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THE GOVERNMENT
 -------

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No: 59/2006/ND-CP

Hanoi, June 12, 2006

 

DECREE

RE: DETAILING THE COMMERCIAL LAW ON GOODS AND SERVICES, BANNED FROM BUSINESS, SUBJECT TO RESTRICTIONS AND CONDITIONS.

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;
Pursuant to the Commercial Law dated June 14, 2005;
At the proposal of the Minister of Trade,

HEREBY DECREES:

Article 1.

Governing scope

This Decree details the Commercial Law regarding goods and services banned from business; goods and services subject to business restrictions; and goods and services subject to conditional business and conditions for dealing in such goods and services.

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Subjects of application

This Decree applies to traders according to the provisions of the Commercial Law and other organizations and individuals conducting trade-related activities in Vietnam.

Article 3.

Application of relevant laws and treaties

1. Commercial activities related goods and services banned from business; goods and services subject to business restriction; or goods and services subject to conditional business must comply with this Decree and relevant laws.

2. Where a treaty to which the Socialist Republic of Vietnam is a contracting party contains provisions on goods and services banned from business; goods and services subject to business restriction; or goods and services subject to conditional business, which are different from those of this Decree, the provisions of such treaty shall apply.

Article 4.

Lists of goods and services banned from business; those subject to business restriction and those subject to conditional business

1. Promulgated together with this Decree are the following lists of goods and services:

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b) The list of goods and services subject to business restriction (Appendix II);

c) The list of goods and services subject to conditional business (Appendix III).

2. In case of necessity, the Minister of Trade shall propose to the Government amendments and/or supplements to the lists mentioned in Clause 1 of this Article.

Article 5.

Goods and services banned from business

1. Traders as well as other organizations and individuals engaged in trade-related activities in Vietnam are strictly prohibited from dealing in goods and services on the list of goods and services banned from business, except for the cases specified in Clause 2 of this Article.

2. The supply of goods and/or services on the list of goods and services banned from business, promulgated together with this Decree, in specific cases must be permitted by the Prime Minister.

Article 6.

Conditions for dealing in goods and services subject to business restriction

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a) Goods and services involved in business must fully comply with the provisions of law;

b) Traders dealing in such goods and services must be enterprises established and having made business registration according to the provisions of law;

c) Business establishments must satisfy the requirements on techniques, equipment, facilities, business process and other standards according to the provisions of law;

d) Managerial and technical staff and employees personally engaged in sale and purchase of goods, and employees personally engaged in the provision of services must satisfy the requirements on professional qualifications and experience and be physically fit according to the provisions of law;

e) The scope, scale, duration and places of business and the number of traders dealing in goods and/or services subject to business restriction must conform with particular management requirements and the planning on development of the network of establishments dealing in such goods and/or services in each period;

f) Business traders must have permits for doing business with goods and/or services subject to business restriction, which are granted by competent agencies according to the provisions of law.

2. The Ministry of Industry shall assume the prime responsibility for, and coordinate with the Ministry of Trade in elaborating and submitting to the Government for promulgation the regulations on trading in cigarettes and liquors in compliance with the provisions of Clause 1 of this Article.

3. In the course of business activities, traders must constantly ensure the business conditions prescribed by law for goods and services subject to business restriction.

4. Basing themselves on the provisions of Clause 1 of this Article, the ministers and heads of branch-managing agencies shall have to provide specific guidance on each kind of goods or service subject to business restriction and on the grant of business permits.

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Conditions for dealing in goods and services subject to conditional business

1. Activities of dealing in goods and services on the list of those subject to conditional business must satisfy the following conditions:

a) Goods and services involved in business must fully comply with the provisions of law;

b) Business entities must be traders defined in the Commercial Law;

c) Business establishments must satisfy the requirements on techniques, equipment, facilities, business process and other standards prescribed by law; locations of business establishments must be in line with the planning on development of the network of establishments doing business with goods and/or services subject to conditional business;

d) Managerial and technical staff and employees personally engaged in the sale and purchase of goods, and employees personally engaged in the provision of services must satisfy the requirements on professional qualifications and experience and be physically fit according to the provisions of law;

e) Business traders must have certificates of satisfaction of business conditions in cases where such certificates are required by law to be granted by competent agencies.

