Today : Jun 19, 2025
Politics
19 June 2025

Vietnam Passes New Law Overhauling Product Quality Management

National Assembly adopts risk-based classification and tightens rules on false advertising to boost consumer protection and tech-driven oversight

On the afternoon of June 18, 2025, the Vietnamese National Assembly passed a significant amendment to the Law on Product and Goods Quality, signaling a major shift in how product safety and quality are managed across the country. With the support of 408 out of 420 delegates, the new law introduces a risk-based classification system for products and goods, aligning Vietnam’s regulatory framework more closely with international standards.

The amended law, consisting of three articles and 27 clauses, replaces the previous approach that managed goods based primarily on safety hazards. Instead, it now categorizes products into three risk levels—low, medium, and high—based on criteria such as the potential impact on health and the environment, the ability to control supply chains, and warnings issued by international organizations. This approach is designed to be more flexible and effective, ensuring regulatory efforts are proportional to the actual risks posed by goods in the market.

According to Article 5 of the law, products with low risk require only self-declaration of applicable standards by producers or sellers. Medium-risk goods must be self-declared and undergo either self-assessment or certification by recognized organizations to confirm compliance with national technical regulations. High-risk products demand a higher level of scrutiny, requiring certification by designated organizations authorized to ensure conformity with national standards.

Medium and high-risk products will be managed through specific lists that detail quality management requirements, including additional legal measures as necessary. This tiered system aims to reduce unnecessary administrative burdens on businesses, especially those dealing with low-risk goods, while maintaining robust protections for consumers and the environment.

Mr. Lê Quang Huy, Chairman of the National Assembly’s Science, Technology and Environment Committee, explained that the law was carefully revised after receiving feedback from lawmakers and stakeholders. He emphasized that the shift from managing goods based solely on safety risks to a more nuanced risk-level approach "helps avoid obstructing business activities while still protecting the legitimate rights and interests of consumers and ensuring effective state management." The law mandates transparency, objectivity, and non-discrimination regarding product origin or related entities, consistent with international practices and designed to prevent unnecessary technical barriers.

Beyond classification, the law also introduces stringent prohibitions to protect consumers. It forbids false advertising and fraudulent claims about product quality, origin, or provenance, particularly in the growing e-commerce sector where misleading information can easily cause consumer confusion or deception. Concealing information about product risks that could affect human health, animal and plant safety, property, or the environment is also strictly banned. Furthermore, unfair competition related to product quality that harms other organizations or individuals is prohibited.

To empower consumer protection, the law grants social organizations the right to initiate lawsuits to defend consumer interests when products fail to meet declared standards or technical regulations and cause harm. Dispute resolution agencies are required to share relevant information with inspection and state management bodies to facilitate timely risk assessment, enforcement, and public warnings.

Liability provisions are clear: sellers and importers must compensate consumers for damages resulting from products that do not conform to declared standards or technical regulations. Compensation can be settled through mutual agreement or determined by courts or arbitration panels.

The Ministry of Science and Technology is designated as the central authority responsible to the Government and Prime Minister for unified state management of product and goods quality. Responsibilities of other ministries and sectors will be specified by the Government, ensuring a coordinated and efficient regulatory environment. For products related to national defense, security, and confidentiality, the Ministers of National Defense and Public Security will issue detailed regulations reflecting the sensitive nature of these goods.

One of the most forward-looking aspects of the amendment is its strong encouragement of technology adoption and digital transformation in quality management. The law promotes the use of modern technologies such as artificial intelligence, big data analytics, and digital platforms to enhance transparency, traceability, and data sharing throughout the entire product lifecycle. Tools like digital product passports, electronic labels, barcodes, and traceability systems are highlighted as vital for managing supply chains and ensuring product authenticity.

The law also mandates data security and privacy protections throughout the collection, storage, processing, and sharing of product-related information, in line with Vietnam’s legal requirements on data protection and privacy. This technological push aligns with Vietnam’s broader goals of developing a digital economy, fostering a circular economy, and integrating more deeply into global markets.

Regarding the National Quality Infrastructure (NQI), the amendment defines it as a system of legal and technical mechanisms that supports standardization, measurement, conformity assessment, inspection, and policy development. This infrastructure is essential to meet domestic socio-economic development needs and to facilitate international recognition of Vietnamese products and services. The law outlines the state’s commitment to investing resources and policies to build and maintain the NQI, while clarifying the roles of government agencies, businesses, and economic sectors in this endeavor.

To ease transition, the law includes provisions allowing products and goods that were certified or declared compliant before the law’s effective date to continue under their existing certifications until expiration. Similarly, applications for conformity declarations or import quality inspections submitted before the law’s enactment but not yet processed will proceed under previous regulations.

The amended Law on Product and Goods Quality will officially take effect on January 1, 2026. Its comprehensive reforms mark a milestone in Vietnam’s regulatory landscape, promising to enhance consumer protection, promote fair competition, support technological innovation, and align the country’s quality management with international best practices.