This article provides an in-depth analysis of Vietnam’s food business license process and provides a comprehensive guide for food companies exploring the Vietnamese market. The content covers the latest Vietnamese food safety regulations, details the application requirements for different types of food businesses, and provides a step-by-step license guide for the application process. By analyzing common problems and solutions, combined with actual case analysis, it aims to help enterprises obtain necessary licenses efficiently and compliantly. At the same time, we will explore the unique challenges and opportunities of the Vietnamese food market and provide insights for companies to formulate market entry strategies. Whether you are an entrepreneur new to Vietnam or a business looking to optimize compliance processes, we will be your best guide in the Vietnamese food market. An important reference for development.
Overview of Vietnam’s Food Safety Regulations
Vietnam’s food safety system regulations are based on the country’s Food Safety Law of 2010, which has been revised and improved many times to form a comprehensive and strict regulatory framework. The law clearly stipulates safety requirements for all aspects of food production, processing, storage, transportation and sales, laying a legal foundation for ensuring national health and the sustainable development of the food industry.
Within this legal framework, the Vietnamese government has formulated a series of supporting regulations and implementation rules. Among them, the final Decree No. 15/2018/ND-CP in 2018 made specific provisions on the implementation of the Food Safety Law, further clarifying the responsibilities and obligations of food companies. The decree requires all food-related businesses to obtain food safety licenses and undergo regular inspections and assessments by regulatory authorities.
Vietnam’s food safety system standards are in line with international standards and strictly refer to the standards of the International Codex Alimentarius Commission (Codex Alimentarius). At the same time, Vietnam has also established its own food safety standard system, such as QCVN (Vietnam National Technical Regulations) and TCVN (Vietnam National Standards). These standards cover the use of food additives, curing agents, heavy metal residues and other aspects, providing Food companies provide clear compliance guidance.
Importantly, Vietnam has particularly strict requirements for imported food. According to Decree No. 15/2018/ND-CP, all imported food must undergo safety testing in Vietnam and obtain an import award from the Customs or the Ministry of Agriculture and Rural Development. This regulation imposes higher requirements on foreign food companies wishing to enter the Vietnamese market. compliance requirements.
In terms of law enforcement, Vietnam has established supervision teams with multiple collaborative departments. Several government departments including the Ministry of Contracts, Agriculture and Rural Development, and the Ministry of Industry and Trade jointly participate in the supervision of food safety. The Ministry of Development is responsible for the safety supervision of primary agricultural products, while the Ministry of Industry and Trade is mainly responsible for the supervision of agricultural and rural markets. This division of labor and cooperation model ensures full supervision from farm to fork.
Recently, the Vietnamese government has increased penalties for food safety violations. The “Administrative Penalty Law” revised in 2018 significantly increased the penalty standards for food safety violations, reaching a maximum of 20% of the company’s annual turnover. , measures such as suspension of business operations and forced closure of businesses can be taken for serious violations, which reflects the government’s great emphasis on food safety.
In addition, Vietnam also actively promotes the openness and transparency of food safety information. The government requires food companies to mark the source of raw materials, production date, shelf life and other information on product packaging, and encourages companies to use modern technologies such as QR codes to facilitate consumers to query product information. This not only improves food safety traceability but also enhances consumer confidence.
Vietnam’s food safety regulatory system is constantly improving and developing. For food companies entering the Vietnamese market, they must carefully understand and strictly abide by these regulatory updates.
Licenses required for different types of food businesses
In Vietnam, different types of food businesses need to apply for different licenses, and the requirements and application processes for these licenses are also different. Below we will detail the main licenses required for various types of food businesses:
Food production company
Food production enterprises refer to enterprises engaged in processing food raw materials and manufacturing finished food. Such enterprises first need to obtain a Certificate of Eligibility for Food Safety. The certificate is issued by the provincial health department and is valid for 3 years. In addition, enterprises also need to apply for an enterprise registration certificate (enterprise registration certificate) and an investment and production license (investment license).
