On-premise retail alcohol sales in restaurants: What are the requirements?

In the food and beverage service industry, serving alcohol at the table is a common practice in restaurants and eateries. However, not everyone is aware that On-Premise Retail Alcohol Sales is a conditional business line in Vietnam, which requires proper licensing in accordance with the law. 

So what are the conditions and procedures restaurant owners must follow to sell alcohol legally? 

1. What Is On-Premise Retail Alcohol Sales? 

Under Article 3.5 of Decree No. 105/2017/ND-CP, On-Premise Retail Alcohol Sales refers to the direct sale of alcohol for consumption at the point of sale — such as in restaurants, bars, cafes, or hotels. 

Unlike off-premise retail (alcohol sold for takeaway), On-Premise Retail Alcohol Sales require businesses to register and obtain a license before starting operations. 

2. Is a License Required for On-Premise Retail Alcohol Sales? 

Depending on the alcohol content, businesses must comply with different licensing requirements: 

2.1. For alcohol under 5.5% ABV:  

Selling alcohol under 5.5% ABV is relatively simple. Business operators only need to register with the District-level Economic Office or Department of Economics and Infrastructure using Form No. 13, Section II of the Appendix issued with Decree 17/2020/ND-CP. Any changes to registered information must be updated accordingly. 

To avoid potential fines, businesses should conduct a compliance check and register in advance. 

2.2. For alcohol over 5.5% ABV: 

Businesses selling alcohol with more than 5.5% ABV for on-site consumption must obtain a Retail Alcohol License from the local District Economic Office or the Department of Economics and Infrastructure before starting operations. 

Although the process is more involved than for low-ABV products, it is still manageable. The application includes: 

2.2.1. Application documents (01 set):  

• Application form for a Retail Alcohol License (Form No. 01 issued with the Decree); 

• A copy of the Enterprise registration certificate; 

• A copy of the lease or ownership documents for the premises; 

• A copy of a distribution agreement or introduction letter from an alcohol producer, distributor, or wholesaler. 

2.2.2. Processing time: 

Within 10 working days from the date of receipt of a complete and valid application. 

2.2.3. License validity: 5 years. 

3. Key Conditions for On-Premise Retail Alcohol Sales: 

To qualify for a license, businesses must meet the following: 

3.1. Have legal rights to use a fixed business location with a clear address; 

3.2. Be a legally established business entity (enterprise, cooperative, or household business; 

3.2.1. Sell alcohol sourced from licensed producers, distributors, wholesalers, or retailers; 

3.2.2. Sell directly to customers at the licensed premises. 

4. Penalties for Non-Compliance in On-Premise Retail Alcohol Sales: 

Small restaurants and eateries often overlook legal requirements, making them vulnerable to administrative penalties or even license suspension for 1 to 3 months. Common violations include: 

4.1. A fine of VND 2,000,000 to VND 6,000,000 for: 

4.1.1. Selling alcohol to individuals under 18; 

4.1.2. Failing to display a sign prohibiting alcohol sales to individuals under 18. 

4.2. A fine of VND 10,000,000 to VND 20,000,000 for: Opening an on-premise alcohol sales location within 100 meters of schools, kindergartens, or healthcare facilities. 

4.3. A fine of VND 20,000,000 to VND 30,000,000 for: Selling alcohol via e-commerce without meeting regulatory requirements. 

Conclusion: On-Premise Retail Alcohol Sales in restaurants and eateries is legal only when properly licensed and operated in compliance with the law. Restaurant owners should proactively complete the required procedures to avoid penalties and ensure smooth, lawful business operations. 

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