Conventus Law

Conventus Law

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9 November 2021
 

Alcohol is a commodity on the list of conditional business goods for both domestic and foreign investors. Therefore, after completing the procedures for investment and business registration, foreign investors must also apply for alcohol business licenses. Through this article, BLawyers Vietnam would like to introduce the types of licenses required when trading alcohol with an alcohol content of 5.5 degrees or higher.

 

  1. What is an alcohol license?

 

An alcohol license is a type of license that a business must apply before doing business in alcohol (sub-license). 

 

Alcohol licenses include the following types:

 

  1. Alcohol distribution license;

 

  1. Alcohol wholesale license; 

 

  1. Alcohol retail license; and

 

  1. Selling alcohol on-the-spot consumption does not have to apply for a license but must register with the District-level competent authorities, thus we will describe the process as a type of license below.

 

  1. Types of alcohol licenses

 

Investors must first determine the scope of their operations to determine what type of license they must apply for to comply with the law. The following licenses are required when trading alcohol with an alcohol content of 5.5 degrees or higher:

 

 

Alcohol distribution license

Alcohol wholesale license

Alcohol retail license

Selling alcohol on-the-spot consumption

Scope of business

  • Importing alcohol, purchasing alcohol from domestic producers and other alcohol distributors;

 

  • Selling alcohol to alcohol distributors, wholesalers, retailers, and traders selling alcohol on-the-spot consumption within in the province and cities licensed;

 

  • Selling alcohol to traders purchasing it for export;

 

  • Directly retailling alcohol at the traders’ locations of in the provinces and cities licensed;

 

  • Traders with alcohol distribution licenses are allowed to import alcohol and are responsible for the quality and food safety of imported alcohol. 

  • Purchasing alcohol from domestic producers, alcohol distributors, and other alcohol wholesalers;

 

  • Selling alcohol to alcohol distributors, wholesalers, retailers, and traders selling alcohol on-the-spot consumption within in the province and cities licensed;

 

  • Selling alcohol to traders purchasing it for export;

 

  • Directly retailling alcohol at the traders’ locations in the provinces and cities licensed.

  • Purchasing alcohol from domestic producers, alcohol distributors, and other alcohol wholesalers;

 

  • Selling alcohol to traders selling  alcohol on-the-spot consumption  or selling directly to buyers at the traders’ locations.

  • Purchasing alcohol from domestic producers, alcohol distributors, and alcohol wholesalers and alcohol retailers;

 

  • Selling alcohol directly to buyers for consumption at traders’ locations.

Conditions for license and operation

  • Having an alcohol distribution system in at least 02 provinces or cities (including the area where the enterprise is headquartered); 

 

  • In each province, there must be at least 01 business entity wholesaling the alcohol;

 

  • Having introduction letters from or principal contracts with alcohol producers, other alcohol distributors or overseas alcohol suppliers.

  • Having an alcohol distribution system in the province, where the enterprise is headquartered with at least 01 alcohol retailer. 

 

  • Having introduction letters from or principal contracts with alcohol producers, other alcohol distributors or overseas alcohol suppliers.

  • Having the right to legally use fixed business premises with a clear address;

 

  • Having introduction letters from or principal contracts with alcohol producers, other alcohol distributors or overseas alcohol suppliers.

  • Having the right to legally use fixed business premises with a clear address and registered for on-the-spot alcohol sale for consumption;

 

  • On-the-spot alcohol must be provided by traders with a production, distribution, wholesale or retail alcohol license;

 

  • In case the trader produces alcohol by itself for on-the-spot sale for consumption, it must obtain an industrial production license or a license for small scale alcohol production for commercial purposes.

Licensing Authority

Ministry 

Local Department 

District

District
 

Thus, determining the scope of operations and conditions will assist investors in thoroughly preparing and applying for the types of alcohol trading licenses required before beginning operations. Since then, when making investments in Vietnam, investors have understood and ensured legal compliance.

 

IPLINK ASIA
 

For further information, please contact:
 

Minh Ngo Nhat, Managing Partner, BLawyers
minh.ngo@blawyersvn.com

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