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Decree No. 146/2025/ND-CP – Decentralizing Industrial & Commercial Management
On June 12, 2025, the Vietnamese Government issued Decree No. 146/2025/ND-CP ("Decree 146"), introducing a two-year pilot program for the decentralization and authorization of management in the industrial and commercial sectors. This Decree will take effect from July 1, 2025, and remain in force until July 1, 2027, unless extended or replaced.
Table of contents:
- I. Overview of the Decentralization Initiative
- II. Key Decentralized Areas Relevant to Foreign Investors
- 1. Trade Promotion Activities (Article 12)
- 2. Liquor Business Sector (Article 20)
- 3. Branches of Foreign Traders in Vietnam (Article 35)
- 4. Business Licenses and Retail Establishment Licenses (Article 36)
- 5. E-commerce Activities (Article 49)
- III. Benefits of Decentralization
I. Overview of the Decentralization Initiative
This initiative is part of a broader government reform program aimed at streamlining administrative procedures, empowering provincial People's Committees, and reducing the administrative burden on investors and businesses. Notably, Decree 146 decentralizes management authority across various fields such as oil and gas, chemicals, tobacco business, liquor business, industrial explosives, and more.
II. Key Decentralized Areas Relevant to Foreign Investors
The following areas are particularly relevant to foreign investors and foreign-invested enterprises involved in commercial and distribution activities in Vietnam:
1. Trade Promotion Activities (Article 12)
- Decentralized Authority: Provincial People's Committees are now responsible for appraising and approving applications from businesses organizing trade fairs and exhibitions abroad, as stipulated in Article 133 of the Law on Commerce.
- Benefits: This change is expected to reduce procedural delays and provide more localized support for businesses expanding internationally.
2. Liquor Business Sector (Article 20)
- Decentralized Authority: Provincial People's Committees have the authority to issue, amend, supplement, re-issue, and revoke:
- Licenses for industrial liquor production with a scale of 03 million liters/year or more (specified in Point a, Point d, Clause 1, Article 25, Clause 2, Article 33 of Decree No. 105/2017/ND-CP).
- Licenses for liquor distribution (specified in Point a, Point d, Clause 1, Article 25, Clause 2, Article 33 of Decree No. 105/2017/ND-CP).
3. Branches of Foreign Traders in Vietnam (Article 35)
- Decentralized Authority: The authority to issue, amend, extend, and revoke licenses for branches of foreign traders under Decree 07/2016/ND-CP is now fully transferred to provincial People's Committees.
- Benefits: This change eliminates the need for central ministerial involvement, thereby simplifying establishment and closure procedures at the local level.
4. Business Licenses and Retail Establishment Licenses (Article 36)
- Decentralized Authority: Regarding the establishment and issuance of business licenses for retail stores (especially concerning goods and sectors that previously required prior opinions from the Ministry of Industry and Trade) under Decree 09/2018/ND-CP, Decree 146 grants full licensing authority and the power to provide prior opinions before issuing relevant licenses to provincial People's Committees.
5. E-commerce Activities (Article 49)
The following responsibilities of the Ministry of Industry and Trade will now be carried out by provincial People's Committees:
- Receiving notifications for e-commerce sales websites as per Article 53.1 of Decree 52/2013/ND-CP.
- Receiving notifications for e-commerce sales applications as per Article 25.3 of Decree 52/2013/ND-CP and Article 5.1 of Circular 59/2015/TT-BCT (as amended and supplemented by Circular 01/2022/TT-BCT).
- Receiving registrations for credit rating activities of e-information websites as per Article 60 of Decree 52/2013/ND-CP.
- Consulting with the Ministry of Public Security on national security matters during the process of issuing and amending Business Licenses as per Article 67c.5 of Decree 52/2013/ND-CP.
III. Benefits of Decentralization
The pilot decentralization measures introduced under Decree 146 are expected to bring significant advantages, such as:
- Shorter processing times.
- Enhanced administrative transparency.
- More active participation from local authorities.
This shift towards local decision-making is particularly crucial for foreign investors operating in commodity trading, retail establishments, and e-commerce sectors in Vietnam.
The information contained in this article is general and intended only to provide information on legal regulations. DB Legal will not be responsible for any use or application of this information for any business purpose. For in-depth advice on specific cases, please contact us.
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