ISSUES RELATED TO TRADE ALCOHOL IN VIETNAM THAT FOREIGN INVESTORS NEED TO KNOW

1. Production of alcohol

1.1. Conditions for producing alcohol:

* Conditions for mass production of alcohol

• • Having an Investment Registration Certificate (IRC);
  • Having an Enterprise Registration Certificate (ERC);
  •  Production lines, machines, equipment and process of producing alcohol shall satisfy the estimated scale of production;
  • Requirements for food safety shall be satisfied;
  •  Requirements for environmental safety shall be met.
  • Alcoholic drinks shall be labeled in accordance with regulations.
  • Technicians shall have qualifications and skills suited to alcohol production lines.

* Conditions for home production of alcohol for business purposes

• • Having an Investment Registration Certificate (ERC);
  • Having an Enterprise Registration Certificate (ERC);
  • Food safety and labeling of alcohol shall be ensured.

1.2. Rights and obligations of alcohol producers

* Rights and obligations of enterprises producing mass of alcohol

• • Have the rights to sell alcohol that they produce to traders having the license for alcohol distribution/wholesaling/retailing or the license for sale of alcohol for on-premises consumption and to alcohol exporters.
  •  Have the rights to directly retail alcohol and sell alcohol for on-premises consumption that they produce at their stores.
  • Be entitled to purchase domestic semi-finished alcohol or import one to produce finished alcohol.
  • Be eligible to purchase alcohol from entities producing alcohol at home for re-preparation.
  • Comply with regulations on food safety, labeling, fire and environmental safety.
  • Make reports and fulfill other obligations specified herein.

 * Rights and obligations of enterprises producing alcohol at home for business purposes

• • Have the rights to sell alcohol that they produce to traders having the license for alcohol distribution/wholesaling/retailing or the license for sale of alcohol for on-premises consumption and to alcohol exporters.
  • Have the rights to directly retail alcohol and sell alcohol for on-premises consumption that they produce at their stores/premises.
  • Conform to regulations on environmental safety in the process of their alcohol production.
  • Make reports and fulfill other obligations specified herein.

2. Distribution of alcohol 

2.1. Conditions for distributing alcohol:

• • Having an Investment Registration Certificate (IRC);
  • Having an Enterprise Registration Certificate (ERC);
  • There should be alcohol distribution systems within at least 02 provinces or central-affiliated cities (including the administrative divisions where the alcohol distributors’ headquarters are located); at least an alcohol wholesaler within each province or central-affiliated city. If the alcohol distributor establishes a branch or business location besides its headquarters for the purpose of alcohol sale, it is not required to ask for confirmation from the alcohol wholesaler;
  • A written reference or an agreement in principle shall be made by another alcohol producer, distributor, or a foreign alcohol supplier.

2.2. Rights and obligations of alcohol distributors:

• • Import or purchase alcohol from domestic alcohol producers and other alcohol distributors according to the contents stated in-licenses;
  • Sell alcohol to alcohol distributors/wholesalers/retailers or sellers of alcohol for on-premises consumption within provinces/central-affiliated cities that have been licensed;
  • Sell alcohol to alcohol exporters;
  • Directly retail alcohols at traders’ licensed business locations within provinces or central-affiliated cities.

3. Wholesale of alcohol:

3.1. Conditions for wholesaling alcohol

• • Having an Investment Registration Certificate (IRC);
  • Having an Enterprise Registration Certificate (ERC);
  • There is an alcohol wholesale system in the province or centrally run city where the enterprise is headquartered with at least 01 alcohol retailer. In case the enterprise establishes a branch or place of business outside its head office to trade in alcohol, there is no need for certification from the alcohol retailer;
  • There is an introduction document or in principle contract of the alcohol producer, the alcohol distributor or other alcohol wholesaler.

3.2. Rights and Obligations of alcohol wholesalers:

• • Purchase alcohol from domestic alcohol producers or other alcohol distributors/wholesalers according to the contents stated in-licenses;
  • Sell alcohol to alcohol wholesalers/retailers or sellers of alcohol for on-premises consumption within provinces/central-affiliated cities that have been licensed;
  • Sell alcohol to alcohol exporters;
  • Directly retail alcohols at traders’ licensed business locations within provinces or central-affiliated cities.

4. Retail of alcohol

4.1. Conditions for Retailing alcohol

• • Having an Investment Registration Certificate (IRC);
  • Having an Enterprise Registration Certificate (ERC);
  • Have the right to the legal use of a fixed place of business, and a clear address;
  • Have an introduction document or in principle contract of the alcohol producer, the alcohol distributor, or the alcohol wholesaler.

4.2. Rights and Obligations of alcohol retailers:

• • Purchase alcohol from domestic alcohol producers or other alcohol distributors/wholesalers according to the contents stated in-licenses;
  • Sell alcohol to sellers of alcohol for on-premises consumption or directly sell to buyers at sellers’ premises according to the contents stated in licenses.