05 criteria to check economic needs when opening retail establishments of foreign-invested enterprises
Decree 09/2018/ND-CP stipulates 05 economic needs test (ENT) criteria when licensing the establishment of retail establishments other than the first retail establishment for foreign-invested enterprises in Vietnam as follows:
– Cheyenne George
The size of the geographic market area affected by the retail establishment;
Number of retail establishments operating in the geographic market area;
- The impact of retail establishments on market stability and business activities of retail establishments and traditional markets in the geographical market area;
- The impact of retail establishments on traffic density, environmental sanitation, and fire prevention in the geographical market area;
- The ability of retail establishments to contribute to the socio-economic development of the geographical market area.
Enterprises establishing retail establishments in addition to the first retail establishment must carry out ENT unless the establishment has an area of less than 500 m2, is established in a shopping center and is not a convenience store or mini supermarket.
Decree 09/2018/ND-CP takes effect from January 15, 2018 and replaces Decree 23/2007/ND-CP dated February 12, 2007.
