Liquor is a specific product and is on the list of goods subject to conditional trading not only for domestic investors but also for foreign investors. When doing business in the field of liquor, the Investor needs to specifically determine what the specific scope of activities is. From that, the Investor can determine the exact type of license that they need to obtain when the Enterprise comes to operate.
According to Clause 1, Article 16 of Decree 17/2020/ND-CP:
- Business entities engaged in industrial production of liquor, small-scale production of liquor for commercial purposes, liquor distribution, retail of liquor with an alcohol content of 5.5 degrees or more must have a license;
- Business entities selling liquor with an alcohol content of 5.5 degrees or more for on-the-spot consumption, business entities trading (import, purchase, sell) liquor with an alcohol content of less than 5.5 degrees must register with The Economics or the district Economics and Infrastructure Office;
- Households and individuals engaged in small-scale production of liquor with an alcohol content of 5.5 degrees or higher and selling their liquor for an establishment that has a license to produce liquor for further processing must register with the commune People’s Committee where the establishment is located.
Thus, the determination of the alcohol content of commercial liquor is the first criteria from which the Investor can determine the licenses that need to be obtained before going into operation.
The content below is a summary table detailing the types of licenses required when trading liquor with an alcohol content of 5.5 degrees or more:
| Liquor distribution | Liquor wholesale | Liquor retail | On-the-spot sales of liquor for consumption. | |
| Scope of Activity | 1. To import liquor, purchase liquor from domestic producers and from other liquor distributors in accordance with the contents stipulated in the license;
2. To sell liquor to liquor distributors, wholesalers, retailers and business entities selling liquor on-the-spot for consumption within the geographical area of the provinces, cities under central authority for which they are licensed; 3. To sell liquor to business entities purchasing it for export; 4. To directly retail liquor at business locations of the business entities within the geographical area of the provinces, cities under central authority for which they are licensed. |
Scope of activity is similar to liquor distribution but exclude the activity of “Liquor import” | 1. To purchase liquor from domestic producers, from liquor distributors and from other liquor wholesalers in accordance with the contents stipulated in the license;
2. To sell liquor to business entities selling liquor on-the spot for consumption or sell directly to buyers at business entities ‘s location according to the contents of the license. |
1. To purchase liquor from domestic producers, from liquor distributors, from liquor wholesalers, from liquor retailers;
2. To sell liquor directly to buyers for consumption at business locations of business entities. |
| Type of license required | Liquor distribution license | Liquor wholesale license | Liquor retail license | No license is required, but the Investor needs to register with The Economics or the district Economics and Infrastructure Office. |
| Conditions for license and operation | 1. Having a liquor distribution system in at least two provinces or cities under central authority. (including the area where the enterprise’s head office is located);
2. In each province, city under central authority there must be at least one business entity wholesaling the liquor. In case the enterprise has established a branch or business location outside the head office to trade liquor, the confirmation of the liquor wholesaler is not required. 3. Having introduction letters from or in-principle contracts with liquor producers, other liquor distributors or overseas liquor suppliers. 4. Must comply with the provisions of the law on environmental protection, food safety, fire prevention and fighting. (Legislation: Article 11 of Decree 105/2017/ND-CP; Clause 3, Article 17 and Clause 5, Article 16 of Decree 17/2020/ND-CP) |
1. Having a liquor wholesaling system in the provinces, cities under central authority where the business entity has its headquarters with at least one liquor retailers. In case the enterprise has established a branch or business location outside the head office to trade liquor, the confirmation of the liquor retailer is not required.
2. Having introduction letters from or in-principle contracts with liquor producers, liquor distributors or other liquor suppliers. 3. Must comply with the provisions of the law on environmental protection, food safety, fire prevention and fighting. (Legislation: Article 12 of Decree 105/2017/ND-CP; Clause 4, Article 17 and Clause 6, Article 16 of Decree 17/2020/ND-CP) |
1. Having the right to lawfully use fixed business premises with a clear address.
2. Having letters of introduction or in-principle contracts with liquor producers, liquor distributors or liquor wholesalers. 3. Must comply with the provisions of the law on environmental protection, food safety, fire prevention and fighting. (Legislation: Article 13 Decree 105/2017/ND-CP; Clause 5, Article 17 of Decree 17/2020/ND-CP) |
1. Having the right to lawfully use fixed business premises with a clear address and register for on-the-spot liquor sale for consumption with the Economic Office or the district Economic and Infrastructure Office where the business entity location is located;
2. In case a business entity which itself produces liquor for on-the-spot sale for consumption must have a license for industrial production or a license for small-scale liquor production for commercial purposes; 3. Must comply with the provisions of the law on environmental protection, food safety, fire prevention and fighting. (Legislation: Article 14 of Decree 105/2017/ND-CP; Clause 6 Article 17 and Clause 7 Article 16 Decree 17/2020/ND-CP) |
| Licensing Authority | Ministry of Industry and Trade | Ministry of Industry and Trade | The Economics of Economics and Infrastructure Office is under the people’s committee of the district. | The Economics or the district Economics and Infrastructure Office. |
| Reporting regime | Before January 20th of each year, send a report on the status of the liquor business by their entities within the year to the Ministry of Industry and Trade according to Form No. 08, Form No. 09, Section II in the Appendix issued with Decree 17/2020/ND- CP | Before January 20 of each year, send a report on the status of the liquor business by their entities within the year to the Department of Industry and Trade according to Form No. 08, Form No. 09, Section II in the Appendix issued with Decree 17/2020/ND- CP | Before January 20 of each year, send a report on the status of the liquor business by their entities within the year to the Economics or Economics and Infrastructure Office under the people’s committee of the district according to Form No. 08, Form No. 09, Section II in the Appendix issued together with Decree 17/2020/ND- CP | Do not report |
The above is an overview of the conditions and scope of activities that Investors need to pay attention to and consider carefully before starting operations. The determination of the scope of activities and conditions helps investors to prepare carefully and have a specific plan when starting to invest in Vietnam
