As an emerging economic power in Southeast Asia, Vietnam is attracting more and more international companies to invest. As the Vietnamese government attaches great importance to environmental protection, obtaining a compliant environmental license has become a key step for companies to successfully operate in Vietnam. Whether you are an entrepreneur who is considering entering the Vietnamese market or a company that has already taken root in Vietnam, it is crucial to understand and master the environmental application process.
This guide aims to provide you with a comprehensive and detailed guide to applying for an environmental license in Vietnam. We will customize the application materials list for you according to different industries and project sizes, analyze the complex application process, and share valuable practical experience. From Environmental Impact Assessment (EIA) to Environmental Protection Plan (EPP), we will reveal each key stage for you to help you move forward on the road to green compliance. Let us work together to open a new chapter in Vietnam’s green cause!
Detailed explanation of project classification
When investing in a project in Vietnam, accurately identifying the project category is a critical first step in the environmental permit application process. Vietnam’s Environmental Protection Law classifies different types of projects based on industry characteristics and project scale, which directly affects the types of environmental licenses required and the application process. According to the “Vietnam Environmental Protection Law” (Law No. 72/2020/QH14) passed in 2020 and effective on January 1, 2022, and relevant implementation rules such as No. 08/2022/ND-CP, the main project classifications Based on industry, size and potential environmental impact.
In terms of industry classification, Vietnam’s Environmental Protection Law has specific provisions for projects in different industries. Manufacturing is one of Vietnam’s key development areas, including heavy industry, light industry and high-tech manufacturing. Heavy industries such as steel, chemicals, cement and other highly polluting industries usually require a comprehensive environmental impact assessment (EIA). According to Appendix III and IV of Agreement No. 08/2022/ND-CP, these projects tend to fall into Category I or Category II projects and require stricter management. For example, steel projects with an annual production capacity of more than 200,000 tons are classified as Category I projects. , the EIA report must be approved by a national agency.
Although light industries such as textiles, food processing, and electronic product manufacturing have relatively low pollution levels, they still need to submit environmental impact assessment reports or environmental protection plans based on specific circumstances. For example, according to Agreement No. 08/2022/ND-CP, textile projects with an annual output of more than 100,000 pieces need to prepare an EIA report, while small-scale food processing plants may only need to submit a simplified version of the environmental protection plan.
The service industry occupies an important position in Vietnam, including tourism, logistics and transportation, and commercial real estate. For large tourism projects, if the economic benefits are expected to exceed 5 months, a detailed environmental impact assessment report needs to be prepared in accordance with Agreement No. 08/2022/ND-CP. Logistics and transportation projects, especially those involving the construction of ports and airports, are usually regarded as basic major facility projects and require more comprehensive environmental impact assessments. For example, according to the agreement, project ports with an annual cargo throughput of more than 1 million tons are Category I projects, which require the highest level of environmental hubs.
Projects in Vietnam are also subject to strict environmental regulations. Large-scale planting projects, such as agricultural farms expected to exceed 100 acres, require environmental impact assessments. Livestock projects, especially large-scale farms, often require detailed pollution control plans due to the large amounts of wastewater and gas emissions they may produce. Aquaculture projects, such as shrimp farms covering an area of more than 10 acres, are also required to submit an environmental impact assessment report. These provisions are reflected in the appendix to Agreement No. 08/2022/ND-CP.
The energy industry is an area of special concern for environmental protection in Vietnam. Traditional energy projects, such as coal-fired power plants, are often classified as Category I projects and require the most stringent environmental review due to their potentially highly polluting nature. According to Agreement No. 08/2022/ND-CP, thermal power plant projects with an installed capacity of more than 600MW must have their environmental impact assessment reports directly hosted by the Ministry of Environment and Resources. At the same time, the Vietnamese government is actively promoting the development of renewable energy. Although clean energy projects such as solar and wind power have relatively small environmental impacts, large-scale projects still require environmental impact assessments, especially considering their potential impacts on land use and ecosystems.
As a high-risk industry, the mining industry requires strict environmental management, whether it is an open-pit mine or an underground mine. According to Agreement No. 08/2022/ND-CP, almost all large-scale mining projects are classified as Category I or II projects, requiring detailed environmental impact assessments and long-term environmental monitoring plans. For example, open-pit mining projects with an annual mining volume of more than 1 million cubic meters are Category I projects and require the highest level of environmental hub.
