REGULATIONS ON WINE BUSINESS AND PRODUCTION IN VIETNAM
Alcohol trading is on the list of conditional business investment lines, and alcohol is a product regulated by the State to be restricted from being sold in the market because alcohol is a stimulant that directly affects consumers' health.
Vietnam's legal regulations on alcohol business are somewhat stricter than in other industries, so to conduct alcohol business, investors need to understand the legal regulations and the alcohol business requires a license.
Below, ABA VISA has a reference article on the procedure for obtaining a liquor license so that business owners can have a better overview before setting up a company in the alcohol business.
Legal basis
- Decree No. 105/2017/ND-CP dated September 14, 2017, on alcohol trading.
- Decree 17/2020/ND-CP amending the Decree related to business investment conditions in the field of state management of the Ministry of Industry and Trade.
- Investment Law 2020.
- Enterprise Law 2020.
What types of alcohol businesses are there?
Liquor business includes business activities such as:
- Alcohol production activities.
- Alcohol distribution activities.
- Alcohol wholesale activities.
- Alcohol retail activities.
- Selling alcohol for on-site consumption.
General provisions on conditions for alcohol business
Depending on the scale of production and business, the wine business industry will have specific regulations as follows:
1. Conditions for doing business in industrial wine production
☑️ Must be an enterprise established in accordance with the law.
☑️ Having a line of machines, equipment, and technological processes for wine production to meet the expected production scale.
☑️ Ensure food safety conditions as prescribed.
☑️ Ensure conditions for environmental protection as prescribed.
☑️ Meet alcohol labeling regulations.
☑️ Having qualified technical staff, experts with expertise suitable to the industry and profession of wine production.
2. Conditions for doing business in craft wine production
☑️ Must be an enterprise, cooperative, union of cooperatives, business household established in accordance with the law.
☑️ Ensure the conditions on food safety and label alcohol goods according to regulations.
3. Conditions for alcohol distribution business
☑️ Must be an enterprise established in accordance with the law.
☑️ Having the legal right to use a warehouse or warehouse system with a total usable floor area of 150m2 or more.
☑️ Enterprises dealing in alcohol distribution must have a written introduction or a contract in principle from a wine producer, other alcohol distributors, or an overseas alcohol supplier.
☑️ Alcohol distribution enterprises must have alcohol distribution systems in the area of 02 provinces or centrally-run cities or more; in each province, centrally run city, there must be at least an alcohol wholesaler.
☑️ Wines intended for businesses must ensure food safety conditions according to regulations.
☑️ Ensure full compliance with requirements on fire prevention and fighting and environmental protection as prescribed.
4. Conditions for wholesale alcohol business
☑️ Must be an enterprise established in accordance with the law.
☑️ Having the legal right to use a warehouse or warehouse system with a total usable floor area of 50m2 or more.
☑️ Wines intended for businesses must ensure food safety conditions according to regulations.
☑️ An enterprise doing wholesale business in alcohol must have a written introduction or a contract in principle from a wine producer, alcohol distributor, or other alcohol wholesalers.
☑️ Ensure full compliance with requirements on fire prevention and fighting and environmental protection as prescribed.
☑️ Having a liquor wholesale system in the province or centrally run city, where the trader is headquartered with at least 3 alcohol retail traders.
5. REGULATIONS ON WINE BUSINESS AND PRODUCTION IN VIETNAM – Conditions for alcohol retail business
☑️ Must be an enterprise, cooperative, union of cooperatives, business household established in accordance with the law.
☑️ A liquor retail business must have a written introduction or a contract in principle from a wine producer, alcohol distributor, or liquor wholesaler.
☑️ Ensure full compliance with requirements on fire prevention and fighting and environmental protection as prescribed.
☑️ Having the lawful right to use a fixed business location with a clear address.
☑️ Wines intended for businesses must ensure food safety conditions according to regulations.
6. Conditions for doing business in selling alcohol for on-site consumption
☑️ Must be an enterprise, cooperative, union of cooperatives, business household established in accordance with the law.
☑️ Having the lawful right to use a fixed business location with a clear address.
☑️ Liquor must be supplied by a merchant with a License to manufacture, distribute, wholesale or retail alcohol.
☑️ If a trader wants to produce alcohol by himself for local consumption, he/she must obtain an industrial liquor production license or a manual alcohol production license for business purposes in accordance with regulations.
☑️ Ensure full compliance with requirements on fire prevention and fighting and environmental protection as prescribed.
7. Conditions for the organization of manual wine production to sell to enterprises licensed to produce industrial alcohol for reprocessing
☑️ Having a sales contract with an enterprise that has a license to produce industrial wine.
☑️ In case alcohol is not sold to an enterprise having an industrial alcohol production license, the organization or individual that produces alcohol manually must carry out procedures for granting a license for manual wine production for business purposes.
REGULATIONS ON WINE BUSINESS AND PRODUCTION IN VIETNAM – Procedures for applying for a license to trade in industrial wine
Step 1: Prepare documents
- An application form for an industrial alcohol production license.
- Copy of Certificate of Business Registration or equivalent legal document.
- A copy of the receipt of the announcement of compliance regulation or the written certification of publication of conformity with food safety regulations (for alcohol without technical regulations); copy of Certificate of food safety qualified establishment.
- A copy of the decision to accept the environmental impact assessment report or the certificate of registration of the environmental protection plan or certificate of registration of environmental protection commitment issued by a competent authority.
