Legal News
Regulations on reporting the status of product buying and selling activities and related activities of foreign-funded enterprises
2023/11/23
According to Article 40 of Government Decree No. 09/2018/ND-CP, foreign-funded enterprises that have obtained a business license for product sales (retail) business or a retail store establishment permit must submit the purchase and sale of products to the licensing authority every year. There is an obligation to report the status of activities and related activities to the competent Commerce and Industry Bureau. The deadline for reporting is January 31st of the following year. Failure to submit regular reports for 24 consecutive months risks revocation of business license and retail store establishment permit.
On November 9, 2023, the Ministry of Industry and Trade issued Official Letter No. 7957/BCT-KHTC to all municipal and provincial bureaus of commerce and industry, and the bureaus of commerce and industry of cities and provinces summarized the status of fulfillment of reporting obligations of foreign-funded enterprises. The Ministry of Commerce and Industry was requested to submit a report to the Ministry of Commerce and Industry. According to unofficial information obtained by our company, based on the above-mentioned official letter from the Ministry of Commerce and Industry, there is a possibility that the Commerce and Industry Bureaus of each province and city will simultaneously confirm and inspect the status of fulfillment of periodic reporting obligations for foreign companies in their jurisdiction.
The Dong Nai Provincial Department of Commerce and Industry has already issued an express official letter on November 17, 2023 to the targeted foreign-funded companies, informing them of the status of product purchasing and sales activities and directly related activities in 2022, in November 2023. By the 20th, the report for 2023 was notified to submit the report by January 31, 2024.
Foreign companies that fall under this issue need to confirm the status of their reporting obligations and submit reports in a timely manner every year.
References:
– Decree No. 09/2018/ND-CP
– Official Letter No. 7957/BCT-KHTC
– Official Letter No. 6885/CST-TM
*This article was translated by Yarakuzen.
