Is a mini supermarket a retail establishment?
Mini supermarkets are regulated in Clause 1, Article 3 Decree 09/2018/ND-CP as follows:
Explanation of words
In this Decree, the following terms are understood as follows:
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9. A retail establishment other than the first retail establishment is a retail establishment established in Vietnam by one of the foreign investors or economic organizations with foreign investment capital that already has a retail establishment in Vietnam. Vietnam, or established under the same name or brand with at least one retail establishment established by a foreign-invested economic organization in Vietnam.
10. Convenience stores are retail establishments of fast-moving consumer goods, including: Food, beverages, over-the-counter pharmaceuticals, functional foods and health nutritional products, cosmetics and chemicals. Other products serve daily consumption.
11. Mini supermarket is a retail establishment with an area of less than 500 m2 and belongs to the type of general supermarket according to the law.
12. A commercial center is a location that includes many retail and service establishments arranged centrally and continuously in one or several adjacent architectural works.
13. Licensing agency is the agency that issues business licenses and retail establishment licenses specified in Clauses 1 and 2, Article 8 of this Decree.
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Thus, a mini supermarket is a retail establishment with an area of less than 500 m2 and belongs to the type of general supermarket according to the law.
What conditions must foreign-invested economic organizations want to set up mini supermarkets in Vietnam?
Conditions for establishing a mini supermarket are specified in Article 22Decree 09/2018/ND-CP as follows:
Conditions for setting up retail establishments
1. Set up the first retail facility
a) Have a financial plan to set up a retail facility;
b) No overdue tax debt in case it has been established in Vietnam for 1 year or more;
c) Location of retail establishment in accordance with relevant planning in the geographical market area.
2. Establish a retail facility in addition to the first retail facility
a) In cases where economic needs testing is not required:
Meet the conditions specified in Clause 1 of this Article.
b) In case an economic needs test must be performed:
- Meets the conditions specified in Clause 1 of this Article;
- Meets the economic needs test criteria specified in Clause 2, Article 23 of this Decree.
At the same time, based on Clause 1, Article 23 Decree 09/2018/ND-CP regulations:
Economic Needs Test (ENT)
1. Cases where ENT must be performed
Establishing a retail establishment in addition to the first retail establishment, unless the retail establishment has an area of less than 500 m2, is established in a shopping center and is not a convenience store or mini supermarket.
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Thus, according to regulations, economic organizations with foreign investment capital that want to set up mini supermarkets in Vietnam need to meet the following conditions:
(1) Have a financial plan to set up a retail facility;
(2) No overdue tax debt in case it has been established in Vietnam for 1 year or more;
(3) The location of the retail facility is consistent with the relevant planning in the geographical market area.