Infrastructure projects, such as transportation facilities and municipal works, often involve large-scale land use changes and potential ecological impacts, and therefore also require comprehensive environmental assessments. According to Agreement No. 08/2022/ND-CP, highway projects with a length of more than 100 kilometers and inter-provincial railway projects are Category I projects and require the most stringent environmental review.
In terms of project size classification, Vietnamese law classifies large, medium and small projects based on investment, employees and environmental impact scope. Large-scale projects typically have investment capital exceeding VND500 billion (approximately US$22 million), employ more than 300 people, and their environmental impacts may span regions or have national implications. Many of these projects typically require the most comprehensive environmental impact assessments and may require a hub at central government level.
The investment capital of medium-sized projects is usually between 100 billion and 500 billion VND, the number of employees is between 100 and 300, and its environmental impact is mainly limited to the province or city where the project is located. Such projects may require submission of an impact assessment report, but sodium hydroxide plans may be subject to lower standards and are usually the responsibility of provincial environment departments.
The investment capital of small projects is usually less than 100 billion VND, employing 100 people, and the environmental impact is mainly limited to the area where the project is located. According to Article 49 of the Environmental Protection Law 2020, such projects may only be required to undertake an environmental protection plan, but require a comprehensive environmental impact assessment report.
In addition, Vietnamese law also has additional provisions for some special types. Strategic projects, that is, major projects that have an impact on the country’s economic development, are usually directly sponsored by the government and may require more stringent environmental assessments and longer Manhattan cycles. High-risk projects, such as those involving hazardous chemicals or nuclear energy, require special safety assessments and violation plans. Border impact projects, that is, projects that may have an impact on the environment of neighboring countries, need to consider the requirements of the international environment and bilateral agreements, and may require cross-border consultations.
Accurate project classification not only helps companies choose the correct application path, but also helps companies identify potential environmental risks in advance, laying the foundation for the smooth implementation of projects. In view of the complexity and intermittent updates of Vietnam’s environmental regulations, it is strongly recommended that enterprises consult professional environmental consultants at the early stage of project planning to ensure the accuracy and compliance of project classification. At the same time, companies should also pay close attention to the latest trends in Vietnam’s environmental policies. If there may be new regulations or revisions to existing regulations, they should revise and adjust project plans in a timely manner to ensure continued compliance.
Detailed explanation of Vietnam license environment types
Vietnam’s environmental licensing system is based on the Environmental Protection Law (Law No. 72/2020/QH14) passed in November 2020, which will officially enter into force on January 1, 2022. The law overhauls Vietnam’s environmental protection system, introducing new license types and application procedures. In conjunction with this core law, the Vietnamese government has also formulated a series of implementation details, the most important of which is Resolution No. 08/2022/ND-CP issued on January 10, 2022, which details the specific implementation plan of the Environmental Protection Law . Together, these regulations form Vietnam’s current environmental licensing framework and provide clear guidance to investors.
Environmental Impact Assessment (EIA) is the most comprehensive and stringent type of environmental permit in Vietnam. According to Articles 30 to 34 of the 2020 Environmental Protection Law, large-scale projects that may have a significant impact on the environment include those projects that change the use of large areas of land, mountains, forests, cultivated land, water or sea surfaces, and projects that may have a significant impact on the environment. Projects that adversely affect community health and the environment. The content of the EIA report must be comprehensive, covering project overview, environmental status assessment, impact prediction, emission management plan, accident prevention and response measures, as well as detailed environmental management and monitoring plan.
According to the provisions of Agreement No. 08/2022/ND-CP, the approval authority for EIA reports is divided into national and provincial levels. For example, steel projects with an annual production capacity of more than 200,000 tons and thermal power plant projects with an installed capacity of more than 600MW are classified as Class I projects, and their EIA reports need to be approved by the Ministry of Environment and Resources. This reflects that the Vietnamese government attaches great importance to the environmental impact of major projects. Most medium-sized industrial projects and infrastructure projects are approved by provincial people’s committees. This hierarchical mechanism effectively balances central and local environmental management responsibilities.
An innovation introduced in the 2020 Environmental Protection Law is the Environmental Permit (EP) system. According to Article 39 of the Law, the environment integrates various previously scattered environment-related permits involving wastewater discharge. The establishment of this system aims to simplify administrative procedures and improve the efficiency of environmental management. Projects that need to apply for environmental permits mainly include projects that have completed environmental assessments and been put into operation, projects that are in operation but have not yet obtained any environmental permits, and projects that generate industrial wastewater, damage or losses.
