675 business conditions cut down under the management of the moit

On 15 January 2018, the Government issued Decree 08/2018/ND-CP amending a number of decrees related to investment and business conditions under the State management of Ministry of Industry and Trade.

This Decree abolished a number of investment and business conditions in sectors such as petrol and oil, tobacco, electricity, franchising, e-commerce, chemicals, industrial explosive materials, food. Some changes are worth noting as follows:

1. On petroleum business:

 (a) Abrogating the prescriptions on petrol and oil traders engaged in exporting and importing petrol as to conditions for petrol and oil manufacture;

 (b) Abrogating the prescriptions on “Location conditions must be in line with the plan approved by competent authorities” applicable to petrol retail shops; and

 (c) Abrogating the prescriptions on the implementation of schedules for upgrading or relocation in accordance with masterplans for the existing petrol and oil trading establishments which are not in line with such masterplans under Clause 5 of Article 41 of Decree 83/2014/ND-CP dated 3rd Sep, 2014 of the Government on petroleum business.

2. On e-commerce:

 (a) Abrogating the conditions on having “website with lawful domain name and in accordance with the prescriptions on online information management” in the conditions for establishing e-commerce websites selling goods and providing services;

 (b) Abrogating the conditions on “organizations and individuals having appropriate functions and tasks to be entitled to set up e-commerce website selling goods”; and

 (c) Abrogating finance and technical requirements on certifying e-commerce contracts.

3. On franchising:

 (a) Abolishing the conditions on having registered business lines in accordance with subjects of franchise applicable to franchisees; and

 (b) Removing the restriction on goods and services permitted for franchising.

4. On tobacco:

 (a) Removing the principle that the State strictly supervises tobacco production and trade via the approved planning on tobacco product trading networks, simultaneously encouraging individuals, organizations engaged in tobacco business; and

 (b) Amending and supplementing conditions applicable to enterprises investing in the tobacco field.

5. On electricity:

 (a) Amending and supplementing prescriptions on conditions for specialized consultancy activities, including: electricity work construction investment consultancy (not including forming investment projects, bidding electricity work) and consultancy on supervising the execution of electricity work (including hydroelectric power stations, thermal power plants, cable line and transformer stations;

 (b) Conditions for electricity consultation activities only apply to works directly related to electricity, for construction work items the regulations on construction will apply; and

 (c) Abrogating electricity activity permits and other related provisions.

In addition, there are also major changes on business conditions in industrial explosive materials, chemicals, food sectors.

Decree 08/2018/ND-CP will take effect from 15 January 2018.