Vietnam’s craft beer industry has been growing rapidly since 2010. According to Statista, this growth is attributed to the demand for premium and high-quality craft beer in the country from traditional lagers to India Pale Ale (IPA) and stouts.
If you’re a passionate brewmaster who wants to build your own craft beer brand, you need to navigate the intricate complexities of registering your craft beer company and obtaining special F&B licenses to market your own alcoholic beverages.
In this article, we will cover all the legal requirements to set up your own craft beer business, registration, and licenses needed to distribute and import your product.
Legal Considerations for Starting your Own Brand of Craft Beer in Vietnam
Licensing Requirements for Selling Alcohol in Vietnam
Starting a craft beer business in Vietnam involves navigating a complex regulatory landscape set by the Department of Industry and Trade (DOIT). To sell alcoholic beverages in Vietnam, you would need to obtain the following licenses:
1. Craft Beer Brewing and Trading License
Essential for any business intending to produce or sell craft beer in Vietnam. This license ensures that your brewery adheres to operate within the legal framework established by local authorities. To apply for the craft beer brewing and trading license, your craft beer brewery must meet the following requirements:
- Detailed description of the brewing process
- Information about specific equipment used in the brewing process including machinery and storage tanks.
- Depending on the scale of the operations, you may be required to conduct an Environmental Impact Assessment (EIA)
- Proof of financial stability.
2. Alcohol Retail License
Required for businesses that sell alcohol directly to consumers, including bars, restaurants, or retail shops specializing in craft beer. Here are the requirements for an Alcohol Retail License in Vietnam:
- Business locations must comply with zoning laws that permit the sale of alcohol.
- Must adhere to food safety regulations, ensuring that all areas where alcohol is stored or served meet health standards.
- Employees may need training on responsible alcohol service practices.
- Business registration certificate
Food and Safety Regulations for Craft Beer in Vietnam
According to the Law on Food Safety (2010), your brewery must comply with the safety regulations set by the Ministry of Health (MOH). These regulations are set to ensure that your craft beer meets health standards and is safe for consumption. To meet food and safety regulations in Vietnam, you must have the following:
- Certificate of Food Safety – Ensures that the brewery adheres to hygiene and safety protocols, safeguarding public health. This certificate is Valid for three years from the date of issuance. After this period, breweries must renew the certificate to continue operations legally.
- Your brewing facility must be designed and maintained according to food safety regulations, including proper sanitation, ventilation, and waste management systems.
- Staff must follow strict hygiene practices during production, including regular training on food safety standards.
- Establish quality control measures to monitor the brewing process and ensure product safety is essential for obtaining this certificate
- Your brewing facility must be designed and maintained according to food safety regulations, including proper sanitation, ventilation, and waste management systems.
- Staff must follow strict hygiene practices during production, including regular training on food safety standards.
- Establish quality control measures to monitor the brewing process and ensure product safety is essential for obtaining this certificate
- Self-Declaration of Product Quality – involves formally declaring that the beer products meet established quality and safety standards before they are sold in the market. This self declaration involves necessary laboratory testing and submission of test results to the authorities.
Alcohol Tax Regulations in Vietnam
When you start a new craft beer brand in Vietnam, it’s crucial to understand about tax liabilities that can impact your pricing, profits, and overall business strategy. In Vietnam, alcoholic beverages have a Special Consumption Tax (SCT). It’s a specific tax levied on certain goods, including alcoholic beverages.
For craft beer, the SCT is typically set at 65% of the retail price but may differ based on the alcohol content and the type of beer produced. Therefore, it is important to factor this tax into your pricing to maintain competitiveness and profitability.
Apart from SCT, there are also other relevant taxes you should know about:
- Corporate Income Tax (CIT) – Craft breweries are subject to standard corporate tax set at 20%.
- Value-added Tax (VAT) – Craft breweries must also account for VAT when selling their products. The standard VAT rate in Vietnam is 10%. To mitigate the cost, you may claim input VAT credits for taxes paid on raw materials and services used in production.
Import and Export Regulations for Craft Beer in Vietnam
If you have plans to go international, either importing raw materials for your brewery or exporting your product, you would need to navigate various customs regulations in Vietnam. When importing ingredients or equipment for craft beer production, breweries must comply with several regulations and obtain the necessary permits:
- Import License – Depending on the type of ingredients or equipment being imported, you may need to apply for an import license in Vietnam. This license ensures that the imported goods meet local safety and quality standards.
- Health and Safety Compliance – Imported ingredients must comply with Vietnam's food safety regulations with an FDA registration. Certain ingredients may be subject to quality testing by local health authorities before they can be used in production.
- Customs Clearance – All imported goods must go through customs clearance that requires invoices, packing lists, and certificates of origin to verify compliance with local laws.
If you want to expedite the import and export process for your craft beer business in Malaysia, you can utilize Emerhub’s IOR service. As your consignee, we can ensure that all your imported products comply with Vietnam’s FDA and business regulations so you can focus on your core operations: brewing quality craft beer in Vietnam.
How to Start Your Own Craft Beer Business in Vietnam
To start your own brand of craft beer in Vietnam, you must consider the right legal structure in which your business will operate. This will affect various aspects of the business such as ownership, management, liability, and tax obligations.
The best thing about an LLC is it provides liability protection for entrepreneurs concerned about personal risk.
Here’s how we can help with the business registration process:
1. Register Your Company with DPI
To start your craft beer business, one of the first steps is to decide on the legal entity and meet necessary requirements such as a business address to register your company with DPI in Vietnam. The most popular entities for your business is a Limited Liability Company (LLC) as it allows foreign ownership and multiple shareholders.
Emerhub's local experts will help you identify suitable locations that meet zoning requirements, prepare necessary documents and handle entire process on your behalf.
2. Obtain an ERC and IRC
We can provide support in preparing documentation, filing applications, and ensuring compliance with local regulations to facilitate the smooth acquisition of both Enterprise Registration Certificate (ERC) and Investment Registration Certificate (IRC).
3. Submit Application for Business Specific Licenses
We can guide you through the application processes for all necessary licenses and certificates for your craft brewery business such as:
- Craft Beer License
- Alcohol Retail License
- Certificate of Food Safety
- Import Licenses
4. Self-declaration of product quality
Before releasing your beer products into the market, you must complete the self-declaration process to confirm that your product meets quality standards. Emerhub can coordinate quality testing with accredited laboratories, and manage submissions to ensure compliance with health regulations throughout the self-declaration process.
Emerhub’s local experts will handle the necessary submissions for the ERC and IRC and secure necessary licenses and permits from the FDA and the DPI.
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