2. The Ministry of Trade shall assume the prime responsibility for, and coordinate with concerned agencies in, elaborating and submitting to the Government for promulgation regulations on dealing in petrol, oil and fuel gas in compliance with the provisions of Clause 1 of this Article.

3. In the course of business activities, traders must constantly ensure the business conditions prescribed by law for goods and services subject to conditional business.

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Article 8.

Inspection of business conditions

1. Contents of inspection of business conditions:

Traders dealing in goods and services subject to business restriction or those subject to conditional business must submit to the inspection by competent agencies of the business conditions and the compliance with business conditions in the course of business activities.

2. Modes of inspection of business conditions:

a) Periodical inspection: Inspection shall be conducted in each period of time of the observance of business conditions for goods and/or services, which have been registered by traders for business. Ministers and heads of branch-managing agencies shall set and publicize time for conducting periodical inspection;

b) Unexpected inspection: Inspection shall be conducted when traders show signs of failure to comply with the prescribed conditions.

3. Ministers, heads of branch-managing agencies and presidents of provincial/municipal People's Committees shall have to direct functional agencies in organizing the inspection of observance of business conditions by traders according to the provisions of Articles 6 and 7 of this Decree.

Article 9.

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1. Traders as well as other organizations and individuals engaged in trade-related activities in Vietnam that commit one of the following acts of violation shall, depending on the nature and seriousness of their violations, be administratively handled or examined for penal liability according to the provisions of law:

a) Dealing in goods and/or services banned from business, except for the cases specified in Clause 2, Article 5 of this Decree;

b) Dealing in goods and/or services subject to business restriction or those subject to conditional business but failing to satisfy the business conditions or failing to comply with all business conditions prescribed by law in the course of business activities;

c) Leasing or lending their business licenses or certificates of satisfaction of business conditions;

d) Adding, erasing or modifying contents in their business licenses or certificates of satisfaction of business conditions;

e) Doing business at variance with the contents stated in their business licenses or certificates of satisfaction of business conditions;

f) Continuing to conduct business activities after having been deprived of their business licenses or certificates of satisfaction of business conditions or having such licenses or certificates withdrawn;

g) Violating other provisions of this Decree and relevant laws.

2. Cadres and civil servants who abuse their positions and powers to act in contravention of the provisions of this Decree and relevant provisions of law shall, depending on the nature and seriousness of their violations, be disciplined, administratively sanctioned or examined for penal liability. If damage is caused, compensations therefor must be paid according to the provisions of law.

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Implementation effect

1. This Decree takes effect 15 days after its publication in CONG BAO.

2. This Decree replaces the Government's Decree No. 11/1999/ND-CP dated March 3, 1999 on goods banned from circulation, commercial services banned from provision, goods and commercial services subject to business restriction or conditional business; and Decree No. 73/2002/ND-CP dated August 20, 2002, adding goods and commercial services to List 1 of goods banned from circulation and commercial services banned from provision and List 3 of goods and commercial services subject to conditional business, promulgated together with the Government's Decree No. 11/1999/ND-CP dated March 3, 1999.

Article 11.

Implementation responsibilities

1. Ministers, heads of ministerial-level agencies, heads of Government-attached agencies and presidents of provincial/municipal People's Committees shall have to implement this Decree.

2. The Minister of Trade shall have to oversee and supervise the implementation of this Decree.

 

 

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APPENDIX I

LIST OF GOODS AND SERVICES BANNED FROM BUSINESS
(Promulgated together with the Government’s Decree No. 59/2006/ND-CP dated June 12, 2006)

Ordinal number

Names of goods or services

Current legal documents (*)

Branch-managing agencies

A

Goods

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1

Military weapons, special-use military and police equipment, technica1 facilities, devices and means (including badges, rank stripes, force badges of the army and the police), military gears for the armed forces; particular components, parts, spare parts, supplies and equipment, and special-use technologies for manufacture thereof

Decree No. 47/CP dated August 12, 1996; Decree No. 100/2005/ND-CP

The Ministry of Defense, the Ministry of Public Security

2

Narcotics

The 2000 Law on Drug Prevention and Combat; Decree No. 67/2001/ND-CP; Decree No. 133/2003/ND-CP

