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VIETNAM: Set-Up Requirements Clarified for FDI-backed Retail Businesses

The Vietnamese government has now clarified the FDI rules for retail operations, requiring first-time foreign investors to submit a detailed financial plan for the proposed retail operation. The location for the proposed retail outlet should be compatible with the town planning schemes of relevant local bodies.

The proposed establishment of the second or further retail outlets will have to fulfil the Economic Needs Testing (ENT), which will assess the outlet’s anticipated impact on the existing retail outlets and traditional markets. However, retail outlets of less than 500 sq m or those located within commercial centres, as well as those not falling within convenience store/super market categories will be exempted from the ENT requirement.

Content provided by Picture: HKTDC Research
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