FDI 2024: How to Trade Wine in Vietnam?

On 15 May 2024, the Australian Trade and Investment Commission held the Australia Wine Promotion Roadshow in Ha Long City, Quang Ninh Province. At the event, wine exporters and manufacturers noted that Vietnam, the 4th largest wine market in Southeast Asia, is expected to grow at a Compound Annual Growth Rate of 10.93% in revenue and 6.29% in volume from 2023 to 2030. Additionally, Vietnam’s rising middle class, projected to double by 2026, will further boost wine consumption, with retail sales forecast to reach USD 167 billion by 2027[1]. These figures indicate a positive outlook for the wine industry, creating attractive opportunities for investors to enter and expand wine trading operations in the Vietnamese market.

Wine Market Overview in Vietnam

Vietnam has become a focal point for the wine industry, driven by changing consumer preferences and a growing middle class. Wine is increasingly enjoyed with meals, during celebrations, and given as gifts. Hotels, restaurants, and retailers offer a wide selection of wines, especially from countries like Italy, France, Chile, and Australia. Wine prices in Vietnam vary significantly, influenced by factors such as grape variety, production region, vintage, and brand.

Reference retail price list of wine in Vietnam[2]:

CategoryRetail Price per 750ml bottle (USD)
Mass segmentLuxury segment
Red Wine12 to 407407 to 1,630
White Wine12 to 204204 to 1,222
Rosé Wine12 to 75 
Sparkling Wine10 to 204204 to 1,100
Dessert Wine12 to 163 

Applicable Tax Rates

Typically, wine sold in the Vietnamese market is primarily imported. To import wine, investors must identify the appropriate Harmonized System (HS) code, specifically HS code 22.04 – ‘Wine of fresh grapes, including fortified wines; grape must other than that of heading 20.09’, and consider the various taxes applied to this good, including Import tax, Value-added tax (VAT), and Excise tax[3].

However, Vietnam is enhancing its global competitiveness by signing numerous free trade agreements (FTAs). Depending on the countries, investors can leverage the tax incentives offered under the signed FTAs to benefit their business operations. FTAs have made the Vietnamese market more attractive to foreign investors by significantly reducing or even eliminating tax tariffs, notably through the European Union – Vietnam FTA (EVFTA) that will gradually lower special preferential import tax each year, aiming to reach 0% by 2027[4].

Import taxVAT[5]Special excise tax[6]
Ordinary[7]Preferential[8]Special preferential (EVFTA)[9] (2024)Alcohol by Volume ≥ 20oAlcohol by Volume (ABV)  < 20o
75%50%18.7%10%65%35%

Establishment of a Wine Trading Company

Traders can invest in Vietnam’s wine industry by setting up an alcohol trading company (“Company”) in the form of a Limited Liability Company – an independent entity that offers full control, and limited liability within the scope of the contributed capital, and ease of operations.

The establishment of the Company is a three-step process including:

Step 1. Applying for an Investment Registration Certificate (IRC)

The Company shall choose specific business lines[10] to include all the activities that the Company will perform, such as:

  • 4633 – Wholesale of beverages;
  • 4690 – Non-specialized wholesale trade;
  • 4711 – Retail sale in non-specialized stores with food, beverages, or tobacco predominating;
  • 4723 – Retail sale of beverages in specialized stores;
  • 8299 – Other remaining business support service activities not elsewhere classified.

Step 2.  Applying for an Enterprise Registration Certificate (ERC)

The Company shall submit a dossier to the Business Registration Office – Department of Planning and Investment of the city/province where the Company is located to apply for the ERC. Additionally, the Company’s charter capital must be fully paid within 90 (ninety) days from the date of issuance of the ERC.

Step 3.  Applying for relevant Sublicense(s)

Alcohol trading is a conditional business line[11], so the Company shall meet requirements for alcohol distribution, alcohol wholesale, and alcohol retail[12], comply with legal regulations on environmental protection, food safety, fire prevention and fighting, and also apply for different sublicenses when trading wine with ABV ≥ 5.5o[13], particularly:

ActivityAlcohol wholesaleAlcohol retail
Sublicenses– Product Declaration (Công bố sản phẩm)[14]; – Alcohol Distribution License (Giấy phép phân phối rượu)[15]; – Alcohol Wholesale License (Giấy phép bán buôn rượu)[16]; – Certificate of Food Safety (Giấy chứng nhận cơ sở đủ điều kiện an toàn thực phẩm)[17]– Product Declaration; – Alcohol Distribution License; – Alcohol Retail License (Giấy phép bán lẻ rượu)[18]; – Certificate of Food Safety

 * Licenses of alcohol distribution, wholesale, and retail are effective for 5 years[19] and the Certificate of Food Safety is effective for 3 years[20]. Regarding trading wine with ABV < 5.5o, the Company shall register with the district-level Department of Economy or Department of Economy and Infrastructure[21].

