Establish a food manufacturing company in Vietnam

The role of food in life, especially clean foods, is indispensable. Food provides humans with energy and nutrients to maintain life and development. Therefore, the law has very strict regulations on establishing companies that produce food products. In this article, Viet An Law Firm will present the current regulations to establish a food manufacturing company in Vietnam.

Legal basis

• Vietnam’s WTO Commitment Schedule;
• Law on Enterprise 2020;
• Law on Food Safety 2010;
• Decree 01/2021/ND-CP on business registration;
• Decree 15 /2018/ND-CP guiding the Law on Food Safety, amended and supplemented by Decree 155/2018/ND-CP and Decree 85/2019/ND-CP ;

What is food manufacturing?

According to Clause 20, Article 2 of Food Safety Law 2010 stipulates: “Food is a product that people eat and drink in fresh form or that has been pre-processed, processed, and preserved. Food does not include cosmetics, tobacco, and substances used as pharmaceuticals.

For each type of food, Vietnamese law has regulations on specific conditions. In addition to the general conditions for the food production industry, businesses need to meet specific conditions such as origin, input materials, preservation, packaging,…

Conditions to establish a food manufacturing company in Vietnam

Market access conditions for foreign investors

In the WTO schedule of commitments, for services related to production in CPC 884 and CPC 885, the commercial presence of foreign investors in Vietnam is not limited, except after 3 years from the date of accession, only joint venture establishment is allowed in which the foreign capital contribution ratio cannot exceed 50%. Currently, foreign investors are allowed to establish enterprises with 100% foreign capital.

Conditions for the food production industry

Enterprises are allowed to do business in lines of business that are not prohibited by law and have registered business lines with management agencies, and are not allowed to do business in lines of business that are banned from investment and business; Doing business in conditional business investment lines when the business conditions are not met as prescribed by the Enterprise Law, Investment Law or cannot ensure the maintenance of business conditions during operation.

Below are some industry codes that food manufacturing companies can choose from as prescribed in Decision No. 27/2018/QD-TTg promulgating the Vietnamese economic industry system.

Conditions to ensure food safety

Conditions to ensure food safety are technical regulations and other regulations for food, food production, and business establishments, and food production and business activities regulated by state management agencies have the authority to promulgate to ensure food safety for human health and life.

To produce legal food following Vietnamese law, businesses need to fully meet the conditions to ensure food safety according to Article 10 of the Food Safety Law 2010:

• Meet corresponding technical regulations, and comply with regulations on limits of pathogenic microorganisms, pesticide residues, veterinary drug residues, heavy metals, pollutants, and other substances in food that can be harmful to human health and life.
• Depending on the type of food must also meet one or more of the regulations on the use of food additives and processing aids in food production and trading; food packaging and labeling; and food preservation.

Facilities conditions

Manufacture factory food must meet the following conditions:

• Have an appropriate location and area, with a safe distance from toxic sources, pollution sources, and other harmful factors;
• There is enough water that meets technical standards to serve food production; Water sample standards are consistent with National Technical Regulations (QCVN) on domestic water quality No. 02:2009/BYT ;
• Have adequate equipment to handle raw materials, process, package, preserve, and transport different types of food; have enough equipment, tools, washing and disinfecting facilities, antiseptic water, and equipment to prevent and control insects and harmful animals;
• There is a waste treatment system that is regularly operated by the law on environmental protection;
• Maintain food safety conditions and keep records on the origin of food ingredients and other documents on the entire food production and business process;
• Comply with regulations on health, knowledge, and practices of people directly producing and trading food.

Conditions to ensure food safety in food preservation

Manufacture factory Food must meet the following food preservation conditions:

• Storage places and storage facilities must have an area large enough to preserve each type of food separately, be able to carry out safe and accurate loading and unloading techniques, and ensure hygiene during the storage process;
• Prevents the effects of temperature, humidity, insects, animals, dust, strange odors, and other negative environmental impacts; ensures adequate lighting; has specialized equipment to adjust the temperature, humidity, and other climatic conditions, ventilation equipment, and other special storage conditions according to the requirements of each type of food;
• Comply with preservation regulations of organizations and individuals producing and trading food.

Condition on food safety certificate of establishment

Pursuant to Article 11 of Decree 15/2018/ND-CP, food production and business establishments must have a Certificate of establishment meeting food safety conditions when operating. Conditions for granting a Certificate of eligibility for food safety are implemented according to the provisions of Article 34 of the Law on Food Safety 2010.

• Have sufficient conditions to ensure food safety appropriate to each type of food production and business according to the provisions of Chapter IV of this Law;
• Have registered food business in the Enterprise Registration Certificate.

