VZCZCXRO8835
OO RUEHHM
DE RUEHHI #2980 3411022
ZNR UUUUU ZZH
O 071022Z DEC 06
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4099
INFO RUEHHM/AMCONSUL HO CHI MINH 2217
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHGV/USMISSION GENEVA 1148

UNCLAS HANOI 002980 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EAP/MLS AND EB 
STATE PASS USTR FOR DAVID BISBEE, RACHEL BAE 
COMMERCE FOR OASIA HONG PHONG PHO 
GENEVA FOR USTR 
 
E.O. 12958: N/A 
TAGS: ETRD ECON WTRO VM
SUBJECT:  NEW REGULATION ON COSMETICS REGISTRATION 
 
 
(U)THIS CABLE IS SENSITIVE BUT UNCLASSIFIED. NOT FOR INTERNET 
DISTRIBUTION. 
 
¶1. (SBU) Summary:  U.S. cosmetics firms have expressed concerns over 
the Ministry of Health's (MOH) recent Decision No. 35/2006-QD-BYT 
that implements a new registration process for cosmetics products. 
The Decision, which takes effect December 20, subjects more 
categories of cosmetics products for registration than previous 
regulations.  One immediate concern is the impact the new 
registration process will have on products already on the shelves or 
shipments of new products en route to Vietnam.  Econ Counselor met 
with MOH officials to raise general questions and concerns about the 
new regulations.  MOH officials said they were aware of the 
concerns, had consulted with industry, and were in the process of 
working on ways to make sure they would not impede trade.  End 
Summary. 
 
¶2. (SBU) U.S. firms have recently raised concerns over a new MOH 
regulation, Decision 35/2006-QD-BYT, dated November 10, 2006. 
Decision 35 outlines the process for registering cosmetics products 
in Vietnam, including imports.  The Decision was published in 
Vietnam's Official Gazette on December 5 and takes effect 15 days 
later on December 20.  An appendix to the Decision lists 20 
categories of cosmetics that are subject to the registration process 
outlined in the Decision.  This newly-formulated list incorporates 
categories such as hair care products and mascara, among others, 
which were not previously subject to import registration 
requirements. 
 
¶3. (SBU) According to one industry representative, the MOH 
registration process typically takes three months.  U.S. firms are 
concerned about the impact of Decision 35 on existing products on 
the shelves already or en route to Vietnam that did not previously 
require registration.  More broadly, firms are concerned that the 
new registration requirements will cause additional expenses and 
delays. 
 
¶4. (SBU) Econ Counselor met with Mr. Nguyen Van Thanh, Deputy 
Director General of the Drug Administration of Vietnam in the 
Ministry of Health (MOH) on December 7 to ask general questions and 
raise concerns expressed by industry.  He also referred generally to 
the Bilateral Trade Agreement and the Technical Barriers to Trade 
(TBT) agreement of the WTO.  In response, Mr. Thanh pointed to a 
letter in hand MOH had already received signed by a number of 
cosmetics firms, including Proctor and Gamble and Avon, that had 
raised the same questions. 
 
¶6. (SBU) Thanh said the new system is designed to bring Vietnam into 
compliance with other ASEAN countries. While the old registration 
system nominally covered five categories of products, those 
categories were broad enough actually to cover 15 of the 20 
categories listed under the new system, he said.  He stressed that 
MOH had already consulted with cosmetic firms through seminars and 
other meetings in the drafting of the new regulation. He also said 
they did not want to impede trade and were considering how they 
could work with the Customs administration to make sure they did not 
interrupt trade.  One idea, for example, would be to allow importers 
to submit the paper work some time after the importation had taken 
place.  He also maintained that registrations for existing products 
would remain in effect until their normal expiration.  Asked about 
the role of the Ministry of Trade in the process, Thanh said MOH had 
consulted with all the appropriate government agencies. 
 
¶7. (SBU) MOH officials and Econ Counselor agreed to stay in touch on 
further developments.  Post will also follow up with a meeting with 
Ministry of Trade on this issue. 
 
MARINE