What are requirements for foreign-invested tobacco production projects in Vietnam?

According to Article 21 of the Law on Tobacco Harm Prevention of Vietnam, control of investment in tobacco production in controlling tobacco supply sources is specified as follows:

- Investment in growing tree tobacco, tobacco ingredient processing and tobacco production must suit the planning approved by competent state agencies.

- Investment in the construction of new tobacco factories or expansion of existing tobacco factories for domestic consumption must not exceed the permitted total capacity of the entire tobacco industry before this Law comes into force.

- Foreign-invested tobacco production projects must satisfy the following conditions:

• Being joint-venture or cooperation undertakings with enterprises licensed to produce tobacco;

• The State shall hold a dominating proportion of the charter capital of these enterprises;

• Satisfying the conditions for tobacco production as prescribed by the Government.

- Contracts to transfer industrial property rights of tobacco production can be signed only with enterprises already licensed to produce tobacco, and after they are approved in writing by the Prime Minister.

- Contracts to produce tobacco for export or processing of tobacco for export are not included in the permitted production of tobacco for domestic consumption and can only be signed with enterprises already licensed to produce tobacco, after they are approved in writing by the Minister of Industry and Trade.

- The investment in the production or processing of tobacco for export that exceed the permitted production must be approved by the Minister of Industry and Trade.

View more details at the Law on Tobacco Harm Prevention of Vietnam, officially effective from January 01, 2013.

Ty Na

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