Decree No. 40/2017/NĐ-CP on Management of Salt Production and Business

DECREE

On management of salt production and business

________________

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

Pursuant to the Trade Law dated June 14, 2005;

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

Pursuant to the Law on Land dated November 29, 2013;

Pursuant to the Investment Law dated November 26, 2014;

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

The Government promulgates the Decree on management of salt production and business.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates the management of salt production, processing, and business.

Article 2. Applicability

1. This Decree applies to organizations, including enterprises, cooperatives, cooperative unions, production groups; households; domestic individuals engaged in salt production, processing, and business.

2. Foreign organizations and individuals directly investing in salt production, processing, and business activities within the territory of Vietnam shall be subject to this Decree and other relevant legal documents.

3. In cases where international treaties to which Vietnam is a party provide different provisions from those of this Decree, such provisions shall be applied according to the provisions of the international treaties.

Article 3. Explanation of Terms

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

1. Salt is a compound with the main component being Sodium Chloride (chemical formula: NaCl), produced from seawater, underground brine, or mined from salt deposits.

2. Raw salt is salt produced from seawater, underground brine, or mined from salt deposits without further processing, meeting the standard TCVN 9638:2013 for impurities.

3. Refined salt is salt that has been processed, meeting the standard TCVN 9639:2013 for impurities.

4. Industrial salt is salt meeting the standard TCVN 9640:2013 for impurities.

5. Food-grade salt is iodized salt intended for direct consumption and food preparation, meeting the standard QCVN 9-1:2011/BYT for impurities.

6. Salt production is the process of producing salt from seawater, underground brine, or mined from salt deposits.

7. Traditional salt production is the production process carried out on salt fields, including: Multiple production units, each unit having a process from evaporating seawater to crystallizing salt, with small scale suitable for household operations; the production process mainly relies on human labor.

8. Industrial-scale salt production is the production process conducted on concentrated areas with large scale and designed according to the segmented crystallization technology process, including: Seawater evaporation zones, gypsum crystallization zones, and separate salt crystallization zones, facilitating mechanization in salt production, harvesting, and storage.

9. Salt processing is the process using equipment and techniques to refine raw salt into higher quality salt; salt fortified with essential iodine for human growth and development.

10. Salt business includes purchasing, selling, processing, exporting, importing, circulating reserves, transporting, and storing salt.

11. Salt land is the area within the approved planning for salt production development, including industrial-scale salt production land and traditional salt production land.

Article 4. State Management of Salt

1. Salt is an essential commodity subject to unified state management throughout the country for salt production, processing, and business activities.

2. Contents of state management of salt include:

a) Developing and implementing plans and policies for salt production, processing, and business development;

b) Issuing, promoting, and organizing the implementation of legal documents concerning salt production, processing, and business;

c) Developing and implementing national technical standards and regulations for salt products;

d) Organizing supply-demand regulation, export, import, quality control of salt, national salt reserves, stabilization of edible salt prices, and other measures as prescribed by law;

đ) Inspecting and auditing compliance with legal provisions on salt production, processing, and business, and handling violations of laws on salt production, processing, and business according to legal provisions.

Chapter II

MANAGEMENT OF SALT LAND PLANNING

AND PRODUCTION, BUSINESS OPERATIONS

Section 1

MANAGEMENT OF SALT LAND PLANNING

Article 5. Salt land planning

1. Planning content

The salt land planning shall be carried out in accordance with the provisions of the Land Law and specifically reflected in the National Land Use Plan. The salt land planning content at localities producing salt includes:

a) Salt land use planning and plan is a component of the national land use planning and planning at localities producing salt;

b) The orientation for salt land use planning is established for a ten-year period and vision to the next ten years. The review and adjustment period for the salt production development planning is every five years, and the salt land use plan is established for a five-year period;

d) Preparing maps of salt land use planning down to each provincial administrative unit and economic-social region;

e) Solutions for implementing the planning and plan for salt land use;

a) The Ministry of Agriculture and Rural Development shall coordinate with the Ministry of Natural Resources and Environment, relevant ministries and sectors, People's Committees of provinces and centrally-run cities producing salt to establish the planning and plan for salt land use and specifically reflect it in the National Land Use Plan;

b) The procedures and formalities for establishing, reviewing, approving, adjusting, and announcing the planning and plan for salt land use shall be carried out in accordance with the laws on establishing, reviewing, approving, adjusting, and announcing the national land use planning and plans;

