On 3 January 2011, Vietnam’s Ministry of Industry and Trade (MOIT) issued Circular No. 02/0211/TT-BCT (Circular 02) guiding the implementation of Decree No. 119/2007/ND-CP dated 18 July 2007 (Decree 119) on the manufacturing and trading of tobacco.
Circular 02 took effect as of 14 March 2011 and replaced Circular No. 14/2008/TT-BCT dated 25 November 2008.
Some salient provisions of Circular 02 are discussed below.
Circular 02 provides guidelines on the:
Circular 02 does not apply to the import of tobacco products nor to the trading of such products at duty free shops.
Circular 02 applies to domestic and foreign organisations and individuals engaged in the manufacture and trading of tobacco products and related activities in the territory of Vietnam.
Manufacture of tobacco products
Among other things, to be issued with a tobacco product manufacturing licence, a business entity must
The business entity may not manufacture tobacco products in excess of the manufacturing capacity stated in its tobacco product manufacturing licence.
Conditions for the issuance of a tobacco product wholesale licence (or tobacco product wholesale agent licence)
A business entity shall be issued with a tobacco product wholesale licence (or tobacco product wholesale agent licence) if it:
Conditions for the issuance of a tobacco product retail licence (or tobacco product retail agent licence)
A business entity shall be issued with a tobacco product retail licence if it:
Foreign investment in the manufacturing of tobacco products
Foreign investment in the manufacture of tobacco products is only licensed in the form of either:
Import of specialised tobacco machinery and equipment, tobacco raw materials and cigarette paper
The import of specialised tobacco industry machinery and equipment, tobacco raw materials and cigarette paper is subject to a number of conditions set out by the MOIT.
Enterprises manufacturing tobacco products must send quarterly reports to the MOIT on the import and use of specialised tobacco machinery and equipment, tobacco raw materials and cigarette paper imported during the relevant quarter.
They must send annual and bi-annual reports to the MOIT on their business performance no later than 10 days after the end of the relevant reporting period.
For inquiries related to this Legal Update, please contact:
Dao Nguyen ( )
Jim Dao ( )
Thinh Dan ( )
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