The application process for an environmental permit requires information such as emissions data, pollution control measures and a plan to monitor the environment. These requirements prompt companies to pay more attention to their environmental performance and adopt proactive pollution control measures. According to Agreement No. 08/2022/ND-CP, the authority for environmental permits is also divided into national and provincial levels, depending on the scale and potential environmental impact of the specific project. This tiered mechanism ensures that major projects are subject to tighter oversight while also providing delegation with the power to manage smaller projects.
For small projects or projects with low environmental impact, Vietnam has established a simplified process of Environmental Registration (ER). According to Article 49 of the 2020 Environmental Protection Law, small-scale production, operations, and service facilities that are not subject to environmental impact assessment, as well as family-based production and operation activities, can be environmentally registered. In addition, projects that do not produce industrial wastewater or produce smaller quantities can also adopt this simplified application scheme. The process of environmental registration is relatively simple. The project owner only needs to submit an environmental protection commitment letter to a document (usually at the district or county level) describing the basic situation of the project and the environmental protection measures to be taken. This simplified approach significantly reduces compliance costs for small businesses while also ensuring that basic environmental protection requirements are met.
In addition to environmental permits for specific projects, Vietnam has also developed a Strategic Environmental Assessment (SEA) system to assess the environmental impact of large-scale development plans and policies. According to Articles 23 to 1 and 27 of the Environmental Protection Law of 2020, national-level socio-economic development plans, industry development plans (such as energy, transportation, agriculture, etc.), provincial-level socio-economic development plans, and those that may cause environmental damage Other plans with significant impacts will require a strategic environmental assessment. The SEA report needs to comprehensively analyze the possible environmental impacts caused by the implementation of the plan and propose optimization plans and environmental protection measures. This macro-level environmental assessment helps to consider environmental factors at the planning stage, preventing and preventing potential environmental problems at their source.
Although not a separate permit type, an environmental monitoring plan is a key component of the environmental permit process. According to Articles 111 to 113 of the 2020 Environmental Protection Law, projects that require environmental impact assessment must develop and implement an environmental monitoring plan. The plan should detail monitoring parameters, frequency, methods and locations. For some key pollution sources, the law even requires the installation of online monitoring systems and real-time connection with the monitoring systems of environmental authorities. Environmental monitoring requirements ensure that companies maintain good environmental performance after obtaining environmental permits.
What is significant is that Vietnam’s environmental regulations system is constantly being improved and updated. For example, on January 18, 2022, the Vietnamese government made Agreement No. 06/2022/ND-CP, which put forward new requirements for greenhouse gas hazards and fire layer protection. This reflects the Vietnamese government’s focus on global environmental issues and may also affect the environmental permit application process in certain industries. Such dynamic environmental regulations require companies to remain vigilant and promptly understand and adapt to new environmental requirements.
For companies planning to invest in Vietnam, it is crucial to accurately determine the type of environmental permit required for the project. This is not only about compliance, but also directly affects the schedule and cost of the project. In view of the complexity and dynamic nature of Vietnam’s environmental regulations, it is strongly recommended that enterprises hire professional consultants who are familiar with Vietnam’s environmental regulations during project planning. These experts can help companies correctly understand and comply with relevant requirements and avoid compliance risks and additional costs caused by misunderstandings.
At the same time, companies should also establish a continuous environmental compliance management system. This system should be able to capture regulatory changes in a timely manner, assess their impact on business operations, and make appropriate adjustments quickly. This good environmental management approach not only ensures continuous compliance, but also helps companies establish a good corporate image and lay the foundation for long-term development in the context of Vietnam’s urgent needs.
Environmental license application process
Vietnam attaches great importance to environmental protection , so the application process for environmental permits is relatively complicated . This process is mainly based on the Environmental Protection Law (Law No. 72/2020/QH14) passed in 2020 and Agreement No. 08/2022/ND-CP promulgated on January 10, 2022. Depending on the nature and size of the project, the application process may vary slightly, but generally it can be broken down into a few main stages.
First, for projects that require an Environmental Impact Assessment (EIA), the application process usually begins with the preparation of an EIA report. According to Articles 30 to 34 of the Environmental Protection Law, project owners need to hire a qualified agency to prepare an EIA report. This process typically takes several months as it involves detailed environmental baseline surveys, impact predictions and mitigation design. The content of the EIA report must comply with the requirements of Article 28 of Agreement No. 08/2022/ND-CP, including project overview, environmental status assessment, impact prediction, waste management plan, accident prevention and response measures, as well as detailed environmental management and Monitoring plan.