For manufacturers of special foods such as infant formula and health foods, they need to apply for an additional product registration certificate. This type of certificate is issued by the Vietnam Food Safety Authority (Vietnam Food Administration), and the review process is more stringent. It usually requires detailed information such as product formula, production process, and quality standards.
Food import company
Food import companies are mainly responsible for importing food from overseas into the Vietnamese market. In addition to the basic enterprise registration certificate and overseas investment license, such enterprises must also obtain a Food Import Business License. This license is issued by the Ministry of Industry and Trade of Vietnam and usually lasts for 5 years.
In addition, for each batch of imported food, the company also needs to apply for a Food Hygiene and Safety Certificate (Certificate of Food Hygiene and Safety). This certificate needs to be applied to the port quarantine department when each batch of goods arrives in Vietnam, and must pass the corresponding inspection and quarantine procedures.
Food retail business
Food retail enterprises include supermarkets, convenience stores, food specialty stores, etc. Such enterprises need to obtain a Food Trading License, which is issued by the local market management department and lasts for 3 years. Large retail enterprises with a business area of more than 200 square meters need to apply for an additional commercial business registration certificate.
Catering service companies
Catering service enterprises include restaurants, cafes, canteens, etc. Such enterprises need to apply for a food safety and hygiene certificate (Food Safety and Hygiene Certificate), which is issued by the local health department and is most recent 3 years old. For large chain restaurant businesses, an additional franchise license (franchise license) may also be required.
Food storage and transportation companies
Businesses specializing in the storage and transportation of food need to obtain a food storage license (food storage license) or a food transportation license (food transport license). These licenses are jointly issued by local transportation departments and health departments, and the level is usually 3-5 years.
Primary processing enterprises of agricultural products
Enterprises engaged in primary processing of agricultural products such as fruits, vegetables, and meat need to apply for an agricultural product processing license (agricultural product processing license). The license is issued by the Ministry of Agriculture and Rural Development and is last for 5 years. At the same time, such businesses are also required to comply with Good Agricultural Practice (GAP) standards.
Food additive manufacturing company
In addition to basic food safety conditions certificates, companies that produce food additives also need to apply for product registration certificates for consumer additive products. This type of certificate is issued by the Vietnam Food Safety Authority. The review process is very strict and usually requires a product safety assessment report.
Functional food and health products companies
Companies that produce or import functional foods and health products need to apply for separate product registration certificates for consumer products. The application process for this type of certificate is extremely complex, usually requiring detailed information such as scientific evidence of product efficacy and safety assessment reports, and the review life cycle is also very long.
Liquor production and sales companies
In addition to the basic food safety license, alcohol companies also need to apply for an alcohol production or sales license (alcohol production or trade license). This type of license is issued by the local industry and trade department and has special requirements for the company’s production conditions, sales network, etc.
Grain and feed companies
Enterprises involved in grassroots food need to apply for an additional grassroots food safety certificate (genetically modified food safety certificate). This type of certificate is issued by the Ministry of Agriculture and Rural Development, and the application process is complex and requires a detailed safety report assessment.
It should be noted that no matter what type of food enterprise, in addition to the above specific licenses, it also needs to comply with general enterprise registration requirements, including enterprise registration, tax registration, social insurance registration, etc. At the same time, all food companies must establish and improve food safety management systems, regularly train employees, and accept regular inspections by relevant departments. For multinational or foreign-invested enterprises, additional investment licenses or other special approvals may be required.
Application Process Progress
The application process for a Vietnamese food safety license is a complex and rigorous process that requires companies to invest a lot of time and resources to ensure strict compliance with regulations at every step. The entire process can be divided into several key stages: preliminary preparation, document preparation, application submission, on-site inspection, sample testing, review and approval, and subsequent management.
