Liquor trading “Untied”

To be specific, as from 1 September 2017, some of the conditions applicable to liquor trading under Decree No. 94/2012/ND-CP are as follows:

- The number of Liquor Trading Licenses will no longer be limited according to the population of the area where liquor trading companies operate;

- Abrogate liquor distribution conditions: (i) Having stable business premises with clear addresses; satisfying the requirements for technology and equipment as prescribed; (ii) Owning or co-owning means of transports according to a joint-venture contract or association contract; or having the contract to hire vehicles that suit the business model of the enterprise (there must be at least three (03) trucks having capacity of at least five hundred kilograms (500 kg), and satisfying the requirements for preserving the wine quality during the transport; (iii) having the written confirmation of at least one billion Dongs (VND 1,000,000,000) issued by a bank; and (iv) Having a system of liquor distribution on at least six (06) provinces (now two (02) provinces), and at least three (03) alcohol wholesalers in each province (now one (01) wine wholesaler);

- Abrogate liquor wholesale conditions: (i) Having stable business premises with clear addresses; satisfying the requirements for technology and equipment as prescribed; (ii) Affiliated to the business system of alcohol producers or alcohol distributors; (iii) Owning or co-owning means of transports under a joint-venture contract or association contract; or having the contract to hire vehicles that suit the business model of the enterprise (there must be at least one (01) truck having capacity of at least five hundred kilograms (500 kg)), and satisfying the requirements for preserving alcohol quality during the time of transport; and (iv) having a written confirmation of at least three hundred million Dongs (VND 300,000,000) issued by a bank; and

- Abrogate liquor retail conditions: (i) Affiliated to the distribution system of alcohol wholesaler; (ii) Owning or co-owning warehouses (or a system of warehouses) under a  joint-venture contract or association contract; or having a warehouse lease contract that suits the business scale of the enterprise and satisfying the requirements for preservation of the quality of alcohol while being stored there; and (iii) Complying with the planning for the alcohol retail system announced by the provincial Department of Industry and Trade.

The foregoing are notable provision of Decree No. 105/2017/ND-CP on the trading of alcohol promulgated on 14 September 2017 replacing Decree No. 94/2012/ND-CP dated  12 November 2012 of the Government on liquor production and trading. Decree No. 105/2017/ND-CP will be effective as from 1 November 2017.