Công văn 5011/BKHDT-DTNN

Dear the Hanoi Department of Planning and Investment,

In response to the Official Dispatch No. 1906/KH&ĐT-ĐTNN of the Hanoi Department of Planning and Investment dated June 4, 2013 on contributing opinions to the Investment Certificate application of the CT – Wearnes Vietnam Co., Ltd. for their foreign-invested projects, the Ministry of Planning and Investment gives the following opinions:

1. In terms of the business scope and project objective:

- Objective of exercising the right to import cars (below-9-seat vehicles) is not in breach of legal regulations laid down in the Decision No. 10/2007/QĐ-BTM of the Ministry of Commerce (now the Ministry of Industry and Trade) dated May 21, 2007 on the action plan for commodity trading activities and those directly involving commodity trading activities, and the Government's Decree No. 59/2006/NĐ-CP dated June 12, 2006 on providing specific provisions on the implementation of the Law on Commerce and Commodities and Services subject to the commercial ban or restrictions or conditional trading requirements. However, the importer must ensure that their import must conform to regulations on the import and export as well as be liable to taxes stipulated by laws. 

- Maintenance and repair services for cars (below-9-seat cars) (CPC 83109) are not governed by the schedule of commitments on services made by Vietnam to the WTO. Therefore, Vietnam is not obliged to open the market for this business scope on principle. However, this business scope is not subject to the limitation provisions laid down in the Government's Decree No. 59/2006/NĐ-CP dated June 12, 2006 on providing specific provisions for the Law on Commerce and commodities or services subject to the commercial ban, restrictions and conditional trading requirements. Hence, maintenance and repair services for cars (below-9-seat vehicles) are allowed to be offered to the clients who directly use these cars supplied by the company.   This condition must be specified in the Investment Certificate.

- Exercising the right to import and distribution (the retail department located at the automobile maintenance, repair and warranty center) of automobile spare parts or components (commodities with HS codes defined in the project documentation submitted to apply for registration) necessary for the rendering of the aforesaid services conforms to regulations laid down in the Decision No. 10/2007/QĐ-BTM of the Ministry of Commerce (now the Ministry of Industry and Trade) on the action plan for commodity trading activities and those directly involving commodity trading activities.   However, the distribution right shall be associated with the right to establish the first retail department; the establishment of an additional retail department other than the first one shall be considered on the basis of examination of economic demands (the number of service providers within a geographical region, market stability and scale).   

As for the abovementioned business scope and objectives, when considering awarding the Investment Certificate, the Department of Planning and Investment is required to consult with the Ministry of Industry and Trade and the Ministry of Transport about the fulfillment of requirements applied to the business scope that belongs to the conditional investment sector.   

2. In terms of the financial status:

The Department is advised to request the investor to explain their owner’s equity and loan capital used for guaranteeing the project feasibility.

3. Other project-related issues are required to be considered and verified under the provisions of applicable laws.

These are the opinions of the Ministry of Planning and Investment which the Department must use for their reference and for submission to the Hanoi People’s Committee for the consideration and decision within their delegated authority./.