Decree No. 109/2018/ND-CP on Organic Agriculture

DECREE

Organic Agriculture

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Investment Law dated November 26, 2014;

Pursuant to the Law on Technical Standards and Regulations dated June 29, 2006;

Pursuant to the Law on Product Quality and Commodities dated November 21, 2007;

Pursuant to the Food Safety Law dated June 17, 2010;

Pursuant to the Drug Law dated June 14, 2015;

At the proposal of the Minister of Agriculture and Rural Development;

The Government issues this Decree on organic agriculture.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Decree stipulates the production, certification, labeling, logo, traceability, trading, state inspection of organic agricultural products in the fields of crop cultivation, animal husbandry, forestry, and aquaculture, and policies encouraging the development of organic agricultural production.

2. Production and trading of organic agricultural products are encouraged to be applied.

Article 2. Applicability

This Decree applies to enterprises, cooperatives, cooperative groups, farms, households, or groups of households producing and trading organic agricultural products (referred to as facilities); organizations and individuals engaged in activities related to the production and trading of organic agricultural products within the territory of Vietnam.

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

1. Organic agriculture is a production system that protects natural resources, ecosystems, and human health, based on ecological cycles and biological diversity adapted to natural conditions, without using factors that negatively impact the ecological environment; it combines traditional techniques with advanced scientific progress for the benefit of the common environment, creating fair relationships and balanced living conditions for all entities in the ecosystem.

2. Organic agricultural production (referred to as organic production) is a system of production processes, processing, manufacturing, packaging, transportation, and storage that comply with organic agricultural standards.

3. Organic agricultural products (referred to as organic products) are food, medicinal herbs (including herbal medicines, traditional medicines), cosmetics, and other products or plant and animal seeds; livestock feed, aquatic feed produced, certified, and labeled in accordance with the provisions of this Decree.

4. Organic agricultural standards used for certification are national standards (TCVN) on organic agriculture or international, regional, and foreign standards applied in organic product production.

5. Certification of organic products is the activity of evaluating and confirming that the products are produced in compliance with organic agricultural standards conducted by certification organizations (third parties).

Chapter II

ORGANIC AGRICULTURAL PRODUCTION

Article 4. Principles of organic agricultural production

1. Managing resources (including land, water, air) according to systemic and ecological principles in a long-term perspective.

2. Not using synthetic chemical materials in all stages of the production chain, avoiding harmful chemical exposure to humans and the environment, minimizing pollution at production sites and surrounding environments.

3. Not using genetic engineering, radiation, and other technologies harmful to organic production.

4. Treating animals and plants responsibly and enhancing their natural health.

5. Organic products must be certified by third parties according to national standards (TCVN) on organic agriculture or international, regional, and foreign standards applied in organic product production.

Article 5. Organic Agricultural Standards

1. National standards on organic agriculture are established, published, and implemented in accordance with the laws on standards and technical regulations.

2. International, regional, and foreign standards:

a) In cases of production for export: the production facility applies standards agreed upon in contracts with importing organizations;

b) In cases of production or import for domestic consumption: the facility may apply standards to which Vietnam is a member or has mutual recognition agreements, or foreign standards approved for application in Vietnam.

The Ministry of Agriculture and Rural Development shall take the lead and coordinate with the Ministry of Health, the Ministry of Industry and Trade, and relevant ministries and agencies to evaluate and publish a list of harmonized international, regional, and foreign standards applicable in Vietnam.

3. Encouragement is given to the use of national, international, regional, and foreign standards as basic standards.

Article 6. Input Materials for Organic Agricultural Production

1. Input materials used in organic production shall comply with the organic agricultural standards; synthetic chemicals such as pesticides, fertilizers, preservatives, additives, antibiotics, genetically modified organisms, and growth hormones shall not be used.

2. In cases where input materials are used:

a) Organic crop seeds, livestock breeds, organic animal feed, and organic aquatic products must be certified to meet organic agricultural standards and comply with other relevant technical regulations and standards;

b) Organic fertilizers and soil conditioners, plant protection products and pest control substances, processing aids, additives; cleaning and disinfection agents in animal husbandry and aquaculture must be produced from materials and methods that comply with organic agricultural standards and comply with other relevant technical regulations and standards.