3. Authority to decide and approve planning and adjust planning shall be implemented in accordance with the laws on land;

4. Salt land planning serves as the basis for implementing policies encouraging the development of salt production as stipulated in Chapter III of this Decree;

1. The salt land use planning and plan must be announced and made public in accordance with the laws on land and related laws;

2. The State shall allocate land and lease land for salt production within the planning to organizations, households, individuals, both domestic and foreign, in accordance with the laws on land;

3. The salt land use planning and plan must be inspected and supervised to ensure that the land is used for salt production purposes effectively; the adjustment of the salt land use planning and plan and the authority to decide and approve such adjustments shall comply with the laws on land;

4. Conditions for changing the purpose of salt land use:

a) Must be consistent with the approved land use planning and plan;

b) Projects to change the purpose of salt land use must be reviewed and permitted by competent state agencies;

5. People's Committees at all levels shall consider and approve projects to change the purpose of salt land use to more effective uses in accordance with the laws on land;

6. People's Committees at all levels, based on the approved land use planning and overall salt land planning nationwide, shall not transfer salt land to other uses; encourage investment in expanding industrial salt land, transforming traditional salt land into industrial-scale salt land within the planning.

Article 7. Responsibilities of organizations, households, and individuals using land for salt production within the planning framework

1. Use the land for its intended purpose as specified in the approved land use plan for salt production.

4. Do not use untreated contaminated water sources for salt production or processing; do not discharge waste or wastewater that pollutes the environment and must implement measures to prevent salinization of the surrounding soil and groundwater in the salt production and processing area.

5. Fulfill their rights and obligations during the period of land use for salt production in accordance with laws on land and related laws.

6. The State encourages and supports investment in transforming traditional salt production land into industrial-scale salt production land within the planning framework.

Section 2

MANAGEMENT OF SALT PRODUCTION AND BUSINESS

Article 8. Management of salt production, processing, and business

Salt production, processing, and business establishments have the responsibility to:

2. Ensure that the system of equipment and infrastructure for salt production, processing, and business operations meets the following requirements:

a) Do not contaminate products, salinize the nearby environment, and ensure drainage and water disposal;

b) Maintain a safe distance from areas declared as environmentally polluted by competent state authorities in accordance with the law and from areas designated for the treatment of domestic and industrial waste and hospital waste;

c) Water used for preliminary washing and processing of salt meets national technical standards for potable water quality;

d) Hold a certificate confirming that the salt production, processing, and business establishment complies with food safety conditions as stipulated.

3. Announce compliance with national technical standards for salt quality suitable for food-grade salt, refined salt, and industrial salt as required.

4. Salt products entering circulation on the market must meet the announced standards and be registered with competent state authorities; they must have packaging and labeling in accordance with the law on product labeling and food safety (except for industrial salt).

5. Adding iodine, flavorings, additives, or medicinal herbs to direct consumption or food processing salt must comply with laws on fortifying foods with micronutrients and guidelines issued by the Ministry of Health.

6. Advertising for salt products and iodized salt must comply with the Advertising Law and implementing regulations.

7. Comply with labor safety and hygiene regulations for salt production facilities and workers during the production, processing, and consumption of salt.

Article 9. Management of salt export and import

1. Organizations and individuals engaged in salt export and import must comply with implementing regulations of the Commercial Law concerning international trade activities and foreign agency purchase, sale, processing, and transit of goods, as well as implementing guidelines.

2. Imported salt must meet national technical standards of Vietnam.

3. Organizations and individuals importing salt must inspect and evaluate salt quality; announce compliance with standards and regulations and bear legal responsibility for quality before putting salt into use or circulation on the market.

4. The State encourages organizations, households, and individuals to export salt based on meeting the quality and quantity requirements of the importing country.

