Production facilities for plant varieties

I. Legal provisions on establishments producing plant varieties An establishment producing plant varieties is an organization or unit specializing in the production, propagation, and supply of plant seeds to farmers, farms, or other agricultural production units. So, how do we understand...

I. Legal provisions on establishments producing plant varieties

An establishment producing plant varieties is an organization or unit specializing in the production, propagation, and supply of plant seeds to farmers, farms, or other agricultural production units. So, how do we understand what an establishment producing plant varieties is and what related issues surround it? Let's explore the current legal regulations related to such issues below with NPLaw.

1. What is an establishment producing plant varieties?

An establishment producing plant varieties refers to an organization or entity specialized in producing, propagating, and supplying plant varieties to farmers, agricultural households, plantations, or other agricultural production entities.

These establishments are responsible for researching, developing, preserving, and propagating plant varieties to ensure the quality and quantity of varieties supplied to the market.

2. Conditions to be recognized as an establishment producing plant varieties

Pursuant to Article 22 of the Law on Crop Production 2018 regarding conditions applicable to organizations and individuals producing and trading plant varieties:

- Organizations and individuals producing plant varieties must satisfy the following conditions:

Possessing plant varieties or being authorized by an organization or individual owning plant varieties that have been granted a decision on circulation recognition or have been self-declared for circulation;
Possessing or leasing premises, infrastructure, and equipment in accordance with national standards on methods of producing plant varieties; in the absence of national standards, internal standards shall apply.

- Organizations and individuals trading plant varieties must have a lawful place of business and ensure traceability of the plant variety batches.

Pursuant to Article 8 of Decree No. 94/2019/ND-CP detailing several provisions of the Law on Crop Production regarding plant varieties and cultivation:

- Organizations and individuals producing and trading plant varieties must comply with Article 22 of the Law on Crop Production and the following detailed provisions:

Prior to trading plant varieties, organizations and individuals shall notify the Department of Agriculture and Rural Development (DARD) of the locality where the trading activities occur via email, in person, or by post with the information, including address of transaction, name of the owner or legal representative of the establishment, and contact number, for publication on the DARD’s electronic portal;
Organizations and individuals trading plant varieties must maintain records ensuring traceability of plant variety batches, including information on contracts, invoices for the batch, records on batch quality, and labels meeting requirements under Article 10 of this Decree;

- For industrial crops and perennial fruit trees, additional information must be provided, including used sources of propagating materials, declared applicable standards, quantity of plants, and delivery time.

3. Procedures for establishing an establishment producing plant varieties

Procedures for establishing an establishment producing plant varieties in Viet Nam generally include the following steps:

Step 1: Preparation of the application dossier:

Application form for establishment of a plant variety production establishment;
Certificate of land use rights (if any);
Land lease contract (if leasing land);
Documents proving the origin of plant varieties (variety certificates or documents verifying origin);
Documents demonstrating financial capacity and technical facilities for variety production;
Documents related to variety production processes, cultivation methods, and preservation techniques.

Step 2: Submission of the dossier: The dossier shall be submitted to the Department of Agriculture and Rural Development of the province or city where the establishment is intended to be located.

Step 3:

The Department of Agriculture and Rural Development will review and appraise the dossier. If the dossier is complete and valid, approval will be granted.
An inspection may be conducted to assess the establishment’s conditions and production capacity.
If all conditions are satisfied, a Certificate of Eligibility for Plant Variety Production will be issued.
Information on the establishment and approved plant varieties will be publicly disclosed.

II. Questions regarding establishments producing plant varieties

1. Authority competent to approve the establishment of an establishment producing plant varieties

Pursuant to Clause 6 Article 2 of Decision No. 929/QD-BNN-TCCB (2017) on the functions and duties of the Department of Crop Production in managing agricultural plant varieties:

The Department shall report the Minister on:

Regulations on the use and exchange of plant genetic resources; national technical regulations on quality, testing, inspection, production, preservation, processing, and trading of plant varieties;
Decisions recognizing new plant varieties permitted for production and business; issuance of Lists of: principal crops; plant varieties permitted for production and business; rare and valuable plant genetic resources requiring preservation; crops banned from export or allowed for international exchange; plant varieties classified as Group-2 goods;
The development of strategies, planning, and development plans for plant varieties consistent with the national socio-economic development planning and agricultural ecological regions;
Decisions recognizing plant varieties for pilot production; organization of quality management of plant varieties, testing, and recognition of new plant varieties; guidance on selection and recognition of elite trees and elite tree orchards.

Accordingly, the Department of Crop Production is responsible for advising the Minister of Agriculture and Rural Development, who holds the authority to approve the establishment of plant variety production establishments.

2. Is a circulation permit for plant varieties a mandatory requirement to establish a plant variety production establishment?

A circulation permit for plant varieties is one of the mandatory legal requirements for the establishment of a plant variety production establishment. Under Vietnamese law, such establishments must meet specified technical standards and operational requirements and must obtain approval from competent State authorities to ensure quality and safety in the production and circulation of plant varieties. Such aims to protect consumers’ interests, safeguard the environment, and promote sustainable agricultural development.

3. May residential premises be used as a place for producing forestry plant varieties?

Pursuant to Article 21 of Decree No. 27/2021/ND-CP regarding conditions for organizations and individuals producing and trading forestry plant varieties:

- Organizations and individuals producing forestry plant varieties must:

Possess or lease premises, infrastructure, and equipment meeting national standards on methods of producing forestry plant varieties; where national standards are unavailable, internal standards shall apply;
Produce varieties of principal forestry species using propagating materials sourced from recognized varieties or sources.

- Organizations and individuals trading forestry plant varieties must:

Have a lawful business location;
Maintain records ensuring traceability of plant variety batches, including contracts, invoices, records, and labels compliant with Articles 18 and 19 of this Decree; and information on propagating materials used, declared applicable standards, quantity, and delivery time.
Before production or trading, notify the local Department of Agriculture and Rural Development via email, in person, or postal service with: Business address, name of the owner or legal representative, and contact number for publication on the portal.

Accordingly, using a residential property as a place for producing forestry plant varieties does not comply with national standards on methods of producing such varieties.

III. Legal consultancy services related to establishments producing plant varieties

The above constitutes the complete information provided by NPLaw to assist Clients concerning establishments producing plant varieties. Should you have any further inquiries regarding the matters addressed herein or any other legal issues, please contact NPLaw for direct consultation and support.