Are businesses allowed to invest in trading military weapons in Vietnam?

Hello, Lawnet would like to answer as follows:

1. What are military weapons?

According to Clause 2, Article 4 of the Law on management and use of weapons, explosives and combat gears 2017, amended in 2019, military weapons include:

- Weapons that are manufactured or crafted satisfactory to technical standards and design of legal manufacturers and provided for people’s armed forces and other forces as specified herein to perform certain tasks, including:

+ Firearms: handguns, rifles, submachine guns, light machine guns, anti-tank guns, grenade launchers;

+ Light weapons: heavy machine guns, mortars, DKZ rifles, anti-aircraft machine guns, man-portable anti-tank rocket launchers;

+ Heavy weapons: fighter aircrafts, attack helicopters, tanks, armored vehicles, warships, submarines, artillery, anti-aircraft artillery, rockets;

+ Bombs, mines, grenades, torpedoes, naval mines; ammunition for weapons specified in this Point;

- Weapons that are manufactured or crafted manually or industrially without satisfying technical standards and design of legal manufacturers capable of inflicting damage and harm to lives and health of humans, destroying matter structures similar to weapons specified in Point a of this Clause and not provided for people’s armed forces and other forces specified in Article 18 of the Law on management and use of weapons, explosives and combat gears 2017, amended in 2019 to perform tasks.

2. Are businesses allowed to invest in trading military weapons in Vietnam?

According to Article 2 of Decree 101/2022/ND-CP stipulating subjects of application related to investment and trading in military weapons, specifically:

“This Decree is applicable to enterprises, agencies, organizations and individuals related to investment and trading in military uniforms, military equipment and supplies for the people's armed forces, military weapons, specialized technical equipment and technology used for production thereof to ensure national defense and security."

Thus, according to the above regulations, businesses are allowed to invest in and trade military weapons used to serve national defense and security. However, there will be differences in application conditions between enterprises belonging to the Ministry of National Defense and the Ministry of Public Security and enterprises not belonging to the Ministry of National Defense and the Ministry of Public Security.

What are the requirements for investment and trading in military weapons in service of national defense and security in Vietnam?

According to Article 7 of Decree 101/2022/ND-CP, requirements for investment and trading in military weapons in service of national defense and security include:

For enterprises and organizations under the Ministry of National Defense and the Ministry of Public Security

Enterprises and organizations under the Ministry of National Defense and the Ministry of Public Security shall be eligible for investment and trading in military weapons in service of national defense and security when they fully meet requirements prescribed in Articles 7 and 8 of Decree 79/2018/ND-CP specifically:

Conditions for research into, manufacture, trading, import, export and repair of weapons to be satisfied by the organization/enterprise affiliated to the Ministry of National Defense and Ministry of Public Security

- The organization/enterprise is assigned the plan for or tasks of researching, manufacturing, trading, importing, exporting and repairing weapons by the Ministry of National Defense and Ministry of Public Security

- Conditions for security, order, fire prevention and fighting, incident response and prevention and environmental protection shall be satisfied. To be specific:

+ Regulations on entry and exit and security and order assurance plans should be made. Equipment, items and commodities transported into and out of the organization/enterprise should be kept under control. Security forces should be set up.

+ Regulations, sufficient equipment, forces in charge of inspecting fire safety and internal fire fighting plans should be in place. It is required to carry out fire drills and adopt fire safety measures as prescribed.

+ Measures for reducing, collecting and treating materials and wastes, and tackling environmental pollution on site shall be adopted. It is prohibited to leak or spread toxic to the environment. Provision of sources and equipment for prevention and response to environmental emergencies shall be ensured.

- The place for manufacture and repair of weapons shall be conformable to conditions for security, order, fire prevention and fighting and environmental protection. It is required to set a safe distance from residential areas, cultural, social and historic constructions, security areas and prohibited areas.