The application process begins with comprehensive preliminary preparation. Enterprises first need to determine which type of food business they have and clarify the specific types of licenses they need to apply for. This step is critical because the required licenses and application processes may differ for different types of food businesses. Next, companies should carefully study Vietnam’s latest food safety regulations and related standards. It is recommended that local consultants familiar with Vietnamese law assist in interpreting regulatory requirements. At the same time, companies need to conduct internal assessments to ensure that production facilities, staffing, quality management systems and other aspects meet Vietnam’s requirements.
Document preparation is the tedious but most critical stage of the entire application process. The enterprise needs to prepare a series of documents, including a copy of the corporate business memorandum, food safety management system documents (such as HACCP, ISO 22000 and other certifications), almost all production facilities and equipment, a list of main raw materials and their source description, product formula and production process Process descriptions, product standards and test reports, sample labels and packaging designs, and personnel health certificates and training records. All documents need to be translated into Vietnamese and notarized. For imported food, a free sale certificate issued by the relevant department of the country of origin is also required.
After preparing all necessary documents, businesses can submit their applications to the appropriate government departments. The process usually involves submitting an application form and all supporting documents to the local food safety management department, applying for a fine (the fee will be based on the size of the business and the type of product), and then obtaining an application acceptance receipt, which will indicate the document review time. It is worth noting that the Vietnamese government is supporting an online application system, and some areas can already submit online through the government application website, which must simplify the programming process.
After the preliminary review of the documents is passed, the relevant departments will arrange on-site inspections. Inspections generally include the compliance of production facilities and equipment, hygienic conditions, personnel operating practices, raw material storage conditions, food safety control measures in the production process, and product inspection capabilities. It is necessary to ensure that all aspects meet the declared standards and to prepare relevant documentation for inspection. This stage is crucial to the success of the application because it directly reflects whether the actual operations of the enterprise meet food safety requirements.
For most food categories, especially new products, regulatory authorities will require samples for safety testing. Testing items usually include microbial indicators, heavy metal content, pesticide residues, use of food additives, and nutritional composition analysis. These tests need to be conducted in officially recognized laboratories in Vietnam, and the testing costs are borne by the applicant company. The results of sample testing will directly affect the approval of the license, so companies should ensure that product quality is stable and meets all relevant standards.
Based on the results of document review, on-site inspection and sample testing, the relevant department will make a decision on whether to issue a license. If all materials meet the requirements, the business will receive a food safety license. The entire process from submitting an application to obtaining a license usually takes 30-90 days, depending on the product type and defects in the application materials. At this stage, it is important to maintain good communication with regulatory authorities to help companies understand application materials in a timely manner and respond quickly to any additional information requests when needed.
Once the license is obtained, the business’s responsibility ends. The same applies to follow-up management. Enterprises need to conduct production and operations strictly in accordance with the scope of the license, establish a product replenishment system, conduct important self-inspections and employee training on a regular basis, maintain communication with regulatory authorities, and report any major changes in a timely manner. It is particularly important to note that enterprises should initiate a renewal plan three months before the license expires to ensure business continuity.
What needs special emphasis is the urgent requirement of the Vietnamese government for food safety supervision. Enterprises should set up a dedicated compliance team to continuously pay attention to changes in regulations and promptly adjust internal management to meet new requirements. Proactively maintaining good communication with regulatory authorities can not only maximize the success rate and efficiency of applications, but also help companies establish a good reputation in the Vietnamese market.
Frequently Asked Questions and Solutions
During the process of applying for a Vietnamese food safety license, companies often encounter various challenges and problems. Understanding these common issues and their solutions can help businesses complete the application process more smoothly and avoid unnecessary individual and additional costs.
Language barrier is the first problem that many foreign companies encounter during the processing process. Vietnam’s laws, regulations and application documents are often written in Vietnamese, which can pose a significant challenge for businesses unfamiliar with the country’s application language. To overcome this problem and obstacle, it is recommended that companies hire professional translation services to ensure that all documents are accurately translated into Vietnamese. It is also wise to hire local consultants who are familiar with Vietnamese laws and food safety regulations. Not only can these professionals help businesses understand complex regulatory requirements, they can also provide valuable assistance when coordinating with government agencies.
