Profile
Vietnamese
Foreign investors establish an alcohol retail business
Recognizing the potential of the alcohol business, both domestic and foreign investors are highly interested in this industry. However, although alcohol is a popular and indispensable drink, using a large amount of alcohol for a long time will greatly affect human health. Henceforth, Vietnamese law has set strict regulations on the issue of foreign investors establishing a retail business enterprise in Vietnam.
Conditions for foreign investors to establish an alcohol retail business
Among the drinks, alcohol is always one of the most popular beverages. In addition, Vietnam has a beautiful cultural tradition that is drinking alcohol when eating (???). Therefore, when foreign investors establish a retail business, it is necessary to meet the following specific conditions:
Conditions for investment in Vietnam market
According to the commitment to join the WTO and the Free Trade Agreement (FTAS), the establishment of a retail establishment (outside the first retail establishment) of foreign-invested economic organizations will be considered on the Economic Needs Testing (ENT).
Conditions for establishing retail establishments in Vietnam
Foreign-invested economic organizations may only set up the first retail establishment when it has been licensed for distribution rights. The establishment of the first retail establishment is not required to carry out procedures for granting a retail establishment license;
The establishment of a retail establishment, including the first retail establishment, must comply with the provisions of the law on government management of retail activities and in accordance with the relevant planning of the province and centrally run cities, where the retail establishment is expected;
The establishment of a retail establishment outside the first retail establishment must be considered for each specific case based on the testing of economic needs (ENT) of the area where the retail establishment is located according to the following criteria:
- Population density;
- Scale of the area;
- Number of retail establishments;
- Market stability.
This provision does not apply to the case of retail establishments with an area of less than 500m2 in the area that has been planned for retail activities and with completed facilities by the province or centrally run cities, unless the planning changes and this condition no longer exists.
Alcohol retail business conditions in Vietnam
- Alcohol products are expected to meet the food safety standards;
- Have the right to legally use the fixed business location address;
- Ensure fulfillment of requirements and conditions on fire prevention and fighting and environmental protection as prescribed;
- Are businesses, cooperatives or business households established in accordance with the law;
- There are written introductions or principles of traders for alcohol producing, distributors or wholesale traders.
Dossiers and Procedures for foreign-invested alcohol retail enterprise establishment
Step 1: Apply for an Investment Registration Certificate to establish an alcohol retail company
Step 2: Apply for an Enterprise Registration Certificate of an alcohol retail business
Step 3: Publish ERC information on the National Business Registration Portal
Step 4: The enterprise engraved the seal and publishes the seal sample
Step 5: Apply for an alcohol business license
Step 1: Apply for an Investment Registration Certificate to establish an alcohol retail company
Dossiers include:
✅ Preparing for implementation of alcohol retail investment projects;
✅ Copy of ID or passport for investors as individuals and documents confirming the legal status for investors is an organization;
✅ Proposal of alcohol retail investment projects including detailed contents;
✅ Documents on financial issues of foreign investors;
✅ Document on land use demand, lease agreement or location right to implement investment projects.
Competent authority: Department of Planning and Investment or Management Board of Industrial Park, Export Processing Zone, Economic Zone and High-Tech Park if the project is investment in those areas.
Estimated Time: For investment projects that are not subject to investment policy decisions, the duration of returning documents is 15-20 working days from the date of receipt of all documents.
Step 2: Apply for an Enterprise Registration Certificate of an alcohol retail business
Dossiers include:
✅ Application for registration for a retail business;
✅ The company’s charter with the code of alcohol retail business;
✅ The company member list/list of founding shareholders and shareholders are foreign investors;
✅ Copies of the following documents:
- ID card, passport of members are individuals;
- ID card, passport of authorized representative;
- A copy of the ERC for foreign organizations.
✅ IRC for foreign investors as prescribed by the law;
✅ Authorized documents if the enterprise does not directly submit the application.
Competent authority: Business Registration Office under the Department of Planning and Investment
Estimated Time: 03 – 06 working days from the date of receiving a complete and valid dossier
Step 3: Publish ERC information on the National Business Registration Portal
Information on the establishment of foreign-invested alcohol retail businesses must be publicized on the National Business Registration Portal within 30 days from the date of being granted an ERC. According to Clause 1, Article 26 of Decree 50/2016/ND-CP, in case the enterprise does not publish or announce within the time limit for the content of the enterprise registration on the national business registration portal, the enterprise will be fined from VND 1,000,000 to VND 2,000,000.
Step 4: The enterprise engraved the seal and publishes the seal sample
Businesses may authorize or engrave their own seals and notify the Department of Planning and Invest about their own seal samples. Businesses can decide on their own form, quantity and content of seals but must show the name and enterprise number. After receiving notifications about the seal samples of the business, the Business Registration Office will issue a receipt to the business, publish the notice of the business on the national business registration portal and issue the notice Regarding the posting of business seal samples for businesses publicly.
Step 5: Apply for an alcohol business license
Before enterprises officially go into business, enterprises must be granted an alcohol retail business license by a competent agency. Accordingly, foreign investors submit 01 set of dossiers of application for granting retail business licenses to competent agencies. The dossier includes the following documents:
⭕ Application for sub-license for alcohol retail business (Form No. 01 Decree 17/2020/ND-CP);
⭕ Authenticated copy of ERC;
⭕ Certified copy of the lease contract or documents proving the legitimate use rights for the expected retail location;
⭕ Certified copy of the introduction document or principle contracts of alcohol producers, distributors or wholesale traders;
⭕ A commitment made by the trader, clearly stating that the trader ensures full compliance with the requirements for fire prevention and fighting and environmental protection according to the provisions of law at the alcohol retail locations;
⭕ Certified copy of Certificate of Conformity Declaration or Certificate of Compliance Declaration with Food Hygiene and Safety Regulations (for alcohol without technical regulations) of alcohol products expected to be retailed.
Competent authority: Economic Office or Economic and Infrastructure Office of the People’s Committee of the district/county where the enterprise locates its alcohol retail business.
Estimated Time: Within 10 working days from the date of receiving complete and valid dossier, the Economic Office or Economic and Infrastructure Office of the People’s Committee of the district shall review, appraise and grant a liquor retail license to the foreign investor.
For comprehensive CONSULTATION ON THE SERVICE OF ESTABLISHING AN ALCOHOL RETAIL BUSINESS COMPANY FOR FOREIGN INVESTORS IN VIETNAM, please contact:
Phone: (+84) 961 366 238
Email:
Headquarters: No.44/A32-NV13, Gleximco A, Le Trong Tan street, An Khanh, Hoai Duc, Ha Noi, Vietnam.
Southern branch: A9.05 BLOCK A, SkyCenter Building, 5B Pho Quang Street, Ward 2, Tan Binh District, Ho Chi Minh City, Vietnam.
Central branch: 177 Trung Nu Vuong, Hai Chau District, Da Nang City
Facebook: https://www.facebook.com/hangluatSiglaw