After the EIA report is compiled, the project owner needs to submit the report to the authority with approval authority. According to the provisions of Agreement No. 08/2022/ND-CP, EIA reports for large projects or projects that may cause significant environmental impacts (such as steel projects with an annual production capacity of more than 200,000 tons, thermal power plants with an installed capacity of more than 600MW) need to be submitted to Approved by the Ministry of Environment and Resources. Other projects are usually approved by provincial people’s committees. The law stipulates that the approval authority should make an approval decision within 45 days (which can be extended to 60 days for complex projects) after receiving complete application materials.
During the EIA report review and approval process, the review and approval authority may require the project owner to provide supplementary information or modify the report. This is an interactive process that may require multiple communications and modifications. According to Article 35 of the Environmental Protection Law, if the EIA report is not approved, the approval authority must explain the reasons in writing. The project owner can modify the report and resubmit it, but if it is not approved three times, the project will not be allowed to be implemented.
Once the EIA report is approved, the project can enter the implementation phase. However, this does not mean the end of the environmental permitting process. According to Articles 39 to 41 of the 2020 Environmental Protection Law, project owners also need to apply for an environmental license before the project can start operations. This process aims to ensure that the project can meet the environmental protection standards promised in the EIA report during actual operations.
Applications for environmental permits require detailed emissions data, the actual effectiveness of pollution control measures, and the implementation of environmental monitoring plans. According to Articles 28 to 43 of Agreement No. 08/2022/ND-CP, application materials usually include an environmental permit application form, a copy of the EIA approval decision, a completion report of the project’s environmental protection projects and measures, emission sources and waste management programs, among others.
For projects of smaller scale or with lower environmental impact, a simplified environmental registration procedure can be applied for. According to Article 49 of the Environmental Protection Law, such projects only need to submit an environmental protection commitment letter to the local government (usually the district or county level). The environmental protection commitment letter should include an overview of the project, main environmental impacts and proposed environmental protection measures. The local government should confirm the registration within 10 working days after receiving the letter of commitment.
It is important to note that the application for an environmental permit is not a one-time process. According to Article 44 of the Environmental Protection Law, environmental licenses are usually valid for 5 to 10 years. Before the validity period expires, enterprises need to apply for an extension or re-apply. In addition, if there are major changes to the project, such as expanding the production scale or changing the production process, you will also need to reapply for an environmental license.
For some special industries, such as projects involving radioactive materials, in addition to regular environmental licenses, special licenses are also required. The application process for these special licenses is usually stipulated by relevant industry regulations, such as the Atomic Energy Law of 2008 (Law No. 18/2008/QH12) and its implementing regulations.
Public participation is an important part of the entire application process. According to Article 33 of the Environmental Protection Law and Article 24 of Agreement No. 08/2022/ND-CP, project owners must consult communities, organizations and individuals that may be affected by the project. This is usually done through public meetings, questionnaires or announcements. Public comments should be carefully considered and reflected in the EIA report.
The process of applying for an environmental permit can present various challenges. A common problem is insufficient or non-compliant documentation, which can result in the application being returned or delayed. Another challenge is the constant change in technology requirements. For example, Agreement No. 06/2022/ND-CP promulgated on January 18, 2022 introduces new greenhouse gas emission reduction requirements, which may affect environmental permit applications for certain industries. Therefore, companies need to pay close attention to regulatory updates and adjust their environmental management strategies in a timely manner.
Considering the complexity and importance of the application process, companies are strongly recommended to hire professional consultants who are familiar with Vietnam’s environmental regulations. These experts can help companies correctly understand regulatory requirements, prepare high-quality application materials, and communicate effectively with relevant departments throughout the process. It is also important for foreign investors to understand the local culture and administrative procedures, which can help them complete the application process more smoothly.
Obtaining an environmental permit is just the beginning of environmental compliance. According to Articles 111 to 113 of the Environmental Protection Law, enterprises must strictly implement approved environmental management plans, conduct regular environmental monitoring, and report to the environmental authorities. Some key pollution sources even need to install online monitoring systems to connect in real time with the monitoring systems of environmental authorities.