Inadequate document preparation is another common problem. Many businesses underestimate the amount and complexity of required documentation, resulting in failed or delayed applications. The key to solving this problem is planning ahead and understanding the full list of documents required. Businesses should set up a dedicated team responsible for collecting and preparing all necessary documents. At the same time, it is recommended to ask local consultants or relevant departments to pre-review documents before formally submitting an application to ensure that all materials meet the requirements. This precaution minimizes the risk of your application being returned.
Production not meeting Vietnamese standards is also a common obstacle. Many businesses are finding that facilities they consider qualified may not be acceptable under Vietnam’s standards. To address this issue, businesses should carefully research food production facilities in Vietnam in general and conduct a thorough internal assessment before applying. If gaps are discovered, improvements should be made immediately. In some cases, major equipment upgrades or facility modifications may be required. While this may involve significant investment, in the long term, it is a necessary step to ensure a successful license and continued operations in the Vietnamese market.
Product formulation and labeling issues also often cause application delays. Vietnam has strict regulations on food additives, nutritional content claims and labeling information, which may differ from other countries. To avoid such problems, companies should carefully study relevant regulations in Vietnam and adjust product formulas in emergencies to comply with local requirements. For labels, local experts are consulted at the proposal design stage to ensure that all information complies with Vietnamese regulations. At the same time, taking into account the special needs and preferences of Vietnamese consumers, appropriately adapting the product may increase the chance of approval.
On-site inspections are another potential problem area. Some companies successfully pass the document review stage but encounter difficulties during on-site inspections. This is often due to a discrepancy between actual practices and documented descriptions, or a lack of adequate understanding of food safety procedures by employees. The solution to this problem is a thorough internal audit and training. Before the application process begins, companies should conduct a comprehensive self-examination against Vietnam’s standards and promptly correct any non-conformities. At the same time, comprehensive training is provided to all relevant employees to ensure that they understand and can fully and fully implement all food safety procedures.
Failure of sample testing is another possible reason for rejection. This may be due to product quality issues or unfamiliarity with Vietnam’s testing standards and methods. In order to avoid this situation when applying, companies should take the initiative to conduct a comprehensive pre-inspection of products in accordance with Vietnamese standards before formal application. This not only helps companies understand whether their products meet the requirements, but also provides guidance on product adjustments that may be needed. If problems are discovered, companies should take corrective measures immediately and adjust plans or production processes if necessary.
Many businesses underestimate the time and complexity of the entire process, causing business plans to suffer. The key to solving this problem is reasonable time planning and expectation management. Businesses should realize that obtaining a food safety license is a complex process that can take several months. When developing your business plan, you should allow for adequate buffer time for possible delays. At the same time, it is also important to establish good communication channels with local regulatory agencies in Vietnam, which can help companies understand application details in a timely manner and respond quickly to any additional requirements.
Many problems in the process of applying for a Vietnam food safety license can be solved with adequate preparation, professional guidance and flexible response strategies. Businesses can view this process as an opportunity to learn and improve, rather than just an administrative hurdle.
case study
Different businesses face challenges and experience their own differences during the Vietnam food safety license application process. By analyzing some typical cases, we can better understand the complexity of this process and the key factors in successfully obtaining a license. Here are a few cases worth exploring in depth:
Case 1: International dairy company successfully entered the Vietnamese market
An international dairy company faced serious challenges when entering the Vietnamese market. The company’s flagship product, a children’s milk powder fortified with special probiotics, has been a huge success in other countries. However, when they applied for a Vietnamese food safety license, they encountered unexpected difficulties.
First of all, Vietnam has extremely strict requirements for imported milk powder, especially infant formula milk powder. The company discovered that formulas and additives used in other countries were not fully accepted in Vietnam. In order to solve this problem, the company established a dedicated R&D department team to work closely with Vietnamese food safety experts to make coordinated adjustments to the product formula. Not only do they ensure that all ingredients meet Vietnamese standards, they also take special consideration into the nutritional needs of Vietnamese infants and young children.
