Production and trading of alcohol in Vietnam: Mandatory requirements

1. Requirements for mass production of alcohol

According to Article 8 of Decree No. 105/2017/NĐ-CP of Vietnam’s Government, requirements for mass production of alcohol include:

- The enterprise producing mass of alcohol shall be established according to regulations of law.

- Production lines, machines, equipment and process of producing alcohol shall satisfy the estimated scale of production.

- Requirements for food safety shall be satisfied.

- Requirements for environmental safety shall be met.

- Alcoholic drinks shall be labeled in accordance with regulations.

- Technicians shall have qualifications and skills suited to alcohol production lines.

2. Requirements for distribution of alcohol

- The enterprise distributing alcohol (alcohol distributor) shall be established according to regulations of law.

- The alcohol distributor shall be entitled to use a warehouse or warehouse network with the total floor area of at least 150 m2.

- Expected alcohol for sale shall satisfy food safety requirements.

- The alcohol distribution network shall be available in at least 2 provinces/central-affiliated cities; in each province/central-affiliated city, there shall be at least an alcohol wholesaler.

- A written reference or an agreement in principle shall be made by another alcohol producer, distributor or a foreign alcohol supplier.

- All requirements for fire and environmental safety shall be satisfied.

This content is specified in Article 11 of Decree No. 105/2017/NĐ-CP.

3. Requirements for wholesaling of alcohol

According to Article 12 of Decree No. 105/2017/NĐ-CP of Vietnam’s Government, requirements for wholesaling of alcohol include:

- The enterprise wholesaling alcohol (alcohol wholesaler) shall be established according to regulations of law.

- The alcohol wholesaler shall be entitled to use a warehouse or warehouse network with the total floor area of at least 50 m2.

- Expected alcohol for sale shall satisfy food safety requirements.

- The alcohol wholesale network shall be available in the province or central-affiliated city where the wholesaler sets up the headquarters with at least 3 alcohol retailers.

- A written reference or an agreement in principle shall be made by another alcohol producer, distributor or wholesaler.

- All requirements for fire and environmental safety shall be satisfied.

Moreover, the Government of Vietnam also specifies requirements for retailing of alcohol, requirements for home production of alcohol for business purposes, requirements for home production of alcohol for selling to enterprises having licenses for mass production of alcohol for re-preparation, requirements for sale of alcohol for on-premises consumption in Articles 9, 10, 13, 14 of Decree No. 105/2017/NĐ-CP.

In particular, from January 01, 2020, the Law on Prevention and Control of Harmful Effects of Alcoholic Beverages 2019 of Vietnam officially comes into force, according to which alcoholic beverage traders shall have the following responsibilities:

- Regulations on conditions for trade in alcoholic beverages, and on alcoholic beverage advertising, sales promotion, sponsorship, food safety, quality, standards, technical regulations and labeling shall be complied with. Information about alcoholic beverages must be accurate and appropriate.

- Information about its trade shall be provided at the request of competent authorities in a sufficient and accurate manner.

- Employees under 18 years of age shall not be employed to directly engage in trading in and advertising alcoholic beverages.

- Unqualified alcoholic beverages they produce, purchase and sell shall be recalled and handled in accordance with regulations of law on food safety.

- Any establishment that sells alcoholic beverages shall post a notice stating that persons under 18 years of age cannot buy alcoholic beverages. If the age of a buyer cannot be ascertained, the seller has the right to ask for his/her proof of identity.

- Every on-premise establishment shall remind customers not to drive after consumption and shall assist them in hiring vehicles or using public transport after consumption.

- From the effective date of the Law on Prevention and Control of Harmful Effects of Alcoholic Beverages 2019 of Vietnam, it is not allowed to open new on-premise establishments within 100 m from health facilities, nurseries, infant schools, kindergartens and general education schools.

Thus, from January 01, 2020, liquor and beer businesses are absolutely not allowed to sell alcohol or beer to people under 18 years of age. In case of necessity, the buyer may be required to present their identity card to check their age. It is not allowed to open new on-premise establishments within 100 m from health facilities, nurseries, infant schools, kindergartens and general education schools.

Nguyen Trinh

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