DECREE NO. 39/2007/ND-CP ON INDIVIDUALS ENGAGING IN INDEPENDENT AND REGULAR COMMERCE WITHOUT BUSINESS REGISTRATION

DECREE

Regarding independent and regular commercial activities without the need for business registrationshall not be registered for business operations

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Commercial Law dated June 14, 2005;

Considering the proposal of the Minister of Trade,

DECREE:

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates the scope of business of individuals engaged in independent and regular commercial activities without the need for business registration and the responsibilities of state management agencies towards such activities.

Article 2. Applicability

This Decree applies to the following subjects:

1. Individuals engaging in independent and regular commercial activities that do not fall under the category required to register their business according to the laws on business registration (hereinafter referred to as individuals engaging in commercial activities).

2. Organizations and other individuals related to the commercial activities of individuals engaging in commercial activities.

Article 3. Explanation of Terms

In this Decree, some terms shall be understood as follows:

1. Individuals engaging in commercial activities are those who independently perform one, several, or all permitted commercial activities by law regarding buying and selling goods, providing services, and other profit-oriented activities but are not required to register their business according to the laws on business registration and are not called "traders" as defined by the Commercial Law. Specifically, they include individuals performing the following commercial activities:

a) Street vending (peddling) involves purchasing and selling without a fixed location (peddling while buying or selling), including receiving books, magazines, cultural products from authorized traders to sell on the street according to the law;

b) Small-scale trading involves buying and selling small items with or without a fixed location;

c) Selling snacks involves selling pastries, food, and beverages (drinks) with or without a fixed location;

d) Trading trips are involve purchasing goods from another place for each trip to sell to wholesalers or retailers;

e) Providing services such as shoe shining, lottery ticket sales, key repair, bicycle repair, parking, car washing, haircutting, painting, photography, and other services with or without a fixed location;

f) Other independent and regular commercial activities without the need for business registration.

2. Mobile trading refers to commercial activities without a fixed location.

Article 4. Application of relevant laws

The commercial activities of individuals engaging in commercial activities must comply with the provisions of this Decree, the Commercial Law applicable to traders, and relevant laws.

Chapter II
SCOPE OF ACTIVITIES OF INDIVIDUALS ENGAGING IN COMMERCIAL ACTIVITIES COMMERCIAL ACTIVITIES

Article 5. Scope of goods and services for business by individuals engaging in commercial activities

1. Individuals engaging in commercial activities are permitted to conduct business in types of goods and services as prescribed by law, except for the following types of goods and services:

a) Goods and services listed in the Catalogue of Prohibited Goods and Services for Business as prescribed by law;

b) Smuggled goods, counterfeit goods, goods of unknown origin, expired goods, goods not meeting food safety conditions as prescribed by law; goods not meeting quality standards, including deteriorated goods, substandard goods, toxic goods, and diseased animals and plants;

c) Goods and services listed in the Catalogue of Restricted Goods and Services for Business as prescribed by law.

2. In cases where conducting business in types of goods and services listed in the Catalogue of Goods and Services for Business with Conditions, individuals engaging in commercial activities must comply with the relevant laws concerning the business of these types of goods and services.

3. Individuals engaging in commercial activities must comply with tax, price, fee, and surcharge laws related to goods and services conducted. In cases of conducting food and catering services, individuals engaging in commercial activities must ensure compliance with the food safety conditions prescribed by law for the business of these types of goods and services.

4. Strictly prohibit individuals engaging in commercial activities from cheating in weighing, measuring, and providing false, misleading information about the quality of goods and services or the nature of commercial activities they undertake.

Article 6. Scope of Business Locations for Individuals Engaging in Commerce

1. Except where otherwise provided by law, individuals are strictly prohibited from conducting commercial activities in the following areas, streets, and locations:

a) Areas within historical and cultural sites that have been ranked, and other scenic spots;

b) Areas around state agencies, diplomatic missions, and international organizations;

c) Areas within safety zones surrounding ammunition depots, explosive materials, ammunition manufacturing plants, explosive material manufacturing plants, and military camps of the Vietnam People's Army;

d) Areas within airports, seaports, international border gates, railway stations, wharfs, bus terminals, ferry terminals, and on transportation means;

