Quyết định 2219/QD-BCT

DECISION

ON APPROVAL FOR “PLANNING FOR NETWORK OF LIQUOR DISTRIBUTION AND/OR WHOLESALING NATIONWIDE BY 2015 WITH A VISION TOWARDS 2035”

THE MINISTER OF INDUSTRY AND TRADE

Pursuant to the Government's Decree No. 95/2012/ND-CP dated November 12, 2012, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Government's Decree No. 92/2006/ND-CP dated September 7, 2006 and the Government's Decree No. 04/2008/ND-CP dated January 11, 2008 on amendments to the Government's Decree No. 92/2006/ND-CP on formulation, approval, and management of master plan for socio-economic development;

Pursuant to the Government's Decree No. 94/2012/ND-CP dated November 12th 2012 on the liquor business;

At the request of Director of Department of domestic market,

HEREBY DECIDES

Article 1. To approve the “Planning for network of liquor distribution and/or wholesaling nationwide by 2015 with a vision towards 2035” as follows:

1. Standpoints

- A planning for network of liquor distribution and wholesale is made in accordance with the master plan to develop commerce and beer – alcohol – beverage sector;

- A planning network of liquor distribution and wholesale is made to improve the roles of regulatory agencies in liquor manufacturing, distribution and/or wholesaling on the market.

- Distributors and wholesales in a region or an area shall be distributed in conformity with its characteristics, nature, and socio-economic development and ensure the effectiveness in regulatory management and development.

- A planning for network of liquor distribution and/or wholesaling is made according to the principles of discouragement of liquor business and consumption, assurance of State budget revenues and consumers’ benefits, and sustainable economic development.

2. Objectives

The network of liquor distribution and/or wholesaling shall develop under close control nationwide to enhance effective role of regulatory agencies in manufacturing and trade in liquor products, to ensure the State budget revenues and social benefits, and in accordance with relevant planning. According to the aforesaid basis, the manufacturing and consumption of liquor products shall be oriented towards civilization, in line with cultural traditions and trends of the times.

3. Contents

3.1. Economic-technical indicators applicable to planning for network of liquor distribution and/or wholesaling

Pursuant to the Government's Decree No. 94/2012/ND-CP dated November 12, 2012 on the liquor production and business;

a) Requirements for distributors of liquor products

- The distributor is established in accordance with law, and has registered the wholesaling of alcoholic drinks or liquor products;

- Having fixed business premises with clear addresses; satisfying the requirements pertaining to technology and equipment as prescribed;

- Having a system of liquor distribution in administrative divisions of at least 06 provinces (there must be at least 03 liquor wholesalers in each province);

- Having the letter of introduction and sale contracts of the liquor producers or other liquor distributors;

- Owning or co-owning warehouses (warehouse system) according to joint-venture contracts or contribution contracts; or having warehouse lease contracts that suit the business scale of the enterprise (the total area of at least 300 m2, or the total volume of at least 1000 m3 ) and satisfy the requirements for preserving the quality of liquor while being stored therein;

- Owning or co-owning means of transports according to joint-venture contracts or contribution contracts; or having the contracts to hire such vehicles that suit the business model of the enterprise, and satisfy the requirements for preserving the liquor quality during the transport;

- Being financially capable of ensuring the ordinary operation of the entire distribution system

- Having a commitment made by the enterprise on the compliance with the requirements for fire safety and environment protection as prescribed by law.

b) Requirements for wholesalers of liquor products

- The wholesaler is established in accordance with law, and has registered the wholesaling of alcoholic drinks or liquor products;

- Having fixed business premises with clear addresses; satisfying the requirements pertaining to technology and equipment as prescribed;

- Having a system of wine wholesaling in the province where its premises are situated (there must be at least 03 liquor retailers);

- Affiliated to the business system of a liquor producer or liquor distributor; having the letter of introduction and contracts of the liquor producer or liquor distributor;

