Conditions for Becoming a Fuel Retail Franchisee (Authorized Retail Fuel Trader)

Pursuant to Decree No. 83/2014/NĐ-CP, as amended by Decree No. 95/2021/NĐ-CP, a trader wishing to operate as a fuel retail franchisee (fuel franchise trader) must fully satisfy the legal conditions regarding business registration, retail facilities, and personnel. This is a specific form of distribution whereby the fuel retail franchisee operates within the system of a key fuel trader (import–export/wholesale trader) or a fuel distributor.

The specific conditions include:

Conditions for Becoming a Fuel Retail Franchisee (Authorized Retail Fuel Trader)

1. The enterprise is lawfully established and has fuel trading registeredA fuel retail franchisee must be an enterprise that:

• Is lawfully established in accordance with Vietnamese law; and

• Has fuel trading clearly registered as a business line in its Enterprise Registration Certificate.

This is the fundamental condition for participation in the official distribution system.

2. Has at least one qualified fuel retail outletA fuel retail franchisee must have at least one (01) fuel retail outlet that:

• Is owned or co-owned by the enterprise; and

• Has been granted a Certificate of eligibility for fuel retailing in accordance with Article 25 of Decree No. 83.

The outlet must fully comply with standards on:

• National technical regulations;

• Fire prevention and fighting (FPF);

• Safety distances;

• Environmental collection and treatment systems; and

• Specialized fuel retail equipment and facilities.

3. Personnel are trained in fire safety and environmental protectionAll managers and employees directly involved in fuel trading must:

• Receive training and professional instruction in fire prevention and fighting; and

• Hold certificates of environmental protection training in accordance with current regulations.

This is a mandatory condition due to the high fire/explosion risks and environmental impacts associated with fuel trading.

A fuel retail franchisee is only permitted to operate when all three (03) conditions are met: a lawfully established enterprise with fuel trading registered; at least one qualified retail outlet holding the required certificate; and personnel fully trained in fire safety and environmental protection.

These conditions are designed to ensure absolute safety in fuel retail operations and to protect consumers.

Fuel retail franchisees constitute an important link in the fuel distribution chain, operating directly under the brand and control of key fuel traders or fuel distributors. Given the highly flammable nature of fuel products and strict State supervision, the law imposes rigorous conditions on enterprise status, retail outlets, and personnel capacity.

Compliance with business registration requirements, qualified retail facilities, and fire safety–environmental training certificates is not only a prerequisite for licensing, but also a decisive factor enabling enterprises to operate safely, lawfully, and in a manner that safeguards consumer rights.

If an enterprise is preparing to join the fuel retail franchise model, Vietlink is ready to accompany it with an experienced team of industrial and trade lawyers and legal experts, providing a comprehensive service package including:consultation on conditions, facility assessment, dossier preparation, working with competent authorities, and compliance governance throughout operations.

Vietlink Law Firm is committed to delivering optimal, safe, and fully compliant legal solutions, enabling enterprises to confidently and sustainably participate in the fuel distribution system in an efficient manner.

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