1. What is mobile trading? The legal definition
Before looking at legal procedures, you need to check whether your business really falls within the group of “mobile traders” (kinh doanh lưu động).
Under Decree No. 39/2007/ND-CP, individuals who carry out commercial activities independently and regularly and who are not required to register their business (together called individual mobile traders) include those engaged in:
- Street vending (bán rong, bán dạo): moving around constantly with a push cart, bicycle or motorbike, or on foot, with no fixed place of business.
- Selling snacks: selling food and light drinks on the pavement or while moving around.
- Trip trading (buôn chuyến): buying goods in one place and transporting them trip by trip to another place to sell wholesale or retail.
- Small mobile services: shoe shining, key cutting, vehicle repair, car and motorbike washing, pavement haircuts and similar services.
2. Do individual mobile traders need to register their business?
The answer is: it is NOT mandatory.
Under Clause 2, Article 79 of Decree No. 01/2021/ND-CP on enterprise registration, mobile traders, street vendors, trip traders and low-income service providers do not have to register a household business (hộ kinh doanh), except where they carry on a conditional business line (a line of business that requires a licence or must meet specific conditions).
So if you only run a food cart, a small mobile stall or trade trip by trip, you do not need to set up an enterprise or register a household business with the district-level People’s Committee.
An FC Legal lawyer will discuss it with you and propose a suitable approach.
3. Mandatory rules for mobile traders
Even though they do not have to register their business, individual mobile traders must still strictly follow local and national management rules to avoid administrative penalties.
Goods must be lawful
- Trading in counterfeit goods, smuggled goods, goods of unknown origin or goods on the prohibited list is strictly forbidden.
- Food products (snacks, drinks) must meet food hygiene and safety standards.
Location and public order
Under Article 6 of Decree No. 39/2007/ND-CP, mobile traders may not operate:
- at classified historical sites and scenic spots;
- in areas of state agencies, political organisations and diplomatic missions;
- in areas of schools, hospitals, and religious and worship establishments;
- by encroaching on roads or pavements in a way that obstructs road traffic.
Tax obligations
- If your total revenue from mobile trading is VND 1 billion or less per year, you are exempt from value-added tax (VAT) and personal income tax (PIT).
- If your revenue is above this level, or you trade in special areas (night markets, planned walking streets), you may have to pay fees, charges or presumptive tax (thuế khoán) as instructed by the local tax authority.
4. When must a mobile trader register?
You must register a household business or set up an enterprise in the following cases:
- Conditional business lines: for example lottery agents, or trading in goods that need a quarantine certificate or other sub-licences.
- Moving to a fixed business: when you rent fixed premises, open a shop, put up a sign and operate steadily in one place, you no longer count as a “mobile trader”. You must register your business within 10 days of starting operations.
Final words
Knowing whether individual mobile traders need to register their business helps you save costs and time in the early stage of a start-up. Focus on the quality of your goods, public order rules and food hygiene and safety so that your business can grow smoothly.
If you plan to grow into a household business or an enterprise in future and need advice on the legal procedures, please contact us for quick and accurate support.
Key terms in this article: mobile trading, household business registration, setting up an enterprise, whether street vendors must register their business, Decree No. 01/2021/ND-CP.
Ready to grow beyond mobile trading?
FC Legal can advise on whether you need to register, and on the procedures for setting up a household business or an enterprise.
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This article is general information and does not replace advice on a specific case. It reflects the law in force at the date of publication.
Prepared and reviewed by the FC Legal legal team, FC Legal Law Company Limited, advising businesses on governance, contracts, employment, intellectual property and personal data protection.