Secondly, although the company’s production facilities meet international standards, some problems were still discovered during on-site inspections in Vietnam. To this end, the company invested a lot of money to upgrade the production line and established an independent production area specifically for the Vietnamese market to ensure full compliance with Vietnamese requirements.
Finally, companies also face challenges when it comes to labeling and marketing materials. Vietnam has strict regulations regarding functional claims and promotion of health benefits. Companies must redesign all packaging and advertising materials to ensure all claims are scientifically sound and comply with local regulations.
After nearly a year of hard work, the dairy company finally succeeded in obtaining a Vietnamese food safety license. Their experience shows that entering the Vietnamese market requires patience, flexibility and a deep understanding of local regulations. Company executives said that despite the arduous process, these efforts not only enabled them to successfully enter the Vietnamese market, but also improved the overall product quality and safety standards.
Case 2: Transformation of a local small food processing factory
A family business finds itself facing the dilemma of either upgrading or closing.
At first, plant leaders were overwhelmed by the new food safety requirements. Their production facilities are crude, sanitary conditions are difficult to meet, and there is no formal quality control system. However, under the guidance of the local government, they struggled to make the decision to obtain a formal food safety license.
First, they attended food safety training courses organized by the government and learned basic hygiene practices and quality control methods. They then used the microloan to completely renovate the production facility, including installing stainless steel workbenches, improving the ventilation system, and establishing a separate raw material area.
They encountered significant difficulties in document preparation because a formal management system had never been established before. To this end, they hired a food safety consultant to help them establish a basic documentation system, including raw material procurement records, production process control and product traceability mechanisms.
The most sensitive thing is changing employees’ working habits. For years, workers had been working in traditional ways and were uncomfortable with the new hygiene requirements and operating procedures. The factory owner gradually cultivated employees’ safety awareness of eating habits through daily training and institutional incentives.
After half a year of hard work, the small factory finally obtained a food safety license. Although the process is full of challenges, the results are gratifying. Not only has the product quality been improved, but the company’s market image has also been significantly improved, and it has even become quite attractive. Large employee concerns. This showcases how small traditional businesses can successfully adapt to new food safety standards, even with determination and the right guidance.
Case 3: Localization strategy of a multinational food company
A well-known American snack manufacturer decided to set up a production base in Vietnam to better serve the Southeast Asian market. Despite the company’s extensive operating experience around the world, Vietnam’s unique regulatory environment still presents surprising challenges.
The company’s main problem was integrating its globally standardized production processes with Vietnam’s specific requirements. For example, Vietnam has stricter requirements for certain food additives than the United States. The company had to re-evaluate the formulations of many of its products to maintain product characteristics while complying with Vietnamese standards.
Another challenge is the local sourcing of raw materials. Vietnamese regulations encourage the use of local ingredients, but companies are finding it difficult to find local suppliers that meet their quality standards. To solve this problem, the company launched a supplier development program to work with local farmers to provide technical support and quality management training to improve the quality of raw materials.
Companies also face cultural and communication challenges during the application process. Despite the engagement of local consultants, some misunderstandings arose in interactions with government departments. To this end, the company has specially set up a team composed of foreign managers and local responsible experts to be responsible for communication and coordination with regulatory agencies.
After nearly two years of hard work, including multiple adjustments to production plans and repeated communications with regulatory authorities, the company finally obtained a comprehensive food safety license. This process not only allowed the company to successfully enter the Vietnamese market, but also prompted it to rethink the balance between globalization and localization. The company said the experience has significantly improved its ability to do business in emerging markets.
These case studies illustrate the various challenges that can be encountered when applying for a food safety license in Vietnam, as well as the strategies adopted by successful companies. Whether it is a large international company, a local small business, a multinational company or a company’s localization attempt, it all highlights the importance of in-depth understanding of local regulations, flexible adjustments, emphasis on communication with regulatory agencies, and strategic improvement. These experiences are not only applicable to the Vietnamese market, but also provide valuable inspiration for companies doing business in other emerging markets.
