Newsletter 2023/1

Friday, 03/31/2023

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Dear Readers,

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Welcome to the first edition 2023 of the Vietnam Competence Center for the Agri-Food Industry Newsletter.  Quarterly, we use this format to inform you about key topics in the Vietnamese food sector, current developments and important dates. We wish you a lot of fun reading and a happy new year!

 

Best regards
Your competence center Vietnam for the agricultural and food industry

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⚡Focus topic: Attractive legal developments in the food industry in Vietnam

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The food industry in Vietnam is dynamic, especially in the legal sense, and characterized by many modernization ideas.

Aspects of consumer protection, but also simplifications of the legal requirements for entrepreneurs, and thus the will to boost the economy, characterize the current legal situation in Vietnam. In recent years there have been some specifications to strengthen consumer protection. However, these should not be perceived as obstacles or tightening for entrepreneurs.

A significant change was enacted in 2021: superlatives may no longer be used in the food industry. If an entrepreneur finds that their bagel is "the tastiest in Saigon," they must back it up with studies or certifications, otherwise they face penalties. This was laid down by the government on March 29th in Decree 38.

Decree 05/2019/TT-BKHCN regulates how said example bagel – and all other food with the exception of raw products – must be labeled correctly.

Most recently, on June 26, 2019, the MOST (Ministry of Science and Technology) issued the circular 05/2019/TT-BKHCN regarding the content of the mandatory labels on food. This guides the implementation of Decree 43 ("Circular 05") and specifies the requirements for the mandatory content of some specific product labels.

Quantities, weight and country of origin must now be included on the product labels. In addition, attention must be paid to readability. The requirements (for detailed reading: https://www.russinvecchi.com.vn/wp-content/uploads/2020/09/food-law-in-vietnam.pdf) do not place increased demands on foreign entrepreneurs, but serve the Implementation of the principles of consumer protection known from Europe. 

In general, the Vietnamese food industry is regulated by numerous laws, which can make it difficult to get an overview. The general regulations on the quality assurance of goods also determine the requirements for the food industry. There are also individual regulations that apply specifically to the food industry: the safety of food is regulated by the LoFS and the quality of some consumer goods - including food - by the LoQPG.

The LoFS came into force in 2007 and regulates the quality standards of foodstuffs that must be observed by the manufacturers, while the LoQPG regulates hygiene regulations.

For non-Vietnamese entrepreneurs, the special requirements for imported goods are also regularly relevant. In particular, the food must be registered with a competent state agency. In addition, the food importer must receive a certificate of compliance with the import conditions required by the responsible ministry for each batch of goods from a designated inspection body.

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Despite the changes just described, the almost annual changes in the law in the Vietnamese food industry show a clear trend: trade is to be simplified, provisions have been made more specific, procedures simplified, standards merged. 

In addition to legislation that has been steadily improving for the economy for almost 20 years, the Vietnamese government has increasingly focused on aspects of consumer protection in recent years. Overall, attempts have been made in recent years to simplify Vietnamese law in relation to the food industry and to align it with many regulations known from the European legal system - certainly with the aim of creating an attractive market for foreign players.

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