Decree 146/2025/ND-CP on industrial & commercial decentralization

2025 marks a significant milestone in Vietnam’s administrative reform as the Government simultaneously promulgates 28 Decrees on delegation, decentralization, and delineation of powers between the central Government and local administrations at two levels, effective from July 1, 2025, to March 1, 2027. In particular, in the field of industry and trade, the Government has promulgated Decree 146/2025/ND-CP on industrial & commercial decentralization, which provides for the delegation and decentralization of powers in this sector. Accordingly, this Decree introduces new provisions regarding the competence of various administrative procedures. Below, Viet An Law summarizes some notable provisions.

Areas of industry and trade subject to changes in delegated and decentralized powers under Decree 146/2025/ND-CP on industrial & commercial decentralization

Decree 146/2025/ND-CP on industrial & commercial decentralization consists of 25 Chapters and 61 Articles regulating the delegation and decentralization of powers in the field of industry and trade, including:

• Adjustment of delegated and decentralized powers in 22 areas under the state management of the Ministry of Industry and Trade.
• The total number of tasks delegated or decentralized to local authorities is 208 out of 401 (representing 52%) of all delegable tasks and powers. This includes 26 tasks from the Government and the Prime Minister, and 182 tasks from the Ministry of Industry and Trade and the Minister of Industry and Trade.
• A total of 72 tasks have been delegated or decentralized from the Government and the Prime Minister to the Ministry of Industry and Trade and the Minister of Industry and Trade. Within the delegation decree, the total number of administrative procedures delegated or simplified is 150 out of 486 (achieving a rate of 30.8%).
• Among these, 119 administrative procedures have been delegated to local authorities, and 31 administrative procedures have been simplified by reducing their required documentation and processing time. An additional 10 administrative procedures are expected to be created as a result of the delegation of tasks from the Prime Minister to the Ministry of Industry and Trade.

Accordingly, 22 areas of state management in industry and trade subject to changes in authority from July 1, 2025, include:

• Petroleum;
• Chemicals;
• Trade promotion;
• Petroleum trading;
• Gas trading;
• Tobacco and alcohol trading;
• Development and management of markets;
• Industrial explosives and explosive precursors;
• Electrical safety;
• Occupational safety and hygiene;
• Commerce, import and export;
• Trading in goods and activities directly related to goods trading by foreign investors in Vietnam;
• Food safety;
• Quality of products and goods;
• Electricity;
• Consumer protection;
• E-commerce;
• Economical and efficient use of energy;
• Industrial promotion;
• Mineral trading;
• Development of supporting industries;
• Automotive sector.

Updates to new authorities under Decree 146/2025/ND-CP on industrial & commercial decentralization

Decree 146/2025/ND-CP on industrial & commercial decentralization amends and supplements numerous provisions on authority in the field of industry and trade. Notable amendments include:

Trade promotion

Commercial Law 2005:

• Authority to prescribe the maximum value of goods and services used for promotion and the maximum discount level for promoted goods/services (Clause 4, Article 94) has been transferred from the Government to the Ministry of Industry and Trade.
• Registration of enterprises organizing for other traders to participate in trade fairs and exhibitions abroad (Clause 2, Article 133) has been transferred from the Ministry of Industry and Trade to the provincial People’s Committees.

Under Decree 81/2018/ND-CP: Confirmation or non-confirmation of enterprises organizing for traders, organizations, and individuals to participate in overseas trade fairs/exhibitions (Point b, Clause 2, Article 29) has been transferred from the Ministry of Industry and Trade to the provincial People’s Committees.

Gas trading

Decree 146/2025/ND-CP on industrial & commercial decentralization amends Decree 87/2018/ND-CP, as revised by Decree 17/2020/ND-CP and Decree 85/2024/ND-CP, as follows:

• Certificates of eligibility for LPG/LNG/CNG import-export traders;
• Certificates of eligibility for production/repair of LPG cylinders;
• Certificates of eligibility for production of mini LPG cylinders.

The authority to grant these licenses has been transferred from the Ministry of Industry and Trade to the provincial People’s Committees.

Tobacco and alcohol trading

Decree 146/2025/ND-CP on industrial & commercial decentralization amends Decree 67/2013/ND-CP, as amended by Decrees 106/2017/ND-CP, 08/2018/ND-CP, and 17/2020/ND-CP, as follows:

• Approval of foreign investment in joint ventures for the production of tobacco products; approval of technology licensing agreements in tobacco manufacturing—previously under the authority of the Prime Minister—are now transferred to the Minister of Industry and Trade.
• Licensing of tobacco raw material processing; approval for import of raw materials, cigarette papers, non-commercial importation of tobacco products, importation of tobacco-specific machinery and equipment, etc., has been transferred from the Ministry of Industry and Trade to the provincial People’s Committees.
• Distribution licenses for tobacco products have also been transferred to the provincial People’s Committees.