In addition, according to the provisions of this Decree, the following production facilities are not subject to the issuance of Certificates of establishments meeting food safety conditions:

• Initial production was small;
• Food production and trading without a fixed location;
• Producing and trading in tools and materials for packaging and storing food;
• The facility has been granted one of the following Certificates: Good Manufacturing Practices (GMP), Hazard Analysis and Critical Control Points (HACCP), Food Safety Management System ISO 22000, Standard International Food Safety System (IFS), Global Food Safety Standards (BRC), Food Safety System Certification (FSSC 22000) or valid equivalent.

Established a food manufacturing company

• Step 1: Prepare a complete application for Investment Certificate (in case the company has capital from foreign investors) and an application for Business Registration Certificate;
• Step 2: Apply for Investment Registration Certificate (If it is a foreign invested company) ;
• Step 3: After obtaining the Investment Registration Certificate for foreign-invested companies, the business representative submits the business registration application via the website dangkyquamang.dkkd.gov.vn;
• Step 4: Receive result notification
• If the application is valid, the Department of Planning and Investment will issue a notification that the application is approved;
• If the dossier is invalid, the Department of Planning and Investment will issue a notice of amendments and supplements;
• Step 5: Register to receive the Business Registration Certificate by mail or receive it directly at the Department of Planning and Investment;
• Step 6: Carve the company seal and carry out some procedures after establishment.

Application for issuance of Certificate of establishment meeting food safety and hygiene conditions

• Application for issuance of Certificate of establishment meeting food safety conditions;
• Copy of Business Registration Certificate;
• Explanation of facilities, equipment and tools to ensure food hygiene and safety conditions;
• Certificate of good health of the facility owner and person directly producing and trading food issued by a district-level medical facility or higher;
• Certificate of training in food safety and hygiene of the establishment owner and of those directly producing and trading food.

Procedures for proclamation and food registration

According to the Investment Law 2020, food production is a conditional business investment industry. Therefore, in addition to the procedures for applying for a business registration certificate, manufacturing enterprises need to carry out procedures for the proclamation of products or product registration.

Food proclamation

Production organizations and individuals proclamation of pre-packaged processed foods, food additives, food processing aids, food containers, and packaging materials in direct contact with food (after These are collectively referred to as products) .

Product proclamation dossier includes:

• Product proclamation declaration;
• Food safety testing result sheet of the product within 12 months up to the date of application, issued by a designated testing laboratory or an accredited testing laboratory by ISO 17025

Product registration

According to Article 6 of Decree No. 15/2018/ND-CP stipulates that organizations and individuals producing and trading food must register product proclamations for the following products:

• Health protection foods, medical nutritional foods, and foods for special diets.
• Nutritional products for children up to 36 months old.
• Mixed food additives with new uses, food additives that are not on the list of additives allowed for use in food or are not intended for use as prescribed by the Ministry of Health.

The dossier to register a product proclamation for imported products includes:

• Product proclamation according to the form ;
• Certificate of free circulation or Certificate of export or Health certificate issued by the competent authority of the country of origin/export with content ensuring safety for users or sold freely in the country. market of the producing/exporting country (consular legalization);
• Food safety testing result certificate of the product within 12 months up to the date of submission, issued by a designated testing laboratory or an accredited testing laboratory by ISO 17025;
• Scientific evidence proving the uses of the product or the ingredients that create the announced uses (original or copy certified by the organization or individual). When using scientific evidence about the uses of a product’s ingredients to make the product useful, the daily dose of the product must be at least greater than or equal to 15% of the amount of use of that ingredient stated in the document. Whether;
• Certificate of food safety facility meeting Good Manufacturing Practices (GMP) requirements or equivalent certification.

Dossier to register a proclamation for domestically produced products includes:

• Product proclamation according to the form ;
• Food safety testing result certificate of the product within 12 months up to the date of submission, issued by a designated testing laboratory or an accredited testing laboratory in accordance with ISO 17025;
• Scientific evidence proving the uses of the product or the ingredients that create the announced uses (original or copy certified by the organization or individual). When using scientific evidence about the uses of a product’s ingredients to make the product useful, the daily dose of the product must be at least greater than or equal to 15% of the amount of use of that ingredient stated in the document. Whether;
• Certificate of establishment meeting food safety conditions in case the establishment is subject to a certificate of establishment meeting food safety conditions according to regulations (copy certified by the organization or individual) ;
• Certificate of establishment meeting food safety conditions meeting Good Manufacturing Practices (GMP) requirements in case domestically produced products are health protection foods applicable from July 1, 2019 (copy Copy certified by organization or individual).

Above is advice on establishing a food manufacturing company. If you need to establish or need further information, please contact Viet An Law Firm for the earliest support.