- A list of the names of alcohol goods together with a copy of the label of the alcohol goods that the enterprise produces or plans to produce.
- Copies of qualifications, professional certificates, and recruitment decisions or labor contracts of technical staff.
Step 2: Submit your application
- Alcohol production enterprises with a scale of 03 million liters/ year or more shall submit dossiers to the Ministry of Industry and Trade.
- Alcohol production enterprises with a scale of fewer than 3 million liters/ year shall submit dossiers to the Department of Industry and Trade.
See more: WHAT IS THE PROCEDURE FOR CONVERTING TO A NEW GUARANTEE COMPANY FOR EMPLOYEES
REGULATIONS ON WINE BUSINESS AND PRODUCTION IN VIETNAM – Procedures for applying for a license to trade in craft alcohol
Step 1: Prepare documents
- An application form for a License to produce craft alcohol for business purposes.
- A copy of the certificate of registration of the enterprise, cooperative, union of cooperatives, or business household.
- A copy of the announcement of alcohol products or a copy of the receipt of the announcement of regulation conformity or the written certification of publication of conformity with food safety regulations (for alcohol without technical regulations).
- A copy of the Food Safety License, except for the case of small food businesses as prescribed by the law on food safety.
- A list of names of alcohol goods together with a copy of the label of alcohol goods that the organization or individual produces or plans to produce.
Step 2: Submit your application
Submit the application file to the Economic Department or the Economic and Infrastructure Department of the People's Committee of the district, town, or provincial city that is the agency that issues the License to produce handmade wine for business purposes.
Procedures for applying for a liquor distribution business license
Step 1: Prepare documents
- An application for a license to distribute alcohol.
- Copy of Business Registration Certificate.
- Copy of lease/ borrow contract; or documents evidencing the lawful right to use the premises intended as a warehouse; locations for retailing alcohol and selling alcohol for on-site consumption (if any) according to regulations.
- Copy of contract in principle, letter of confirmation; or a commitment to participate in the alcohol distribution system of alcohol wholesalers. Liquor wholesale license of the trader who plans to join the distribution system of the enterprise applying for the license.
- Liquor supplier related documents
- Copies of the introductory documents or principle contracts of the wine producer, other alcohol distributors, or overseas alcohol supplier, clearly state the types of alcohol expected to be traded in accordance with the operation. of alcohol suppliers.
- Liquor production license; or alcohol distribution license for alcohol suppliers who are domestic traders.
Step 2: Submit your application
Apply for a license to distribute alcohol at the Ministry of Industry and Trade.
REGULATIONS ON WINE BUSINESS AND PRODUCTION IN VIETNAM – Procedures for applying for a license to wholesale alcohol
Step 1: Prepare documents
- An application for a liquor wholesale license; (Form No. 01 issued together with Decree 17/2020 ND-CP).
- Copy of Certificate of Business Registration or equivalent legal document.
- Copy of the principal contract, confirmation letter; or a commitment to join the alcohol wholesale system. Liquor retail license of traders who plans to join the alcohol wholesale system.
- Liquor supplier-related documents.
- Copies of introductory documents or in-principle contracts of domestic traders; distribution traders; or other wholesale traders; which clearly state the wines are expected to be traded in accordance with the production trader's activities; distribution traders or other wholesalers.
- Copies of the Liquor Manufacturer's License, Liquor Distributor's License, or Liquor Wholesaler's License of the liquor supplier.
Step 2: Submit the application to the Department of Industry and Trade of the province or city directly under the central government
- For traders trading in alcohol with 5.5 alcohol content or more, before conducting business, they must register for a liquor wholesale license and submit a dossier at the Department of Industry and Trade where the trader is located or business location.
- For traders trading in alcohol with less than 5.5 degrees of alcohol, they must register for alcohol business in the room at the Economic Office of the district where the trader locates his/ her business.
REGULATIONS ON WINE BUSINESS AND PRODUCTION IN VIETNAM – Procedures for applying for a license to retail alcohol
Step 1: Prepare documents
- An application for a liquor retail license.
- A copy of the certificate of registration of the enterprise, cooperative, union of cooperatives, or business household.
- A copy of the lease/ borrow contract or document proving the legal right to use the premises intended for the retail location.
- A copy of the introductory document or the principle contract of the wine producer, liquor distributor, or liquor wholesaler.
Step 2: Submit your application
Submit the application to the economic department or the economic and infrastructure department of the people's committee of the district, town, or provincial city.
Procedures for applying for a license to sell alcohol for on-site consumption
Step 1: Prepare documents
- Certificate of registration for selling alcohol for on-site consumption according to Form No. 13 issued together with Decree 17/2020/ND-CP.
- A copy of the certificate of registration of the enterprise, cooperative, union of cooperatives, or business household.
- A copy of the lease/ borrow contract or documents proving the legal right to use the premises intended as a place to sell alcohol for on-site consumption.
- Copies of alcohol sales contracts with merchants licensed to produce, distribute, wholesale or retail alcohol.
- A written commitment is made by the trader himself, clearly stating that the trader ensures full compliance with the requirements and environmental conditions on fire prevention and fighting and protection as prescribed by law at the alcohol sales locations. local consumption.
Step 2: Submit your application
Submit the application to the economic department or the economic and infrastructure department of the people's committee of the district, town, or provincial city.
Service of making a full-service alcohol business license at ABA
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