Scenario: your food processing plant is suspended over serious food-safety breaches (cross-contamination on the line). Fifty tons are already distributed to 300 dealers nationwide. Five consumers are hospitalized with suspected poisoning. Nationwide recall or batch-limited recall? Who pays?
1. Suspension and recall: two different decisions
The Food Safety Law 2010 (No. 55/2010/QH12, in force as of 20/10/2026) and Decree 46/2026/ND-CP detailing the implementation of the Food Safety Law (the replacement decree, issued to take effect on 26 January 2026) frame the issue. Decree 46/2026 replaced Decree 15/2018/ND-CP: under Clause 2, Article 53 of Decree 46/2026, Decree 15/2018 ceased to have effect on 26 January 2026. However, the current application status must be noted: Resolution 09/2026/NQ-CP (4 February 2026) first suspended the application of Decree 46/2026, and Resolution 15/2026/NQ-CP (6 April 2026) continued that suspension — Decree 46/2026 remains suspended and is not yet applied in practice. While the suspension lasts, food-safety product declaration and registration procedures are in practice still carried out under Decree 15/2018/ND-CP. The suspension lasts until the amended Food Safety Law and its new implementing decree take effect. Distinguish:
- Facility suspension: halting production for remediation — no new batches until conditions are met.
- Product recall: a separate decision for goods in circulation. Nationwide recall (all circulating batches) applies where products endanger consumer health — with five suspected-poisoning hospitalizations, that risk is real and regulators will likely order a broad recall. Batch-limited recall applies only where the breach is proven contained to identified batches and others are safe.
2. Running the recall and costs: the plant pays everything
- Urgent notice: written recall notices to the entire distribution network (300 dealers) — stop selling, seal at once; public consumer notice via press and website — for food, notification speed is measured in hours, not days.
- Physical recall: collect everything, count against records; recalled products must not re-enter circulation — destroy as required.
- Costs: all recall costs (reverse logistics, warehousing, destruction, notices) are borne by the manufacturer — never shared with dealers. This is why major food companies buy product liability insurance.
3. Poisoned customers and reopening
Consumer compensation: poisoning victims may claim medical costs, lost income, and mental suffering — under the Civil Code 2015 (non-contractual damages) and the Consumer Rights Protection Law 2023 (in force). For food, manufacturer liability is fault-independent in many cases — proving product safety is the facility’s burden. Visit victims and advance hospital costs proactively — humane and legally loss-reducing.
Reopening: fully remediate (sanitation, line fixes against cross-contamination, retraining, rebuilt controls), invite re-inspection, and produce only when permitted. Re-audit all conditions against recurrence, on the application footing set out in Section 1: while the suspension lasts, product declaration and registration procedures in practice still follow Decree 15/2018/ND-CP; at the same time, audit now against the Decree 46/2026/ND-CP framework so the plant is ready when the suspension ends and the decree takes effect — product self-declaration has been abolished and replaced by registration of the declaration of conformity — products self-declared before 26 January 2026 must complete conformity-declaration registration within the 12-month transition period (Article 54 of Decree 46/2026); facilities producing medical nutrition foods, foods for special dietary uses, food supplements or nutrition products for children up to 36 months of age must apply HACCP, ISO 22000 or an equivalent food-safety management system from 31 December 2026.
Frequently asked questions
1. When is nationwide recall required?
Where products endanger consumer health (e.g., poisoning hospitalizations). Batch-limited recall only where the breach is proven contained and other batches are safe.
2. Who bears recall costs?
The manufacturer bears everything: reverse logistics, warehousing, destruction, notices. Never shared with dealers.
3. What are the reopening conditions?
Full remediation of the breach cause and a passing re-inspection before resuming production.
4. Can poisoned customers claim?
Yes — medical costs, lost income, mental suffering under the Civil Code 2015 and the Consumer Rights Protection Law 2023. Support victims proactively.
5. Should we buy product liability insurance?
Yes. Nationwide recall plus poisoning compensation can reach tens of billions of dong — product liability insurance is a food company’s financial life jacket.
This article has been quality-reviewed by the FLAW AI Legal Council
