Accelerated WTO Implementation – Foreign-Owned Import Companies Now Permitted Multiple Distributors
RELATED PRACTICE AREA
Tilleke & Gibbins
April 29, 2008
Until very recently, wholly foreign-owned companies that established themselves in Vietnam for the purpose of importing their products from their overseas affiliates were only permitted to market each category of product through a single Vietnamese distributor. That restriction has just been relaxed. A new regulation authorizes foreign-owned import companies (both joint ventures and wholly foreign-owned companies) to sell their imported goods to multiple Vietnamese distributors instead of a single distributor as previously restricted. In addition, while the foreign-owned company will be required to file quarterly reports identifying their distributors, they will no longer be required to register their distributor(s) with the authorities.