ALCOHOL BUSINESS IN VIETNAM: LEGAL FRAMEWORK, LICENSING AND COMMON VIOLATIONS

Alcohol trading in Vietnam is classified as a conditional business investment sector, subject to strict State management in order to safeguard social order, public health, and consumer rights. Under current Vietnamese law, enterprises are only permitted to manufacture, distribute, wholesale, or retail alcoholic beverages when fully satisfying statutory conditions relating to eligible business entities, facilities, product origin, and required business licenses.

ALCOHOL BUSINESS IN VIETNAM: LEGAL FRAMEWORK, LICENSING AND COMMON VIOLATIONS

I. Legal basis

• Law on Prevention and Control of Harms of Alcohol and Beer No. 44/2019/QH14 of the National Assembly.

• Law on Food Safety No. 55/2010/QH12 of the National Assembly;

• Government Decree No. 105/2017/NĐ-CP on alcohol trading;

• Government Decree No. 17/2020/NĐ-CP amending and supplementing a number of decrees related to business investment conditions under the State management of the Ministry of Industry and Trade;

• Government Decree No. 98/2020/NĐ-CP on administrative sanctions in commercial activities, production and trading of counterfeit and prohibited goods, and protection of consumer rights, as amended and supplemented by Decree No. 17/2022/NĐ-CP and Decree No. 24/2025/NĐ-CP;

• Government Decree No. 139/2025/NĐ-CP on the allocation of authority of two-tier local governments in the State management sector of the Ministry of Industry and Trade;

• Government Decree No. 140/2025/NĐ-CP on the allocation of authority of two-tier local governments in the State management sector of the Ministry of Construction;

• Government Decree No. 15/2018/NĐ-CP detailing the implementation of certain provisions of the Law on Food Safety.

II. Types of alcohol business licenses

• Industrial alcohol production license;

• Handicraft alcohol production license for commercial purposes;

• Alcohol distribution license;

• Alcohol wholesaling license;

• Alcohol retailing license;

• Registration for on-site alcohol retail consumption.

III. Common violations and penalties in alcohol business activities

Pursuant to Decree No. 98/2020/NĐ-CP, as amended and supplemented by Decree No. 17/2022/NĐ-CP and Decree No. 24/2025/NĐ-CP, violations in alcohol business activities may be subject to administrative sanctions. Depending on the nature and severity of the violation, enterprises may also be subject to additional sanctions, including suspension of the alcohol business license for a period from one month to three months, confiscation of exhibits and means used in the violation, and compulsory disgorgement of illegal profits obtained from the violation, thereby affecting the maintenance and organization of business operations. In practice, common violations and corresponding penalty frameworks can be summarized as follows.

1. Violations related to alcohol business licenses

Acts such as adding information, erasing, or altering the contents of an alcohol business license; leasing, lending, pledging, mortgaging, selling, or transferring an alcohol business license; or leasing, borrowing, or receiving a transferred license may be subject to fines ranging from VND 3,000,000 to VND 5,000,000.

In cases of conducting business activities beyond the scope, subjects, scale, duration, territory, location, or product categories specified in the issued license, organizations and individuals may be fined from VND 5,000,000 to VND 10,000,000.

2. Alcohol trading without a license or with an invalid license

Acts of trading goods in a conditional business sector without a required license; conducting business when the license has expired; or using another trader’s license for business purposes may be subject to fines ranging from VND 10,000,000 to VND 15,000,000.

In cases of continuing business operations during the period of suspension, deprivation, or revocation of the business license, fines may range from VND 15,000,000 to VND 20,000,000.

3. Violations related to alcohol sale registration and handicraft alcohol production

Producing handicraft alcohol with an alcohol content of 5.5 percent or higher for sale to licensed alcohol producers for further processing without registration with the commune-level People’s Committee may be fined from VND 500,000 to VND 1,000,000.

Selling alcohol with an alcohol content of 5.5 percent or higher for on-site consumption, or trading alcohol with an alcohol content below 5.5 percent without registration with the district-level Economic Division or Division of Economy and Infrastructure (currently at the commune or ward level), may be subject to fines ranging from VND 1,000,000 to VND 3,000,000.

4. Violations related to alcohol importation and alcohol tax stamps

Acts of importing semi-finished alcohol with an alcohol content of 5.5 percent or higher without an alcohol business license, or selling imported semi-finished alcohol to entities that do not hold an industrial alcohol production license, may be fined from VND 20,000,000 to VND 30,000,000.

Acts of improperly affixing tax stamps on imported alcohol, or trading domestically produced alcohol with an alcohol content of 5.5 percent or higher without tax stamps, may be subject to fines determined based on the value of the violating goods, which may reach up to VND 70,000,000 for imported alcohol and up to VND 50,000,000 for domestically produced alcohol.

5. Violations of information disclosure and management obligations

Providing inaccurate or false information regarding the effects of alcohol and beer on health may be subject to fines ranging from VND 500,000 to VND 1,000,000 for alcohol with an alcohol content below 5.5 percent, and from VND 10,000,000 to VND 20,000,000 for alcohol with an alcohol content of 5.5 percent or higher.

In addition, failure to report or inaccurate reporting on alcohol production and trading activities may be fined from VND 1,000,000 to VND 3,000,000. Other acts, such as selling alcohol via vending machines or employing persons under 18 years of age, are also subject to penalties in accordance with regulations.

Accordingly, alcohol trading in Vietnam is a conditional business sector subject to strict regulation under multiple legal instruments. During business operations, enterprises are required to comply with licensing systems and stringent standards, depending on the form of activity including production, distribution, wholesaling, and retailing, as well as obligations relating to product origin, food safety, and labeling, in order to ensure stable operations, avoid legal risks, and maintain credibility and sustainability.

Due to practical requirements, the legal framework in general, and regulations under the Ministry of Industry and Trade in particular, are frequently updated, amended, and supplemented. Therefore, partnering with a specialized, reputable, and experienced legal consultancy is a critical factor in helping enterprises minimize risks, optimize time, and ensure compliance, thereby avoiding administrative sanctions or revocation of business licenses due to insufficient legal understanding.

Vietlink Law Firm is proud to be a professional legal consultancy with a team of lawyers and Industry and Trade experts possessing many years of experience in the fields of alcohol, tobacco, gas, petroleum, and commercial infrastructure. We have assisted hundreds of enterprises nationwide in:

• Providing legal consultancy on conditional business activities in general and alcohol trading in particular;

• Applying for the issuance, renewal, and amendment of alcohol business licenses;

• Providing continuous guidance and support throughout business operations, including distribution, wholesaling, and retailing of alcohol, ensuring compliance with legal regulations;

• Representing clients, upon authorization, in working with competent State authorities during inspections and examinations, whether periodic or ad hoc.

With the motto “Accuracy – Efficiency – Long-term Partnership,” Vietlink is ready to provide comprehensive legal solutions, enabling enterprises to confidently implement business activities and achieve sustainable development in the Industry and Trade sector.

Vietlink Law Firm – Your trusted legal partner for businesses.

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