Article 10. Balancing Supply and Demand and Regulating the Salt Market

1. The Ministry of Agriculture and Rural Development shall take the lead and coordinate with the Ministry of Industry and Trade, localities, and related organizations to balance salt supply and demand, forecast demand, and guide annual and five-year production and consumption plans for salt nationwide.

2. Measures to regulate the salt market when there are fluctuations:

a) In cases where it is necessary to temporarily store edible salt, the Ministry of Agriculture and Rural Development shall take the lead and coordinate with the Ministries of Finance, Industry and Trade, and the State Bank of Vietnam to submit for consideration and decision by the Prime Minister on temporarily suspending salt sales to salt-producing households. b) Regulate supply and demand, exports, and imports according to the provisions of Decree No. 187/2013/NĐ-CP dated November 20, 2013, of the Government detailing the implementation of the Law on Trade regarding international trade activities and agency buying, selling, processing, and transiting goods with foreign countries.

c) Regulate through the export, import, and storage of national salt reserves according to the provisions of the law on national reserves.

STIMULATING POLICIES FOR THE DEVELOPMENT OF SALT PRODUCTION AND BUSINESS

Chapter III

Article 11. Investment in Infrastructure

1. Principles: Investment projects for building infrastructure for salt production must be consistent with overall socio-economic development plans and salt land use plans; sources of medium-term and annual state budget investment funds during each period.

2. Procedures for establishing, reviewing, deciding on investment policies, and making investment decisions for infrastructure construction projects for salt production shall be carried out in accordance with the Public Investment Law, Construction Law, and current regulations.

3. Content of Investment

a) For traditional household, individual, cooperative, and group salt production: The state budget shall support the construction of infrastructure in salt production areas, including embankments; pumping stations; seawater supply canal systems; brine regulation reservoirs for salt production; flood drainage canal systems; transportation and low-voltage power and water supply facilities for residents in salt production areas within the plan.

b) For industrial-scale centralized salt production by enterprises, cooperatives, and households: The state budget shall support compensation and land clearance costs, resettlement area construction; infrastructure construction outside the project to directly serve the production and business activities of the project, including embankments; seawater supply canal systems; drainage canal systems; transportation facilities approved by competent authorities.

c) Sources of funding and support mechanisms shall be implemented according to current regulations.

4. Levels of Investment Support

a) The central government budget shall support investment projects implementing the restructuring of the salt industry in medium-term and annual public investment plans registered with the Government during each period.

b) Local government budgets shall support investment projects implementing the restructuring of the salt industry in medium-term and annual public investment plans registered with the Provincial People's Council during each period.

5. The State encourages organizations and individuals to mobilize lawful capital from other sources to invest in infrastructure serving salt production and business.

b) The local budget supports investment projects implementing the restructuring of the salt industry within the medium-term and annual state investment plans registered with the People's Council at the provincial level for each period.

5. The State encourages organizations and individuals to raise funds from other legitimate sources to invest in building infrastructure serving salt production and business operations.

Article 12. Credit support for investment in salt production and business

2. Projects included in the List of Borrowing Funds that meet the conditions for state investment credit shall be considered for borrowing funds from the Vietnam Development Bank as prescribed.

Article 13. Encouragement of Science and Technology Application

1. The state budget shall provide funding for households, individuals, cooperatives, and cooperative groups to implement models of linkage application of advanced science and technology and adaptation to climate change in salt production as follows:

a) Construction of demonstration models of linkage application of advanced science and technology and adaptation to climate change in salt production shall be supported with costs for purchasing tools, mechanical equipment, devices, and essential materials.

b) Support 100% of training and education costs according to the model and costs for information dissemination and agricultural promotion activities according to current state regulations.

c) The sources of funding, levels of support, and mechanisms for implementation shall follow plans, programs, projects on agricultural extension and guiding documents for implementation.

2. Organizations, households, and individuals investing in salt storage facilities, salt production machinery and equipment, processing machinery and equipment chains shall be supported as follows:

a) 100% interest rate on loans for the first two years, 50% interest rate for the third year, with a maximum loan amount of 100% of the value of the salt production equipment investment.

b) Support the difference between the commercial loan interest rate for medium-term and long-term loans in Vietnamese dong and the state's development investment credit interest rate to implement projects for salt processing machinery and equipment chains, with a maximum loan amount of 70% of the project value, and a loan term not exceeding twelve years.

c) The sources of funding and support mechanisms shall be implemented according to the Government's regulations on support policies aimed at reducing losses in agriculture.

