VCCI proposes removing requirements for liquor retail

VCCI proposes removing requirements for liquor retail

According to VCCI, existing food safety and labeling regulations already govern the sector adequately, making these additional business licenses redundant.

Alcoholic drinks on shelves at a super market in HCM City. — VNA/VNS Photo

The Việt Nam Chamber of Commerce and Industry (VCCI) has proposed that the Ministry of Industry and Trade eliminate business licensing requirements for the distribution, wholesale and retail of alcohol, arguing that these procedures are unnecessary and lack clear regulatory justification.

According to VCCI, existing food safety and labeling regulations already govern the sector adequately, making these additional business licenses redundant.

Under current regulations, Decree 105/2017 and Decree 17/2020, businesses must obtain separate licenses for each stage of alcohol commerce. However, VCCI contends that these activities do not meet the criteria of a conditional business sector as defined under the Investment Law of 2020.

One condition deemed unreasonable is that alcohol distributors must operate in at least two provinces, each with either a wholesale partner or a branch outside the company’s headquarters. VCCI argues this requirement serves only to define a business model, without contributing to any substantive regulatory purpose.

Another concern is the mandate to submit introductory letters or preliminary agreements with alcohol suppliers when applying for licenses. In a dynamic market where supplier relationships frequently change, this requirement is impractical. Each change necessitates a license amendment, imposing unnecessary administrative costs on businesses.

For wholesale operations, businesses must establish a network within their home province, maintain ties with at least one retail partner, and provide similar supplier documentation. VCCI notes these requirements largely mirror those for distribution, offering no meaningful regulatory distinction.

Retailers, meanwhile, must have a fixed business location with a verifiable address - a basic criterion for any commercial activity. VCCI argues that this does not warrant classifying retail alcohol sales as a conditional business line.

VCCI emphasises that alcohol is already regulated as a food product under existing laws governing safety, labeling and product declarations. The current licensing framework adds no meaningful oversight but does increase procedural burdens.

On this basis, VCCI recommends eliminating all licensing requirements for alcohol distribution, wholesale, and retail. The proposal aligns with Việt Nam’s broader efforts to reduce administrative barriers and foster a more transparent, efficient and business-friendly regulatory environment. 

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