How does the Law on Chemicals 2025 affect the operation of enterprises?

Most enterprises in the industrial and processing sectors, from the production of paints, fertilizers, dyes to composites, are directly or indirectly using chemicals. The chemical industry, which has been quietly under this ostensibility, has actually been adjusted twice in 2007 and 2025. Especially with the Law on Chemicals 2025 (effective from January 1, 2026), there are many changes that businesses in the industry need to pay attention to.

New requirements

Supplementing the requirement of green chemistry principles with chemical projects

One of the notable new points of the Law on Chemicals 2025 is the requirement that the investor of the chemical project must comply with the set of green chemical principles for the entire stage of project formulation and implementation[1]. Accordingly, enterprises must choose technologies, equipment and production processes to ensure energy efficiency, reduce or eliminate the use and creation of hazardous chemicals, and aim for sustainable and environmentally friendly development. This regulation is also associated with the meaning of implementing the feasibility study report or the economic-technical report, which is the basis for the competent authority to consider and approve the project.

However, the current challenge lies in the fact that the technical criteria of this set of principles have not yet been specified. The new law only stops at stating general principles, making it difficult for businesses to determine the requirements to be met right from the investment preparation stage. Therefore, businesses should actively integrate green chemistry into the project formulation process to limit the risk of adjusting documents and soon meet the criteria for sustainable development.

Investment incentives for key chemical industry sectors

The Law on Chemicals 2025 provides special investment incentives and support mechanisms for projects in the key chemical industry. This is an important policy to encourage investment in foundational industries that Vietnam still relies heavily on imports, while promoting technological innovation and improving autonomy in production. According to the above regulations, only projects that meet the criteria for capital size, disbursement schedule and belong to the group of key investment activities such as strategic chemical production, specialized chemical industrial parks, or large-scale chemical production complexes are eligible for incentives.

However, the specific criteria and procedures for receiving incentives are still in the process of being guided in detail by the Government, which may make it difficult for businesses to determine whether the project is eligible for the policy or not. Therefore, at this stage, enterprises should actively review investment planning, update implementation guidelines and prepare documents according to high standards of technology, environment and safety before the law takes effect.

Adapting regulatory and licensing approaches in chemical operations

The replacement of the term "chemicals restricted from production and trading" with "chemicals requiring special control". This change is not only legislatively technical but reflects a shift in management thinking from category-based restrictions to risk-based controls. Accordingly, instead of only limiting the scale or duration of production and business, the new Law aims to control the entire life cycle of chemicals, from production, circulation, use to destruction to ensure a higher level of safety.

Along with that, the licensing mechanism is also adjusted in the direction of separating chemical production and trading activities. If the Law on Chemicals 2007 combines these two activities in one Certificate, the new Law requires enterprises to apply for a separate Certificate of Eligibility for each type of activity. This approach helps accurately reflect the scope of each business's business, reduces compliance costs for small businesses operating in only one specific sector, and improves management efficiency for chemicals with varying levels of risk.

However, according to the new law, enterprises that have been granted chemical production and trading licenses under the Chemical Law 2007 can continue to operate under the issued licenses until the expiration of the license term.

Enhancing life cycle control and ensuring safety in chemical operations

For chemicals requiring special control, the Law on Chemicals 2025 in Clause 4, Article 11 and Article 17 requires business organizations to make control sheets for the purchase and sale of chemicals subject to special control and authenticate transaction data according to the prescribed roadmap. Accordingly, enterprises are only allowed to sell chemicals of this group to organizations with business licenses or organizations and individuals that have announced the types of chemicals and their purpose of use on the specialized chemical database. This regulation aims to control the entire life cycle of chemicals from production, import to use in line with the policy of digital transformation and risk management according to Resolution No. 57-NQ/TW of the Politburo on breakthroughs in scientific and technological development,  innovation and national digital transformation.

At the same time, the Law also strengthens the requirements to ensure safety and security in chemical activities. Specifically, individual consultants must have specialized certificates, investment projects must comply with safe distances according to technical regulations, enterprises must provide safety training, protective equipment and arrange personnel with appropriate expertise, and chemical storage facilities are required to have a Certificate of eligibility to operate from July 1, 2026. Although they may increase compliance costs for businesses, these regulations contribute to improving safety standards, reducing risks and strengthening the reputation of businesses in high-risk fields such as the chemical industry.

Source: Judicial Publishing House

Some things businesses should do to meet the new Chemical Law regulations

On the basis of the provisions of the Law on Chemicals 2025, enterprises in the chemical industry need to have effective strategies and solutions both to strengthen their competitive position in the market and ensure compliance with legal regulations in the coming time.

Firstly, enterprises need to review the scope of their activities to clearly determine whether it is production and business or simultaneously carry out both activities. This separation helps businesses identify the right type of necessary certificate, avoiding the situation of having to adjust the dossier or being handled for violations due to the lack or issuance of the wrong type of license.

Secondly, enterprises should soon update and compare the list of chemicals in the group of conditions or in need of special control. This is the basis for accurately determining legal obligations, safety, reporting and management requirements, and at the same time avoiding the risk of operational interruption due to the use of chemicals that have not been licensed or properly declared.

Third, enterprises with new investment orientations should prioritize projects in the key chemical industry sectors to take advantage of preferential policies on tax, land and investment support. Early participation in key sectors not only brings economic benefits but also helps businesses proactively adapt to the industry's sustainable development strategy.

Finally, businesses need to invest in a safety management system and professional human resources, including standard warehouses, chemical safety procedures, and a trained, certified team with specialized consultants. This is a key factor to meet increasingly stringent compliance requirements,  at the same time, strengthening its reputation and competitiveness in the context of the chemical industry being under stricter scrutiny.

The Law on Chemicals 2025 marks an important shift in state management thinking, towards comprehensive control, enhancing safety and promoting green development in the chemical industry. However, besides the opportunity for investment incentives and transparency in the management process, businesses will also face significant challenges in terms of compliance costs, technical requirements and operational capacity. Businesses need to be proactive to adapt to the adjustments according to the new regulations.