- There must be equipment and instrument suitable for testing and monitoring specifications and serving quality inspection during manufacture and repair of weapons, and a separate testing place (except for research into and manufacture of cold weapons). Finished product warehouse shall comply with technical regulations and standards.

- Types of weapons shall ensure quality and comply with technical standards and regulations. Each military weapon and each sporting weapon shall have its own trademark, number, symbol, manufacturing country and year of manufacture.

- The manager of an organization/enterprise shall be provided with training in management and use of weapons, fire safety and incident prevention and response during manufacture and repair of weapon.

- Employees directly involved in manufacture and repair of weapons shall provide with training in fire safety and incident prevention and response, occupational safety and hygiene assurance during manufacture and repair of weapon.

Conditions for trading in weapons to be satisfied by the organization/enterprise affiliated to the Ministry of National Defense and Ministry of Public Security

- The organization/enterprise is assigned the plan for or task of weapon trading by the Minister of National Defense or Minister of Public Security.

- The conditions specified in Clause 2 Article 7 of Decree 79/2018/ND-CP are satisfied.

- Warehouses, storage places and equipment in service of weapon trading shall fulfill conditions for security, order, fire prevention and fighting, incident response and prevention and environmental protection in accordance with regulations.

- The manager of an organization/enterprise shall be provided with training in management and use of weapons, fire safety and incident prevention and response during trading process.

For organizations and enterprises not under the Ministry of National Defense and the Ministry of Public Security

Organizations and enterprises not under the Ministry of National Defense and the Ministry of Public Security may participate in research, manufacture and repair of military weapons in service of national defense and security when they satisfy the provisions in Article 10 of Decree 79/2018/ND-CP, specifically:

- Other organizations/enterprises are entitled to research, manufacture and repair weapons according to the order placed by the Ministry of National Defense and Ministry of Public Security and shall:

+ be a Vietnamese organization/enterprise established as prescribed by law; and

+ satisfy the conditions specified in Clauses 2, 3, 4, 5, 6 and 7 Article 7 of Decree 79/2018/ND-CP.

- The organization/enterprise that wishes to research, manufacture and repair weapons shall submit 01 application to the competent authority designated by the Minister of Public Security (regarding the order placed by the Ministry of Public Security) or the Minister of National Defense (regarding the order placed by the Ministry of National Defense). The application includes:

+ an application form;

+ a copy of the establishment decision or the enterprise registration certificate;

+ documentary evidences for capacity and fulfillment of conditions for research into, manufacture and repair of weapons.

+ The person who is sent to submit the application by the organization/enterprise shall present a letter of introduction and one of the following documents: Citizen Identification Card, Identity Card or passport that remains valid.

- Within 05 working days from the date on which the application is received, the competent authority specified in Clause 2 of Article 10 of Decree 79/2018/ND-CP shall consider and send a written response to the organization/enterprise and the organization in charge of inspecting and assessing the fulfillment of conditions for research into, manufacture and repair of weapons.

- After the inspection and assessment, the competent authority specified in Clause 2 of Article 10 of Decree 79/2018/ND-CP shall submit a written proposal specifying reasons, conditions, capacity and scope of the organization/enterprise involved in research into, manufacture and repair of weapons to the Minister of National Defense or the Minister of Public Security.

- The Minister of National Defense or the Minister of Public Security shall consider and request the Prime Minister to decide to permit the organization/enterprise to research, manufacture and repair weapons. After obtaining the Prime Minister's opinions about granting permission, the competent authority specified in Clause 2 of Article 10 of Decree 79/2018/ND-CP shall notify the organization/enterprise in writing. In case of rejection, the competent authority specified in Clause 2 of Article 10 of Decree 79/2018/ND-CP shall provide written explanation.

Thus, according to the above regulations, both businesses under and not under the Ministry of National Defense and Ministry of Public Security can be allowed to invest in and trade military weapons to serve national defense and security if they meet the prescribed conditions. However, the conditions applicable to businesses outside the Ministry of National Defense and Ministry of Public Security require more procedures and must be approved by the Prime Minister.

Best regards!

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