Making production unit and packing facility codes work in practice

Aligning awareness and action

Over the years, production unit codesand packing facility codes have become mandatory “passports” for Viet Nam’s agricultural exports. However, alongside the rapid expansion of the fruit and vegetable sector, particularly commodities such as durian, banana, mango and dragon fruit, management pressures have intensified as importing markets continue tightening requirements on plant quarantine, food safety and traceability.

Against this backdrop, the Government’s issuance of Decree No. 38/2026/ND-CP on the import of plants with growing media attached, and the management of production unit codesand packing facility codes, is being viewed as a critical institutional milestone aimed at standardizing, increasing transparency and improving state management efficiency over export-oriented agricultural production.

Later this week, the Ministry of Agriculture and Environment held a conference in Ho Chi Minh City to implement Decree 38/2026/ND-CP under the chairmanship of Deputy Minister Hoang Trung, with participation from local authorities, industry associations, exporters and technical agencies. The conference was regarded not merely as a legal dissemination event, but also as a forum to unify awareness and action across the sector around the need to shift decisively from a mindset of simply “issuing codes” to one focused on “managing and maintaining codes in a substantive and sustainable manner.”

No longer just an “export procedure”

Whereas many localities previously viewed production unit codesprimarily as a requirement to “complete export paperwork,” the nature of the coding system has now fundamentally changed. Importing countries, particularly China, the United States, Japan, South Korea and Australia, now require not only valid codes but also continuous compliance with technical standards related to pests, pesticide residues, packing conditions, traceability and monitoring records.

According to the Ministry of Agriculture and Environment, as of May 2026, Vietnam had issued 9,546 production unit codesand 1,525 packing facility codes serving exports to major markets. China alone has approved 4,323 production unit codesand 1,332 packing facility codes.

However, while the number of codes has risen rapidly, violations have also increased. Since 2025, China has issued non-compliance warnings for 403 production unit codesand 240 packing facility codes. Of these, 167 production unit codesand 99 packing facility codes have been suspended or revoked.

These figures underscore that the coding system is no longer merely a formal “entry pass,” but has become a tool for controlling quality and safeguarding the national reputation of Vietnamese agricultural exports.

Speaking at the implementation conference for Decree 38/2026/ND-CP, Deputy Minister Hoang Trung stressed that poor management of growing area and packing facility codes could allow a limited number of violations to affect entire commodity sectors and even damage the country’s reputation and export market access.

Shifting from “issuing codes” to “maintaining codes”

One of the conference’s central messages was the need to move decisively away from the mindset of “issuing as many codes as possible” toward one focused on “sustainably maintaining codes.”

In practice, some localities have continued prioritizing the number of codes granted while paying insufficient attention to post-certification inspections and monitoring. Production logs, traceability systems, pest management and pesticide residue controls in many areas have remained largely procedural. This has contributed to the growing number of warnings and suspensions.

For the first time, Decree No. 38/2026/ND-CP establishes a relatively comprehensive framework governing the suspension, reinstatement and revocation of codes, with clear procedures, templates and processing timelines. This provides an important legal basis for improving transparency, accountability and discipline in management.

Not only management agencies, but also organizations and individuals granted codes, are now responsible for maintaining technical conditions, keeping records, storing documentation, cooperating with inspections and ensuring traceability as required.

According to many experts, this represents a transition from “administrative management” to “export supply chain governance.”

Institutionalizing an existing decentralization mechanism

One of the issues drawing strong interest from local authorities and businesses at the conference was the decentralization of management responsibilities for growing area and packing facility codes.

In reality, decentralization to local authorities has already been implemented by the Ministry of Agriculture and Environment for several years through technical guidelines and sectoral directives. The ministry has retained responsibility for institution building, technical guidance, training, database development, negotiations with importing countries and post-inspection coordination, while local authorities have directly handled applications, field inspections, issuance and local management of codes.

However, prior to Decree No. 38/2026/ND-CP, this mechanism was implemented largely through administrative guidance and sector-specific regulations, without a comprehensive legal framework at the Government decree level.

As such, the decree’s greatest significance lies not in transferring authority from the central government to local authorities, but in codifying, standardizing and completing a decentralization mechanism already operating in practice.

For the first time, the responsibilities and powers of each administrative level are clearly defined in a unified Government decree, covering application processing, inspections, code issuance, supervision, suspension, reinstatement and revocation.

Under the decree, provincial People’s Committees are responsible for organizing the issuance and management of growing area and packing facility codes within their jurisdictions; directing technical agencies to conduct inspections, supervision, post-certification audits and violation handling; and allocating the personnel, funding and resources necessary to maintain management operations.

This clearly reflects the Ministry of Agriculture and Environment’s management philosophy: code management must be tied to actual production areas, with local authorities serving as the frontline force “embedded in growing areas and packing facilities,” continuously monitoring compliance with technical requirements and promptly addressing violations at the source.

Local authorities as the frontline defenders of Viet Nam’s agricultural reputation

At the conference, many localities candidly acknowledged existing difficulties in management, including shortages of specialized personnel, limited budgets, fragmented production, weak supply chain linkages and insufficient awareness among some farmers and businesses.

Nevertheless, participants agreed that local authorities are ultimately the “frontline” determining the real quality of the coding system. In practice, the central government cannot inspect every growing area, every packing facility or monitor every export shipment. Without proactive local post-inspections, early detection of violations and strict oversight, the risk of warnings, tightened inspections or import suspensions by foreign markets becomes extremely high.

Accordingly, alongside institutional improvements, the Ministry of Agriculture and Environment has also instructed localities to strengthen specialized management systems; enhance coordination among agricultural agencies, police, market surveillance authorities and grassroots administrations; and strictly address violations such as code leasing, misuse of codes, fraudulent documentation and breaches of importing-country regulations.

Building a transparent and accountable production system

Another key aspect of Decree No. 38/2026/ND-CP is its push for digital transformation and the development of a national database for growing area and packing facility codes.

According to the Ministry of Agriculture and Environment, the coming period will see accelerated digitalization of the entire process, from application intake, field inspections and code issuance to monitoring, warning systems and violation handling. Data connectivity between central and local authorities will also be strengthened to improve management efficiency and traceability.

This is not only a domestic management requirement, but also an inevitable trend in global agricultural trade, as importing markets increasingly prioritize information transparency, electronic traceability and supply chain accountability.

Ultimately, Decree No. 38/2026/ND-CP is more than a legal document governing growing area and packing facility codes. More broadly, it represents an institutional step toward building a more professional, transparent and accountable agricultural production system responsive to market demands.

And in that process, local authorities remain the decisive link in safeguarding the reputation of Vietnamese agricultural products in international markets.