Licenses For Alcohol Retailing In Vietnam

Tóm tắt nội dung

i. Why do you need to apply for a alcohol retail license?

Alcohol business on the list of conditional business lines are regulated in annex 4 (Issued together with the Law No.03/2016/QH14 on amendment and supplement to Article 6 and Annex 4 of the List of conditional business lines of the Law on Investment) so the trader wants to trade in alcohol (Including production, import, distribution, wholesaling and retailing of alcohol; and sale of alcohol for on-site consumption) Enterprises must apply for an alcohol retailing license to do business.

After being licensed alcohol retail, Enterprises are allowed to do business in the following scope:

  • 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.

In addition, Enterprises business and retailing alcohol without a license will be administratively sanctioned, affecting the business activities of traders. Along with the inspection and management of the competent authorities for goods restricted from trading, businesses need to apply for an alcohol retail license to be legally eligible to operate in the market.

LTS LAW advises on the procedures and conditions for applying for a alcohol retail license as follows:

ii. Requirements for retailing of alcohol

According to Article 13 of Decree No. 105/2017/ND-CP regulations on alcohol retail conditions are as follows:

  • The enterprise, cooperative, cooperative joint venture or household business retailing alcohol (alcohol retailer) shall be established according to regulations of law.
  • The alcohol retailer shall be entitled to run a fixed store with a clear address.
  • A written reference or an agreement in principle shall be made by the alcohol producer, distributor or wholesaler.

iii. Applications for licenses for alcohol retailing

A set of application for the license for alcohol retailing shall include:

  • A completed application form.
  • A copy of the certificate of enterprise/cooperative/cooperative joint venture/household business registration.
  • A copy of the lease/borrowing agreement or documents proving legitimate use rights to the expected alcohol retail store.
  • A written reference or an agreement in principle shall be made by the alcohol producer, distributor or wholesaler.

iv. Procedures for issuance of licenses

Issuance of the license for a license for alcohol retailing:

  • The trader (applicant) shall submit an application in person, by post or through the Internet (if applicable) to a licensing authority
  • Within 10 days from the day on which the valid application is received, the licensing authority shall consider processing and granting the license to the applicant. If the application is rejected, the licensing authority shall provide the applicant with a written explanation
  • If the application is invalid, the licensing authority shall send a written request for additional documents to the applicant within 3 days from the day on which the application is received

v. Power to issue licenses

Offices of Economics or Offices of Economics and Infrastructure affiliated to People’s Committees of districts shall issue licenses for home production of spirits for business purpose and licenses for spirit retail within their districts

vi. The effective period of the license

The effective period of the license for home production of alcohol for business purposes, license for alcohol distribution/wholesaling/retailing and license for the sale of alcohol for on-premises consumption shall be 5 years

vii. How much is the fine for retail alcohol without a license?

Under the provisions of Clause 8, Article 1 of Decree 124/2015/ND-CP amending and supplementing Clause 4 Article 7 of Decree No. 185/2013/ND-CP:

A fine from VND 5,000,000 – 10,000,000 for one of the following acts:

  1. a) Trade in goods and services subject to business restriction without certificates for goods and services subject to the business restriction as prescribed .”

viii. Legal basis

  • Law on Investment No. 67/2014/QH13 dated November 26, 2014
  • Law on amendment and supplement to article 6 and annex 4 on the list of conditional business lines stipulated in the law on investment dated November 22, 2016
  • Decree No. 105/2017/ND-CP dated September 14, 2017 on trade in alcohol
  • Decree No. 17/2020/ND-CP dated February 5, 2020 amendments to some articles of decrees related to necessary business conditions in fields under the management of the ministry of industry and trade
  • Decree 124/2015/ND-CP dated November 19, 2015 amendments and supplements to a number of articles of the government’s decree no. 185/2013/ND-CP dated November 15, 2013