Vietnam Releases Draft Safety Standards For Heavy Manufacturing

Posted by Reading Time: 4 minutes

By: Dezan Shira & Associates

Vietnam’s Ministry of Labor (MOLISA) has released the text of proposed technical standards that, if enacted, would apply to companies involved in commercial forging – a key component of heavy manufacturing and related production. Outlined at the circular level, details of the proposal were made public on August 23rd and have been issued as a means of improving safety standards for workers within the country.

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Understanding Technical Standards

Under the proposed circular, the following aspects of the forging process are set to be standardized and have been detailed extensively within the public draft:

  • Requirements for the structural parts of the control system.
  • System requirements for hydraulic cooling lubrication
  • Requirements for pipes and pressure vessels
  • Requirements for shielding
  • Requirements for working platform and stairway work for workers
  • Electrical safety requirements

Exposure and impact of these changes will likely be dictated by the current practices of companies involved in forging. 

Ensuring Best Practice

While the primary purpose of MOLISA’s proposal is to improve technical standards within heavy manufacturing, a number of general guidelines have been included which will impact the manner in which forging is carried out within Vietnam. General safety regulations outlined in the circular include: 

  • Regulations to ensure safety equipment forging presses in the manufacture, import prior to the market
  • Regulations to ensure safety equipment export forging presses
  • Regulations to ensure safety equipment forging presses in the market circulation
  • Prescribed safety equipment forging presses during use
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Implications for Investment

With a growing manufacturing base, and an increasing ability to attract foreign investment in more capital intensive stages of the value chain, technical standards and general regulations alike will be of importance for a variety of producers in Vietnam. For those currently invested, safety standards should be reviewed to ensure that compliance can be achieved.

Alternatively, those considering investment and seeking to utilize forged products should pay close attention to standards in order to assess the viability of different setup options. Depending on the nature of a given business, standards could impact the profitability of vertically integrating supply chains and therefore dictate methods of market entry. 

In the event that the proposal is passed, changes will take six months to be implemented, thus giving companies a chance to assess their exposure and implement contingency strategies effectively. Nonetheless, it will be important to follow changes to understand amendments to the current proposal and to be prepared in the event of the proposal’s passage. For more information on aspects of the proposal or assistance in monitoring or complying with aspects of technical standards, please contact vietnam@dezshira.com or visit www.dezshira.com

 


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Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email vietnam@dezshira.com or visit www.dezshira.com.

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