Vietnam’s environmental permit application process reflects the country’s commitment to protecting the environment while promoting economic development. While this process may seem tedious, it provides companies with a framework for thinking systematically about environmental issues, helping companies achieve better environmental performance in their long-term operations. For companies planning to invest in Vietnam, fully understanding and taking this process seriously is not only a need for legal compliance, but also an important way to win the trust and support of the local community.
List of environmental license application materials
Applying for an environmental license in Vietnam requires preparing a large number of detailed documents and materials. The specific requirements for these materials vary depending on the nature of the project and the type of permit applied for, but are generally based on the Environmental Protection Law passed in 2020 (Law No. 72/2020/QH14) and promulgated on January 10, 2022 The provisions of the Agreement No. 08/2022/ND-CP. This article will detail the list of materials that different types of projects need to prepare when applying for environmental permits.
For large-scale projects that require an Environmental Impact Assessment (EIA), the preparation of application materials is the most complex and comprehensive. According to Article 31 of the Environmental Protection Law and Article 28 of Agreement No. 08/2022/ND-CP, the EIA report is a core document, and its content must include project overview, environmental status assessment, impact prediction, and waste management plan , environmental accident prevention and response measures, and detailed environmental management and monitoring plans. In addition to the EIA report itself, the application materials must also include the feasibility study report or investment plan of the project, as well as the land use rights certification documents for the project location. For projects that may affect nature reserves, national parks or historical and cultural sites, written consent from the relevant authorities is also required.
The preparation of an EIA report is a time-consuming and professional process that usually needs to be completed by an environmental consulting agency with appropriate qualifications. The report will need to include detailed environmental background survey data, which may require months of field monitoring. In addition, the report also needs to include quantitative analysis of various environmental impacts that the project may cause, such as air pollutant dispersion models, water quality impact prediction models, etc. These technical aspects require not only specialized knowledge but also the use of approved analytical methods and models.
For projects that are smaller in scale or have less environmental impact, you can apply for a simplified Environmental Protection Plan (EPP). According to Article 49 of the Environmental Protection Law, the materials required to apply for EPP are relatively simple, mainly including a letter of commitment to environmental protection and basic information about the project. The environmental protection commitment letter should detail the possible environmental impacts of the project and the environmental protection measures to be taken. Although the requirements of EPP are simpler than those of EIA, sufficient detailed information still needs to be provided so that the environmental management department can evaluate the environmental impact of the project.
After the EIA or EPP is approved, the project enters the implementation phase. But before formal operation, an environmental permit needs to be applied for. According to Articles 39 to 41 of the Environmental Protection Law, and Articles 28 to 43 of Decree No. 08/2022/ND-CP, materials for applying for an environmental license usually include the following: Application for an environmental license Form, copy of EIA approval decision, completion report of the project’s environmental protection projects and measures, emission source and waste management plan, environmental monitoring plan, etc. Among them, the completion report of environmental protection projects and measures is a key document. It needs to explain in detail how the project implemented various environmental protection measures promised in the EIA report, and provide relevant supporting materials, such as procurement contracts for environmental protection facilities and installation photos. , operation records, etc.
For some special industries, such as projects involving radioactive materials, toxic chemicals or biological agents, additional special reports and permits are required in addition to regular environmental permit application materials. For example, according to the Atomic Energy Law of 2008 (Law No. 18/2008/QH12), projects using radioactive materials also need to provide a radioactive safety assessment report and a radioactive material use license. These additional material requirements reflect the Vietnamese government’s strict control over certain high-risk industries.
Public participation is also an important part of the environmental permit application process. According to Article 33 of the Environmental Protection Law and Article 24 of Agreement No. 08/2022/ND-CP, the project owner must provide materials proving that it has fully consulted the opinions of communities, organizations and individuals that may be affected by the project. This usually includes records of public consultation meetings, questionnaire results, publicity materials, etc. These certification materials for public participation are not only legal requirements, but also an important basis for the project to gain social recognition.
For foreign investment projects, some additional documents are required. This includes a copy of the investment license, a Vietnamese translation of the company registration certificate (subject to notarization), and identification documents of the legal representative. If the application materials are submitted by an agent, a power of attorney is also required. These requirements reflect that while Vietnam encourages foreign investment, it also pays attention to standardizing the environmental management of foreign-invested enterprises.