- Owning or co-owning warehouses (warehouse system) according to joint-venture contracts or contribution contracts; or having warehouse lease contracts that suit the business scale of the enterprise (the total area of at least 50 m2, or the total volume of at least 150 m3 ) and satisfy the requirements for preserving the quality of liquor while being stored therein;

- Owning or co-owning means of transports according to joint-venture contracts or contribution contracts; or having the contracts to hire such vehicles that suit the business model of the enterprise, and satisfy the requirements for preserving the liquor quality during the transport;

- Being financially capable of ensuring the ordinary operation of the entire distribution system;

- Having a commitment made by the enterprise on the compliance with the requirements for fire safety and environment protection as prescribed by law.

c) The quantity of the Licenses for liquor distribution or wholesaling

The quantity of the Licenses for liquor distribution or wholesaling is determined in the Government's Decree No. 94/2012/ND-CP as follows:

- The quantity of the Licenses for liquor distribution is determined based on the national population: no more than 01 License for liquor distribution for 400,000 people.

- The quantity of the Licenses for liquor wholesaling is determined based on the provincial population: no more than 01 License for liquor wholesaling for 100,000 people.

3.2. Planning for network of liquor distribution and/or wholesaling

a) From 2015 to 2025

- No more than 249 Licenses for liquor distribution are issued, with an increase of 99 Licenses in comparison with 2014 (150 Licenses for liquor distribution are issued were issued nationwide in 2014).

- No more than 996 Licenses for liquor wholesaling are issued, with an increase of 224 Licenses in comparison with 2014 (772 Licenses for liquor wholesaling are issued were issued nationwide in 2014).

b) From 2026 to 2035

- No more than 264 Licenses for liquor distribution are issued, with an increase of 114 Licenses in comparison with 2014 and an increase of 15 Licenses in comparison with 2025.

- No more than 1056 Licenses for liquor wholesaling are issued, with an increase of 284 Licenses in comparison with 2014 and an increase of 60 Licenses in comparison with 2025.

(The quantity of the Licenses for liquor distribution and wholesaling is specified in the Appendix attached)

3.3. Essential demand to implement the planning

a) Demand for warehouses (or warehouse system)

- From 2015 to 2025, demand for total area serving liquor distribution and wholesaling nationwide is at least 132,360 m², in which 72,150 m² for liquor distributors and 60,210 m² for liquor wholesalers.

- From 2025 to 2035, demand for total area serving liquor distribution and wholesaling nationwide is at least 245,250 m², in which 169.650 m² for liquor distributors and 75,600 m² for liquor wholesalers.

b) Demand for financial capacity

- Total financial capacity:

+ From 2025 to 2035, demand for total financial capacity serving liquor distribution and wholesaling nationwide is at least VND 295.34 billion; in which, VND 277.5 billion for liquor distributors and VND 17.84 billion for liquor wholesalers.

+ From 2035 to 2035, demand for total financial capacity serving liquor distribution and wholesaling nationwide is at least VND 876.5 billion; in which, VND 625.5 billion for liquor distributors and VND 224 billion for liquor wholesalers.

- Source of financial capacity structure: Source of financial capacity for liquor distribution and/or wholesaling shall be taken charge by distributors and wholesalers.

4. Solutions

4.1. The State

- The Government's Decree No. 94/2012/ND-CP dated November 12, 2012 on liquor business and their guiding legislative documents (if any) shall be reviewed annually for necessary amendments to fit the actual conditions, ensure the feasibility, and enhance the effective roles of regulatory agencies in liquor business. 

- Strengthen the cooperation between regulatory agencies, interdisciplinary authorities to improve the effective implementation of measures for inspection and control of adherence to business requirements, regulations of law on liquor business by liquor distributors, wholesalers, and retailers so as to create a stable business system against contraband, counterfeit and shoddy goods circulated on the market.

- Raise liquor trader’s and relevant authorities’ awareness of regulations of law in force on liquor business.

- Direct and facilitate the development of supply chain of liquor products. Enhance the foundation and development process of modern types of liquor businesses. Enhance the effective roles of regulatory agencies in the network of liquor business.