Chapter III

CERTIFICATION OF ORGANIC AGRICULTURAL PRODUCTS

Article 7. Organizations certifying products in compliance with the Vietnamese Technical Standards on Organic Agriculture

1. Conditions for organizations certifying products in compliance with the Vietnamese Technical Standards on Organic Agriculture: They must meet the conditions for operating certification services and management systems as stipulated in Article 17 of Decree No. 107/2016/ND-CP dated July 1, 2016, of the Government on conditions for operating conformity assessment services (referred to as Decree No. 107/2016/ND-CP).

2. The application dossier for issuing a Certificate of Registration for Certification Activities in compliance with the Vietnamese Technical Standards on Organic Agriculture (referred to as the Certificate of Registration for Certification Activities) shall be in accordance with the provisions of Article 18 of Decree No. 107/2016/ND-CP.

3. The form, procedure, time limit for issuance, reissuance, amendment, and supplementation of the Certificate of Registration for Certification Activities shall be in accordance with the provisions of Articles 19 and 20 of Decree No. 107/2016/ND-CP. The Certificate of Registration for Certification Activities shall be in Form No. 01 attached to this Decree.

4. The Ministry of Agriculture and Rural Development shall accept dossiers for issuing, reissuing, amending, and supplementing the Certificate of Registration for Certification Activities and manage the activities of certification organizations that have been issued certificates.

Article 8. Certification of Products Compliant with the Vietnamese Technical Standards on Organic Agriculture

1. Method of assessing organic products:

Organic products shall be assessed for compliance with the Vietnamese Technical Standards through an evaluation method involving monitoring the production process and testing typical samples taken at the production site or on the market when there is suspicion of the use of input materials outside the permitted list under the Vietnamese Technical Standards on Organic Agriculture or when products exceed heavy metal and harmful microorganism limits set by technical regulations and standards.

2. The Certificate of Registration for Certification Activities for products compliant with the Vietnamese Technical Standards on Organic Agriculture shall be issued by the certification organization in Form No. 02 attached to this Decree and shall be valid for two years.

3. The Ministry of Agriculture and Rural Development shall provide guidance on post-certification monitoring and supervision after issuing the Certificate of Registration for Certification Activities for products compliant with the Vietnamese Technical Standards on Organic Agriculture.

Article 9. Certification of Products Compliant with International, Regional, and Foreign Standards on Organic Agriculture

1. For export production: Products shall be certified by certification organizations recognized in writing by the organizations or countries issuing international, regional, or foreign standards.

2. For domestic consumption: Products shall be certified by certification organizations recognized as stipulated in Clause 1 of this Article and having a Certificate of Registration for Certification Activities in accordance with Article 7 of this Decree.

3. Foreign certification organizations or Vietnamese certification organizations recognized shall be responsible for:

a) Annually or upon request, submitting via electronic network (followed by submission of original or certified copies of the dossier) reports on certification activities in compliance with international, regional, or foreign standards in Form No. 7 of Decree No. 107/2016/ND-CP to specialized agencies assigned by the Ministry of Agriculture and Rural Development;

b) Adhering to inspections conducted by specialized agencies assigned by the Ministry of Agriculture and Rural Development and being subject to penalties if there are signs of violation according to the law.

4. Recognized certification organizations with a Certificate of Registration for Certification Activities shall fulfill responsibilities as prescribed in Decree No. 107/2016/ND-CP.

5. The Ministry of Agriculture and Rural Development shall manage and guide the implementation of the provisions of this Article.

Article 10. Inspection of certification organizations

1. The Ministry of Agriculture and Rural Development shall inspect the activities of certification organizations with a Certificate of Registration for Operation and handle violations according to current regulations.

2. The Ministry of Agriculture and Rural Development shall inspect the activities of certification organizations recognized for certifying products that meet international standards, regional standards, or foreign standards when there are signs of violation and handle such violations according to current regulations.

Chapter IV

ANNOUNCEMENT OF APPLICABLE STANDARDS, LABELING, LOGO, AND TRACEABILITY OF ORGANIC PRODUCTS

Article 11. Announcement of applicable standards and labeling of organic products

1. Announcement of applicable standards:

a) Announce the name, standard number of organic agriculture standards applied and other requirements as prescribed by law;

b) For organic cosmetic products, in addition to the provisions at point a of this Clause, must also announce cosmetic products according to the regulations of the Ministry of Health.

