Decree No. 38/2026/NĐ-CP is an important step in institutional improvement to manage and maintain growing area codes and packaging facilities effectively and sustainably.

Unifying awareness and action

Over the years, growing area codes (MSVT) and packaging facility codes (CSĐG) have become a mandatory “passport” for Vietnam's exported agricultural products. However, along with the rapid growth of the fruit and vegetable sector—especially in commodities such as durian, banana, mango, and dragon fruit—management pressure has also mounted as importing markets continuously tighten requirements regarding phytosanitary inspection, food safety, and traceability.

In this context, the Government’s issuance of Decree No. 38/2026/NĐ-CP concerning the import of plants with soil balls and the management of growing area codes and packaging facility codes is regarded as an important milestone in institutional improvement to standardize, clarify, and elevate the efficiency of state management for export-oriented agricultural production.

On May 14, the Ministry of Agriculture and Rural Development held a conference to implement Decree No. 38/2026/NĐ-CP in Ho Chi Minh City. Chaired by Deputy Minister Hoang Trung, the event drew the participation of numerous localities, industry associations, export enterprises, and specialized agencies. The conference was highly rated not merely as an activity to disseminate legal regulations, but as a forum to unify awareness and action across the entire sector regarding the requirement to shift decisively from a “code-issuing” mindset to one of “managing and maintaining codes effectively and sustainably.”

No longer just an “export procedure”

While many places previously viewed growing area codes primarily as a box to tick to “complete export documentation,” the nature of the coding system has now completely transformed. Importing countries—notably China, the United States, Japan, South Korea, and Australia—do not just require a code; they demand the continuous maintenance of technical conditions related to pests, plant protection product residues, packaging conditions, traceability, and monitoring records.

According to the Ministry of Agriculture and Rural Development, by May 2026, the country had recorded 9,546 growing area codes and 1,525 packaging facility codes serving exports to major markets. The Chinese market alone accounts for 4,323 approved growing area codes and 1,332 approved packaging facility codes.

However, while the number of growing area codes and packaging facility codes has risen rapidly, the number of violating entities has also grown. From 2025 to date alone, 403 growing area codes and 240 packaging facility codes received non-compliance warnings from China; among these, 167 growing area codes and 99 packaging facility codes have been suspended or revoked.

These figures indicate that the coding system is no longer a “formal safe-conduct,” but has become a tool to control quality and national reputation for exported agricultural products.

Speaking at the conference to implement Decree No. 38/2026/NĐ-CP, Deputy Minister Hoang Trung emphasized: if growing area codes and packaging facilities are not managed well, just a few cases of non-compliance can affect an entire industry, even impacting national reputation and the ability to maintain export markets.

Shifting from “code issuance” to “code maintenance”

One of the most vital messages at the conference to implement Decree 38 was the requirement to shift decisively from a mindset of “issuing as many codes as possible” to one of “maintaining codes sustainably.”

Reality shows that in recent times, a number of localities still chased quantity, focusing heavily on getting codes approved while failing to pay adequate attention to post-issuance inspections and monitoring. Production log recording, traceability, pest control, and pesticide residue management remain formalistic in many places. This is also the root cause behind many codes being warned or suspended.

Decree No. 38/2026/NĐ-CP, for the first time, provides a relatively comprehensive set of mechanisms for code suspension, restoration, and revocation, with clear procedures, templates, and processing timelines. This creates an important legal foundation to enhance transparency, accountability, and discipline in management.

Beyond regulatory bodies, the organizations and individuals granted codes must also take responsibility for maintaining technical conditions, keeping and archiving records, cooperating in monitoring, and ensuring traceability as required.

According to many experts, this is precisely the transition from “administrative management” to the “governance of export production chains.”

Institutionalizing the decentralized mechanism implemented in practice

One of the topics receiving immense attention from localities and businesses at the conference was the decentralization of MSVT and CSĐG management.

In fact, decentralization to localities has been implemented by the Ministry of Agriculture and Rural Development for years through specialized guiding documents and directives. The Ministry maintains the role of building institutions, issuing technical guidelines, organizing training, developing databases, negotiating with importing countries, and coordinating post-inspections; meanwhile, localities directly receive applications, conduct field inspections, and issue and manage codes within their jurisdictions.

However, prior to Decree No. 38/2026/NĐ-CP, this mechanism was primarily executed based on administrative guidelines and specialized regulations, lacking a comprehensive legal framework at the Government decree level.

Therefore, the greatest significance of Decree No. 38/2026/NĐ-CP is not the “transfer” of authority from the central to the local level, but the codification, standardization, and perfection of the decentralized mechanism that has been practically carried out over the recent period.

For the first time, the responsibilities and powers of each level are clearly specified in a unified Government decree, covering everything from application receipt, inspection, and code issuance to monitoring, suspension, restoration, or revocation.

According to the Decree, provincial-level People's Committees are responsible for organizing the issuance and management of MSVT and CSĐG within their territories; directing specialized agencies to conduct inspections, monitoring, post-inspections, and handle violations; and allocating resources, personnel, and funding to maintain management activities.

This clearly reflects the management perspective of the Ministry of Agriculture and Rural Development: code management must be linked to the actual locality, and local authorities must be the direct force to “stay close to growing areas and packaging facilities,” continuously tracking the maintenance of technical conditions and promptly handling violations right from the grassroots level.

Localities as the “front line” to safeguard the reputation of Vietnamese agricultural products

At the conference to implement Decree No. 38/2026/NĐ-CP, many localities frankly acknowledged current difficulties in management, such as a shortage of specialized personnel, limited funding, fragmented small-scale production, loose value chain links, and incomplete awareness among a segment of citizens and businesses.

However, opinions also converged on the fact that localities are the “front line” determining the actual quality of the coding system. In reality, central authorities cannot replace local bodies in inspecting every single growing area and packaging facility or monitoring every export shipment. If localities do not proactively conduct post-inspections, detect violations early, or slacken management, the risk of importing countries issuing warnings, tightening checks, or suspending imports remains very high.

Therefore, along with institutional improvement, the Ministry of Agriculture and Rural Development requested localities to consolidate their specialized management structures; strengthen coordination among the agricultural sector, police, market surveillance forces, and grassroots authorities; and strictly handle acts of leasing codes, using incorrect codes, falsifying documentation, or violating the importing countries' regulations.

Building a transparent and responsible production system

An element considered highly critical in Decree No. 38/2026/NĐ-CP is the promotion of digital transformation and the construction of a national database on growing area codes and packaging facilities.

According to the Ministry of Agriculture and Rural Development, the upcoming period will see accelerated digitalization of the entire process—from application receipt, field inspection, code issuance, monitoring, and alerts to violation handling. Simultaneously, data will be interconnected between central and local levels to improve management efficiency and traceability capabilities.

This is not only an internal management requirement but also an inevitable trend of global agricultural trade, as importing markets increasingly place weight on information transparency, electronic traceability, and supply chain responsibility.

It can be said that Decree No. 38/2026/NĐ-CP is more than just a legal document on growing area codes or packaging facilities. Looking further, it is a step toward institutional perfection to build a more professional, transparent, and responsible agricultural production sector for the market.

And in that journey, localities are the decisive link to safeguard the reputation of Vietnamese agricultural products on the international stage.

Source: Bao Nong nghiep va Moi truong