Latest policy updates
Environmental policies in the field of food safety in Vietnam have been constantly changing in response to increasingly complex food safety challenges and changing international standards. In recent years, the Vietnamese government has made a series of changes and important policy updates in food safety supervision, which are crucial for food companies operating in Vietnam or planning to enter the Vietnamese market. Understanding these latest policy updates will not only help companies ensure compliance, but also help them better capture market opportunities.
The Vietnamese government will formulate new “Implementation Rules for the Food Safety Law” in 2023, further strengthening supervision of the entire process of food production and operation. The detailed rules place special emphasis on the establishment of a food traceability system, requiring all food production and operating companies to implement a comprehensive product traceability mechanism. This means companies need to invest in new technologies and systems to ensure that every step from raw material procurement to finished product sales is effectively tracked. Although this requirement may increase business operations, in the long run, it will help improve food safety levels and enhance consumer confidence.
Vietnam has recently revised its standards for the use of food additives. This update is consistent with the latest recommendations of the Codex Alimentarius Commission. The new standards not only adjust the use of some additives, but also introduce some newly approved ones. For food production companies, this means that their product formulas need to be carefully reviewed and may need to be adjusted according to the new standards. It is worth noting that the new standards also pay special attention to the use of certain natural extracts, reflecting Vietnamese consumers’ growing demand for natural, healthy foods.
In terms of imported food supervision, the Vietnam Customs Administration has cooperated with the food safety management department to launch a new electronic customs clearance system. The system aims to simplify the inspection process of imported food and improve customs efficiency. However, this also means that importers need to prepare more detailed product information and electronic versions of relevant certificates in advance. Although it may take some adaptation time initially, in the long run, this will greatly reduce customs clearance time and reduce the logistics cost of imported food.
The Vietnamese government has also strengthened supervision of online food sales. With the rapid development of e-commerce in Vietnam, online food sales are becoming increasingly frequent. The new regulations require all operators who sell food through online platforms to obtain corresponding licenses and publicly display their food safety-related certificates online. This policy not only targets local e-commerce platforms, but also applies to border e-commerce. For international food brands planning to enter the Vietnamese market through e-commerce channels, this means that partners need to be selected more rigorously to ensure they comply with new regulatory requirements.
In terms of food labeling, Vietnam’s Ministry of Industry and Commerce recently issued new guidelines, which particularly emphasize the allergy requirements for allergen information. In addition to common allergens that are already on the market and must be allergic to, the new regulations also require manufacturers to be allergic to allergies that may cause cross-contamination. This reflects the Vietnamese government’s growing concern about food allergies and is also more in line with international standards. For food manufacturers, this may require redesigning product labels and strengthening allergen management during production.
Another trend worth watching is the Vietnamese government’s increased regulation of functional foods and health products. Recently, a new guidance document was released to clarify the review criteria for functional claims. The new standards require companies to provide more rigorous scientific evidence for their functional claims, which may make product development and market access more difficult. However, this also creates opportunities for those companies that are able to provide reliable scientific evidence, helping to enhance the scientific nature and credibility of the entire industry.
Finally, the Vietnamese government is actively promoting international cooperation in the field of food safety. Recently, Vietnam has signed a food safety mutual recognition agreement with several major trading partners, which will greatly simplify the food trade process between these countries. For international food companies, this means it will be easier to enter the Vietnamese market if they can obtain certification in a partner country. However, this also requires companies to pay close attention to the differences between different national standards to ensure that products can meet the requirements of multiple markets at the same time.
Overall, Vietnam’s latest food safety policy update reflects the country’s government’s decisions in improving food safety standards, strengthening regulatory efficiency, and promoting international cooperation. These changes undoubtedly bring challenges to food companies, but they also create new opportunities. Enterprises need to remain vigilant, keep abreast of changing policies, and flexibly adjust business strategies in order to seize opportunities and achieve sustainable development in this ever-evolving regulatory environment.
