Conditions of restaurant business for foreign investors

Conditions of restaurant business for foreign investors in Vietnam

1. INVESTMENT REGISTRATION AND BUSINESS REGISTRATION.
According to Vietnam”s commitment to the WTO, from January 2015, foreign investors are allowed to open their own restaurants without association with hotel projects. Currently, foreign investors are free to choose the restaurant model and how to operate their restaurants as well.
 Therefore, the first condition of restaurant business for foreign investors is to register investment and business in accordance with the law.

2. LOCATION OF THE RESTAURANT
Premise is one of the the conditions for the issuance of investment registration certificates and certificates of food hygiene and safety.
The restaurant location must not be an apartment. The area to be rented must be appropriate to the size of the customer expected by the restaurant. In addition, the foreign investor must ensure that the parking space is legal and in accordance with the planning to ensure the security of the parking lot for customers.
Therefore, the premise is a condition for business restaurants for foreign investors before starting the procedures for investment.

3. FOOD SAFETY AND HYGIENE
Food safety and hygiene is a mandatory requirement of the restaurant business. Therefore, foreign investors must have all the permits of the competent agencies on food safety and hygiene, such as:
- A certificate of food safety knowledge for the owner of the restaurant and the person directly engaged in the production;
- Certificate of food safety and hygiene.
In addition, the restaurant must use food with sources of clear origin, provided by reputable and fully licensed organizations and individuals.

4. FIRE PROTECTION
In order to ensure the fire safety for the restaurant business in accordance with the regulations, foreign investors should have fire diagrams, fire extinguishing equipment on site, fire extinguishers, fire extinguishing systems. Automatic or automatic smoke alarm, the firefighters are trained, the electrical system must be able to bear the load during peak times, the kitchen system should be airy, the gas tanks are used in standard requirements and provided by the reputable supplier.

5. CONDITIONS FOR LISTING SERVICE PRICES
Restaurant business needs listing price. For food menu and services, foreign investors are required to list in Vietnamese Dong in order to comply with the law on foreign exchange.

6. WINE BUSINESS LICENSE CONDITIONS
Foreign investors wish to sell wine need to apply for a retail wine license as required.

7. CONDITIONS ON CIGARETTE BUSINESS LICENSES
Foreigners doing business in restaurants who wish to sell cigarettes must apply for a cigarette retail certificate.

8. RESTAURANT NAME AND BUSINESS MODEL
The registration of intellectual property rights about the restaurant name and business model is essential from the beginning of the restaurant business. Furthermore, the registration procedure for name and restaurant model needs to be done early because in Vietnam this procedure usually takes up to a year or more.

9. INVESTMENT CAPITAL:
Restaurant business does not require minimum capital. However, according to practice experience, the investment capital should be at specific amount at least for ensuring their operation.

10. EXPERIENCE OF FOREIGN INVESTORS:
Foreign investors need to provide documentation proving their experience in operating and executing the restaurant in order to facilitate the issuance of restaurant permits.

Any more information about the condition of restaurant business for foreign investors, please contact us, Click here.

LAWYER VN- VIETNAMESE LAW FIRM