The decree, coming into force on February 2 this year and replacing Decree 38/2012/ND-CP, has made life easier for food traders with the removal of overlapping inspection requirements.
Firms are now allowed to self-announce products without certification from State agencies
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Vu Tien Loc, chairman of the Vietnam Chamber of Commerce and Industry, said that the enforcement of the new decree will help cut 90% of administrative procedures besides saving 10 million working days and VND3.7 trillion (US$163 million).
“We highly appreciate the role of the government and the Ministry of Health in getting feedback from the business community, striving to issue this new decree,” Loc said, adding that it will help encourage and create motivation for producers.
Diep Hong Khon, a Vinamilk representative, also said that the new decree shows a positive change in administrative reforms of the State.
Notably, he said, the decree permits firms to self-announce their products and take responsibility under the law for that announcement, rather than sending the records of announcement to the State management agencies for certification, excepting some products which must be announced at the Ministry of Health.
The reform will help firms to be more active in production and business, save costs to improve the quality and increase the competitiveness, Khon said.
Under Decree 15, food traders and producers must provide information about processed products, food additives, substances for use in food processing, and packaging materials directly contacting food. With additives, nutritious products for children aged below 36 months and food supplements, registration for the announcement of regulation conformity with the competent management body is still required before the product is circulated on the market.
Dau Anh Tuan, head of the Legal Department at the Vietnam Chamber of Commerce and Industry, said that the decree has lessened the burden on food traders, keeping them from spending months asking for regulation conformity announcements and huge inspection costs.
Previous overlapping inspections were said to be a waste of money and resources, whereas a shift from pre-inspections to post-inspections of products is necessary.
According to data of the working team on administrative reforms last August, enterprises needed to spend a total of 28.6 million days and VND14.3 trillion for specialized inspections of exported and imported products at the time of customs clearance, but few violations were detected.
The rate of products relating to food safety and hygiene subject to inspections is 19.1%, whereas specialized inspections account for 41.2%. For instance, chocolate needs 13 certificates, with 12 for materials and one for conformity announcement.
With such requirements lifted, the rate of specialized inspections is expected to be brought down to 15% from 30-35%.
