Through the  receiving and responding system to recommendations of businesses, the IPIC Law Firm proposes to answer questions related to applying for a commission agent service business license as detailed as “ goods trading in accordance with Vietnamese law under CPC 621 ”.

According to IPIC Law Firm, understand that the service "Commercial brokerage of goods under Vietnamese law under CPC 621" belongs to commission agency service which has been committed in Vietnam's WTO service schedule.

IPIC Law Firm would like to request the authorities to answer, is the Company's understanding correct? In the correct case, does the above service have to apply for a commercial brokerage business license under Decree 09/2018 / ND-CP?

For the condition "In accordance with the level of competition of domestic enterprises in the same field of operation" in Clause 2, Article 9 of Decree 09/2018 / ND-CP, how is this concept understood? Which data or standards to prove consistent with the competitive level of domestic firms? In the event that there are no standards or regulations on this matter, IPIC Law Firm proposes to remove this condition to create transparency in the consideration of business conditions for enterprises.

Regarding this issue, The Ministry of Industry and Trade answers as follows:

According to Vietnam's Schedule of Specific Commitments to Services in the WTO, for Commission Agent Services (CPC 621, 61111, 6113, 6121), Wholesale Services (CPC 622, 61111, 6113, 6121), Retail services (CPC 631 + 632, 61112, 6113, 6121), we commit that: Foreign invested companies in the distribution sector will be allowed to provide commission agent services, wholesale and retail. All products made in Vietnam and legally imported into Vietnam. At the same time, the establishment of retail outlets (other than the first) will be reviewed on the basis of the economic needs test (ENT).

Regarding the understanding of commission agency services, based on the list of sectors / sub-sectors listed in document MTN.GNS / W / 120 of WTO and specific content of the sectors / sub-sectors mentioned in the United Nations Interim Central Product Classification System-PCPC (referenced during the WTO accession negotiation process of Vietnam), rose agent service (CPC621) is understood as sales on the basis of fee or contract, wholesaling services by commission agents, trade brokers, auction operators and other wholesalers - those who trade on behalf of others, who are with all products made in Vietnam and legally imported into Vietnam.

Thus, according to this definition, a service is considered a commission agency service if it meets the following three basic conditions:

- Is a wholesale service;

- Subject of conducting wholesale on the behalf of others;

- There is a fee or contract agreement

However, the list of sectors / sub-sectors listed in the WTO, as well as descriptions of sectors / sub-sectors in the PCPC of the United Nations above, do not have any specific classification or description of the service "trade intermediaries”.

According to the provisions of Vietnamese law in Commercial Law No. 36/2005 / QH11 dated June 14, 2005, Article 150 defines: “Commercial intermediaries service is a commercial activity whereby a trader acts as an intermediary ( called the broker) to the parties buying and selling goods and providing services (referred to as the broker) in negotiating and concluding contracts for purchase and sale of goods and services and enjoying remuneration under the contract. brokerage ”and belongs to the group of commercial intermediary services.

According to the Vietnam Economic Sector System issued together with the Decision No. 27/2018 / QD-TTg dated July 6, 2018, the commodity brokerage and sale have the code VSIC 46102 and are classified in the same group "461-4610: agent, brokerage, goods auction ”. According to the classification in this system, commodity brokerage is also completely independent and not under agency services.

Regarding the proposal of the IPIC Law Firm, because it has not specifically described the business activities of foreign enterprises in the form of "commodity trading brokerage", the Ministry of Industry and Trade has not had enough grounds to confirm the whether the business activity of that enterprise belongs to the commission agency service that Vietnam has committed to in the WTO or not. Therefore, the Ministry of Industry and Trade requests IPIC Law Firm to provide more detailed and authentic information about the nature of the business operation to have a full basis to explain and guide businesses on this issue. .

Regarding the proposal of the IPIC Law Firm, because it has not specifically described the business activities of foreign companies in the form of "commodity trading brokerage", the Ministry of Industry and Trade has not had enough grounds to confirm its operation. Whether the business activity of that enterprise belongs to the commission agency service that Vietnam has committed to in the WTO or not. Therefore, the Ministry of Industry and Trade requests IPIC Law Firm to provide more detailed and authentic information about the nature of the business to have a full basis to explain and guide businesses on this issue.