Regarding the alcohol business, the new regulations have transferred the authority to issue licenses from the Ministry of Industry and Trade to provincial-level People’s Committees. This is in accordance with Decree 105/2017/ND-CP, which was amended and supplemented by Decree 17/2020/ND-CP regarding business license:

• New Authority Regarding Alcohol Business;
• Alcohol distribution license.

Import-export and trade in goods

The Prime Minister’s authority has been transferred to the Ministry of Industry and Trade in relation to:

• Permission to export prohibited goods or import prohibited goods for special use, warranty, analysis, testing, scientific research, medical purposes, pharmaceutical production, national defense, and security;
• Approval for participation of prohibited goods in overseas trade fairs/exhibitions;
• Approval for processing contracts involving prohibited, restricted, or temporarily suspended import-export goods for foreign traders for consumption abroad.

The Ministry of Industry and Trade’s authority has been transferred to the provincial People’s Committees regarding:

• Licenses for temporary import–re-export business;
• Licenses for transit and cross-border trade;
• Issuance, suspension, and revocation of temporary import–re-export codes;
• Transit permits for goods that are banned from export or import; goods temporarily suspended from export or import; and goods banned from business;
• Licenses for foreign traders to enter into agency contracts for the purchase and sale of export goods;
• Certificates of registration of import-export rights for foreign traders without commercial presence in Vietnam;
• Permits for import of tobacco products for duty-free business;…

Trading of goods and activities directly related to the trading of goods by foreign investors and foreign-invested economic organizations

Licenses for the establishment and termination of operations of foreign traders’ branches (Article 6 of Decree 07/2016/ND-CP): This authority is now handled by the Provincial People’s Committee (previously by the Ministry of Industry and Trade).

Responsibilities and powers of the Ministry of Industry and Trade have been transferred to the provincial people’s committees in the following areas:

• Providing opinions before the issuance or modification of registration for goods trading and activities directly related to goods trading on relevant documents as stipulated by the Law on Investment and the Law on Enterprises, as specified in Clause 2, Article 6 of Decree 09/2018/ND-CP.
• Reviewing and approving the issuance of Business Licenses and Retail Outlet Establishment Licenses, as stipulated in Clause 3, Article 8, Article 10, Article 25, and Clause 2, Article 38 of Decree 09/2018/ND-CP.

Food safety

The Ministry of Industry and Trade’s responsibilities and powers under Decree 15/2018/ND-CP have been transferred to the provincial People’s Committees, including:

• Grant of Certificates of eligibility for food safety for establishments under the Ministry’s management;
• Designating food testing facilities to serve state management purposes and as verification centers. This also includes providing the conclusion when there are conflicting test results between different testing facilities.
• Tracing the origin of unsafe products;
• Designating state inspection agencies for imported food products within their assigned areas of management;…

Electricity

Under Decree 61/2025/ND-CP, licensing powers of the Ministry of Industry and Trade have been transferred to provincial People’s Committees regarding:

• Electricity distribution licenses;
• Electricity wholesale and retail licenses;

Consumer Protection

New regulations have transferred authority from the Ministry of Industry and Trade to provincial-level People’s Committees in the following sectors:

Under the Law on Consumer Protection 2023:

• Receipt of standard form contracts and general trading conditions;
• Receipt of notifications from enterprises regarding registration and application of standard form contracts and general trading conditions;

Under Decree 40/2018/ND-CP (as amended by Decrees 03/2023/ND-CP and 18/2023/ND-CP) on multi-level marketing activities:

• Procedures for notification of termination of multi-level sales;
• Recognition of training programs on legal knowledge of multi-level sales;
• Supervision and inspection of training institutions;
• Issuance, suspension, and revocation of legal knowledge certificates on multi-level sales;

E-commerce

Under Decree 52/2013/ND-CP (as amended by Decrees 08/2018/ND-CP and 85/2021/ND-CP), tasks and powers have been transferred to the provincial People’s Committees regarding:

• Receipt of notifications for e-commerce websites and applications;
• Registration of credit rating activities for e-commerce websites;
• Receipt of applications for the registration of e-commerce website credibility assessment;
• Consulting with the Ministry of Public Security on national security matters during the process of applying for or adjusting a business license.

The abovementioned is an update on some notable provisions of Decree 146/2025/ND-CP on industrial & commercial decentralization. Should you have any questions or require legal assistance regarding licensing procedures in this sector, please contact Viet An Law for professional consultation and support!