The Ministry of Public Security

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Chemicals of Table 1 (under international treaties)

Decree No. 100/2005/ND-CP

The Ministry of Industry

4

Reactionary, depraved or superstitious cultural products or those harmful to aesthetical or personality education

The 2004 Publication Law; Decree No. 03/2000/ND-CP

The Ministry of Culture and Information, the Ministry of Public Security

5

Fire crackers of all kinds

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The Ministry of Public Security

6

Dangerous toys, toys harmful to personality and health education for children or to the social security, order and safety (including also electronic games)

Decree No. 03/2000/ND-CP

The Ministry of Training and Education, the Ministry of Public Security

7

Veterinary drugs, plant protection drugs banned from, or not yet permitted for, use in Vietnam according to the provisions of the Veterinary Medicine Ordinance and the Plant Protection and Quarantine Ordinance

The 2004 Veterinary Medicine Ordinance; the 2001 Plant Protection and Quarantine Ordinance

The Ministry of Agriculture and Rural Development, the Ministry of Fisheries

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Wild plant and animal species (including also live plants and animals and their processed parts) on the lists of those provided for by treaties to which Vietnam is a contracting party, and precious and rare plant and animal species on the lists of those banned from exploitation and use

The CITIES; Decree No. 32/2006/ND-CP

The Ministry of Agriculture and Rural Development, the Ministry of Fisheries

9

Aquatic resources banned from exploitation, aquatic products containing residues of toxic and hazardous substances exceeding the permitted limits, aquatic products with natural toxins dangerous to human life

The 2003 Fisheries Law

The Ministry of Fisheries

10

Fertilizers not on the list of those permitted for production, trading and use in Vietnam

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The Ministry of Agriculture and Rural Development

11

Plant varieties not on the list of those permitted for production and trading; plant varieties harmful to production, human health, environment and eco-system

The 2004 Plant Varieties Ordinance

The Ministry of Agriculture and Rural Development

12

Livestock breeds not on the list of those permitted for production and trading; livestock breeds harmful to human health, livestock gene sources, environment and eco-system

The 2004 Ordinance on Livestock Breeds

The Ministry of Agriculture and Rural Development; the Ministry of Fisheries

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Special and toxic minerals

The 1996 Mineral Law; Decree No. 160/2005/ND-CP

The Ministry of Natural Resources and Environment

14

Imported discarded materials which cause environmental pollution

Decree No. 175/CP dated October 18, 1994

The Ministry of Natural Resources and Environment

15

Medicinal drugs of all kinds for human use, vaccines, medical biologicals, cosmetics, insecticidal and and medical use not yet permitted for use in Vietnam

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The Ministry of Health

16

Assorted medical instruments and equipment not yet permitted for use in Vietnam

The 2003 Private Medical and Pharmaceutical Practice Law

The Ministry of Health

17

Food additives, food processing enhancers, micronutrients, functional food, food of high biohazard, food preserved by radiation and genetically modified food not yet permitted by competent state agencies

The 2003 Food Hygiene and Safety Ordinance

The Ministry of Health

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Products and materials containing asbestos of amphibole group

Decree No. 12/2006/ND-CP

The Ministry of Construction

B

Services

 

 

1

Prostitution business, organization of prostitution activities, trafficking in women and children

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The Ministry of Public Security

2

Organization of gambling activities in all forms

Decree No. 03/2000/ND-CP

The Ministry of Public Security

3

Services of secret investigation infringing upon the interests of the State, rights and legitimate rights of organizations and individuals

Decree No. 14/2001/ND-CP

The Ministry of Public Security

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Brokerage of marriages involving foreign elements for profit purpose

Decree No. 68/2002/ND-CP

The Ministry of Justice

5

Brokerage of recognition of parents or children or child adoption involving foreign elements for profit purpose

Decree No. 68/2002/ND-CP

The Ministry of Justice

* Where current legal documents see changes (amendments, supplements or replacement), such changes shall apply.

