of the World Trade Organization and countries with Bilateral agreements with Vietnam have the right to export and import according to the provisions of Vietnamese law and international treaties to which the Socialist Republic of Vietnam is a member.

- Clause 3, Article 3 of Decree 90/2007/ND-CP dated May 31, 2007 of the Government regulating export rights and import rights of foreign traders not present in Vietnam stipulates:

“3. Export and import activities; export rights; import rights; Distribution rights are explained in Decree No. 23/2007/ND-CP dated February 12, 2007 of the Government.”

Decree No. 23/2007/ND-CP dated February 12, 2007 of the Government was replaced by Decree No. 09/2018/ND-CP dated January 15, 2018 of the Government detailing the Commercial Law and Law Foreign trade management of goods purchase and sale activities and activities directly related to the purchase and sale of goods by foreign investors and foreign-invested economic organizations in Vietnam. Accordingly, Article 2 and Article 3 of Decree 09/2018/ND-CP regulate export rights and import rights as follows:

"2. The right to export is the right to buy goods in Vietnam for export, including the right to be named on the export goods declaration to carry out and be responsible for export-related procedures. The right to export does not include the right to purchase goods from non-traders for export, unless Vietnamese law or international treaties to which Vietnam is a member provide otherwise.

3. Import right is the right to import goods from foreign countries into Vietnam for sale to traders with the right to distribute those goods in Vietnam, including the right to be named on the import goods declaration to carry out and Responsible for procedures related to import. The right to import does not include the right to organize or participate in a goods distribution system in Vietnam, unless Vietnamese law or international treaties to which Vietnam is a member provide otherwise.”

- In case a foreign trader does not have a presence in Vietnam, trading in goods in Vietnam can only be done within the scope of export and import rights as prescribed in Decree No. 90/2007/ND-CP and Decree No. 09/2018/ND-CP mentioned above and need to be granted a Certificate of registration of export rights and import rights of foreign traders not present in Vietnam according to Decree No. 90/2007/ND- CP.

2. In cases where foreign traders order processing of goods in Vietnam, they shall comply with the provisions of Section I. Processing in commerce in Chapter VI of the 2005 Commercial Law, Article 51 of the Law on Foreign Trade Management and Chapter V. Processing. goods with foreign elements in Decree No. 69/2018/ND-CP dated May 15, 2018 of the Government detailing a number of articles of the Law on Foreign Trade Management.

Excerpted content from source: Official Dispatch No. 8739/BCT-XNK

>>>>>Thus, when foreign traders without presence in Vietnam conduct goods business in Vietnam, they need to be granted a Certificate of registration of export rights and import rights of foreign traders. is present in Vietnam.

2. Conclusion

Above is an article clarifying the purchase and sale of goods by foreign traders not present in Vietnam. The article is based on practical experience of DOLPHIN Company. In addition, to update good articles about import-export or ship freight rates; train schedule. Customers can follow the fanpage to be updated with the latest articles.

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