Preparing these application materials can be a time-consuming and complex process. Many documents need to be in Vietnamese, and for foreign investors professional translation services may be required. In addition, certain technical documents (such as environmental monitoring reports) may need to be issued by laboratories or institutions recognized by Vietnam. Therefore, it is recommended that companies start preparing these materials at the early stages of project planning and consider hiring local consultants who are familiar with Vietnam’s environmental regulations and administrative procedures to assist in the preparation work.
It should be emphasized that all materials submitted must be true and accurate. According to Article 162 of the Environmental Protection Law, providing false information or concealing important facts may result in serious legal consequences, including fines, license revocation, and in serious cases, criminal penalties. Therefore, companies must be honest and transparent when preparing application materials and ensure the authenticity and completeness of all information.
Finally, it is worth noting that environmental permit application material requirements may change as regulations are updated. For example, Resolution No. 06/2022/ND-CP promulgated on January 18, 2022 introduced new greenhouse gas emission reduction requirements, which may affect the content of application materials for projects in certain industries. Therefore, when preparing application materials, enterprises should pay close attention to the latest regulatory requirements and ensure that the materials submitted meet the current standards.
It provides enterprises with an opportunity to systematically examine their own environmental impact, helps them establish a sound environmental management system, and lays the foundation for future sustainable development. For companies planning to invest in Vietnam, fully understanding and taking these material requirements seriously is not only a need for legal compliance, but also an important way to demonstrate corporate environmental responsibility.
Frequently Asked Questions and Answers on Environmental Permit Application
In the process of applying for environmental permits, companies often encounter various problems and challenges. These problems may arise from deviations in regulatory understanding, procedural complexity, uncertainty about technical requirements, and cultural and language differences. This article will explore these common issues in detail and provide corresponding solutions to help companies complete the environmental permit application process more smoothly.
First of all, many companies have questions about whether their projects need to conduct an environmental impact assessment (EIA). The answer to this question depends on the nature and size of the project. In accordance with the provisions of Articles 30 and 31 of the Environmental Protection Law of 2020 (Law No. 72/2020/QH14) and Appendix III of the Agreement No. 08/2022/ND-CP promulgated on January 10, 2022 and IV, certain types of projects must undergo an EIA. For example, steel projects with an annual production capacity of more than 200,000 tons, thermal power plants with an installed capacity of more than 600MW, etc. If an enterprise is not sure whether its project requires an EIA, the best solution is to consult the local environmental protection department or a professional environmental consulting company. They can provide accurate guidance based on the specifics of the project.
Another common issue is when the EIA report is prepared. Many businesses underestimate the complexity and time required of this process. A comprehensive EIA report usually takes 3 to 6 months to complete, sometimes even longer. This is because reports need to include detailed environmental baseline data, which may require months of on-the-ground monitoring. The key to solving this problem is planning ahead. Enterprises should start EIA preparation work in the early stages of project planning and hire an experienced environmental consulting firm to assist. At the same time, it is also important to maintain good communication with environmental protection authorities, who may provide valuable suggestions to help speed up the process.
Many foreign investors also face language barriers. Vietnam’s environmental regulations and application materials are often written in Vietnamese, creating challenges for investors unfamiliar with the language. The solution to this problem is to hire a professional translation service, especially one who is familiar with environmental regulations and technical terminology. At the same time, hiring local environmental consultants can also help overcome language barriers. They can assist in communication with local governments and ensure that information is accurately conveyed.
Uncertainty about technical standards is another common problem. Vietnam’s environmental standards are constantly being updated and improved, and sometimes businesses may not be sure which standards they should follow. For example, Agreement No. 06/2022/ND-CP promulgated on January 18, 2022 introduces new greenhouse gas emission reduction requirements, which may affect environmental standards in certain industries. The way to solve this problem is to regularly pay attention to the official website of the Vietnam Environmental Protection Administration (VEA), where the latest regulations and standards are published. At the same time, attending seminars and training organized by industry associations is also a good way to understand the latest requirements.
Public participation is an important part of the EIA process, but many companies do not know how to effectively organize public participation activities. According to Article 33 of the Environmental Protection Law and Article 24 of Agreement No. 08/2022/ND-CP, the project must solicit opinions from communities, organizations and individuals that may be affected. The solution to this problem is to develop a comprehensive stakeholder engagement plan. This may include organizing public hearings, distributing questionnaires, setting up information bulletin boards, etc. It is important that public opinions are listened to and considered in good faith and that these opinions are fully reflected in the EIA report.
