Draft amendment to the Law on Chemicals released by Vietnam’s Ministry of Industry and Trade.

Vietnam's main chemical management law, the Law on Chemicals, has a draft update that has been finalized by the Ministry of Industry and Trade (MOIT). MOIT is currently seeking input on the proposed revisions. 

Background on the Law on Chemicals 

The 12th National Assembly, in its second session, passed the Law on Chemicals No. 06/2007/QH12 on November 21, 2007. It became operative on July 1, 2008, institutionalizing, implementing, and expeditiously concretizing the principles and policies of the Party and the State. The enactment of the Law on Chemicals is a significant turning point in the process of formalizing and establishing a national legal corridor for chemical-related activities. 

Current Amendments 

On March 7, MOIT stated that the Ministry's Department of Chemicals should work with the Department of Legal Affairs and other relevant agencies to make further changes to the draft before it is published,. A drafting board and editorial team would be established, MOIT advised, to urgently organise the implementation of the law. 

The Ministry plans to propose an amended draft law at the eighth session of the 15th National Assembly in October 2024, which it hopes will be passed at the ninth session in May 2025. 

Policy development Objectives 

• Create a legal framework that supports the growth of the chemical sector in line with the Party's Ten-Year Socio-Economic Development Strategy, which outlines its goals and directions for 2021–2030. 

• Pay attention to the growth of a number of basic industries, such as energy, mechanical engineering, metallurgy, and chemistry, to meet the economy's needs for basic production materials. 

• Consider the prudent, cost-effective, efficient, and long-term management, utilization, and accumulation of resources. 

• Consider the preservation of the quality of life and public health as primary objectives. 

• In order to "build a green, circular, environmentally friendly economy" and preserve biodiversity and ecosystems, the Party must resolutely reject projects that pollute the environment. This will further consolidate the Party's leadership in chemical management and the chemical industry. 

• Establish a framework of legal documents to stabilize the management of basic chemical activities in the coming years. 

• Align the legal framework for chemical management with international standards to encourage investment from multinational companies and big chemical companies that can expand their operations in Vietnam by utilizing technology, cutting-edge management techniques, and high-value products. This will also help Vietnamese companies to engage in international trade by providing favourable conditions. 

Compared to the 2007 Chemical Law, the draft has one additional chapter and 24 articles, bringing the total to 11 chapters and 95 articles. 

Evaluating the policy impact:  

The following issues will be assessed by the Ministry of Industry and Trade: 

Policy 1: The sustainable growth of the chemical industry as a key sector today. 

Policy 2: Coordinated management of chemicals throughout their life cycle. 

Policy 3: Management of hazardous chemical in products. 

Policy 4: Increasing effectiveness in ensuring the safety of chemicals. 

The Ministry of Industry and Trade analyses each policy using the following procedure: 

1. Identification of the problem (explaining the current state of the problem and examining its causes, effects, and implications). 

2. Aim of the problem solution. 

3. Proposed solution (some of which leave things as they are). 

4. Analysis of the effects of the suggested solution (counting the advantages and disadvantages of each policy option for the state, its citizens, and its companies). 

5. Recommendations and choice of solutions based on effect analysis and evaluation advantages and disadvantages of each solution. 

Submitting Comments 

Comments from agencies, units, organizations, and individuals should be sent in writing to the Ministry of Industry and Trade by email (at KienNV@moit.gov.vn, ThanhNT@moit.gov.vn) or through the Department of Chemicals, No. 21 Ngo Quyen, Trang Tien Ward, Hoan Kiem District, Hanoi City, by April 10, 2024.