The conditions for establishing foreign-invested export processing enterprise in Vietnam

1. The conditions for establishing foreign-invested export processing enterprise.

For foreign-invested export processing enterprises, they must satisfy both regulations and conditions of export processing enterprises and foreign-invested enterprises. Therefore,, foreign investors need to meet the conditions to establish a foreign-invested company in Vietnam, such as not conducting business in prohibited industries and separate conditions for each industry according to the following steps:

• Implement the procedure for issuance of Investment Registration Certificate.

• After being granted an Investment Registration Certificate, the investor shall implement the procedure for applying for an Enterprise Registration Certificate.

In addition, according to Article 30, Decree 82/2018/ND-CP, export processing enterprises also need to meet specific conditions such as:

• If the export processing enterprise is not in the export processing zone, it must be separated from ordinary enterprises by a system of fences and separate entrances as prescribed for non-tariff zones. Ensure inspection and supervision conditions of customs and functional agencies. Currently, many customs agencies require export processing enterprises to install surveillance cameras connected to customs agencies.

• All manufactured goods must be 100% exported.

• Officials and employees working in export processing zones, export processing enterprises, when bringing foreign exchange from inland Vietnam into export processing zones, export processing enterprises and vice versa are not required to declare customs.

• When the export processing enterprise is permitted to do business in goods trading and activities directly related to the purchase and sale of goods in Vietnam, it must open a separate accounting book to record revenues and expenses related to its purchase and sale of goods in Vietnam, and arrange a goods storage area separate from the goods storage area in service of production activities of export processing enterprises, or establish a separate branch located outside the export processing enterprise, export processing zone to perform this activity.

• There must be a written consent from the customs on the approval of the establishment of the export processing enterprise.

2. Legal basis

• Law on Investment 2020

• Decree 82/2018/ND-CP on management of industrial parks and economic zones.

It can be seen that in order to establish a foreign-invested export processing enterprise, more conditions are required, the conditions are also not exactly clear and specific. That is why foreign investors are in fact having many difficulties when they want to establish an export processing enterprise.