đ) Areas around schools, hospitals, religious facilities, and places of worship;

e) Places where vehicles participating in traffic temporarily stop or park, including both roadways and waterways;

g) Parts of roadways including entrances and exits to residential complexes or collective housing units; alleys; sidewalks, roadbeds, and shoulders of urban, district, provincial, and national roads designated for pedestrians and vehicles, except for areas, streets, or parts of sidewalks that have been planned or temporarily permitted by competent authorities for commercial activities;

h) Streets and areas (including tourist areas) specified by the People's Committee of provinces or centrally governed cities (referred to as Provincial People's Committees) or authorized agencies to prohibit individuals from conducting commercial activities, with warning signs posted;

i) Areas under the use of organizations or individuals which are not restricted as business locations according to points a to h of Clause 1 of this Article but without their consent or where there are warning signs prohibiting individuals from conducting commercial activities;

2. Strictly prohibited are individuals engaging in commerce from illegally occupying, constructing, or installing facilities, equipment, and tools for commercial activities and displaying goods at any location on public roads or in public places; entrances and exits, emergency exits, or any area obstructing traffic, causing inconvenience to the community, and damaging the general aesthetics;

3. When conducting commercial activities in areas, streets, or sidewalk parts of roadways that have been planned or temporarily permitted for use by competent state authorities, individuals must comply with the provisions of this Decree and ensure implementation in accordance with the planning and permission granted;

4. Individuals engaging in commerce must comply with lawful orders of law enforcement officers when required to move goods; equipment, devices, and tools for commercial activities to avoid obstructing or blocking traffic in emergencies or for security reasons and other social activities as prescribed by law;

Article 7. Ensuring Security, Order, Sanitation, and Safety in Commercial Activities of Individuals Engaging in Commerce

1. During commercial activities, individuals engaging in commerce must comply with legal regulations concerning the maintenance of security, order, social safety (including regulations on civilized behavior), disease prevention, environmental protection, fire prevention and extinguishing, disaster prevention and mitigation, and transportation. Strictly prohibited are individuals engaging in commerce from:

a) Conducting illegal commercial activities or using methods that disrupt order, adversely affecting the environment, health, safety, and overall welfare of the community;

b) Using electronic devices to conduct commercial activities and related activities that infringe upon consumer interests, intellectual property rights, or personal information privacy;

2. When conducting mobile commerce, individuals engaging in commerce must neatly arrange and orderly place mobile transportation means, sales equipment, and goods; they must also provide appropriate waste containers. Strictly prohibited are individuals engaging in commerce from performing the following actions during mobile commerce:

a) Harassing, pressuring, soliciting, competing aggressively, or causing annoyance to customers and using vulgar or impolite language or gestures towards customers;

b) Gathering large crowds or using loudspeakers, drums, gongs, horns, trumpets, and other amplification devices to promote mobile commerce without prior agreement with local authorities regarding proper use and ensuring social order and safety;

c) Selling or offering services loudly in public places and disturbing public tranquility between 10 PM and 5 AM;

d) Writing, painting, or posting flags, banners, posters, advertisements, and signs on walls or in violation of laws, inconsistent with local customs and traditions, and adversely affecting the general aesthetics;

đ) Using transportation means, equipment, and tools for commercial activities that do not meet technical, safety, and sanitation standards, adversely affecting the general aesthetics;

e) Dumping waste, excrement indiscriminately; discarding or leaving transportation means, equipment, tools for commercial activities, packaging materials, paper, garbage, goods, animal fat, grease, and other items on roads, rivers, drainage systems, or any area causing environmental pollution, obstructing traffic, and inconveniencing the community;

g) Cooking, sleeping, or resting on roadways designated for pedestrian and vehicular traffic; walkways, stairwell rest areas in residential buildings; bus shelters; and public cultural, entertainment, and recreational areas, adversely affecting the general aesthetics and social order and safety;

h) Exploiting children or disabled persons to engage in commercial activities.

Chapter III
RESPONSIBILITIES OF STATE MANAGEMENT AUTHORITIES FOR THE ACTIVITIES OF INDIVIDUALS ENGAGING IN COMMERCE

Article 8. Responsibilities of the People's Committee at the Commune Level in State Management of Individuals Engaged in Commercial Activities

The People's Committee of communes, wards, and towns (referred to as the People's Committee at the commune level) shall be directly responsible for managing the commercial activities of individuals engaged in commerce within their jurisdiction in accordance with this Decree and relevant laws. Specifically, this includes the following tasks:

1. Establish a record to monitor individuals engaged in commerce within the management area (including individuals engaged in commerce residing within the management area and those from other places frequently coming to the management area to engage in commerce) and the situation of their operations and compliance with the law.

