Regulatory Updates for Vietnam, Indonesia and Thailand Tze ... · Vietnam. Fastest growing auto industry in South East Asia. Future of Asian manufacturing. Young work force, low land

Regulatory Updates for Vietnam, Indonesia and

ThailandTze Ko Mah

Confidential – © Inogen Environmental Alliance 2015 1

Content

Vietnam

Indonesia

Thailand

• Energy Efficiency • Global Harmonized System (GHS)

• Environmental Impact Assessment (EIA)

• Global Harmonized System (GHS)• Ambient Radioactive Level

• Foreign Business Act


Vietnam

Fastest growing auto industry in South East Asia

Future of Asian manufacturing

Young work force, low land and energy cost

Competitive market


Energy Efficiency in Vietnam

BEFORE NOW FUTURE

Efficiency Improvement

(2003)

Energy Efficiency Program

Diversity Energy Sources

• Government Decree on Energy Conservation & EE (No. 102/2003/ND-CP)

• Roles & responsibilities of all sectors

• Labelling on energy consuming equipment and facilities

• Minimize dependence on oil

• Beyond 2015, transformation from Net Energy Exporting Economy to Net Importing Economy

• Approved Vietnam National Energy Efficiency Program (VNEEP) for 2005-2015

• Led by Ministry of Industry and Trade (MOIT)

• 2010, Law on Energy Saving and Efficiency enacted

• Energy saving product labelling


Auto Industry Implications• Under the Law on Saving Energy and Efficient Use of Energy,

“Major Energy Users” are subject to specific mandatory requirements.

• Industrial production establishments and transport units that consume energy at the equivalent of 1,000 tons of oil annually, and construction works (factories, offices, etc.) that consume energy of at least 500 T.O.E annually.

Major Energy Users

•Required to assign a qualified energy management officer.

•Must possess a related advanced degree and hold a valid energy management certificate granted or recognized by MoIT.

Energy Management

Officer•Draw up annual and 5-year energy efficiency plans,

including air emissions and lighting.•Apply energy management model.•Organize energy management models.•Monitor energy consumption of equipment and the

entire production line.

Responsibilities


Auto Industry Implications• If an auto enterprise is deemed a major energy user, it must conduct

ANNUAL energy audit.

Confidential – © Inogen Environmental Alliance 2015

•Conduct audit by internal qualified energy auditor•Hire an energy audit institutionEnergy Audit

•Survey and data collection on energy use•Analysis, calculation, and evaluation of energy use

efficiency•Assessment of energy saving potential•Proposal of solutions for energy saving•Analysis of effectiveness of such solutions

Content of Energy Audit

Report

6

Challenges

Challenges to Comply with Law on Energy Saving & Efficiency

Challenges to Comply with

Law on Energy Saving & Efficiency

Capacity Building

Enforcement

Funding

• Insufficient qualified energy management officers available in the market.

• Lack of energy management training centers.

• Lack of law enforcement e.g. to make it compulsory on energy consumption reporting.

• Designated energy manager.

• No integrated programs between ministries.

• Limited government funding to implement EE&C program.

• Especially for SMEs.


Moving Ahead

Challenges to Comply with Law on Energy Saving & Efficiency

2015 and beyond..

• To continue to promote energy savings.• Target to reduce 6.9% of energy consumption in big cities

like Hanoi and Hoh Chin Minh city.• Focus on guiding and monitoring central energy-using

facilities, creating management systems and complying with the law.


Vietnam GHS System

• With effect from March 2014.• Chemical substances that are manufactured or

imported by enterprises in Vietnam must be routinely classified and labeled.

• Any enterprise or individual that manufactures or imports chemical substances is responsible for labeling them prior to market circulation.

• It should be noted that all labels are required to be written in Vietnamese.

GHS Global

Harmonized System

Classification and Labelling of Chemicals


Vietnam GHS System

GHS(4th revised) Label elements Vietnam GHS Circular Label elements

•Product identifier•Signal words•Hazard statements•Precautionary statements and pictograms•Supplier information

•Chemical Name•Product Identifier•Warning Words•Hazard Statements•Protective Measures•Pictograms•Information on the Manufacturer Importer, and Distributer•Quantity•Ingredients or Quantity of Gradients•Date of Manufacture (dd/mm/yy)•Expiration Date (if any)•Origins of Goods•Instructions for Use, Instructions for Preservation


Vietnam GHS System

Labeling Requirements

Language on Labels

Hazard Statement

Small Packages

Label SizeWarning Words

Hazard Pictogram


Vietnam GHS System

Effective date

Requirement

30 March 2014

SubstanceRe-classify, labeling and SDS should be updated by manufacturers and importers

30 March 2016

MixturesRe-classify, labeling and SDS should be updated by manufacturers and importers


Indonesia EHS Update - EIA Minister of Environment Regulation No.16/2012 on Guidelines for Developing Environmental Document

• This Regulation supersedes the Minister of Environment Regulation No 8/2006 on Guidelines for the Development of Environmental Impact Analysis Document and Minister of Environment No. 13/2010 on the Environmental Management and Monitoring Action (UKL-UPL) and Statement Letter of Ability in Environmental Management and Monitoring (SPPL).

