Food businesses concerned decree amendments could cost them millions

Food businesses concerned decree amendments could cost them millions

The draft decree has significantly tightened three categories of administrative procedures and introduced some unreasonable regulations, potentially creating new bottlenecks for production and business operations, according to EuroCham.

An export shrimp processing line in HCM City. — VNA/VNS Photo

Food businesses have expressed concerns over a draft decree tightening administrative procedures related to product declaration and registration, which industry insiders say could severely impact Việt Nam's agriculture and food processing industries.

The draft decree amending and supplementing Decree 15/2018/NĐ-CP has significantly constricted three categories of administrative procedures: self-declaration, product declaration registration and declaration re-registration, according to the European Chamber of Commerce in Việt Nam (EuroCham) and the Nutritional Foods Group (NFG).

It also introduces some unreasonable regulations that do not align with international practices, potentially creating new bottlenecks for production and business operations, experts said. 

For self-declaration procedures alone, the increased document requirements and processing time could delay business operations by up to three months and seven days, according to recent estimates. 

Product declaration registration would see additional documentation requirements that could result in an annual cost of over VNĐ1.6 trillion (US$62.5 million) for food businesses, with an as-yet unknown increase in processing time.

The measures outlined in the draft decree are entirely inconsistent with legal solutions for food safety regulation detailed in the Ministry of Health’s five-year review report on the implementation of Decree 15/2018/NĐ-CP, the EuroCham experts said.

It lacks provisions on food safety standards and regulations, as well as risk assessment and traceability through the supply chain. Instead, it tightens all three types of procedures, increasing paperwork and compliance costs.

EuroCham also pointed out that the draft decree fails to address the most pressing food safety issues, including fresh food, street food and collective kitchens -- all primary sources of food poisoning. 

Instead, it focuses solely on administrative control measures for pre-packaged foods, which rarely cause foodborne illnesses, thus offering minimal practical benefits.

EuroCham recommended that the Government instruct the Drafting Committee to thoroughly review feedback from industry associations in the decree's formulation.

Additionally, it proposed that the Government host a dialogue between the Drafting Committee and relevant associations to review the final draft before submitting it for approval.

"Food safety is a critical issue that affects all 100 million citizens. The Government is already in the process of amending the Food Safety Law, with plans to enact it in October. To avoid regulatory overlap and ensure effective institutional reform, we recommend amending the Food Safety Law first and revising the implementing decree afterwards," EuroCham noted. 

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