2. Promote and disseminate policies, guidelines, and legal regulations related to the management of individuals engaged in commerce to those directly involved, management staff, and all residents within the management area.

3. Closely coordinate with competent authorities and organizations and individuals with authority and responsibility in managing the commercial activities of individuals within the management area.

4. Implement planning, plans, and assign specific responsibilities for managing the commercial activities of individuals engaged in commerce within the management area according to guidance and decentralization by higher-level state management agencies.

5. Publicly announce areas, streets, and locations where individuals are prohibited or permitted to conduct commercial activities.

6. Implement organizational measures and appropriate management forms to ensure normal operation in areas, streets, and locations where individuals are prohibited or permitted to conduct commercial activities; ensuring security and safety for lawful commercial activities of individuals within the management area.

7. Implement organizational and management measures to ensure that individuals engaged in commerce comply strictly with the scope of activities stipulated in this Decree; not arbitrarily arrange and allow individuals to conduct commercial activities in areas, streets, and locations prohibited under this Decree.

8. Implement legal provisions on taxes, fees, and charges for individuals engaged in commerce within the management area.

9. Inspect and handle violations of law by individuals engaged in commerce within their authority.

10. Regularly or urgently compile and report to higher-level state management agencies on the development, organization, management, and activities of individuals engaged in commerce within the management area, and propose issues related to the management of these entities.

Article 9. Responsibilities of Ministries, Sectors, and People's Committees at the Provincial and District Levels in State Management of Individuals Engaged in Commercial Activities

1. Within their respective duties and powers, ministries and sectors are responsible for providing detailed guidance on implementing state management over the commercial activities of individuals engaged in commerce as stipulated in this Decree.

2. The Ministry of Commerce is responsible for monitoring and supervising the implementation of this Decree.

3. The People's Committee at the provincial level; the People's Committee at the district, town, and city levels under the province (referred to as the People's Committee at the district level) shall implement state management over the commercial activities of individuals engaged in commerce in their locality according to guidance and decentralization by higher-level state management agencies. Specifically, this includes the following tasks:

a) Directing, guiding, urging, and inspecting lower-level People's Committees in implementing regulations on managing the commercial activities of individuals engaged in commerce within their jurisdiction;

b) Developing plans and assigning responsibilities and decentralizing management of the commercial activities of individuals engaged in commerce within their jurisdiction;

c) Promptly implementing organizational measures and appropriate management forms to ensure normal operation in areas, streets, and locations where individuals are prohibited or permitted to conduct commercial activities;

d) Handling violations of law by individuals engaged in commerce that exceed the authority of lower-level People's Committees;

e) Regularly or urgently compiling and reporting to higher-level state management agencies on the development, organization, management, and activities of individuals engaged in commerce in their locality; proposing issues related to the management of these entities.

4. The People's Committee at the provincial level or the agency authorized by the People's Committee at the provincial level shall specify the time and direct the installation of signs prohibiting individuals from conducting commercial activities in areas and streets as stipulated in point h, Clause 1, Article 6 of this Decree.

5. The People's Committee at the provincial level shall specify the planning and permission for individuals to temporarily use areas, streets, and sidewalk sections of roads within their jurisdiction to conduct commercial activities in accordance with local conditions but without affecting traffic order and safety.

Chapter IV
Article 20. Handling Violations

Article 10. Handling of violations

1. Individuals engaged in commerce who violate the provisions of this Decree shall be subject to administrative penalties or criminal prosecution depending on the nature and severity of the violation; if damage is caused, they must compensate according to the law.

2. Civil servants who abuse their positions and powers to violate the provisions of this Decree and relevant laws shall be subject to disciplinary action, administrative penalties, or criminal prosecution depending on the nature and severity of the violation; if damage is caused, they must compensate according to the law.

Article 11. Effective Date

This Decree shall take effect fifteen days after its publication in the Official Gazette.

Article 12. Responsibility for Implementation

The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of the People's Committees of provinces and centrally-administered cities are responsible for enforcing this Decree./.