Many businesses are also confused about the time it takes for environmental permits to be approved. According to legal provisions, the environmental protection department should make an approval decision within 45 days (which can be extended to 60 days for complex projects) after receiving complete application materials. However, actual circumstances may vary. The solution to this problem is to ensure that all materials are complete and accurate before submitting your application. At the same time, proactively keep in touch with the approval department and respond to any questions or requests they have in a timely manner. If the approval process exceeds the legal time limit, you can politely ask why and seek a solution.
Environmental monitoring requirements are also an area of confusion for many businesses. According to Articles 111 to 113 of the Environmental Protection Law, certain projects require regular environmental monitoring, and may even require the installation of an online monitoring system. The way to solve this problem is to detail the proposed monitoring plan in the EIA report, including monitoring parameters, frequency, methods and locations. For projects that require the installation of an online monitoring system, communication should be made with the equipment supplier and the environmental protection department in advance to ensure that the system meets the requirements and can be connected to the official monitoring platform.
Many businesses are also concerned about the risk of environmental permit applications being rejected. In fact, if an enterprise carefully prepares application materials and actively cooperates with the requirements of the environmental protection department, the possibility of being directly rejected is not high. A more common situation is that the environmental protection department requires supplementary materials or modification of certain contents. The way to solve this problem is to maintain an open and cooperative attitude and take seriously every opinion and suggestion from the environmental protection department. If you do encounter a major problem, consider hiring an experienced environmental consultant to help solve it.
For some businesses, the cost of investing in environmental protection facilities may exceed expectations. This is often due to underestimating environmental protection requirements during the project planning stage. The way to solve this problem is to fully consider the cost of environmental protection during the feasibility study stage of the project. You can refer to best practices in the industry or consult with a professional environmental engineering company to obtain a more accurate cost estimate. At the same time, we must also realize that environmental protection investment is not only a legal requirement, but also a manifestation of corporate social responsibility, which can enhance corporate image and competitiveness in the long run.
Finally, some businesses may encounter situations where their environmental licenses have expired and need to be renewed. According to Article 44 of the Environmental Protection Law, environmental permits are usually valid for 5 to 10 years. The renewal process can be confusing for some businesses. The solution to this problem is to plan ahead and start preparing your renewal application at least 6 months before your license expires. Renewal applications require environmental performance reports for the past few years, including monitoring data, environmental protection facility operation records, etc. If the business has no major environmental violations during the license’s validity period, the renewal process is usually relatively smooth.
Overall, the process of applying for a Vietnam environmental license can be challenging, but most problems can be overcome as long as companies are well prepared and maintain a proactive attitude. The key is to fully understand relevant regulations, pay attention to environmental protection work, maintain good communication with government departments, and seek professional help when necessary. By taking the environmental license application process seriously, companies can not only ensure compliant operations, but also establish a good corporate image and lay the foundation for long-term sustainable development in Vietnam.
Latest updates and trend analysis of Vietnam’s environmental protection policies
Vietnam’s environmental protection policy is undergoing rapid and profound changes, reflecting the country’s increasing emphasis on environmental protection and sustainable development while promoting economic development. In recent years, the Vietnamese government has promulgated a series of new regulations and policies aimed at strengthening environmental management and promoting green economic transformation. These policy changes not only affect the daily operations of enterprises, but also point the way for Vietnam’s long-term development direction.
The new version of the Environmental Protection Law (Law No. 72/2020/QH14) passed in November 2020 marks an important turning point in Vietnam’s environmental policy. This law officially takes effect on January 1, 2022, bringing a series of major changes. The most significant of these is the reform of the environmental permitting system. The new law introduces the concept of a unified environmental license, integrating various previously fragmented environment-related licenses. This change greatly simplifies administrative procedures, but it also increases the requirements for corporate environmental management. For example, the new law requires certain industries to install online monitoring systems and connect them in real time to the monitoring platform of the environmental authorities, which places higher requirements on the technical and management capabilities of enterprises.
Following the new Environmental Protection Law, the Vietnamese government promulgated Resolution No. 08/2022/ND-CP on January 10, 2022, detailing the implementation rules of the new law. This agreement makes specific provisions on project classification, environmental impact assessment procedures, environmental license applications, etc. It is worth noting that this agreement strengthens the requirements for public participation, requiring project owners to solicit the opinions of stakeholders more broadly during the environmental impact assessment process. This reflects the Vietnamese government’s efforts to increase transparency and public participation in environmental decision-making.
