Garment industry benefits from less red tape

The Ministry of Industry and Trade has removed the inspection of formaldehyde content in textile and garment products that cause many difficulties to enterprises.

Firms have shown their appreciation after Minister Tran Tuan Anh annulled Circular 37 about inspection of formaldehyde content in textile and garment products as they said it is legally groundless, costly and time-consuming.

The circular was officially issued on October 10 last year by former minister Vu Huy Hoang and contained the same criteria as the document released in 2009 but with added requirements for sampling methods to reflect updated testing methods and quality management requirements.

After the circular was issued, it has received strong oppositions as firms had to pay an inspection fee of VND1.5-VND2.5 million (US$68-US$90) per sample no matter if they imported a metre of garments or one button and the formaldehyde content check usually took three to seven days.

The inspection fee for one firm could run into hundreds of billions of Vietnam dong a year. This problem has been brought up time and time again at conferences about removing difficulties for enterprises without any result until now.

According to the Central Institute for Economic Management, there are many unreasonable regulations that cost firms time and money. Nguyen Van Can, director of the General Department of Vietnam Customs, also admitted that there are many regulations similar to the Circular 37. He hoped the ministries and agencies would review the regulations to make their work more efficient.

"This has been carried out very slowly," he said.

According to the Central Institute for Economic Management, the Ministry of Industry and Trade violated the laws by issuing the circular because the textile products are not on the list of potentially unsafe goods under the ministry's management.

Only after the ministry had issued Circular 37, did they issue Circular 41 to add textile products to the list. Circular 37 remained groundless.

The firms complained that they were subjected to too many inspections and checks for the past seven years but only a very small amount of products have been found to violate the regulation. In addition, they have not detected any case of health hazards caused by excessive level of formaldehyde.

Statistics from Tan Son Nhat Airport Customs show that only six cases have been found to fail to meet requirement among 8,000 shipments the customs department inspects each year. The percentage of non-compliance never reached 1%.

The Ministry of Industry and Trade will propose a new circular to replace the Circular 37.

In its report on the implementation of Government's Resolution 19 on improving the business environment and national competitiveness, the Ministry of Planning and Investment said it would be a long time until they could achieve the goals of the resolution such as reducing the waiting period for getting a construction licence because of old regulations.

The ministry went on to say that there had been no real achievements in simplifying customs procedures as the inspection and testing fees hadn’t fallen since last year, while bribery seemed to increase.

However, the ministry couldn't say how much money firms had to pay based on regulations like Circular 37.

It's no secret that issuing unreasonable regulations is a way for state officials to legalise bribery and extract more from firms. So by abolishing Circular 37, the ministry has helped to prevent corruption, stopping those who invent and support such regulations, who take advantage of policies for personal interest.

Vietnam needs decisions like that of Minister Tran Tuan Anh because it will help create a favourable business environment, reform administrative procedures and boost enterprises like Prime Minister Nguyen Xuan Phuc said when he took office.

Dtinews

Other News

Private economic sector poised for breakthrough growth

Private economic sector poised for breakthrough growth

More than a year after the Politburo's Resolution No. 68-NQ/TW on private sector development came into effect, expectations now extend beyond increasing the number of enterprises. The goal is to build a stronger business community with greater resilience, larger ambitions and the capacity to compete in global supply chains.

Vietnam remains ASEAN growth leader in 2026 despite global headwinds: WB

Vietnam remains ASEAN growth leader in 2026 despite global headwinds: WB

Vietnam is expected to remain one of ASEAN’s fastest-growing economies in 2026, supported by resilient exports, strong investment inflows and an ambitious reform agenda, despite mounting global uncertainties, according to the World Bank’s latest Vietnam Economic Update released on May 15.

Ministry establishes monitoring framework for carbon market

Ministry establishes monitoring framework for carbon market

Under a new circular, the exchange of greenhouse gas emission quotas and carbon credits is conducted on the domestic carbon credit exchange through the carbon trading system, which is interconnected with the national registration system.

Biofuel ready for nationwide rollout

Biofuel ready for nationwide rollout

For biofuels, particularly E10, to develop successfully, stronger and more coordinated policies are needed, especially pricing mechanisms capable of creating a sufficiently attractive gap between E10 and mineral-based petrol, an expert has said.

Vietnamese farm produce promoted at African investment, trade forum

Vietnamese farm produce promoted at African investment, trade forum

The 12th Africa Forum for Investment & Commerce (AFIC 12) opened in Algiers, the capital of Algeria, on May 9, drawing around 2,000 participants, including officials, economists, businesses, financial and development organizagtions from 43 African countries and international partners, including Vietnam.

Int'l medical, pharmaceutical expo opens in Hanoi

Int'l medical, pharmaceutical expo opens in Hanoi

The exhibition, which runs until May 9 at the Hanoi International Centre for Exhibition, showcases advanced products and technologies across a range of fields, including pharmaceuticals, drug manufacturing machinery and equipment, medical devices, hospital and clinic services and dental equipment.

Mega projects to transform Ho Chi Minh City urban landscape

Mega projects to transform Ho Chi Minh City urban landscape

Leading the charge in this massive building spree is the new central city square in the core of the Thu Thiem new urban area. Spanning more than 20 ha, it’s the crown jewel of the Central Square and new administrative center complex.

Vietnam establishes itself as one of region’s most dynamic manufacturing and supply bases

Vietnam establishes itself as one of region’s most dynamic manufacturing and supply bases

The country’s stable political and economic environment provides a critical foundation for long-term sourcing strategies. At the same time, Vietnam has demonstrated a strong ability to scale up manufacturing, supported by a continuously expanding industrial base capable of meeting both high-volume demand and increasingly complex technical and quality requirements.

Vietnamese pomelos gain broader access to Australian market

Vietnamese pomelos gain broader access to Australian market

The update by Australia’s Department of Agriculture, Fisheries and Forestry to its Biosecurity Import Conditions system (BICON) on April 10, officially setting out import conditions for Vietnamese pomelos, is regarded as a major milestone in market access efforts.

Vietnam's industry spearheads transition to circular economy

Vietnam's industry spearheads transition to circular economy

The circular economy is no longer just a policy choice. It has become an inevitable trend for delivering sustainable and green growth, sharpening competitiveness at home and abroad, and meeting Vietnam’s net-zero emissions target by 2050. It is now a prerequisite to sustain long-term economic expansion, particularly in industrial production and supporting industries.

Nearly 100 tonnes of Vietnamese fruits, vegetables airlifted to UAE

Nearly 100 tonnes of Vietnamese fruits, vegetables airlifted to UAE

Vietnamese fresh produce and processed foods are increasingly recognised for their quality, with items such as cashew nuts, coffee and spices gaining popularity among Middle East consumers. In 2025, Vietnam’s farm produce exports to the UAE exceeded 445 million USD, up nearly 24% year-on-year.