3. For scientific research and technological development activities:

a) The state budget shall support up to 100% of the cost of implementing scientific research topics, 50% of the total new investment cost required to implement experimental production projects in the field of salt production and processing, and 70% of the total new investment cost required to implement experimental production projects in the field of salt production and processing carried out in areas with difficult socio-economic conditions.

b) Priority shall be given to supporting the maximum level of implementation of scientific and technological tasks from national science and technology development funds, national technology innovation funds, and science and technology development funds of ministries, sectors, and centrally governed cities according to current regulations.

c) Encourage public-private partnerships and the use of clean technology according to international standards in salt production and business along the value chain. The sources of funding and support mechanisms shall be implemented according to current regulations.

Article 14. Training human resources

1. Salt producers of working age shall be supported by the state budget for training costs up to a basic level and under three months on salt production techniques. The level of support and funding sources shall be implemented according to current regulations on supporting basic level training and training under three months.

2. Organizations and individuals with investment projects in salt production and processing along the value chain shall be supported with seventy percent of domestic vocational training costs. Each worker can only be supported once for training, and the training period supported by funds shall not exceed six months. The maximum amount shall not exceed one billion VND, applicable to organizations and individuals investing in salt production and processing or to each worker undergoing training. Funding sources and support mechanisms shall be carried out according to regulations on policies encouraging enterprises to invest in agriculture and rural areas.

In cases where investment projects do not directly utilize support from the state budget, such support shall be included in the production costs of organizations, individuals, and households when settling accounts with competent state authorities.

3. The State shall prioritize training human resources in management and salt production technology at bachelor's degree and above levels both domestically and internationally to meet the requirements for salt production development based on linking universities and training centers with businesses.

Article 15. Tax incentives

Salt production, processing, and trading establishments shall enjoy tax incentives as stipulated by current tax laws.

Chapter IV

IMPLEMENTATION

Article 16. Ministry of Agriculture and Rural Development

1. Submit to the Prime Minister for issuance of state management documents regarding salt.

2. Implement state management responsibilities for the salt industry as prescribed in this Decree and the overall area planning for salt production and trading approved; direct the establishment of a salt industry management system from central to local levels; build and direct the implementation of planning and development policies for salt production and trading.

3. Take the lead and coordinate with relevant ministries, sectors, and provincial/municipal people's committees with salt production to organize and direct the management of salt production and trading.

4. Develop and guide the implementation of national technical standards and norms in the salt sector.

5. Take the lead and coordinate with relevant ministries and sectors, provincial/municipal people's committees with salt production to inspect salt quality and food safety during production and processing; periodically and randomly check compliance with food safety regulations for salt.

6. Take the lead and coordinate with the Ministry of Industry and Trade and the Ministry of Finance to balance supply and demand for salt, propose to the Prime Minister for consideration and decision on temporary salt storage suitable for each period.

7. Coordinate with the Ministry of Finance to develop plans for purchasing, selling, and storing national salt reserves in accordance with the Law on National Reserves.

8. Take the lead and coordinate with relevant ministries and sectors to inspect the implementation of planning and development plans for salt production; inspect the quality of imported salt; salt food safety.

Article 17. Ministry of Planning and Investment

1. Take the lead and coordinate with the Ministry of Finance, the Ministry of Agriculture and Rural Development, and related units to allocate and arrange state budget funds for infrastructure investment to serve salt production in medium-term and annual public investment plans according to current regulations and this Decree.

2. Take the lead and coordinate with the Ministry of Finance and the Ministry of Agriculture and Rural Development to guide the construction and implementation of plans for investment development funds for salt production; investment projects for infrastructure construction to serve salt production.

3. Annually inspect the implementation of investment development policies for the salt industry as stipulated in this Decree.

Article 18. Ministry of Finance

1. Guide, balance, and arrange funds for public services to support salt production and trading management activities in annual plans according to current regulations and this Decree.