2. Labeling according to the Decree No. 43/2017/ND-CP on product labels and food labeling regulations, herbal medicine labels, cosmetic labels, livestock feed labels, aquaculture feed labels, and the following provisions:

a) The use of phrases "100% Organic," "Organic," or "Produced from Organic Ingredients" accompanied by the percentage of constituent components on the label of organic products according to the organic agriculture standards;

b) Organic products produced in Vietnam must clearly state the certificate number, date of issuance, full name or abbreviated name, and code of the certification organization;

c) Imported organic products with labels not meeting the full requirements of this Decree must have supplementary labels as prescribed.

3. Encourage the use of codes, barcodes, "Vietnam Green Label," and eco-labels on organic product labels according to legal regulations.

Article 12. Logo of Vietnamese Organic Products

1. Products labeled "100% Organic" and "Organic" with at least 95% certified organic components conforming to the national standard for organic agriculture may bear the logo of Vietnamese Organic Products. The logo of the entity can be used concurrently with the Vietnamese Organic Product logo.

2. After being certified as organic products, the entity has the right to print the logo according to the regulations of the Ministry of Agriculture and Rural Development on product packaging and is responsible for using the logo in accordance with legal regulations.

3. The Ministry of Agriculture and Rural Development shall specify the model of the logo and manage its use according to legal regulations.

Article 13. Traceability, Recall, and Handling of Non-Qualified Organic Products

1. Entities must record and retain files, establish traceability systems for products at each production and business stage according to the guidance provided in the national standard for organic agriculture.

2. Entities shall carry out traceability in the following cases:

a) When requested by competent state authorities;

b) When the entity discovers that the organic products it produces or sells do not comply with organic agriculture standards or relevant technical regulations; incorrect labeling or logos; beyond their shelf life or damaged (collectively referred to as non-qualified products).

3. Organic products must be recalled in the following situations:

a) Incorrect labeling or logos;

b) Exceeding the shelf life but still sold on the market;

c) Not conforming to organic agriculture standards or relevant technical regulations;

d) Damaged during storage, transportation, or sales;

đ) Containing prohibited substances or exceeding the limit for pollutants;

e) Imported products reported by export country authorities, other countries, or international organizations to contain harmful pollutants affecting human health.

4. Methods of handling recalled organic products:

a) Correct labeling errors or logo errors (due to printing mistakes); if labeling or logos are incorrect and other violations exist, the batch will be handled according to points b, c, and d of this Clause;

b) Change the intended use for batches that have exceeded their shelf life or do not meet the initial intended use or organic agriculture standards but do not pose a risk to health or the environment;

c) Destroy batches that are damaged, of unknown origin, or contain prohibited substances or exceed safety limits for health or the environment;

d) Re-export batches of imported organic products that do not meet organic standards or relevant technical regulations of Vietnam or have exceeded their shelf life.

5. Responsibilities of entities upon discovering non-qualified organic products:

a) Identify and report batches of non-qualified products;

b) Request distributors to stop distributing and report the quantity of non-qualified products, actual inventory, and those circulating in the market;

c) Compile and report to competent state authorities about the recall plan and methods of handling recalled products;

d) Implement the recall and handling of recalled products within the time frame decided by competent state authorities.

6. Responsibilities of competent state authorities:

a) Inspect and supervise the implementation of traceability by entities;

b) Decide on recalls, handling methods, and deadlines for completion;

c) Inspect the recall and handling of recalled products;

d) Handle violations of laws related to product quality and food safety according to regulations.

7. The Ministry of Agriculture and Rural Development, the Ministry of Health, and the Ministry of Industry and Trade shall provide detailed regulations on the recall and handling of non-qualified organic products under their respective jurisdictions according to regulations.

Chapter V

INSPECTION AND TESTING OF ORGANIC PRODUCT QUALITY

Article 14. Quality Inspection of Organic Products

1. The procedures and processes for inspecting and handling violations related to the quality of organic products shall be carried out in accordance with the current laws on product quality, goods, and food safety.

2. The Ministry of Agriculture and Rural Development, the Ministry of Health, and the Ministry of Industry and Trade shall provide detailed regulations on inspection agencies and the application of quality inspection methods for organic products under their respective jurisdictions as prescribed.

Article 15. Regulations on Testing Samples of Organic Products

1. Requirements for sample collectors and sampling processes shall comply with the current regulations applicable to each product and sector.

