The inconsistencies between the new Investment Law 2014 and Decree 23/2007 have caused many lawyers confused about the process of  foreign invested enterprises (FIEs) to obtain a Trading Licence to operate in the sector of sale and purchase of goods (i.e. conducting export/import rights) and the related activities (e.g. distribution) (Trading Activities). Some temporary guidelines of licensing authorities recently could help clarify the situation.

According to an official correspondence in June 2016 of Ho Chi Minh City's Department of Planning and Investment (HCMC DPI) to a foreign investor applying for an investment project relating to Trading Activities, the foreign investor should conduct the licensing procedures in the following steps:

Under Decree 7/2016, it is more difficult for a foreign company to set up and operate a representative office in Vietnam. In particular,

• Now only foreign companies from countries which have an international treaty with Vietnam can set up a representative office. And the scope of operation a representative office must be consistent with the relevant international treaty. Vietnam is a member of the WTO. Therefore a company from a country which is a member of the WTO should be entitled to open a representative office. However, Vietnam’s commitments to the WTO only cover a limited service sectors. It is not clear if companies operating in sectors outside of the WTO’s commitments of Vietnam could set up a representative office. Under the old Decree 72/2006, virtually any foreign company from any country and any sector can set up a representative office;