LEGAL FRAMEWORK FOR ALCOHOL TRADING – LATEST REGULATIONS & CONDITIONS FOR ALCOHOL BUSINESS

Alcohol is a restricted commodity subject to very strict legal control. Enterprises or household businesses are only permitted to manufacture – distribute – wholesale – retail alcohol when they are granted a valid license in accordance with Decree 105/2017/ND-CP and Decree 17/2020/ND-CP.

Below is a comprehensive summary of the licenses, conditions, and procedures that businesses must understand when trading alcohol.

1. Types of alcohol business licenses include:

• Industrial alcohol manufacturing license: issued to enterprises producing alcohol on an industrial scale.

• Handcrafted alcohol manufacturing license for business purposes: issued to organizations or individuals producing handcrafted alcohol for sale on the market.

• Alcohol distribution license: allows an enterprise to distribute alcohol to other traders, not directly to end consumers.

• Alcohol wholesale license: issued to enterprises wholesaling alcohol in large quantities to other wholesalers or retailers.

• Alcohol retail license: issued to retail outlets selling alcohol to end consumers, excluding on-premises consumption establishments.

• Registration for on-premises retail alcohol consumption: establishments such as restaurants, bars, and cafés selling alcohol for direct on-site consumption are not required to obtain an alcohol retail license, but must register with the competent district-level local authority.

LEGAL FRAMEWORK FOR ALCOHOL TRADING – LATEST REGULATIONS & CONDITIONS FOR ALCOHOL BUSINESS

2. Core conditions for obtaining an alcohol business license:To be granted an alcohol business license, an enterprise/household business must meet common conditions such as having a valid enterprise/household business registration, complying with food safety regulations, and having a fixed and clearly identified business location.

In addition, depending on the business model (wholesale, retail, manufacturing), specific conditions apply, such as having a wholesale system, a principal supply contract with suppliers, or the corresponding manufacturing license.

General conditions – business registration:• Having an enterprise registration certificate, household business license, or cooperative registration.• Food safety: complying with food hygiene and safety regulations and holding a certificate of eligibility for food safety (where required).• Business premises: having a fixed, clearly identified business location and lawful rights to use that location.

Conditions by business model:

Retailing alcohol (with an alcohol content of 5.5% ABV or higher):In addition to the general conditions (no requirement for a certificate of food safety eligibility), the retailer must have an introduction letter or a principal supply contract from an alcohol manufacturer, distributor, or wholesaler.

Wholesaling alcohol:• Having an alcohol wholesale system within the province/city where the head office is located, with at least one alcohol retailer in the system.• Providing an introduction letter or principal supply contract from an alcohol manufacturer, distributor, or another wholesaler.

Manufacturing alcohol (industrial or handcrafted):• For industrial alcohol manufacturing: requiring business registration and a food safety eligibility certificate.• For handcrafted alcohol manufacturing for business purposes: requiring business registration or a household business/cooperative license and a food safety eligibility certificate (for enterprises), and registration with the district-level Division of Economy or Division of Economy and Infrastructure (now the economic division of the commune/ward People’s Committee) using the prescribed form.• Alcohol importing: requiring enterprise registration and compliance with food safety conditions; imports are only allowed through international border gates; the importer must register with the competent authority at the head office location before trading.

3. Dossier and procedures for applying for an alcohol business license

Dossier requirements:To apply for an alcohol business license, the dossier must include an application form (as prescribed) and a copy of the enterprise registration certificate. Depending on the business model, additional documents are required, such as supplier documents (supplier’s license, principal supply contract) and documents proving the wholesale/retail system (business location registration, lease contract, etc.).

Procedures:• Submit the dossier to the competent authority (depending on the locality).• The authority reviews the dossier for validity.• If valid, the authority appraises and issues the license.

Note: The process, dossier components, and procedures may vary depending on local regulations and the specific business model. Enterprises should contact the competent local authority directly for the most accurate and detailed guidance.

Alcohol trading is a sector under especially strict management, with a system of conditions, standards, and licensing procedures that is more complex than in many other sectors. Enterprises can operate stably and sustainably only when they fully understand the legal regulations, continuously maintain business conditions, and strictly comply with obligations relating to food safety, labeling, distribution, and circulation of goods.

As Industry-and-Trade regulations continue to evolve, partnering with a specialized, reputable, and experienced legal advisor is crucial to reduce risks, optimize timelines, and ensure compliant operations.

Vietlink Law Firm is proud to be a professional legal advisor, with a team of lawyers and Industry-and-Trade specialists who have many years of experience in alcohol, tobacco, gas, petroleum, and commercial infrastructure. We have assisted hundreds of enterprises nationwide in:• Obtaining new licenses, renewals, and amendments of alcohol business licenses;• Reviewing and building compliance systems for distributors, wholesalers, and retailers;• Representing enterprises in working with state authorities during inspections and audits;• Advising on legal strategies tailored to each business model.

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

Vietlink Law Firm – A trusted legal companion for enterprises.

================

VIETLINK LAW FIRM

📌 Head Office: Room P203, Giảng Võ Lake View Building D10, Giảng Võ Ward, Hanoi City

📌 Ho Chi Minh City Branch: 602, 6th Floor, No. 60 Nguyễn Văn Thủ Street, Đakao Ward, District 1, Ho Chi Minh City

📞 24/7 Direct Consultation Hotline: 0982 384 485 / 0983 509 365

📩 Email: hanoi@vietlinklaw.com

🌐 Website: https://vietlinklaw.vn

🔗 LinkedIn: Vietlink Law Firm

📸 Instagram: vietlink.lawfirm

📘 Facebook: Vietlink Law Firm