 

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LIST OF GOODS AND SERVICES SUBJECT TO BUSINESS RESTRICTION
(Promulgated together with the Government’s Decree No. 59/2006/ND-CP dated June 12, 2006)

Ordinal number

Names of goods or services

Current legal documents (*)

Branch-managing agencies

A

Goods

 

 

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Hunting rifles and cartridges, sport weapons, support tools

Decree No. 47/CP dated August 12, 1996; Decree No. 08/2001/ND-CP

The Ministry of Public Security, the Ministry of Defense, The Committee of Physical Training and Sports

2

Goods containing radioactive substances, radiation equipment or radioactive sources

The 1996 Radiation Safety and Control Ordinance; Decree No. 50/1998/ND-CP

The Ministry of Science and Technology

3

Industrial explosives, ammonium nitrate (NH4NO3) of a concentration of 98.5% or more

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The Ministry of Industry

4

Chemicals of Table 2 and Table 3 (under international treaties)

Decree No. 100/2005/ND-CP

The Ministry of Industry

5

Precious and rare wild plants and animals (including live plants and animals and their processed parts)

The CITIES; Decree No. 32/2006/ND-CP

The Ministry of Agriculture and Rural Development

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Cigarettes, cigars and other finished tobacco products

Decree No. 76/2001/ND-CP and this Decree

The Ministry of Industry and the Ministry of Trade

7

Assorted liquors

This Decree

The Ministry of Industry

B

Services

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1

Karaoke and dance hall services

Decree No. 11/2006/ND-CP; Decree No. 08/2001/ND-CP

The Ministry of Culture and Information; the Ministry of Public Security

* Where current legal documents see changes (amendments, supplements or replacement), such changes shall apply.

 

APPENDIX III

LIST OF GOODS AND SERVICES SUBJECT TO CONDITIONAL BUSINESS
(Promulgated together with the Government’s Decree No. 59/2006/ND-CP dated June 12, 2006)

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Names of goods or services

Current legal documents (*)

Branch-managing agencies

 

Section 1.

Goods and services subject to conditional business and grant of certificates of satisfaction of business conditions

 

 

A

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1

Petrol and oil of all kinds

This Decree

The Ministry of Trade

2

Fuel gases of all kinds (including also activities of extracting gases from tanks and filling in cylinders or bottles

This Decree

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3

Drugs for human use

The 2005 Pharmacy Law

The Ministry of Health

4

Foods on the list of foods of high biohazard

The 2003 Food Hygiene and Safety Ordinance; Decree No. 163/2004/ND-CP

The Ministry of Health

5

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The 2004 Veterinary Medicine Ordinance; the 2001 Plant Protection and Quarantine Ordinance

The Ministry of Agriculture and Rural Development and the Ministry of Fisheries

6

Relics, antiques and national treasures

The 2001 Cultural Heritage Law; Decree No. 92/2002/ND-CP

The Ministry of Culture and Information

7

Films, video tapes and disks (including also duplicating and reproducing activities)

Decree No. 11/2006/ND-CP

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8

Tobacco raw materials

Decree No. 76/2001/ND-CP

The Ministry of Industry

B

Services

 

 

1

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The 2003 Private Medical and Pharmaceutical Practice Ordinance; Decree No. 103/2003/ND-CP

The Ministry of Health

2

Medicine trading services, including services of drug preservation and assay

The 2005 Pharmacy Law

The Ministry of Health

3

Veterinary medicine practice

The 2004 Veterinary Medicine Ordinance

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4

Fumigation and sterilization practice

The 2001 Plant Protection and Quarantine Ordinance

The Ministry of Agriculture and Rural Development

5

Establishment of telecommunications networks and provision of telecommunications services

The 2002 Post and Telecommunications Ordinance; Decree No. 160/2004/ND-CP

The Ministry of Post and Telematics

6

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Decree No. 55/2001/ND-CP

The Ministry of Post and Telematics

7

Services provided by Internet Exchange Service providers (IXP)

Decree No. 55/2001/ND-CP

The Ministry of Post and Telematics

8

Services provided by Postal Online Service Providers (Postal OSP) Telecommunications Online Service Providers (Telecom OSP)

Decree No. 55/2001/ND-CP

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9

Postal services

The 2002 Post and Telecommunications Ordinance; Decree No. 157/2004/ND-CP

The Ministry of Post and Telematics

10

Domestic and foreign mail delivery services

The 2002 Post and Telecommunications Ordinance; Decree No. 157/2004/ND-CP

The Ministry of Post and Telematics

11

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The 2004 Electricity Law

The Ministry of Industry

12

Art performance organization services

Decree No. 11/2006/ND-CP

The Ministry of Culture and Information

13

Film production cooperation services

Decree No. 48/CP dated July 17, 1995

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14

International multi-modal transport services

Decree No. 125/2003/ND-CP

The Ministry of Transport

15

Services of designing means of transport

Decree No. 125/2003/ND-CP

The Ministry of Transport

16

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- Life insurance;

- Non-life insurance;

- Reinsurance;

- Insurance brokerage;

- Insurance agency.

