Foreign-invested enterprises (FIEs) in Vietnam often rely on the importation of raw materials, machinery, and finished goods to support their operations. The legal framework governing these activities is primarily set out in the Law on Investment 2020, the Law on Commerce 2005, and relevant decrees issued by the Government and the Ministry of Industry and Trade.
1. Import Rights of FIEs
According to Article 5 of Decree No. 09/2018/ND-CP, FIEs are permitted to directly import goods for their own business operations without the need for a Vietnamese intermediary. However, FIEs are generally prohibited from engaging in retail distribution of imported goods unless they obtain an additional business license. Sensitive sectors such as pharmaceuticals, rice, or petroleum remain restricted.
2. Licensing and Registration Requirements
To import goods, an FIE must:
- Have import rights recorded in its investment registration certificate or enterprise registration certificate.
- Register with customs authorities and obtain an EORI-like code (customs code).
- In certain cases, secure additional permits (e.g., for chemicals, food, or medical devices).
3. Compliance Obligations
FIEs must comply with customs procedures under the Customs Law 2014, including proper declaration, payment of import duties, and conformity with technical standards. Violations such as false declarations or undervaluation may result in penalties, confiscation, or suspension of import rights.
4. Challenges and Practical Issues
Despite the legal framework, FIEs face challenges in practice:
- Uncertainty in obtaining additional business licenses for trading activities.
- Complex technical barriers, especially in food safety and quality control.
- Inconsistent enforcement at different customs offices.
5. Conclusion
While Vietnam has gradually liberalized import rights for FIEs in line with its WTO commitments, significant restrictions remain. FIEs must carefully structure their business activities, ensure compliance with licensing and customs requirements, and seek legal support where necessary to avoid risks.
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