Amidst evolving market demands, enterprises often contemplate expanding their business functions to meet new consumer needs. Additionally, in the current context, where the production and export of face masks have gained substantial significance, clothing businesses may consider diversifying their operations. Nevertheless, a crucial question arises: is it necessary for the enterprise to supplement its business functions for this endeavor? To address this, in this discussion, we will thoroughly explore the considerations and requirements related to clothing businesses venturing into the production and export of face masks.
Question:
Please clarify whether a company with the business line of garment manufacturing, with industry code 1410, can produce and export regular face masks. Additionally, if the company produces antibacterial face masks, does it need to add the business function?
Response:
– The company is requested to refer to the details of industry code 1410 as stipulated in Decision No. 27/2018/QĐ-TTg dated July 6, 2018, issued by the Prime Minister on the Vietnamese economic sector system.
– In case the company wishes to register the specific industry as “1410 Details: Garment Manufacturing of Face Masks”, it is recommended that the company follow the procedures for changing the business line and profession as prescribed in Article 56 of Decree No. 01/2021/NĐ-CP on business registration.
– Based on Clause 5, Article 7 of the Law on Enterprises 2020, “export and import business” is the company’s prerogative. Therefore, the company should contact the customs authority for guidance on registering import activities as stipulated. If the company intends to register its industry and profession, it has the option to specify “export” within the detailed activities of wholesale, retail, or production industry codes. Moreover, it can register under industry code “8299: Other Support Services for Business Activities not classified elsewhere,” with the details specifying the export of the company’s business goods.
– The company can choose to register the online application through the Home-based Business Registration Program of the City via the website www.dpi.hochiminhcity.gov.vn.
Conclusion
In conclusion, the decision for a clothing business to enter the production and export of face masks is a strategic one, and it may involve supplementing its business functions. By carefully evaluating the regulatory landscape and considering the requirements involved, enterprises can make informed decisions. This proactive approach ensures not only compliance with legal standards but also enables them to meet consumer demands effectively, contributing to the success and adaptability of their business in the ever-changing market.
HMLF is always available to offer assistance in understanding the procedures with authorities.
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