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In the wake of high-profile criminal cases involving toxic substances, Vietnamese authorities are sending a clear message to the industrial sector: the boundary between legitimate business operations and criminal liability is thinner than many executives realize. As the country prepares for the enforcement of the new Law on Chemicals 2025, businesses are being urged to overhaul their compliance frameworks to avoid severe legal repercussions.
The Industrial Necessity vs. Public Safety
Toxic chemicals, such as cyanide, remain indispensable in modern manufacturing, playing critical roles in electroplating, mining, electronics, and metallurgy. While the law does not prohibit the trade or use of these substances, it imposes a rigorous system of conditions and procedures. Recent investigations, however, have exposed a systemic gap in compliance.
Following the tragic cyanide poisoning incident in 2024, Vietnamese law enforcement traced the supply chains of toxic chemicals back to public-facing businesses. The results were sobering: directors of chemical trading companies and owners of electroplating shops—individuals operating openly in the market—found themselves facing criminal charges. This case highlight that the issues do not lie in the chemicals themselves, but in whether the business fully complies the conditions and procedures.
Defining "Toxic Chemicals" Under the New Legal Framework
A pivotal change comes with the Law on Chemicals No. 69/2025/QH15, which took effect on January 1, 2026. Its implementing regulation Decree 26/2026/ND-CP provides a precise technical definition of "toxic substance" based on the Globally Harmonized System of Classification and Labelling of Chemicals (GHS) criteria as follows:
Acute toxicity Category 1;
Serious eye damage/eye irritation Category 1;
Skin corrosion/irritation Category 1A;
Carcinogenicity, germ cell mutagenicity, and reproductive toxicity (CMR) Category 1A;
Hazardous to the aquatic environment Category 1
Crucially, Vietnam's Penal Code does not have its own definition of toxic substances; instead, it relies on these chemical law criteria. This means a substance used daily in a factory could simultaneously be classified as a "toxic substance" under criminal law, potentially triggering severe penalties if mishandled.
The Compliance Burden: Tracking Every Gram
The new regulatory regime shifts the focus toward digital traceability and strict sales control. Key obligations for businesses include:
Specialized Licensing: Many toxic substances are included in the List of Chemicals Requiring Special Control (Annex III, Decree 24/2026/ND-CP). Production, trade, and import/export these chemicals require specific license. Notably, licensing authority for certain toxic substance is being decentralized to provincial-level People's Committees to streamline the process.
Sales Restrictions: Businesses can only sell controlled chemicals to two groups: other licensed entities or individuals who have formally declared their intended use on the National Chemical Database.
Digital Traceability: Within 10 days of delivery, sellers must generate an electronic sales control slip. This system, managed by the Ministry of Public Security, ensures that every transaction leaves a permanent digital footprint.
The Sanction Landscape: From Fines to Prison
The legal framework operates on two tiers: administrative penalties and criminal prosecution.
Administrative violations in the field of chemicals are currently being handled by Decree No. 71/2019/ND-CP (as amended by Decree No. 17/2022/ND-CP). The government is drafting a new Decree on administrative penalties to replace the existing one, which is expected to be promulgated in June 2026.
Based on the Decree 71/2019/ND-CP, typical violations involving toxic and hazardous chemicals—such as unlicensed production, out-of-scope operations, illegal sales, and missing control documents—are subject to fines ranging from 100,000 to 25 million VND, alongside potential penalties like license suspension and confiscation of illegal profits.
While administrative fines may seem manageable comparing with a company's revenue, they often serve as the final warning before criminal intervention.
For criminal cases, under the Penal Code, Article 311 targets the illegal production, storage, or trade of toxic substances. This is a "formal crime," meaning the offense is completed the moment the illegal act occurs, regardless of whether any harm has resulted. Penalties range from one year to life imprisonment for the most severe consequences. Article 312 also addresses negligence in managing these substances, holding individuals accountable if their failure to oversee chemicals leads to loss or public harm.
What Should Businesses Do?
The 2025 Chemical Law, effective January 1, 2026, fundamentally tightens regulations on toxic substance transactions by mandating electronic traceability and buyer qualification verification, turning previously legal paper-based sales into potential criminal offenses if businesses fail to update their compliance practices.
Therefore, businesses must proactively align with the 2025 Chemical Law and new decrees by:
Auditing chemical inventories to identify chemicals subject to control
Verifying the validity and scope of licenses and certificates and carry out the renewal or application for new licenses
Establishing strict sales protocol to ensure transactions are only conducted with eligible entities
Organizing regular staff training and update operational information on the National Chemical Databse
What We Can Provide
REACH24H, through its local subsidiary in Vietnam, provides one-stop professional compliance service. We offer:
NCI Status Checking
Regulatory consulting and interpretation
Chemical GHS classification
Import declaration services
Applications for certificates/ licenses for controlled chemicals
Emergency response plan preparation and consulting
New chemical registration services (NCI inventory inclusion)
SDS / label preparation
Chemical database registration and traceability
Chemical safety training
Transitional compliance support
Customs clearance support for chemicals
For more information, please feel free to contact us at [email protected].
