Question: We would prefer to hold the product rights ourselves depending on the cost of the whole project. Could you advise on the following:
- What are the risk & cost for using an importer, distributor or agent to distribute our products?
- Would you be able to recommend us any importer, distributor or agent in Vietnam?
- As for the import/export company, is a foreigner able to hold 100% shareholdings and directorship?
- Even with setting up an import/export company, we will not have any physical presence in the Vietnam office. The company will only be used to hold our products right in Vietnam. Is that acceptable under Vietnam’s Ministry of Trade?
Answer: Regarding your questions, please find the hereunder for your references. (1.)What are the risk & cost for using an importer, distributor or agent to distribute our products? You shall have to authorize such importer/distributor or agent in Vietnam to carry out the registration of the products. They shall only carry out the works as per authorized by you. Therefore, the risk and cost for using the importer, distributor or agent to distribute your products shall subject to the agreements between you and the importer/distributor/agent. (2.) Would you be able to recommend us any importer, distributor or agent in Vietnam? à There are some companies like Tu Phuong Co., Ltd; DKSH in Vietnam which are importers/distributors of cosmetic products in Vietnam and providing services of registering cosmetic products on behalf of the manufacturers. However, you shall have to directly contact them and negotiate with them on the scope of works and related fees for the registration. (3.) As for the import/export company, is a foreigner able to hold 100% shareholdings and directorship? Currently, your company can invest and own 100% shareholding and directorship of the import/export company to be set up in Vietnam. (4.) Even with setting up an import/export company, we will not have any physical presence in the Vietnam office. The company will only be used to hold our products right in Vietnam. Is that acceptable under Vietnam’s Ministry of Trade? The Company to be set up in Vietnam shall have to report periodically or irregularly to many competent authorities, not only Vietnam Ministry of Trade and Industry but also the Tax Department, Department of Planning and Investment on its business activities, taxes and other related issues. In case the Company does not have any operation, and just to be used to hold your products right in Vietnam, it is certainly unacceptable under the laws of Vietnam. Please be noted that after 12 months if the investor fails to perform or is unable to perform the investment project in accordance with the time schedule as registered to the competent authority, then such investment project shall be terminated by the competent authority.
