Procedures for issuance of retail outlet establishment license other than the first retail outlet that is subject to economic need test (ENT)

1. OBJECTS.

The foreign-invested entity applies for a license to set up a retail outlet other than the first retail outlet and such retail outlet establishment is subject to the economic needs test (ENT), which means that such retail outlet does not meet all 03 criteria: (i) area of less than 500 m²; (ii) located in commercial centers and (iii) not classified as a convenience store or mini supermarket.

Legal basis: Clause 1, Article 23 of Decree 09/2018/ND-CP.

2. CONDITIONS.

To be granted the License, the foreign-invested entity must satisfy the following conditions:

Acquire a financial plan deemed qualified to set up the retail outlet;
Incur no overdue tax in a case where it has been established in Viet Nam for at least 01 year;
The location where the retail outlet is set up is consistent with the relevant planning in the geographical market area.
Meet ENT criteria:
The effect of the retail outlet on the scale of the geographical area.
The number of existing retail outlets in the relevant geographic market area.
Impact of the retail outlet on the market stability and operation of other retail outlets and traditional markets in the geographical market area.
Impact of retail outlet on traffic density, environment hygiene, and fire safety in the relevant geographic market area.
The potential contribution of the retail outlet to the socio-economic development of the relevant geographic market, specifically:
Creating employment for domestic workers;
Contributing to the development and modernization of the retail sector in the geographical market area;
Improvement of environment and living conditions for local people in the geographical market area;
Potential and actual contribution to the State budget.

Legal basis: Article 22 Decree 09/2018/NĐ-CP.

3. SEQUENCE.

Step 1: Prepare application files.
Step 2: Submit application files:

Submit 02 sets directly or via post to the Department of Industry and Trade where the headquarters of the entity is located.

Step 3: Appraisal:

Within 03 working days from the date of receipt of the dossier, the Department of Industry and Trade shall examine and request for amendments and supplements if the dossier is inadequate and invalid.

Within 05 working days from the date of receipt of a complete and valid application, the Department of Industry and Trade shall examine the satisfaction of conditions specified in Clause 1, Article 22 of Decree No. 09/2018/ND-CP

In case the conditions are not met: the Licensing Agency shall provide a written reply clearly stating the reason;
In case the conditions are met: the Licensing Agency proposes to establish the ENT Council according to the provisions of Clauses 1 and 2, Article 24 of Decree No.09/2018/ND-CP.

Step 4: ENT Check:

Within 07 working days from the date of receipt of the request for the establishment of the ENT Council, the Provincial People’s Committee shall establish the ENT Council.
Within 30 days from the date of establishment, the ENT Council evaluates the ENT criteria as specified in Clause 2, Article 23 of Decree No.09/2018/ND-CP for the Chairman of the ENT Council to issue an outcome.
Within 03 working days from the date of receipt of the written outcome issued by the Chairman of the ENT Council:

– In case the result is not granting the license, the Licensing Agency shall provide a written reply clearly stating the reason;

– Where the license can be granted, the Licensing Agency shall send the dossier for consultation to the Ministry of Industry and Trade as specified in Point c, Clause 3, Article 8 of Decree No.09/2018/ND-CP (Form No.09 in Appendix issued with Decree No. 09/2018/ND-CP).

Step 5: The Ministry of Industry and Trade considers approval or refusal for granting the License:

Within 10 days from the date of receipt of the dossier, the Ministry of Industry and Trade shall consider the corresponding contents as specified in Article 25 of Decree No.09/2018/ND-CP to provide written approval for the issuance of the Retail Outlet Establishment License; in case of refusal, there must be a written reply clearly stating the reason (Form No.10 in the Appendix issued with Decree 09/2018/ND-CP).

Step 6: The Department of Industry and Trade issues or provide a written refusal of granting the License:

Within 03 working days from the date of receipt of written approval from the Ministry of Industry and Trade, The Department of Industry and Trade shall issue the Retail Outlet Establishment License; in case of refusal, the Ministry of Industry and Trade shall provide a written reply with an explanation.

Legal basis: Article 29, Decree 09/2018/ND-CP.

4. PROFILE COMPOSITION AND QUANTITY.

Pursuant to Article 27 of Decree 09/2018/ND-CP, the application for the License shall include:

No	Name	Reference form, declaration	Quantity
1	Retail Outlet Establishment License Application Form.	Form No.04 in the Appendix issued with Decree No.09/2018/ND-CP	Original: 1 Copy: 0
2	An explanation on conditions to be set up the retail outlet (the contents specified in Clause 2, Article 27 of Decree 09/2018/ND-CP dated 15/01/2018 of the Government).		Original: 1 Copy: 0
3	An explanation of ENT criteria according to the provisions of points c, d, and đ, clause 2, Article 23 of Decree No.09/2018/ND-CP.		Original: 1 Copy: 0
4	Documents from tax authorities prove that there are no overdue tax debts.		Original: 1 Copy: 0
5	A copy of the Enterprise Registration Certificate.		Original: 0 Copy: 1
6	A copy of the Investment Registration Certificate in the project of sale of goods and directly related activities (if any).		Original: 0 Copy: 1
7	Investment Registration Certificate in the project of setting up a retail outlet (if any).		Original: 0 Copy: 1