Legal scheme for doing chemical industry in Vietnam

12/12/2022

LEGAL SCHEME FOR DOING BUSINESS ON CHEMICAL INDUSTRY IN VIETNAM

I. Definition of doing business in chemical.

“chemical trade” includes sale, export and import of chemicals to provide chemicals on the market for profitable purposes.
“chemical extraction and packaging” means the use of equipment and tools to extract pure or bulk chemicals into packages or from one package to another with no change to the chemical composition and characteristic properties, content and nature of the chemicals.

II. Conditions of doing business in chemical in Vietnam

Trade in chemical is one of the condition business lines under Investment Law 2020.

To do business in chemical, based on type of Chemical, The Company must follow:

Obtain Certificate of Eligibility for Business (sub-license);
Do not allow to trade or imported Banned chemicals
Investors of projects that involve production, trade, storage or use of chemicals containing at least 1 chemical mentioned in Appendix IV attached Decree 113/2017/ND-CP - The list of hazardous chemicals with the maximum storage volume at a period of time over or equal to the volume stated in such Annex shall make plans for every hazardous chemical of projects and submit them to relevant ministries for inspection and approval before putting projects into operation.

In case must obtain Certificate of Eligibility for Business (sub-license), Conditions are as follow:

a) The applicant is an enterprise, cooperative or household business that is established in accordance with regulations of law and licensed to trade in chemicals;

b) Physical and technical facilities: Workshops, warehouses and technological equipment; Safety equipment, fire and explosion prevention and fighting, lightning protection, prevention and control of chemical leakage and dispersion and other chemical incidents; Labor protection equipment; Equipment for environmental protection, waste treatment system; Transportation; Table of regulations on chemical safety…. must meet specific conditions as prescribed.

c) The chemical store or premises satisfies requirements for chemical and fire safety;

d) The warehouse or the agreement on lease of warehouse or use of the warehouse of the chemical buyer or seller satisfies requirements for chemical and fire safety;

- Factories shall satisfy requirements national technical regulations and standards, nature, scale and production and storage technology of chemicals.

- Factories and warehouses shall have emergency exits. The emergency exit shall be clearly marked, lighted and designed to facilitate the escape and rescue in case of an emergency.

- Ventilation systems of factories and warehouses shall satisfy ventilation system regulations and standards.

- Lighting systems shall meet requirements for chemical production and storage. Electrical equipment in factories and warehouses storing flammable and explosive chemicals shall meet fire safety standards.

- Floors of chemical factories and warehouses shall be resistant to chemicals, load and good drainage.

- Chemical factories and warehouses shall have regulations on chemical safety and warning signs hanged in visible places corresponding to the hazards of chemicals. Such signs shall display information about chemical identification numbers; warning graphics and words. If a chemical substance poses various types of hazards, its warning symbols shall specify all types of such hazards. Instruction signs specifying safety procedures shall be equipped at areas producing hazardous chemicals.

- Factories and warehouses shall have lightning arrester systems or and inspections carried out periodically.

- The bunds should be built around storage tanks to prevent chemicals from exposing to the environment when a chemical emergency occurs and take preventive measures for fire and lightning.

- Factories and warehouses shall satisfy requirements for fire and environmental safety, occupational safety and hygiene according to regulations of relevant law.

e) Any person responsible for chemical safety of the chemical store has at least an intermediate school’s degree in chemicals.

g) Person must be trained in chemical safety, including: Heads of units, production and business establishments, and affiliated departments and branches; in charge of production, sales and technical departments; workshop manager or equivalent; The deputy head of the head assigned to be in charge of chemical safety; Full-time and part-time staff in charge of chemical safety of the establishment; Persons directly supervising chemical safety at the workplace; workers directly involved in chemicals.

So Entities having chemical-related activities shall provide training courses in chemical safety herein to participate in training courses organized by chemical safety training centers every 2 years/time.

When submit dossier to obtain this Certificate, the Company shall submit attached documents as follow:

Decision approving or certifying documents related to environmental protection as prescribed by law, issued by competent state management agencies;
Certificate of design approval for fire prevention and fighting and written approval for acceptance of fire prevention and fighting system;
The overall drawing of the system of premises of factories and warehouses, the content of the drawings must ensure the information about the location of the workshop, the warehouse, the chemical storage area, the area and the way to the factory, the area. chemical production and storage; A copy of the document proving the right to use the land plot for the construction of the factory or warehouse or the contract for renting the factory or warehouse;
A copy of the intermediate degree or higher in chemical major of the person in charge of chemical safety;
Copies of chemical safety training records;
Chemical safety sheets of dangerous chemicals in business establishments according to regulations.

III. Declaration and report of chemical

Declaration of chemical.

The list of declaration of chemicals is provided in Appendix V attached Decree 113/2017/ND-CP.

Organizations and individuals importing chemicals are responsible for declaring imported chemicals before customs clearance through the National System.

Organizations and individuals are responsible for storing a set of chemical declaration dossiers to present to competent authorities upon request, for a minimum period of 5 years.

Report of chemical

Prior to January 15th every year, organizations and individuals engaged in chemical activities are responsible for making a general report on the situation of chemical activities of the previous year to Department of Industry and Trade of the province where such activities are carried out and to the Vietnam Chemicals Agency.