Conditions for liquor distribution business license in Vietnam

by BichNgoc

Alcohol is a commodity that the State restricts from trading and consuming. According to current Vietnamese law, in order to trade in alcohol products, traders must meet certain conditions and have to carry out procedures to apply for a license to trade alcohol before operating. Today, LSX Lawfirm will give you an article about: “Conditions for liquor distribution business license in Vietnam”, as follows:

Law on prevention and control of harmful effects of alcoholic beverages 2019

Decree No. 105/2017/ND-CP

Decree No. 17/2020/ND-CP

Decree No. 98/2020/ND-CP

Circular No. 168/2016/ND-CP

Conditions for liquor distribution business license in Vietnam

Previously in Decree 105/2017/ND-CP stipulating conditions for businesses to trade in alcohol distribution with higher conditions and requirements, however, since Decree No. 17/2020/ND-CP- The CP, issued and took effect from March 22, 2020 has amended and abolished a number of conditions for trading in alcohol distribution.

Specifically, businesses need to meet the following conditions allowed to do business in the field of alcohol distribution:

  • Firstly, an enterprise established in accordance with the law.
  • Secondly, have the legal right to use the warehouse or warehouse system.
  • Thirdly, the wine expect traded must ensure food safety conditions as prescribed.
  • Then, have a liquor distribution system in the area from 02 provinces or centrally-run cities or more (including the area where the enterprise’s head office is located); in each province or centrally run city, there must be at least 01 alcohol wholesaler.

In case an enterprise has established a branch or a business location outside its head office to trade in alcohol, the certification of the alcohol wholesaler do not require.

  • There is a written introduction or a contract in principle of the wine producer, other alcohol distributor or overseas alcohol supplier.
  • Finally, ensure full compliance with requirements on fire prevention and fighting and environmental protection as prescribed.

You can also refer to the article related to Procedure to apply for a license to distribute alcohol in Vietnam Dossier of application for a license to distribute alcohol or Conditions for applying for a liquor business license.

Prohibited acts related to Conditions for liquor distribution business license in Vietnam

  • Inciting, persuading and forcing another to consume alcoholic beverages.
  • Consumption of alcoholic beverages by persons under 18 years of age (hereinafter referred to as “minors”).
  • Selling, supplying and offering discounts on alcoholic beverages to minors.
  • Employing minors to directly engage in production, purchase and sale of alcoholic beverages.
  • Consumption of alcoholic beverages during working and learning hours and break time by officials, public employees and employees working for organizations, officers, enlistees, non-commissioned officers, soldiers and persons working for People’s Armed Force, and students.
  • Operating vehicles under the influence of alcohol.

In addition

  • Advertising spirits having at least 15% ABV.
  • Providing inaccurate and misleading information about effects of alcoholic beverages on health.
  • Running sales promotions of alcoholic beverages having at least 15% ABV; using alcoholic beverages having at least 15% ABV to run sales promotions in any shape or form.
  • Using raw materials, additives and food processing aids not permitted for use in food; raw materials, additives and food processing aids that are unqualified and of unknown origins for production and preparation of alcoholic beverages.
  • Then, trade in spirits without any license or registration; selling alcoholic beverages using vending machines.
  • Trading in, possessing and transporting alcoholic beverages that are counterfeit, illegally imported, unqualified and of unknown origin, illegally importing alcoholic beverages.
  • Finally, other prohibited acts related to alcoholic beverages as prescribed by law.

Related questions

Places where alcoholic beverage consumption is not allowed in Vietnam?

1. Health facilities.
2. Educational institutions during teaching, learning and working hours.
3. Nursing care centers and recreational centers for minors.
4. Rehabilitation centers, compulsory educational institutions, reform schools, prisons and other detention facilities.
5. Social protection centers.
6. Workplaces of regulatory authorities, political organizations, socio-political organizations, socio-political-professional organizations and public service providers during working hours, except for places where the trade in alcoholic beverages is allowed.
7. Public places prescribed by the Government.

Prevention and handling of counterfeit and unqualified alcoholic beverages; alcoholic beverages illegally imported and of unknown origins in Vietnam?

Counterfeit and unqualified alcoholic beverages and alcoholic beverages illegally imported and of unknown origins shall be confiscated and handled as prescribed by law.
Organizations and individuals shall cooperate with competent authorities in prevention and control of counterfeit and unqualified alcoholic beverages and alcoholic beverages illegally imported and of unknown origins.
The Ministry of Industry and Trade and Ministry of Health shall, within their jurisdiction, provide guidance on addition of indicators to alcoholic products not permitted for use in food for the purposes of distinguishing them from food-grade alcohol and preventing the preparation of spirits from alcoholic products not permitted for use in food.

Contact LSX Lawfirm

Finally, hope this article is useful for you to answer the question about: “Conditions for liquor distribution business license in Vietnam”, please contact  LSX Law firm : +84846175333 or Email: hoangson@lsx.vn

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