Foreign Investment Restrictions and Business Conditions for Restaurant Operations in Vietnam

17. Industry Category 8. Food and Beverage No. 1

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1. Overview of Regulations

Business: Restaurant Operations

Official Business Name under Vietnamese Law

CPC Code

VSIC Code

Food serving services

642
643

5610, 5621, 5629, 5630

Beverage serving services

Restaurants, eateries, and other mobile catering services

Where a restaurant also manufactures, processes, or sells food, registration for a food manufacturing, processing, and sales business is separately required.
*Preparing food without preservatives for immediate consumption, packaging it at the restaurant, and delivering it to consumers via online ordering platforms such as Grab does not constitute food manufacturing, processing, or sale.

Investment and Business Conditions

Conditions under WTO Commitments

Since 2015, foreign investors have been permitted to enter the restaurant business with up to 100% foreign ownership.

Conditions under Vietnamese Domestic Law (Food Safety Law No. 55/2010/QH12, among others)

i. There are no foreign-investment-specific restrictions on the restaurant business; however, as with local enterprises, foreign-invested restaurants must satisfy business conditions such as those under food hygiene and safety laws (see "3. Conditions Applicable to Restaurants" below for details). Operating a restaurant also requires a food hygiene and safety certificate for the establishment's facilities. Where the restaurant serves alcoholic beverages, a retail liquor license or an application for on-premises alcohol sales is required.

ii. Where the restaurant serves alcoholic beverages, a retail liquor license or an application for on-premises alcohol consumption sales is required.

2. Other Considerations
Because restaurant operations are often conducted as street-level businesses, they are particularly susceptible to scrutiny from authorities (public security, market surveillance agencies, and food safety management agencies). To avoid this, some operators run the business through nominee arrangements.
Accounting and tax treatment for restaurants can be complex, and it is advisable to seek guidance not only from in-house accounting staff but also from external tax consultants and accountants.

3. Conditions Applicable to Restaurants

(1) To obtain a certificate confirming that the facility meets food hygiene and safety standards, a restaurant must satisfy the following conditions.

The restaurant's premises, equipment, utensils, and the staff who cook and serve food must be in good health and meet the health standards set by the Ministry of Health.
The layout must keep the kitchen, sales area, handwashing area, cooking area, and dining area clean and away from sources of contamination. Raw and cooked foods must also be displayed in separate areas.
Sufficient utensils and tableware must be available for cooking, distribution, and food storage. Clean, disposable gloves must be used when handling food directly.
Water used for cooking must comply with the national technical standard for drinking water quality (QCVN 01:2009/BYT). Ice used for beverages must also be made from water meeting this standard and satisfy hygiene requirements.
Ingredients, food additives, and packaged foods must be accompanied by documentation proving their legitimate origin, and only additives approved by the Ministry of Health may be used.
Cooked and ready-to-eat food must be displayed at least 60 cm above ground level and covered with glass cases or dust-proof covers.
Waste must be stored in sealed containers and disposed of properly on a daily basis. Wastewater must also be treated appropriately to prevent environmental pollution.

(2) The application documents for a certificate confirming compliance with food safety standards are as follows.

Application form for the food safety standards compliance certificate
Copy of the business registration certificate
A description of the facilities, equipment, and utensils that meet food hygiene standards
Health certificates for the facility owner and persons directly engaged in food production and business operations
Documentation certifying that the facility owner and persons directly engaged in food production and business operations have completed food hygiene and safety training in accordance with the regulations of the competent ministry

(3) Points to Note Regarding the Application

After submitting the application for the food safety standards compliance certificate, the competent authority will conduct an on-site inspection. The restaurant's responsible manager must be present to respond during the inspection. Inspection teams sometimes raise issues stricter than the statutory requirements; in such cases, the operator should consider whether to negotiate on the basis of the law or to respond flexibly.