The 2000 Insurance Business Law; Decree No. 42/2001/ND-CP; Decree No. 43/2001/ND-CP

The Ministry of Finance

17

Securities and securities market services:

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- Government bond, Government-guaranteed bond and local administration bond issuance underwriting;

- Bidding of Government bonds, Government-guaranteed bonds and local administration bonds

Decree No. 141/2003/ND-CP; Decree No. 144/2003/ND-CP

The Ministry of Finance

18

Labor export services

Decree No. 81/2003/ND-CP

The Ministry of Labor, War Invalids and Social Affairs

19

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The 2001 Lawyer Ordinance; Decree No. 94/2001/ND-CP

The Ministry of Justice

20

Legal consultancy services provided by foreign lawyers

Decree No. 87/2003/ND-CP

The Ministry of Justice

21

Seal-carving services

Decree No. 08/2001/ND-CP

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22

Security services

Decree No. 14/2001/ND-CP

The Ministry of Public Security

23

International travel services

The 2005 Tourism Law

The National Administration of Tourism

 

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Goods and services subject to conditional business but not subject to grant of certificates of satisfaction of business conditions

 

 

A

Goods

 

 

1

Other toxic chemicals not on the tables of toxic chemicals (under international treaties) 

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The Ministry of Industry

2

Foods not on the list of food of high biohazard, food materials, food additives and food processing enhancers

The 2003 Food Hygiene and Safety Ordinance; Decree No. 163/2004/ND-CP; Decree No. 59/2005/ND-CP

The Ministry of Health, the Ministry of Fisheries

3

Medical equipment of all kinds

The 2003 Private Medical and Pharmaceutical Practice Ordinance

The Ministry of Health

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Fishing gears (including materials for manufacture thereof) and equipment and facilities for exploiting aquatic resources

Decree No. 59/2005/ND-CP

The Ministry of Fisheries

5

Aquatic animal feed

Decree No. 59/2005/ND-CP

The Ministry of Fisheries

6

Livestock breeds permitted for production and trading

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The 2004 Ordinance on Livestock Breeds; Decree No. 59/2005/ND-CP

The Ministry of Agriculture and Rural Development, the Ministry of Fisheries

7

Livestock feed

Decree No. 15/CP dated March 19, 1996

The Ministry of Agriculture and Rural Development

8

Main plant varieties and precious and rare plant varieties which must be conserved

The 2004 Plant Varieties Ordinance

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9

Fertilizers

Decree No. 113/2003/ND-CP

The Ministry of Agriculture and Rural Development

10

Building materials

The 2003 Construction Law

The Ministry of Construction

11

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The 1996 Mineral Law; Decree No. 160/2005/ND-CP

The Ministry of Industry

12

Telecommunications supplies and equipment (excluding radio receivers and transmitters)

The 2002 Post and Telecommunications Ordinance; Decree No. 160/2004/ND-CP

The Ministry of Post and Telematics

13

Radio receivers and transmitters

The 2002 Post and Telecommunications Ordinance; Decree No. 24/2004/ND-CP

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14

Machinery, equipment, supplies and substances with strict requirements on labor safety and sanitation

The Labor Code; Decree No. 06/CP dated January 20, 1995; Decree No. 110/2002/ND-CP

The Ministry of Labor, War Invalids and Social Affairs, the Ministry of Health

15

Gold

Decree No. 174/1999/ND-CP; Decree No. 64/2003/ND-CP

The State Bank of Vietnam

B

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1

Slaughtering and preliminary processing of animals and animal products; preservation and transportation of animal products after slaughtering and preliminary processing

