Vietnam market is one of the places attracting many foreign investors. In particular, business services such as restaurants, hotels or resorts have become a trend of many foreign investors. Accordingly, doing business through opening a restaurant in Vietnam forces foreign investors to comply with certain conditions.FOREIGNERS OPEN RESTAURANT IN VIETNAM
With many years of experience in the field of investment consulting for foreigners, LawPlus would like to send you some information related to the conditions for foreigners doing business in Vietnam.
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Table of Contents/Mục lục
1. Restaurant business is not restricted to foreigners
According to the WTO Schedule of Commitments on services, catering (CPC 642) and beverage (CPC 643) services are subject to.unrestricted market access and are not.restricted to countries under the List of Most-Favored Nation (MFN) Exemption treatment.
Thus, for the restaurant business, it is not in the industry that is.restricted from accessing the market and the country (the territory where the investor has nationality) for foreign investors.FOREIGNERS OPEN RESTAURANT IN VIETNAM
2. What kind of permits are needed
To operate legally in Vietnam, foreign investors must be.granted an investment registration certificate. In addition, in the case of business establishment, the investor will carry out the procedures for establishing an enterprise in accordance with his or her needs and conditions. After establishing a business, investors must apply for necessary permits such as food hygiene and safety, fire protection, environment and some types of retail licenses.
2.1. Investment registration certificate
In order to do business in Vietnam, a foreigner must be.granted an Investment Registration Certificate. Accordingly, there are two popular forms to invest in Vietnam for foreigners: firstly, foreigners can establish foreign-invested companies to do business in restaurants in Vietnam; The second is a foreigner Contributing capital, buying shares or capital contribution in a restaurant business company in Vietnam. At that time, they can be granted an investment registration certificate to carry out restaurant business in Vietnam.
In the case of establishing a foreign-invested company, the investor, after being.granted an investment registration certificate, will carry out procedures for establishing an enterprise and be granted an enterprise registration certificate. Accordingly, enterprises must have registered business lines as Food and Beverage Supply Services.FOREIGNERS OPEN RESTAURANT IN VIETNAM
Depending on the needs and conditions of the investor who wants to register what type of business to implement his project, for the present time, there are usually 3 types of businesses that are usually.selected as follows:
+ One member limited liability company;
+ Two-member limited liability company;
+ Joint stock company.
2.2. Business license
In case a foreign-invested economic organization does business in Vietnam, it is.required to apply for a business license. Accordingly, for the restaurant business (or providing food and drinks), this organization must apply for a business license. This type of document will be.issued by the Department of Industry and Trade where the restaurant operates.
2.3. Certificate of food hygiene and safety
In the type of restaurant service, the food safety license is the first thing that investors need to pay attention to first. Pursuant to the Law on Food Safety 2010, in order to apply for this type of certificate, foreign investors need to meet 3 conditions as follows:
Conditions for ensuring food safety for food processing and business establishments :
- The kitchen is.arranged to ensure that there is no cross-contamination between unprocessed food and processed food.
- Water sample standards are consistent with the National Technical Regulation (QCVN) on domestic water quality No. 02:2009/BYT.
- Having tools for collecting and storing garbage and waste to ensure hygiene.
- Drains in shop and kitchen areas must be clear and not stagnant.
- The canteen must be airy, cool, well-lit, maintain a clean hygiene regime, and take measures to prevent harmful insects and animals.
- There are equipment for food preservation, toilets, hand washing and daily cleaning of waste and garbage.
- The head of the unit having a collective kitchen is responsible for ensuring food safety
Conditions for ensuring food safety for food processing and business establishments :
- Have separate utensils and containers for raw food and cooked food.
- Cooking and processing tools must ensure safety and hygiene.
- Eating utensils must be made of safe materials, washed and kept dry.
- Comply with regulations on health, knowledge and practice of people directly producing and trading food.
Conditions for ensuring food safety in food processing and preservation :
- Using food, food ingredients must have clear origin and ensure safety, save food samples.
- Food must be.processed to ensure safety and hygiene.
- Food displayed for sale must.be stored in glass cabinets or hygienically preserved equipment, resistant to dust, rain, sunlight and the penetration of harmful insects and animals; are sold on the table or the price is higher than the ground.
2.4. Certificate of eligibility for fire prevention and fighting
Pursuant to Appendix I of the List of establishments subject to fire prevention and fighting management (Attached to Decree No. 136/2020/ND-CP dated November 24, 2020 of the government), Market; commercial centers, electronics; supermarket; convenient store; convenient shop; restaurants and food shops under the management of fire prevention and fighting. That is, when doing business in restaurant services, food shops are required to apply for this type of license. This is considered a common “sublicense”; is specified as one of the mandatory conditions when the investor; vehicle owners carry out administrative procedures related to construction permit application activities; business in some industries must have.
Conditions for applying for a certificate
Pursuant to Clause 1, Article 7 of Decree 79/2014/ND-CP guiding the Law on Fire Prevention and Fighting and the amended Law on Fire Prevention and Fighting, the conditions for applying for a certificate of satisfaction of fire prevention and fighting conditions are as follows: :
- Having regulations, rules, prohibition signs, signs, diagrams or signposts on fire prevention and fighting and escape suitable to the characteristics and nature of the facility’s operations.
- There are regulations and assignment of responsibilities and tasks for fire prevention and fighting in the facility.
- Electrical system, lightning protection, anti-static; equipment using electricity, generating fire and generating heat; the use of fire and heat sources must ensure fire prevention and fighting safety.
- There are safety technical processes on fire prevention and fighting suitable to production, business and service conditions.
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There are grassroots and specialized fire prevention and fighting forces trained in fire prevention and fighting skills and a standing organization ready to fight fires to meet on-site fire fighting requirements.
- Having a fire fighting and escape plan.approved by a competent authority as prescribed in Article 21 of this Decree.
- Having a system of traffic, water supply, communication in service of fire fighting, fire alarm system, fire fighting, fire prevention, other fire prevention and fighting means, and means of saving people suitable to the nature and characteristics of the fire fighting system. of the facility to ensure the quantity, quality and operation in accordance with the standards and technical regulations on fire prevention and fighting or the regulations of the Ministry of Public Security.
- There is a written appraisal, approval, inspection and acceptance on fire prevention and fighting.issued by the fire prevention and fighting police agency for the works specified in Appendix IV issued with this Decree.
- Having records of management and monitoring of fire prevention and fighting activities according to regulations of the Ministry of Public Security.
2.5. On-site retail liquor license, tobacco retail license
Organizations providing alcohol business services must carry out procedures for applying for a certificate of alcohol retail on the spot. This license is.issued by the People’s Committee of the district where the business location is located. In addition, in the case of tobacco retail, the service business organization must carry out the procedures for applying for a Certificate of Tobacco Retailing.
Explore more:
- Tobacco Retail License
- License to sell alcohol on site
Restaurant business, food and beverage service is becoming a business trend of many foreigners in Vietnam. With the above sharing, LawPlus hopes that customers can understand a part of restaurant business in Vietnam, especially for foreigners. To learn more about this field, contact us via hotline 02862 779 399, 03939 30522 or email info@lawplus.vn to be consulted and answered by the LawPlus team.