4.2. Liquor distributors and/or wholesalers

- Develop business and market development strategy in accordance with state management requirements. Carry out studies on market and customer tastes to find solutions for satisfaction of consumption demand in each area of market.

- Build and control the system of affiliated traders to make a stable network of liquor trading.

- Encourage liquor producers, distributors, wholesalers, importers/exporters, and retailers to cooperate business operation (on the basis of long-term and closely attached economic contracts to ensure the quality of liquor sold on the market as well as develop and protect liquor brands) so as to restrict smuggling, production and marketing of fake and shoddy liquor.

4.3. Vietnam Beer Alcohol Beverage Association

- Cooperate with authorities in formulation of policies for management of liquor business;

- Raise liquor trader’s awareness of regulations of law in force on liquor business. Provide legal assistance for liquor businesses in order for they strictly comply with regulations of law.

- Provide guidelines and experience in control and development of liquor business for liquor producers, distributors, wholesalers, and retailers.

Article 2. Implementation

1. Responsibilities of the Ministry of Industry and Trade

The Ministry of Industry and Trade shall announce the Planning, take charge and cooperate with relevant agencies to direct Services of Industry and Trade to implement this Decision, focusing on the following:

- Inspect the implementation of Planning.

- Direct and instruct provinces to review, amend the Planning or formulate a new Planning for network of liquor retailing in the administrative divisions of the provinces in accordance with this Planning and relevant legislative documents.

- Instruct and inspect provinces in terms of management and inspection of liquor distribution, wholesaling, and retailing in administrative divisions of the provinces.

- Review relevant policies and laws for amendments and issue legislative documents within their competence or request relevant Ministries, agencies for amendments.

2. Responsibilities of Ministries, agencies

The Ministry of Finance, the Ministry of Planning and Investment, the Ministry of Health, the Ministry of Science and Technology and relevant Ministries, agencies shall, according to their functions, tasks, powers, cooperate with the Ministry of Industry and Trade in initiating solutions and policies in this Planning.

3. Responsibilities of People’s Committees of provinces and central-affiliated cities

- Cooperate with Ministries, agencies in inspection and supervision of the implementation of Planning, direct Services of Industry and Trade to cooperate with relevant entities in the administrative divisions to formulate a planning for network of liquor retailing in the administrative divisions and perform other tasks in connection with this Planning.

- During the implementation of the Planning for network of liquor distribution and wholesaling, provinces shall issue Licenses to liquor wholesalers in the administrative divisions according to the Decision on approval this Planning. In each planning period, if it deems necessary to adjust the Planning to be conformable with the needs, socio-economic development, and trade development of each province, a request shall be sent to the Ministry of Industry and Trade for consideration.

4.  Responsibilities of liquor distributors and/or wholesalers

- Comply with regulations of law on liquor distribution within the scope specified in the License.

- Control its network of liquor traders, and promptly send reports on trader’s violations (if any) to competent authorities.

5. Responsibilities of Vietnam Beer Alcohol Beverage Association

- Vietnam Beer Alcohol Beverage Association shall cooperate with The Ministry of Industry and Trade and localities in raising awareness of enterprises that are members of the Associate of the Planning and other regulations of law.

- Study, propose and conduct the cooperation between liquor producers and liquor distributors, wholesalers, and retailers to enhance the cooperation in liquor production and consumption.

- Study and propose solutions and policies for liquor sector to regulatory agencies to implement the approved Planning.

Article 3. This Decision comes into force from the day on which it is signed.

Article 4. The Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, the Presidents of People’s Committees of central-affiliated cities and provinces, and relevant organizations and individuals shall implement this Decision./

APPENDIX 1

MAXIMUM NUMBER OF LICENSES ISSUED TO LIQUOR DISTRIBUTORS AND WHOLESALERS BY 2025, WITH A VISION TOWARDS 2035
(issued together with Decision No. 2219/QD-BCT dated March 12, 2015 of the Minister of Industry and Trade)