You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

December 21, 2021

New Goods Labeling Regulations in Vietnam

Subscribe to Updates

On December 9, 2021, the Government of Vietnam issued Decree No. 111/2021/ND-CP amending and supplementing Decree No. 43/2017/ND-CP dated April 14, 2017, on goods labeling (Decree 43). Decree No. 111/2021/ND-CP (Decree 111) takes effect on February 15, 2022.

Under Decree 111, the regulations on goods labeling will change as follows:

Exported goods

The scope of regulations for goods labeling is currently restricted to goods imported and circulated in Vietnam according to Article 1.1 of Decree 43. However, under Decree 111, the scope is expanded to include exported goods, and exporters are added to the list of entities subject to the regulations.

An exception is added whereby exported goods do not need to be labeled in Vietnamese if the goods are not consumed domestically.

According to the new regulations, labels for exported goods must comply with the regulations of the import country. The origin of goods must be identified and labeled in compliance with Vietnam’s laws on origin of goods or with international agreements Vietnam has joined or signed. Moreover, the label must not display any images or information relating to a sovereignty dispute or other sensitive information which may affect national security, politics, the economy, society, diplomatic relations, or traditions of Vietnam.

Origin of goods

Under Decree 43, it is compulsory to display the origin of goods on their labels with no alternatives. This can cause difficulty for entities who cannot determine the origin of the goods. Decree 111 has addressed this issue by adding a clause whereby, if the origin of goods cannot be determined, it is required to clearly state the place where the final production stage is conducted to complete the product. The following statements should be used to present the final production stage: “assembled at”, “bottled at”, “mixed at”, “finished at”, “packed at”, or “labeled at”, followed by the country name or the territory where the final completion process takes place.

Compulsory information on original labels

Decree 43 mentions the original label as the initial label attached to a good or the good’s commercial package by the manufacturer. If the original label of an imported good does not conform with the provisions of Decree 43, the importer must make supplementary labels with the compulsory contents before putting such goods into circulation together with their original labels. This means there is no compulsory information for original labels.

However, Decree 111 requires that goods imported into Vietnam must have original labels that fully display certain compulsory information.

Electronic presentation of information

According to Decree 111, several contents can be presented electronically. The Minister of Science and Technology will promulgate guidance on electronic goods labeling.

Presentation of food ingredients

For food ingredients, unlike Decree 43, Decree 111 allows the INS to be used instead of a specific name when presenting the names of sweeteners or colorings in the ingredient list section, while it is no longer required to specify the names of flavorings in this section.

Transitional provisions

After the new decree takes effect on February 15, 2022, goods with labels in compliance with Decree 43 that were manufactured, imported, and/or circulated before the effective date can continue to be circulated and consumed until their expiry date. Goods labels and packages with accompanying labels in compliance with Decree 43 that were manufactured or printed before the effective date can also continue to be used for manufactured goods, but for no more than two years beyond the effective date (i.e., not after February 15, 2024).