Wine Import

Imported wine shall meet the requirements for good labeling, being imported through international checkpoints, and compliance with food safety regulations[22], specifically, product self-declaration and obtaining a “Notification of Food Meeting Import Requirements Result” for each shipment[23].

Therefore, in addition to customs procedures, the Company must follow these key procedures:

  • Pre-import: Food Testing (Kiểm nghiệm thực phẩm)[24] to obtain a Food Safety Certificate to submit the dossier of Product Self-Declaration (Tự công bố sản phẩm), with result published at the Company and on the food safety information database system;
  • Import: State Inspection of Food Safety with regard to Imported Food (Kiểm tra nhà nước về an toàn thực phẩm đối với thực phẩm nhập khẩu)[25]to receive the Notification of Food Meeting Import Requirements Result.

*Wine can only be stored in warehouses after registering for food safety inspection and only be cleared after receiving the Notification of Food Meeting Import Requirements Result[26].

Conclusion

Vietnam’s wine market presents significant potential for growth. With a rising middle class and increasing demand for premium goods, there are profitable opportunities for investors. By implementing effective market entry strategies, ensuring regulatory compliance, and forming strong partnerships, wine traders can successfully tap into this thriving market.

In D’Andrea & Partners Legal Counsel we have authored innovative publications exploring Vietnam, produced in order to provide foreign investors and businesses with more practical guidance on how to do business in Vietnam, as it requires a specific context of the economic and legal framework of the country, including tailor-made consultancy for trading wine in Vietnam.

The above content is provided for informational purposes only. The provision of this article does not create an attorney-client relationship between D’Andrea & Partners and the reader and does not constitute legal advice. Legal advice must be tailored to the specific circumstances of each case, and the contents of this article are not a substitute for legal counsel.


[1] Source: https://vietnam.embassy.gov.au/hnoi/MR240515.html

[2] Summary of retail prices of wine from wine stores in Vietnam

[3] Excise tax (Thuế tiêu thụ đặc biệt) is understood as an indirect tax, levied on several luxury goods and services, affecting the environment and public health, to regulate production, import, and social consumption

[4] 18.7% in 2024, 12.5% in 2025, 6.2% in 2026, and 0% in 2027

[5] Article 8.3 of Law on VAT No. 13/2008/QH12

[6] Article 1.4 of Law No. 70/2014/QH13 amendments to some articles of the Law on Special Excise Tax

[7] Article 3.2 of Decision 15/2023/QD-TTg

[8] Section I Appendix II of Decree 26/2023/ND-CP

[9] Appendix II of Decree 116/2022/ND-CP

[10] Decision 27/2018/QD-TTg

[11] Decision 27/2018/QD-TTg

[12] Article 11, 12, and 13 of Decree 105/2017/ND-CP and Article 16 and 17 of Decree 17/2020/ND-CP

[13] Article 16.1 of Decree 17/2020/ND-CP

[14] Article 16.2 of Decree 17/2020/ND-CP

[15] Article 21 of Decree 105/2017/ND-CP

[16] Article 22 of Decree 105/2017/ND-CP

[17] Article 11.1 of Decree 15/2018/ND-CP

[18] Article 23 of Decree 105/2017/ND-CP

[19] Article 16.20 of Decree 17/2020/ND-CP

[20] Article 7 of Circular 43/2018/TT-BCT

[21] Article 16.1 of Decree 17/2020/ND-CP

[22] Article 30 of Decree 105/2017/ND-CP and Article 16.22 of Decree 17/2020/ND-CP

[23] Article 38.1 of Law on Food Safety No. 55/2010/QH12

[24] Article 45 of Law on Food Safety No. 55/2010/QH12

[25] Article 39 of Law on Food Safety No. 55/2010/QH12

[26] Article 38.1 of Law on Food Safety No. 55/2010/QH12

Carlo Fabrizi Carlo Fabrizi

Carlo Fabrizi

Legal Advisor
Carlo Fabrizi, a representative of D’Andrea & Partners Legal Counsel, handles Foreign Direct Investment projects in Vietnam and South China
Riccardo Verzella Riccardo Verzella

Riccardo Verzella

Senior Associate
Riccardo Verzella, a highly qualified Italian lawyer, has been based in Shanghai, China since January 2020.

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