Licensing for Alcohol/Alcoholic Beverages in Vietnam

June 11, 2025 | Guidelines, Setting up a company in Vietnam

The alcoholic beverage business in Vietnam is rapidly expanding, not only in terms of domestic production but also with a growing participation from distribution and import enterprises. In this context, the State has enacted a strict legal framework to control alcohol-related activities, aiming to mitigate the harmful effects of alcoholic beverages on public health, ensure food safety, and maintain social order.

The current licensing system is built upon the Law on Prevention and Control of Harmful Effects of Alcoholic Beverages (2019), along with guiding implementation documents such as Decree 105/2017/ND-CP and Decree 17/2020/ND-CP. Obtaining a license for alcohol business is not merely a legal requirement but also demonstrates a company's commitment to complying with production, business, and professional ethical standards.

The licenses related to alcohol business activities in Vietnam include licenses for production, distribution, wholesale, retail, and on-premise retail of alcoholic beverages. Each type of license applies to a specific segment within the alcoholic beverage supply chain and is granted by different competent authorities, ranging from the Ministry of Industry and Trade to district/commune-level authorities. Notably, the on-premise retail of alcohol, such as in restaurants, bars, or cafes, must also be registered with local district/commune-level management agencies, even if a traditional retail alcohol license is not strictly required.

1) Alcohol Production License

An alcohol production license is a mandatory requirement for businesses involved in the production of alcoholic beverages, from industrial to artisanal scales.

Industrial Alcohol Production: Requires businesses to demonstrate a modern infrastructure system, standard-compliant equipment, and production processes that meet food safety, environmental, and fire prevention and fighting requirements. Additionally, products must be correctly labeled and meet technical specifications, especially regarding alcohol content.
Artisanal Alcohol Production: The law has separate regulations depending on the purpose. If produced for business, the enterprise must meet conditions similar to industrial production but on a smaller scale. If produced for personal use or traditional/festive purposes, it is exempt from licensing but must comply with safety regulations.

2) Alcohol Distribution License

The alcohol distribution license is for businesses operating across multiple provinces and centrally-run cities. The basic conditions for obtaining this license include:

Having a distribution system covering at least two provinces, including the province where the head office is located.
Having a storage warehouse that meets standards for preserving alcoholic beverages.
Having contracts with licensed manufacturers or importers.
Distribution businesses must also ensure full declaration of special consumption tax and are responsible for monitoring product quality throughout their system.

3) Alcohol Wholesale License

For businesses distributing alcohol only within the scope of one province or centrally-run city, an alcohol wholesale license is mandatory. Conditions for applying for this license include:

Having a legitimate business location.
A storage warehouse for alcohol that meets hygiene and preservation standards.
Having purchase and sale contracts with licensed suppliers.
Especially for imported alcohol, businesses also need to ensure full customs procedures and quality inspection before circulation.
The processing time for a wholesale license application is typically 15 working days from the receipt of a complete application.

4) Alcohol Retail License

At the final consumption level, an alcohol retail license is required for stores, supermarkets, shopping centers, or other retail business units that sell alcohol directly to consumers. Business establishments must:

Have a fixed business location.
Be granted a clear business registration certificate.
Ensure hygiene and food safety conditions.
Sign supply contracts for alcohol with licensed wholesalers, distributors, or manufacturers.
Selling alcohol to individuals under 18 years old is strictly prohibited, with administrative penalties ranging from VND 500,000 to VND 1,000,000 for each violation.

5) On-Premise Alcohol Retail License

A special point in the licensing system is the on-premise alcohol retail license – intended for service establishments such as bars, restaurants, and cafes, where alcohol is served directly to customers on-site.

These establishments do not need to apply for a traditional alcohol retail license but must register with district or commune-level management agencies.
Although less complex than other license types, this form still requires businesses to commit to complying with age verification regulations and responsible serving, especially in the context of increasing alcohol abuse in the community.

6) General Procedures and Conditions for Obtaining a License

The process of applying for any type of alcohol license requires businesses to clearly understand administrative procedures, prepare complete dossiers, and demonstrate practical capacity.

Procedures: Businesses need to submit an application for a license according to the prescribed form, accompanied by documents such as business registration certificates, documents proving the right to use the business location, alcohol supply or consumption contracts, a description of the production process, or a distribution plan, as applicable.
Conditions: General requirements include having a legitimate business location, appropriate facilities and equipment, meeting food safety standards, having competent personnel, and fully complying with all relevant legal regulations on the production and business of alcoholic beverages.

A particularly important factor to note is the alcohol content of the product. Some licenses may have different requirements or classifications depending on the alcohol concentration of the beverage. For example, alcohol with an alcohol content below 5.5% may be subject to simpler control procedures compared to spirits or other high-alcohol beverages. Therefore, businesses need to clearly define their product segment to choose the appropriate license type and comply with labeling, health warnings, and quality inspection criteria.

7) Conclusion

The alcohol business licensing system in Vietnam is an indispensable part of the management structure for this specific industry. Clear delineation of license types according to each activity form helps the State easily monitor and, at the same time, creates a transparent legal framework for businesses to develop legally, safely, and sustainably.

Every business, regardless of scale, needs to thoroughly understand the legal regulations related to alcohol, prepare complete dossiers, meet practical conditions, and strictly comply with hygiene, quality, and business ethics requirements, thereby contributing to building a healthy and responsible alcoholic beverage market in Vietnam.

Kim Ngan - Legal Assistant

The information contained in this article is general and intended only to provide information on legal regulations. DB Legal will not be responsible for any use or application of this information for any business purpose. For in-depth advice on specific cases, please contact us.

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