Related Professionals

Practices

Regulatory Affairs

Location

RELATED INSIGHTS​ 

March 7, 2023
According to the Ministry of Health of Vietnam, many healthcare facilities in the country are facing a shortage of drugs, medical devices, and materials/chemicals. To address the urgent needs of medical examination and treatment in public healthcare facilities, on March 4, 2023, the government of Vietnam promulgated Resolution No. 30/NQ-CP on continuing to implement solutions to ensure the availability of drugs, medical equipment, and healthcare supplies (“Resolution 30”). Resolution 30 amends item 4 of Resolution No. 144/NQ-CP dated November 5, 2022, allowing medical examination and treatment expenses to continue to be covered by health insurance for technical services carried out with medical devices supplied by contractors after winning tenders to supply materials and chemicals. The new mechanism brings more benefit to patients by removing the previous ending date of November 5, 2023, and will be applicable until there is further guidance from the government. Resolution 30 also allows the use of medical devices that were donated or gifted by domestic and foreign entities (including those that were provided under now-expired joint ventures or cooperation contracts) regardless of whether those entities have fulfilled the procedures for ownership establishment. Technical services that are performed by such devices will be covered by health insurance. This provision will help address the shortage of medical devices used in public hospitals. The determination of bid price is also a highlight of Resolution 30, which pilots a simpler price determination procedure for the purchase of drugs and medical devices. Instead of requiring purchasers to obtain quotations from three suppliers, Resolution 30 allows them to compare prices based on the quotations actually received, even from only one or two suppliers. Alternatively, price determination can be based on the winning bid price for a similar medical device procurement package that was awarded within the last 120 days. This
Read More
March 1, 2023
In Cambodia, the Ministry of Commerce takes the lead on many consumer protection matters, issuing and enforcing regulations that contribute greatly to a fairer and more transparent legal framework. The regulations protect consumers while simultaneously creating a more a level playing field for businesses. On September 2, 2022, the ministry issued a new regulation concerning household chemical products. The regulation, named Prakas No. 192 on the Requirements for the Labeling of Household Chemical Products, is another big leap forward in light of the consumer protection framework that the Cambodian government has been rapidly updating in recent years. Interesting issues in the regulation include household chemical product classification, labeling and language requirements, product storage requirements, recall requirements, and obligations for companies engaging in business activities related to household chemicals. In addition, the regulation reminds household chemicals businesses operating online of the need to obtain additional e-commerce licensing. Cambodia’s consumer protection authority, the Consumer Protection, Competition and Fraud Repression Directorate-General—commonly known as the CCF—has already started to enforce the new regulation, as the three-month transition period under the regulation has now passed. Classifying and Defining Household Chemicals The regulation classifies household chemicals into three groups based on the product’s purpose—namely detergents, pesticides, and substances for home and garden protection. There is also a separate list of household chemicals identified as “chemicals not allowed for use in food.” This list is just a reminder, as existing legislation already prohibits the use of the identified chemicals in food. The regulation defines household chemicals as finished chemical products, or chemical additives to products, that can be harmful to health and that have one of the three purposes mentioned above. The regulation further states that the products are for use in “normal life,” such as in homes, workshops, or gardens, or for other public use.
Read More
February 28, 2023
Influencer marketing and the creation of sponsored content is an increasingly popular way for brands to reach their target audience. Although there is no universal definition of an “influencer,” the term is broadly used to describe people who are able to affect purchasing decisions of others through their relationship with their audience. In the context of social media and the creator economy, influencers are usually people with significant followings on platforms such as Instagram, TikTok, Twitch, or YouTube who are viewed as celebrities, opinion leaders, trendsetters, or experts in their respective field. Based on a study conducted by Nielsen in 2022, 80% of social media users in Asia who follow influencers are likely to purchase products recommended by the influencers. Brand owners should be aware of five key legal considerations when entering into influencer marketing agreements. 1. Making informed decisions through due diligence Every collaboration with an influencer is a business relationship. Brands must conduct thorough due diligence on potential influencers prior to engaging them. This may include deep dives into the individual’s old social media posts, as well as requests for disclosure of prior controversial incidents and existing brand associations. For example, a health and fitness brand may not want—for both legal and commercial reasons—to be publicly associated with an influencer who is a brand ambassador of electronic cigarettes, no matter how impressive the latter’s Instagram following or deadlift record is. Brands should also ensure that their influencer marketing agreements include relevant representations and warranties that the influencer has not and will not commit a crime or act in a way that may cause negative publicity for the brand. This may include racist, extremist, homophobic, violent, or misogynistic acts, or any other acts that are obscene or against public order. 2. Clearly defining the scope of engagement Brands
Read More
February 21, 2023
On December 28, 2022, the Ministry of Health of Laos issued Decision No. 3789/MOH on the Control of Hemp for Medication and Products (the “Decision”). The Decision approves the regulated cultivation, extraction, production, processing, storage, distribution, utilization, import-export, and transport of hemp. The Decision also authorizes the use of hemp and hemp-related products by the general population, although use of certain products is limited to those with medical prescriptions. Background In 2019, the Lao government established an ad hoc committee to consider the legalization of cannabis, as reported previously. The government permitted certain local companies to grow cannabis in specific zones under pilot programs, although it continued to strictly prohibit the use and commercialization, as well as consumption, of cannabis-related products, regardless of the level of psychoactive tetrahydrocannabinol (THC) in the products. Overview of the Decision The Decision was issued by the Ministry of Health (which led the ad hoc committee) and permits authorized companies to engage in certain activities involving the use of hemp and the consumption of hemp and hemp-related products. The Decision defines hemp (“porkeo” in Lao) as a “plant that belongs to the same family as ganja and bears the scientific name Cannabis Sativa L. (Cannabis sativa L. subsp. sativa var. sativa) which is a subspecies of ganja (Cannabis Sativa L.).” This definition aims at differentiating hemp from the general definition of ganja or marijuana, which continues to be listed as a prohibited narcotic in Laos. The Law on Narcotics (2007) and the Penal Code (2017) still prohibit the production, trade and use of all types of cannabis. These laws will need to be amended to ensure that they are aligned with changes set out in the Decision.  Authorized Hemp Activities The Decision allows approved companies to engage in the cultivation, extraction, production, processing, storage,
Read More