2. Determination of chemicals, additives, or preservatives not listed in the permitted usage list of the organic agricultural standard in "100% organic" products:

a) Rapid testing methods shall be used for specific substances as prescribed;

b) Analytical methods at laboratories registered for testing activities and recognized or designated according to the law shall be used; positive test results for substances outside the permitted list shall be considered as violations.

3. Determination of harmful microorganisms and heavy metals contained in organic products shall be conducted in accordance with the national technical standards for safe products.

4. The Ministry of Agriculture and Rural Development, the Ministry of Health, and the Ministry of Industry and Trade shall provide detailed guidance on the provisions of Clause 1 and Clause 2 of this Article for products under their respective jurisdictions.

Chapter VI

POLICIES TO ENCOURAGE THE DEVELOPMENT OF ORGANIC AGRICULTURE

Article 16. Priority Application of Policies Already Enacted for the Development of Organic Agriculture

1. Priority funding for scientific research and agricultural extension projects, particularly those concerning disease-resistant seeds, organic fertilizers, biological plant protection products, and herbal veterinary medicines.

2. Production and business establishments of organic products or input materials for organic production shall enjoy preferential investment policies already enacted for agriculture and rural areas:

a) Support policies for small and medium-sized enterprises; policies encouraging businesses to invest in agriculture and rural areas;

b) Support policies for agricultural cooperatives; policies linking production with consumption and building large-scale fields; training policies for rural laborers;

c) Credit policies serving the development of agriculture and rural areas; policies encouraging the development of high-tech and clean agriculture;

d) Special policies regarding seeds, capital, and technology in cultivating and harvesting medicinal herbs;

đ) Policies supporting trade promotion and brand building;

e) Policies supporting the Green Label Vietnam and environmentally friendly facilities;

g) Other relevant policies;

h) At the same time and for the same purpose, an establishment may only choose the most suitable policy among those specified in Points a, b, c, d, đ, e, and g of this Clause.

3. Content, support levels, conditions for support, sources of funds, and mechanisms for support from the state budget shall be implemented according to existing documents for the support policies mentioned in Clause 1 and Clause 2 of this Article.

Article 17. Certain Special Policies to Support Small Enterprises, Cooperatives, Farms, Households, and Groups Producing Organic Products

1. Content and Support Levels:

a) Full funding for determining regions and areas meeting organic production conditions: basic surveys, topographic surveys, soil, water, and air sample analysis approved by competent authorities;

b) One-time full funding for certification costs for products conforming to the Vietnamese National Standard (TCVN) on organic agriculture issued by certification organizations (initial or reissue);

c) Training and instruction on organic production: support levels shall be implemented according to the government's regulations on agricultural extension;

d) Funding for establishing and expanding organic production models according to TCVN: support levels for disease-resistant seed, organic fertilizer, and biological plant protection product costs for crop models; seed, organic feed, and permitted veterinary medicine costs for livestock and aquaculture models, and expansion costs according to the government's regulations on agricultural extension.

2. Sources of Funding:

a) State budget support according to current regulations;

b) Integration from Target Programs, National Target Programs, and other ongoing programs and projects;

c) Sponsorship from domestic and foreign organizations and individuals;

d) Other lawful sources of funding according to the law.

3. Principles of Support

a) The central budget shall support projects within the central government's expenditure responsibilities and approved by central-level authorities. Specific support levels shall be implemented according to this Decree and relevant current regulations based on financial resource balancing and development policies during each period. The central budget shall partially support localities that have not yet balanced their budgets according to the central budget's balancing capacity;

b) Local budgets shall support projects within local expenditure responsibilities and approved by provincial People's Committees or authorized agencies, and support small enterprises, cooperatives, farms, households, and groups producing organic products in the locality according to Point b of Clause 1 of this Article. In necessary cases, depending on actual conditions and financial resource balancing of the local budget, provincial People's Committees shall submit to the People's Councils for consideration and decision to issue additional support policies beyond those stipulated in this Decree;

c) For projects using non-repayable aid funds, the support content and level shall be applied according to the donor's agreement or agreed upon by the donor's representative, the Ministry of Finance, and the project management agency; if the donor's representative and the Ministry of Finance have not reached an agreement on the support level, it shall be applied according to the level stipulated in this Decree.

4. Conditions, Procedures, and Processes for Support:

a) For support contents specified in Points a, c, and d of Clause 1 of this Article:

The support contents must be included in projects approved by competent authorities.

There is a commitment to allocate corresponding capital for the implementation of project components approved (excluding the portion supported by the state budget).