The 2004 Veterinary Medicine Ordinance

The Ministry of Agriculture and Rural Development, the Ministry of Fisheries

2

Services of supply of plant varieties and livestock breeds under the Plant Varieties Ordinance and the Ordinance on Livestock Breeds

The 2004 Plant Varieties Ordinance; the 2004 Ordinance on Livestock Breeds

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3

Postal service and mail delivery agency (including also agents providing services of delivering mails for foreign delivery organizations)

The 2002 Post and Telecommunications Ordinance; Decree No. 157/2004/ND-CP

The Ministry of Post and Telematics

4

Telecommunications service agency

The 2002 Post and Telecommunications Ordinance; Decree No. 160/2004/ND-CP

The Ministry of Post and Telematics

5

...

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Decree No. 55/2001/ND-CP

The Ministry of Post and Telematics

6

Publication distribution services

The 2004 Publication Law

The Ministry of Culture and Information

7

Advertising services

The 2001 Advertisement Ordinance; Decree No. 24/2003/ND-CP

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8

Accommodation services

Decree No. 08/2001/ND-CP

The Ministry of Public Security

9

Services of leasing buildings of 10 stories or more for use as hotels, residences or offices

Decree No. 08/2001/ND-CP

The Ministry of Public Security

10

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Decree No. 08/2001/ND-CP

The Ministry of Public Security

11

Printing services

Decree No. 08/2001/ND-CP

The Ministry of Public Security

12

Services of making, printing and distribution of assorted maps not subject to the management by central state management agencies

Decree No. 12/2002/ND-CP

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13

Services of expertising machinery, equipment, supplies and substances with strict requirements on labor safety and hygiene

Decree No. 06/CP dated January 20, 1995; Decree No. 110/2002/ND-CP

The Ministry of Labor, War Invalids and Social Affairs

14

Job-training and job-training consultancy services

Decree No. 02/2001/ND-CP

The Ministry of Labor, War Invalids and Social Affairs

15

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Decree No. 19/2005/ND-CP

The Ministry of Labor, War Invalids and Social Affairs

16

Automobile transport

The 2001 Road Traffic Law; Decree No. 92/2001/ND-CP

The Ministry of Transport

17

Railway transport services

The 2005 Railway Law

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18

Commercial operation of railway infrastructures

 

 

19

Railway transport support services

 

 

20

...

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21

Services of building, renovation, repair and restoration of inland waterway means of transport

The 2004 Inland Waterway Navigation Law; Decree No. 21/2005/ND-CP

The Ministry of Transport

22

Services of cargo loading and unloading, service provision to passengers at ports and inland waterway landings

 

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23

Inland waterway transport services

 

 

24

Seagoing ship agency services

Decree No. 10/2001/ND-CP

The Ministry of Transport

25

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26

Maritime brokerage services

 

 

27

Seagoing ship supply services

 

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28

Cargo tally services

 

 

29

Towing services

 

 

30

...

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31

Seagoing ship sanitation services

 

 

32

Cargo loading and unloading services at seaports

 

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33

Shipping services

Decree No. 57/2001/ND-CP

The Ministry of Transport

34

Customs clearance offices

The 2001 Customs Law; Decree No. 79/2005/ND-CP

The Ministry of Finance

35

...

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The 2003 Accounting Law; Decree No. 129/2004/ND-CP

The Ministry of Finance

36

Auditing services and other relevant services in finance, accounting and taxation

The 2003 Accounting Law; Decree No. 105/2004/ND-CP

The Ministry of Finance

37

Price assessment services

The 2002 Price Ordinance; Decree No. 101/2005/ND-CP

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38

Construction services defined in the Construction Law

The 2003 Construction Law

The Ministry of Construction

39

Services of leasing houses to foreigners and overseas Vietnamese in Vietnam

Decree No. 56/CP dated September 18, 1995; Decree No. 08/2001/ND-CP

The Ministry of Construction, the Ministry of Public Security

40

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The 2005 Tourism Law

The National Administration of Tourism

41

Domestic travel services

 

 

42

Travel agency

 

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43

Tourist transport services

 

 

44

Tourist services in tourist resorts, tourist sites or tourist urban centers

 

 

45

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46

Commercial assessment services

The 2005 Commercial Law; Decree No. 20/2006/ND-CP

The Ministry of Trade