2. Coordinate with the Ministry of Agriculture and Rural Development to balance salt supply and demand, propose to the Prime Minister for consideration and decision on salt reserves suitable for each period.

3. Direct the implementation of measures to stabilize salt prices in accordance with the Price Law.

Article 19. Ministry of Industry and Trade

1. Review the planning of chemical enterprises using salt as raw material and by-products from salt production (gypsum, brine) in relation to domestic salt production areas; direct and develop plans for domestic salt consumption to serve the chemical industry and other industries.

2. Coordinate with the Ministry of Agriculture and Rural Development to regulate salt circulation during each period to ensure supply-demand balance and stabilize the salt market.

3. Take the lead and coordinate with the Ministry of Agriculture and Rural Development in inspecting, controlling, preventing speculation and monopolization of the market, producing and selling counterfeit goods, commercial fraud, and other business activities contrary to the law regarding salt production and trade.

4. Take the lead and coordinate with the Ministry of Agriculture and Rural Development based on supply-demand balance to manage annual salt exports and imports.

Article 20. Ministry of Natural Resources and Environment

1. Take the lead and coordinate with the Ministry of Agriculture and Rural Development in supervising and inspecting compliance with environmental protection regulations by salt production and trading facilities.

2. Take the lead and coordinate with the Ministry of Agriculture and Rural Development to balance land demand for salt production when drafting national land use plans to ensure sufficient land area for salt production nationwide.

3. Coordinate with the Ministry of Agriculture and Rural Development to propose and develop plans for developing salt production that adapts to climate change.

Article 21. Ministry of Science and Technology

1. Coordinate with the Ministry of Agriculture and Rural Development to propose orders for research and testing advanced technology and equipment in salt production and processing to serve the restructuring of the salt industry towards increasing added value and sustainable development.

2. Coordinate with the Ministry of Agriculture and Rural Development in planning and investing in the construction of state research, application, and transfer institutions for salt production and processing technology.

Article 22. Ministry of Health

1. Coordinate with the Ministry of Agriculture and Rural Development to perform state management functions over food salt according to laws on fortifying foods with micronutrients.

2. Develop new or review and amend national technical standards for food salt (iodized salt) and national technical standards for substances used to fortify foods with iodine suitable for each period.

3. Guide the use of salt for people who, due to health reasons, cannot consume iodized food.

Article 23. People's Committees of provinces and centrally governed cities

1. Perform state management functions over salt production, processing, and trade at the local level; build and issue mechanisms, policies, and set funding levels from the local budget annually to support investment in salt production development.

2. Implement local salt production and trade planning consistent with the overall national plan; direct the Department of Agriculture and Rural Development to perform state management over all salt production, processing, and consumption activities locally.

3. Direct and organize the issuance of land use right certificates to organizations, cooperatives, cooperative unions, production groups, households, and individuals engaged in salt production according to land law provisions.

4. Promote and implement local salt production, processing, and trade planning. Utilize integrated sources of capital from the National Target Program on Poverty Reduction and New Rural Development, credit funds, and other lawful sources to invest in salt production, processing, and trade development.

5. Be responsible for regulating salt prices within their jurisdiction. Report to the Ministry of Agriculture and Rural Development and the Ministry of Finance for approval by the Prime Minister on measures to support price regulation to ensure stable production and livelihoods of salt producers.

6. Inspect salt production, processing, and trade. Monitor and inspect compliance with national technical standards on quality, food safety, labor safety, and the environment by salt production, processing, and trading facilities; handle violations according to the law.

7. Report periodically or ad hoc as required by the Prime Minister, relevant ministries, and agencies concerning salt production, distribution, and trade in their locality.

Chapter V

EFFECTIVE DATE

Article 24. Implementation Provisions

1. This Decree takes effect from May 20, 2017.

2. In cases where legal normative documents cited in this Decree are amended, supplemented, or replaced, they shall be implemented according to the new provisions in the amended, supplemented, or replaced legal normative documents.

Article 25. Responsibilities for Implementation

Ministers, heads of ministerial-level agencies, heads of government agencies, Chairmen of provincial and centrally governed city People's Committees, and related organizations and individuals are responsible for implementing this Decree./.