Vietnam Finalizes Draft Law on Chemicals

On June 24, 2024, the Government of Vietnam officially approved the draft Law on Chemicals (amended) in Resolution No. 97/NQ-CP. Next, the Government will submit it to the National Assembly for discussion and comments at the 8th Session in October 2024.

Revealed problems in the practical implementation of the 2007 Chemical Law

According to the Ministry of Industry and Trade (MOIT), after 16 years of implementation, the 2007 Chemical Law has brought positive impacts to the socio-economic development of the country. However, the practice of law enforcement also reveals a number of shortcomings and problems which are no longer suitable to the actual situation.

Since the promulgation of the Law, the current legal system has experienced significant changes, with new laws issued and existing ones amended. Additionally, Vietnam's participation in various Free Trade Agreements and international treaties on chemicals necessitates updates to the Chemical Law to maintain consistency in chemical management regulations and fulfill international obligations.

On that basis, the Government has proposed to amend the 2007 Chemical Law to concretize the Party's policies and guidelines on developing the chemical industry as a fundamental industry.

Collect inputs from all stakeholders to ensure a scientific and practical basis

To ensure a solid scientific and practical basis, the drafting agency has conducted numerous conferences and discussions to gather input from relevant ministries, localities, businesses, associations, experts, and international organizations.

On April 16, 2024, Vietnam notified the Draft Chemical Law (amended) to the World Trade Organization (WTO) for a 60-day comment. (Click here to learn more)

On May 29, 2024, the Ministry of Justice held an appraisal meeting for the Draft Law dossier, subsequently issuing Appraisal Report No. 132/BCTĐ-BTP on June 6, 2024. The drafting agency addressed the appraisal feedback and finalized the Draft Law dossier.

Stick to 4 core policies

As per the finalized draft amendment, it closely follows the four policies without any modification, including:

Sustainable development of the chemical industry into a modern, fundamental industry
Synchronous management of chemicals throughout the entire life cycle
Management of hazardous chemicals in products
Improving the effectiveness of ensuring chemical safety

The Draft Law consists of 95 articles and is structured into 11 chapters arranged specifically as follows:

Chapter	Main points
Chapter I. General provisions (Article 1~6）	Amend and supplement goals and orientations for chemical industry development
Chapter II. Development of chemical industry （Article 7~11）	Stipulate special incentives and investment support for key industry sectors Supplement regulations on chemical consulting activities
Chapter III. Management of chemical activities (Article 12~45)	Stipulate that all chemicals must be declared upon import Change "list of restricted chemicals" to "list of chemicals requiring special control", including all chemicals controlled under international agreements and treaties to which Vietnam is a member and chemicals that can cause harm to national defense, security, ensuring social order and safety, human health, property and the environment. The production, trading, impot and export activities of chemicals requiring special control shall be subject to licenses issued by MOIT. The purchase and control activities of chemicals requiring special control require a control slip confirmed by the buyer and seller as a basis for controlling chemicals circulating on the market. Chemicals requiring special control need to be declared on the National Chemical Database before first use or when changing the purpose of use.
Chapter IV. Chemical registration, chemical information and advertising (Article 46~58)	Inherit the provisions on registration, assessment, management of new chemicals, GHS requirements on chemicals Assign MOIT to operate, upgrade and develop mechanism for sharing and using information from the Chemical Database
Chapter V. International committments on chemical management (Article 59~60)	New additions to create a legal basis for implementing the Conventions on Chemical Management.
Chapter VI. Hazardous chemicals in products (Article 61~63)	Promulgate the list of hazardous chemicals in products that do not have technical regulations that need to be managed (MOIT) Declare information on the hazardous chemical content in product on the National Chemical Database (businesses)
Chapter VII. Chemical safety (Article 64~77)	Stipulates general requirements on technical and professional facilities for producing, trading, storing, transporting, using and handling chemicals Amend and supplement regulations on Plans and Measures for preventing and responding to chemical incidents
Chapter VIII. Environmental protection and community safety (Article 78~82)	Specify the provisions on the handling of toxic chemical residues of unknown origin, confiscated chemicals and products containing toxic chemicals
Chapter IX. Reporting regime (Article 83~86)	Integrate investment reporting into the annual reporting regime of the national chemical database
Chapter X. State management of chemicals (Article 87~93)	Specify MOIT as the focal agency in performing state management of chemicals, other ministries and ministerial-level agencies perform state management of chemicals within the scope of their functions, powers and tasks.
Chapter XI. Implementation provisions (Article 94~95)	Specify regulations on modifying and replacing certain legal articles. implementation effect and transitional provisions

As scheduled, the new law will be adopted on May 1, 2025, and subsequently enter into force on May 1, 2026.