Legal News
Cutting business conditions in some fields

07 - 03 - 2018
VGP

The Government issued Decree No. 08/2018/ND-CP (Decree) amending some decrees relating to business investment conditions under the state management of the Ministry of Industry and Trade.

Question: What are the new business conditions in some fields?

Answer: Decree 08 covered seven areas including petrol and oil, cigarettes, electricity, franchising, e-commerce, chemicals, industrial explosives, food business under the specialized management of the Ministry of Industry and Trade.

For the petrol and oil sector

Decree 08 abolishes a number of articles of Decree 83/2014/ND-CP on petrol and oil business ("Decree 83").

Accordingly, when exporting and importing petrol and oil, traders do not need to meet the conditions in line with the planning on petrol and oil exporters and importers. Regarding the conditions on imported petrol and oil depots and domestic petrol and oil vehicles, traders will not be required to own or co-own the material facilities after a certain period of operation, which can be instead leased for a prescribed duration.

At the same time, Decree 08 does not force traders to expand their petrol and oil distribution system according to the annual roadmap as stated in Decree 83.

In addition, Decree 08 also abolishes some regulations on petrol and oil production conditions and transitional provisions related to the petroleum trading system.

For the franchising sector

Decree 08 has abolished the regulations on the goods and services allowed for franchise and the conditions for franchisees; only maintaining the conditions for franchisors on the operation term of the intended franchise business system.

Accordingly, a trader is eligible to grant a franchise license when the intended franchise business system has operated for at least one year.

For the e-commerce sector

Decree 08 amends and repeals a number of articles of Decree No. 52/2013/ND-CP on ecommerce ("Decree 52"), in the direction of loosening many regulations on setting up an ecommerce website in Viet Nam.

Pursuant to this Decree, traders, organizations and individuals who have been granted individual tax codes have the right to set up e-commerce websites without having to have a website with a valid domain name or appropriate functions and tasks like before.

This is actually the nature of e-commerce website - the website that puts on sale the products of such trader himself.

For traders providing e-contract authentication services, Decree 08 abolishes financial requirements and technical requirements when considering the grant of operation licenses to traders.

For the food sector

Decree No. 08 has amended and abolished a majority of food business conditions under the specialized management of the Ministry of Industry and Trade as stipulated in Decree No. 77/2016/ND-CP amending the regulations on business investment conditions in such areas as purchase and sale of international goods, chemicals, industrial explosives, fertilizers, gas and food under the state management of the Ministry of Industry and Trade ("Decree 77").

Accordingly, the following prominent conditions will be abolished:

· General conditions for food production establishments: environmental conditions not influenced by harmful animals, insects and microorganisms, not affected by polluted areas; factory area; factory structure; material in direct contact with food; waste treatment system; raw materials and packaging; conditions for equipment and tools; food preservation.

· General conditions for ensuring food safety for food business establishments: similar to production facilities, environmental conditions, equipment, tools and part of the conditions for transporting food are abolished. In addition, Decree 08 abolishes certain food safety conditions for establishments producing dairy products, vegetable oil and brewing beer, and retail food production and business establishments.

This Decree took effect as from January 15, 2018./.

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