• This Regulation provides the guidelines on how to prepare AMDAL document, fill UKL-UPL form and SPPL.

• AMDAL and UKL-UPL form are required as part of the application for environmental permit.

• AMDAL document comprises of AMDAL’s term of reference (locally known as Kerangka Acuan), Environmental Impact Analysis (ANDAL) document and Environmental Management and Monitoring Plans (RKL-RPL).


GHS (1) • Minister of Industry Regulation No. 23/2013 on Amendment on the

Minister of Industry Regulation No. 87/2009 on Global Harmonized System Classification and Labeling for Chemicals.

Regulation 87/2009 Regulation 23/2013

Applicability

GHS implementation is mandatory for all single component chemicals

GHS implementation is mandatory for all single component chemicals produced domestically and imported from overseas

GHS implementation is voluntary for mixture of chemicals.

GHS implementation is mandatory for mixture of chemicals produced domestically and imported from overseas with effective from 31 December 2016.

The GHS implementation requirement is exempted for pharmacy, food supplement, cosmetic and pesticides residue in food.

The mandatory GHS implementation requirement for pharmaceutical products, food supplement, cosmetic products and pesticides residues in food.The GHS requirement for mixture of chemicals is exempted for small and medium scale industrial companies.


GHS (2) • Minister of Industry Regulation No. 23/2013 on Amendment on the

Minister of Industry Regulation No. 87/2009 on Global Harmonized System Classification and Labeling for Chemicals.

Regulation 87/2009 Regulation 23/2013

Labeling

• Product sign• Hazard pictogram• Signal word• Hazard statement• Producer identification

• Chemical identity• Hazard pictogram• Signal word• Hazard statement• Warning statement• Identity of producer and/or supplier or importer

Safety Data sheet must prepare in Bahasa Indonesia and other official international language.

No requirement on posting name and address of the person performs re-packing of chemicals

Any persons involved in the re-packing of the chemicalsare required to post name and address of the persons doing the re-packaging, net mass/volume of the chemicals.


PROPER• Minister of Environment Regulation No. 6 Year 2013 on Program for Pollution Control,

Evaluation and Rating (PROPER)

• PROPER is an environmental rating program. Environmental performance of companies is mapped into 5-colour grading scale:

• The Minister of Environment will appoint PROPER Consideration Council and PROPER technical assessment team to undertake the assessment.

• The new regulations enacted in Jun 2013 added new provision to conduct Self-Assessment (Penilaian Mandiri) for companies who have been successful in achieving:– Blue Ranking for 3 consecutive years or Green or Gold ranking in the previous year

• Self-assessment checklist is provided in Annex 4 of the regulations which includes:– Emission records, SOPs availability, Hazardous waste management practices etc.

GOLD GREEN BLUE RED BLACKExcellent VERY GOOD GOOD NON-

COMPLIANCECAUSING

ENVIRONMENTAL DAMAGE


Ambient Radioactivity Level• Regulation of the Head of Nuclear Energy Supervisor (Bapeten) No. 7 Year

2013 on the Environmental Radioactivity Threshold. • Date of enactment: 10 June 2014• Replaces the Regulation of the Head of BAPETEN No. 2/Ka-BAPETEN/V-99

on the Environmental Radioactivity Threshold (1999 Regulation).• Provides the environmental threshold of radioactivity for the release in

the air and water.• The repealed 1999 Regulation provided a more detailed threshold

requirement of the radioactivity in the air and water. It differentiated the threshold for dissolved and non-dissolved as well as annual threshold for exposure through digestion and respiration.

• 2013 Regulation provides a more comprehensive list of radioactive materials compared to old regulations.


Thailand – Foreign Business Act

Aug 2013

• Formerly known as Alien Business Act• Proposed by The Business Development Department of

Thailand’s Commerce Ministry which are being backed by the Thai Chamber of Commerce (TCC)

• Limit foreigners having the majority say in company boards, mainly in the service sector

• Announcement made in December 2014 and the amendments could be enacted in 2015

• The amendments are supposed to restrict on all joint venture foreign companies that use Thai nominees to legally operate in Thailand, would apply to both existing companies in Thailand and all future businesses seeking Thai company formation.

• Restructure foreign direct investments in Thailand under a modified foreigner legislation



Aug 2013

Shareholding Test

Applicability of the Foreign Business Act to Thai companies

ControlTest

NomineeTest

Foreigner exceeds 49% shareholding

Foreigner controls factually /

contractually

Foreigner acts through Thai shareholder



Aug 2013

Proposed changes in the FBA

OLD NEW

Long list of restricted business Shorter list of restricted business

Complex and time consuming application process

Quick, easy and straight forward

Exemptions under international treaties Exemptions for existing companies


Questions


Email: [email protected]

Confidential – © Inogen Environmental Alliance 201522

Documents

Regulatory Updates for Vietnam, Indonesia and Thailand Tze ... · Vietnam. Fastest growing auto industry in South East Asia. Future of Asian manufacturing. Young work force, low land