Condition for set up a restaurant business company in Vietnam

As economic conditions are increasingly developing and people’s incomes are increasingly improving and increasing, people’s need to enjoy delicious, beautiful, unique, and nutritious food is increasing. Therefore, the restaurant business is a growing service industry and attracts many investors. However, to establish a restaurant business company, investors need to pay attention to the establishment conditions. Viet An hereby will present the condition for set up a restaurant business company in Vietnam.

Legal basis

• Vietnam’s commitment schedule in the WTO.
• Law on Enterprise 2020.
• Law on Food Safety 2010.
• Decree 67/2016/ND-CP on requirements for food manufacturing and trading under specialized management of the Ministry of Health.
• Decree No. 105/2017/ND-CP on alcohol business, amended and supplemented by Decree 17/2020/ND-CP.
• Decree No. 15/2018/ND-CP details the implementation of a number of articles of the Law on Food Safety, as amended by Decree 85/2019/ND-CP.
• Decree 08/2022/ND-CP details a number of articles of the Law on Environmental Protection.
• Decree 136/2020/ND-CP details a number of articles and measures to implement the Law on Fire Prevention and Fighting and the Law amending and supplementing a number of articles of the Law on Fire Prevention and Fighting.
• Decree No. 01/2021/ND-CP on business registration.

What is a restaurant business?

A restaurant is a place that specializes in selling and providing food and drinks to customers to make a profit. Each restaurant is diverse and rich with different types of food and drinks to satisfy customers’ needs. The food and beverage business is the process of operating equipment, from management, supervision, reception, service staff, and cashiers to the kitchen department. Each department takes on a different role and is trained according to procedures to meet restaurant service standards. This is to improve service quality, bring the best experience to customers, and bring the highest revenue and profit to the restaurant.

Market access conditions for restaurant business services in Vietnam

According to Vietnam’s commitments in the WTO

• When Vietnam joined the WTO, it committed to open market access for foreign investors to the restaurant business in Vietnam for the following sub-sectors: food services (CPC 642) and beverages (CPC 643)
• Vietnam does not limit market access in the commercial presence of the “food (CPC 642) and beverage (CPC 643) provision services” industry, does not limit market access except within 8 years from joining, service provision needs to be carried out in parallel with investment in construction, upgrading, renovation or acquisition of restaurants, after which there are no restrictions.

Thus, foreign investors can now establish restaurant companies in Vietnam without any market access restrictions according to WTO commitments. The establishment conditions applied in this case are similar to those for domestic investors.

Condition for set up a restaurant business company in Vietnam

Conditions for business registration

Restaurant business activities are activities with fixed locations and are regular, so they do not fall under the business cases that do not require registration as prescribed in Clause 2, Article 79 of Decree No. 01/2021/ND-CP. Therefore, investors who wish to legally operate this service are required to register their business.

Conditions to ensure fire safety

• Pursuant to Decree No. 136/2020/ND-CP regulations on fire prevention and fighting. Depending on the total business area or volume, the restaurant owner determines whether his facility is under fire prevention and fighting management or is at risk of fire and explosion.
• In particular, for restaurants with a total business area of 300 m2 or more or a total volume of 3000 m³ or more, must meet the strict conditions set out in Article 5 of the Decree.

Therefore, depending on the scale of business, restaurant owners need to carry out inspections, training, and professional development according to the corresponding list of establishments to ensure they meet fire safety conditions according to regulations.

Food safety and hygiene conditions

Clause 10, Article 5 of the Law on Food Safety 2010 regulates the act of prohibiting the production and trading of food at establishments without a food safety certificate according to the provisions of the law.

Clause 1, Article 11 of Decree No. 15/2018/ND-CP stipulates that food production and business establishments must have a certificate of food safety when operating food businesses, eat and drinks. Except for food restaurants that do not have a fixed location; Restaurants in hotels will not be subject to obtain this certification.

In order for a restaurant business to own a food safety certificate, it must meet the following criteria:

• Have enough conditions to ensure food safety suitable for each type of food production and business according to regulations.
• Have registered food business in the business registration certificate.

Conditions for processing and restaurant business

• The kitchen is arranged to ensure there is no cross-contamination between unprocessed and processed foods.
• There is enough water that meets technical standards to serve processing and business.
• Sewers in shop and kitchen areas must be clear and not stagnant
• The dining room must be airy, and well-lit, maintain cleanliness, and take measures to prevent insects and harmful animals.
• Having equipment for food preservation, toilets, hand washing, and clean daily waste and garbage collection.
• The head of the unit with a collective kitchen is responsible for ensuring food safety.
• Cooking and processing utensils must ensure safety and hygiene.
• Eating utensils must be made of safe materials, washed, and kept dry.
• Comply with health regulations, knowledge, and practices of people directly producing and trading food.

Conditions in food processing and preservation

• Use of food and food ingredients must have clear origins and ensure safety, and store food samples.
• Food must be processed to ensure safety and hygiene.
• Food displayed for sale must be kept in glass cabinets or hygienic storage equipment, resistant to dust, rain, sunlight, and the penetration of harmful insects and animals; displayed for sale on tables or shelves above the ground.

Conditions for people directly involved in food processing

• Certificate of good health of the facility owner and person directly producing and trading food issued by a district-level medical facility or higher; Certificate of negative stool culture results for pathogens causing intestinal diseases (cholera, dysentery bacillus, and typhoid) of the person producing food directly for areas with circulating diarrhea epidemics as announced by the Ministry of Health.
• Certificate of food safety knowledge of the facility owner and person directly producing and trading food (copy certified by the facility);

Some licenses related to the restaurant business in Vietnam

Make a plan for environmental protection

Pursuant to Decree No. 08/2022/ND-CP stipulates that depending on the production and business plan, capacity scale, frequency of wastewater, waste, and emissions to determine whether the restaurant is subject to having to register an environmental protection plan according to regulations. Companies wishing to operate a restaurant need to see detailed criteria according to Decree No. 08/2022/ND-CP.

Alcohol retail license for consumption

For restaurant companies that sell and retail alcohol, they need to apply for a consumer alcohol retail license.

Pursuant to Article 19 of Decree No. 105/2017/ND-CP, the application for a alcohol retail license must include:

• Application for an Alcohol Retail License according to Form No. 01 issued under Decree 105/2017/ND-CP)
• Copy of Certificate of registration of enterprise, cooperative, cooperative union, or business household.
• Copy of lease/loan contract or documents proving the legal right to use the proposed premises as a retail location.
• Copy of the introductory document or principle contract of the wine producer, alcohol distributor, or alcohol wholesaler.

Customers who need advice on the service of establishing a restaurant business company, please contact Viet An Law Firm for the most effective support.