Entities meeting the conditions shall be supported in investment according to the project's progress.

The procedures for proposing, appraising, and approving projects shall be carried out in accordance with the provisions of the Public Investment Law, the State Budget Law, and guiding documents; relevant legal regulations on managing and using agricultural extension funds, scientific and technological public expenditure funds, funds integrated into national target programs, target programs, or other programs and projects, and other funds.

b) For the support content prescribed in point b Clause 1 of this Article:

Small enterprises, cooperatives, farms, households, and groups of households producing organic products submit a request letter for funding to obtain a certificate of conformity with the Vietnamese National Standard on organic agriculture to the authorized specialized agency in their locality (Department of Agriculture and Rural Development, Department of Health, or Department of Industry and Trade), accompanied by the internal self-assessment results meeting the requirements of the Vietnamese National Standard on organic agriculture and a copy of the initial certificate of conformity with the Vietnamese National Standard on organic agriculture (in cases where a renewal is requested).

The authorized specialized agency in the locality, based on the request letter and the internal self-assessment results of small enterprises, cooperatives, farms, households, and groups of households producing organic products, selects certification organizations in accordance with the law on bidding and provides certification funding to the winning organization.

5. Encouragement is given to farmers, organizations, and individuals participating in the Participatory Guarantee System (PGS, a system based on the participation of farmers, sellers, consumers, and other interested parties). Organizations and individuals participating in PGS enjoy policies stipulated in points b and c Clause 1 of this Article.

Chapter VII

IMPLEMENTATION

Article 18. Responsibilities for State Management of Organic Agriculture

1. The Ministry of Agriculture and Rural Development shall implement state management of organic agriculture with responsibility for:

a) Managing the activities of organizations certifying products conforming to the Vietnamese National Standard on organic agriculture; recognized certification organizations; updating and announcing international standards, regional standards, and foreign standards that have been approved;

b) State management over the production and business of organic food, organic feed, organic aquatic products, and other organic products within its jurisdiction as prescribed;

c) International cooperation; training, information dissemination, and publicity; inspection, supervision, and handling of violations within the functions and duties of the Ministry of Agriculture and Rural Development;

d) Annually compiling the funding support for projects managed by the Ministry of Agriculture and Rural Development and the funding support needs for difficult localities in the annual budget of the Ministry of Agriculture and Rural Development, and submitting them to the Ministry of Finance for consideration, consolidation, and submission to the competent authority for approval in accordance with the State Budget Law.

2. The Ministry of Health shall implement state management over the production and business of organic medicinal materials, organic cosmetics, and organic food within its jurisdiction as prescribed.

3. The Ministry of Industry and Trade shall implement state management over the production and business of organic food and other organic products within its jurisdiction as prescribed; implementing market management for organic products in accordance with the regulations.

4. The Ministry of Science and Technology shall take the lead and coordinate with the Ministry of Agriculture and Rural Development, the Ministry of Health, and the Ministry of Industry and Trade to develop, amend, and announce Vietnamese National Standards on organic agriculture in accordance with the regulations.

5. Ministries and agencies at the level of ministries within the scope of their tasks and powers shall be responsible for taking the lead or coordinating with other ministries and sectors to implement state management over organic products within their jurisdiction.

6. Provincial People's Committees and municipal people's committees directly under the central government shall be responsible for:

a) Issuing incentive policies; approving planning, plans, and organic production projects in their localities;

b) Allocating funds to implement development policies for organic agriculture in their localities in accordance with this Decree;

c) Implementing; inspecting, supervising, and handling violations in their localities in accordance with the regulations.

7. Associations and occupational organizations shall promote awareness raising among the community; participate in training, capacity building, and monitoring members producing and trading in organic products in accordance with the law.

Article 19. Effective Date

This Decree takes effect from October 15, 2018.

Article 20. Implementation

1. Within six months from the date this Decree takes effect, recognized certification organizations currently operating in Vietnam must send via electronic network (followed by sending original or certified copies of the documents) a notification letter to the specialized agency assigned by the Ministry of Agriculture and Rural Development: name, address, telephone number, fax, email, website; name, code of recognized international standards, regional standards, and foreign standards certified in Vietnam; certification activity results up to the reporting date.

2. Ministers, heads of agencies at the level of ministries, heads of government agencies, Chairmen of provincial and municipal people's committees directly under the central government, and related organizations and individuals are responsible for enforcing this Decree.