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Vietnamese
Foreign investors establish alcohol retail businesses
Realizing that investing in the wine business is a potential industry, not only domestic investors but foreign investors are also very interested in this industry. However, although alcohol is a popular and indispensable drink, consuming large amounts of alcohol over a long period will greatly affect human health. That is why Vietnamese law has set strict regulations on foreign investors establishing alcohol retail businesses in Vietnam.
Conditions for foreign investors to establish alcohol retail businesses
Among drinks, wine is always one of the most popular products. Besides, Vietnam has a traditional culture which is drinking wine while eating. Therefore, when foreign investors establish a wine retail business, they need to meet the following specific conditions:
Conditions for investing in the Vietnamese market
According to the WTO Accession Commitment Schedule and Free Trade Agreements (FTAs), the establishment of retail establishments (other than the first retail establishment) of foreign-invested economic organizations will be considered on an economic needs test (ENT) basis.
Conditions for establishing retail establishments in Vietnam
Foreign-invested economic organizations can only set up their first retail outlet when they have been licensed with distribution rights. The establishment of the first retail establishment does not require procedures for licensing to establish a retail establishment;
The establishment of retail establishments, including the first retail establishment, must comply with the provisions of the law on state management of retail activities and under relevant planning of the province or city center, where retail establishments are expected to be established;
The establishment of a retail establishment other than the first retail establishment must be considered on a case-by-case basis based on examining the economic needs (ENT) of the area where the retail establishment is located according to the following criteria:
- Population density;
- The scale of the area;
- Number of retail establishments;
- Market stability.
This regulation does not apply to retail establishments with an area of less than 500m2 in areas that have been planned by the province or centrally run city for goods trading activities and have completed infrastructure construction unless there is a change in planning and this condition no longer exists.
Conditions for alcohol retail business in Vietnam
- Wine intended for business must ensure food safety conditions;
- Have the right to legally use a fixed business location with a clear address;
- Ensure full compliance with requirements and conditions on fire prevention and environmental protection according to regulations;
- Be an enterprise, cooperative, cooperative union or business household established according to the provisions of law;
- There is a written introduction or principal contract of a wine producer, wine distributor or wine wholesaler.
Documents and procedures for foreign investors to establish alcohol retail businesses
Step 1: Apply for an Investment Registration Certificate to establish a wine retail company
Step 2: Apply for a Certificate of establishment of a wine retail business
Step 3: Publish business registration information on the National Information Portal
Step 4: The enterprise engraves the seal and announces the seal sample
Step 5: Apply for a Liquor Retail Business License
Step 1: Apply for an Investment Registration Certificate to establish a wine retail company (IRC)
Profile includes
✅A written request to implement an investment project for the alcohol retail business;
✅Copy of ID card or passport for individual investors and documents confirming legal status for institutional investors;
✅Proposal document for alcohol retail business investment project including detailed content;
✅Copies of documents on the foreign investor’s financial issues;
✅Documents on land use needs, location rental agreements or right-to-use location to carry out investment projects.
Applicant Agency: Department of Planning and Investment or Management Board of industrial parks, export processing zones, economic zones and high-tech zones if the investment project is in those zones.
Time: For investment projects that are not subject to investment policy decisions, the time limit for returning documents is 15 – 20 working days from the date of receiving complete documents.
Step 2: Apply for a certificate of establishment of a wine retail business (ERC)
Profile includes
✅Application for registration of alcohol retail business;
✅The company’s rules include the alcohol retail business code;
✅List of company members/List of founding shareholders and shareholders who are foreign investors;
✅Copies of the following documents:
- ID card, passport of individual members;
- ID card, passport of the authorized representative;
- Copy of Business Registration Certificate for members of foreign organizations.
✅Investment registration certificate for foreign investors according to regulations;
✅Authorization document if the business does not directly apply.
Authority agency: Business Registration Office under the Department of Planning and Investment
Time: 03 – 06 working days from the date of receiving all valid documents
Step 3: Publish business registration information on the National Information Portal
Information on establishing a foreign-invested alcohol retail business must be published on the National Business Registration Portal within 30 days from the date of the Business Registration Certificate issuance. According to Clause 1, Article 26 of Decree 50/2016/ND-CP, in case an enterprise does not publish or does not publish on time the prescribed business registration content on the National Business Registration Portal, that enterprise will be fined from 1,000,000 VND to 2,000,000 VND.
Step 4: The enterprise engraves the seal and announces the seal sample
Enterprises can authorize or engrave their seals and notify the Department of Planning and Investment of their company’s seal samples. Enterprises can decide for themselves the form, quantity and content of the seal but must show the name and enterprise code. After receiving notice of the enterprise’s seal samples, the Business Registration Office will issue a receipt to the enterprise, post the enterprise’s notice on the National Business Registration Portal and issue the notice about posting information about enterprise seal samples for businesses to know.
Step 5: Apply for a Liquor Retail Business License
Before an enterprise goes into the official alcohol retail business, it must be granted an alcohol retail business license by a competent state agency. Accordingly, foreign investors submit 01 application document set for a liquor retail business license to the competent authority. 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 Certificate of registration of enterprise, cooperative, cooperative union or business household;
⭕A certified copy of the lease/borrowing contract or documents proving the legal right to use the proposed premises as a retail location;
⭕A certified copy of the introductory document or principle contract of the wine producer, wine distributor or wholesaler;
⭕A commitment made by the trader, clearly stating the content of the trader ensuring full compliance with the requirements of fire prevention and environmental protection according to the provisions of law at the sales locations retail wine;
⭕Authenticated copy of Receipt of declaration of conformity or Certificate of declaration of conformity with regulations on food hygiene and safety (for wine without technical regulations) of wine products expected to be traded retail.
Applicant agency: Economic Department or Economic and Infrastructure Department of the District People’s Committee where the enterprise is located.
Time: Within 10 working days from the date of receipt of complete and valid documents, the Economic Department or the Economic and Infrastructure Department of the district People’s Committee will review, appraise and issue a sales license. wine retail for foreign investors.
Siglaw is always ready to give advice and support customers with necessary information while carrying out procedures to change the investor’s address. Please contact Siglaw Law Firm for specific advice
Phone: (+84) 961 366 238
Email:
- vphn@siglaw.com.vn
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