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Set up a chemical business company in Vietnam

In the modern world, the chemical industry plays an undeniable role in the global economy. From the production of everyday goods to applications in agriculture and medicine, chemicals play an important role in every field. With unlimited growth potential and growing demand, starting a chemical trading company can be an attractive business opportunity. In the article below, Viet An Law will advise you on the current legal regulations on the above issue.

Set up - Establish Vietnam Company

Legal basis

  • Law on Chemicals 2007, as amended and supplemented in 2018, 2023.
  • Decree 113/2017/ND-CP detailing and guiding the implementation of several articles of the Law on Chemicals, as amended and supplemented by Decree 17/2020/ND-CP and Decree 82/2022/ND-CP.
  • Circular 32/2017/TT-BCT on guiding the Chemical Law and Decree 113/2017/ND-CP guiding the Chemical Law, as amended and supplemented by Circular 17/2022/TT-BCT.

Market access conditions to set up a chemical business company in Vietnam

Currently, according to regulations in Vietnam’s WTO Commitment Schedule, chemical trading has not been committed. Therefore, foreign investors when investing and doing business in this field in Vietnam need to explain and seek opinions from relevant ministries and agencies on meeting chemical business conditions according to Vietnamese law. current.

Conditions for establishing a chemical business company in Vietnam

Chemical business is a conditional business investment line according to the provisions of the Investment Law 2020. Some chemicals are banned from trading according to the provisions in Appendix II of the Investment Law 2020 and according to the International Convention on prohibiting the development, production, storage, use, and destruction of chemical weapons.

Safety regulations for chemical production and trading

  • Comply with regulations on chemical management and safety according to the law, as well as other relevant regulations, to ensure safety for workers, public health, and the environment.
  • Check, maintain, and operate the system safely regularly, and handle waste properly and effectively.
  • Develop waste treatment processes and meet environmental protection law regulations.

Requirements for technical facilities

  • Factories and warehouses must have emergency exits with signs, ventilation, lighting, and drainage systems that meet regulations.
  • The waste treatment system has a test operation plan, monitoring system, and operating procedures that comply with environmental protection regulations.
  • There is an environmental impact report, an environmental protection plan after completing environmental protection works, a plan to prevent and respond to environmental incidents, and other environmental protection obligations such as waste discharge, collection, recycling, and managing hazardous waste.
  • Safety equipment such as fire prevention, lightning prevention, leak prevention, and other equipment to handle and prevent chemical-related incidents.
  • Labor protection equipment ensures safety for employees.
  • Technology, equipment, tools, and chemical packaging meet national regulations and standards, are durable, and can withstand the impact of chemicals and other agents;
  • Comply with regulations on classification, labeling, and making chemical safety sheets for dangerous chemicals.
  • Transport vehicles must meet safety and environmental requirements related to chemical transport; Storage must be zoned and ensure response to chemical incidents.

Personnel professional qualifications

  • There must be someone responsible for chemical safety.
  • Professional qualifications are required for workers directly involved in the process of producing and trading chemicals, and those directly managing production.

For dangerous chemicals

  • Traders dealing in dangerous chemicals must comply with regulations on separate transportation and storage.
  • Ensure a safe distance from production locations and warehouses to residential areas, public works, historical and cultural relics, scenic spots, biodiversity conservation areas, and domestic water sources.
  • The purchase and sale of dangerous chemicals must have control sheets according to regulations and confirmation from the buyer and seller to serve as a basis for controlling toxic chemicals circulating on the market.
  • When treating and disposing of residual chemicals, containers, and production waste, businesses must strictly comply with the provisions of environmental protection laws.

Certificate of eligibility for chemical production and trading

This is a specific condition imposed on chemical traders on the Conditional List.

  • The list of chemicals for conditional production and trading is issued in Appendix I of Decree 113/2017/ND-CP guiding the Law on Chemicals, including substances and mixtures of substances with the potential to have a strong impact on the living environment and human health.
  • Enterprises must apply for a Certificate of eligibility to produce and trade chemicals in the List of chemicals for conditional production and trading in the industrial sector, except for some cases not subject to issuance under Article 10a of the Decree 113/2017/ND-CP.
  • In addition to the general conditions, chemical businesses in this group also need to meet additional conditions for the issuance of Certificates as detailed in Article 9 of Decree 113/2017/ND-CP.

Production conditions

  • The Director or Deputy Director or technical officer in charge of chemical production activities must have a university degree or higher in chemical majors;
  • Subjects belonging to the 3 groups below must receive chemical safety training:
Group 1 Group 2 Group 3
Heads of units, production and business establishments and affiliated departments, divisions, and branches; persons in charge of production, sales, and technical departments; workshop foreman or equivalent;

The head’s deputy is assigned to be in charge of chemical safety.

Full-time and part-time staff responsible for chemical safety at the facility;

A person who directly supervises chemical safety at the workplace.

Workers directly related to chemicals

Business conditions

  • The person in charge of chemical safety of a chemical business establishment must have an intermediate or higher degree in chemical majors;
  • Have a warehouse or have a contract to rent a chemical warehouse or use a warehouse of an organization or individual buying or selling chemicals that meet the conditions for safe storage of chemicals, the safety of fire and explosion prevention, and fighting.

Application for issuance of Certificate

  • Similar to the condition of separation between production and business, the dossier for traders who only produce will be different from those for traders who only do business as prescribed in Article 10 of Decree 113/2017/ND-CP. Accordingly, the conditions applied to the factory and the business location of the business are almost the same, the biggest difference is the level of personnel between production and business.
  • In case an enterprise simultaneously produces and sells chemicals, the application for a Certificate of eligibility for chemical production and trading is a combination of documents contained in the two above documents.
  • Regarding procedures, businesses submit 01 sets of documents to the Department of Industry and Trade. The Department will evaluate documents, check actual conditions, and issue Certificates of eligibility to organizations and individuals. In case the Certificate is not issued, the competent authority issuing the Certificate must provide a written response, clearly stating the reason. Processing time is from 12 – 20 working days.

Some questions related to set up a chemical business company in Vietnam

After being granted an Enterprise Registration Certificate, what procedures does the company need to carry out?

After being granted a business registration certificate, the company needs to carry out the following initial procedures to start production and business activities:

  • Engraved company seal.
  • Hang the company name sign at the company headquarters address.
  • Open a business bank account.
  • Register for a digital signature to make electronic tax payments.
  • Carry out initial tax declaration procedures.
  • Contribute capital fully and on time according to the provisions of law.

What industry does a chemical business need to register?

  • 4669: Other specialized wholesale not elsewhere classified. Details: Wholesale of chemicals.
  • 8299: Other remaining business support service activities not yet classified. Details: Trading in services related to chemicals (except chemicals banned by the State).
  • 2011: Basic chemical production
  • 2029: Production of other uncategorized chemical products

Business establishment consulting services of Viet An Law

  • Consulting on conditions for establishing a chemical business company according to current regulations;
  • Drafting company establishment documents;
  • Representing clients in working with competent state agencies during the business establishment process;
  • Regular consulting for businesses after establishment.

 If you want to establish a chemical business company, please contact Viet An Law for detailed advice and instructions!

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