Vietnam Ministry of Industry and Trade proposes regulatory reforms

The Ministry of Industry and Trade is seeking feedback on draft decrees aimed at reforming the management of the alcohol and petroleum sectors.

Regarding alcohol, a new draft proposes abolishing the requirement for business licenses. Instead, the government would transition to a digitalized management system focused on post-inspection, traceability, and food safety standards. This shift follows amendments to the Law on Investment, which will remove alcohol from the list of conditional business sectors effective March 1, 2027.

In the petroleum sector, the Ministry is consulting on a draft decree to reform pricing mechanisms and distribution systems. The Vietnam Chamber of Commerce and Industry (VCCI) has expressed support for granting businesses more autonomy in price determination, aligning with the 2023 Law on Prices. However, VCCI cautioned that pricing formulas should serve as a basis for inspection rather than a tool for imposing fixed costs or profit margins. The VCCI also recommended addressing pricing inequalities in remote areas and supporting the new provision that allows distributors to trade directly with one another to prevent supply disruptions.