State Holds Controlling Stakes in Tobacco Enterprises

Source from:  VietnamNet 25/07/2007 08/03/2007

The Government has promulgated a decree on tobacco production and trading, which says that tobacco is an item that the Government does not encourage production of. Tobacco production is a kind of conditional business. The state will manage tobacco production and trading. Investors must get licences from state management authorities to produce and trade tobacco products. The state will control the amount of tobacco provided for the market, control production volume, imports and consumption level. The state will hold controlling stakes in tobacco production enterprises. If necessary, the state will define the output, standards and the minimum selling prices for tobacco products for different periods. Individuals, institutions involved in the tobacco production chain, including harvesting, processing, material trading, and tobacco production, all have to meet specific requirements set by the Ministries of Industry and Trade, which may be adjusted periodically to be suitable to circumstances. All subjects must be licenced to get involved in different stages of tobacco production. The state will also keep strict control over tobacco trading by restructuring the distribution network. Only individuals and institutions that can meet requirements set by the state will be granted operation licences. The import of tobacco products must be carried out through state-owned enterprises and the products must be attached with stamps to be eligible for circulation on the market. Enditem