Vietnam has also taken positive actions to address climate change. Agreement No. 06/2022/ND-CP promulgated on January 18, 2022 is a landmark document that provides a legal basis for Vietnam to realize its commitments in the Paris Agreement. This agreement proposes specific greenhouse gas emission reduction targets and measures, including plans to establish a carbon emissions trading market. This may have a significant impact on energy-intensive industries such as steel and cement, and companies in these industries need to start thinking about how to remain competitive under future carbon pricing mechanisms.
In the field of renewable energy, the Vietnamese government is also constantly adjusting policies to promote industry development. The revised version of Decision No. 39/2018/QD-TTg promulgated in April 2020 provides preferential feed-in tariffs for rooftop solar power generation projects. Although this policy expires at the end of 2021, it has greatly promoted the development of Vietnam’s solar industry. Currently, the government is studying new support mechanisms and is expected to shift from fixed electricity prices to a bidding mechanism to better balance development and costs.
Water management is another key area of focus for Vietnam. The new “Water Resources Law” that takes effect in January 2021 strengthens the control of water pollution and the protection of water resources. The new law requires large water companies to develop water conservation plans and encourages wastewater recycling. This poses new challenges to water-intensive industries such as textiles and papermaking, which require investment in new water treatment technologies and equipment.
In terms of solid waste management, Vietnam is promoting the concept of “circular economy”. The National Environmental Protection Strategy, which will take effect in June 2022, clearly sets out the goal of developing a circular economy by 2030 and looking forward to 2050. This means companies need to rethink their production processes and material use to maximize resource efficiency and reduce waste generation.
Vietnam is also continuously strengthening environmental law enforcement. The new Environmental Protection Law in 2020 has significantly increased the penalties for environmental violations, with the maximum fine reaching 2 billion VND (approximately US$87,000). In addition, the environmental protection department has been given greater law enforcement powers, including the ability to directly order serious polluting companies to suspend production for rectification. This requires companies to pay more attention to daily environmental management and establish a sound internal environmental compliance mechanism.
Going forward, Vietnam’s environmental policies are expected to continue to develop in a more stringent and comprehensive direction. It is foreseeable that the government will further refine the relevant regulations on carbon emission management and may introduce a carbon tax or emissions trading system. In terms of circular economy, more incentives are expected to be introduced to promote companies to adopt cleaner production technologies and resource utilization of waste. In addition, as Vietnam participates in more international environmental conventions and trade agreements, its environmental standards may further align with international standards.
For businesses operating or planning to invest in Vietnam, it is important to pay close attention to these policy changes. Enterprises need to regularly evaluate the potential impact of these new policies on their business and adjust business strategies in a timely manner. This may include increasing investment in environmental protection, improving production processes, strengthening environmental management capabilities, etc. At the same time, enterprises should also actively participate in the policy formulation process and provide feedback to the government through industry associations or direct communication channels to ensure the feasibility and effectiveness of new policies.
Vietnam is working hard to balance the relationship between economic development and environmental protection. While these new policies may increase compliance costs for businesses in the short term, in the long term they will push Vietnam’s economy in a more sustainable and resilient direction. For enterprises, proactively adapting to these policy changes is not only a need for legal compliance, but also an opportunity to enhance long-term competitiveness. Those companies that can adapt quickly and perform well in environmental protection will be more likely to succeed in Vietnam’s fast-growing market.
Case analysis of environmental license application
In Vietnam’s rapid development, successfully obtaining environmental permits is crucial for businesses. By analyzing several cases of companies in different industries and sizes, we can gain an in-depth understanding of the key factors, common challenges, and effective resolution strategies in this process. These cases not only demonstrate successful experiences, but also reveal some potential pitfalls and lessons, providing valuable reference for other companies planning to invest in Vietnam.
Case 1: Environmental Impact Assessment (EIA) and permit application for a large steel plant
We first look at a large steel plant project located in a northern coastal province. This project has an annual production capacity of 3 million tons and is a Class I project that must undergo a comprehensive environmental impact assessment under the Environmental Protection Law. The company realized the importance of environmental permits in the early stages of project planning and began preparing the EIA report six months in advance.
The company’s successful experience is mainly reflected in the following aspects: First, they hired an international environmental consulting company with extensive experience in Vietnam to prepare an EIA report in cooperation with local environmental research institutions. This cooperation model not only ensures the international standards of the report, but also ensures an accurate grasp of local conditions. Secondly, companies attach great importance to stakeholder participation. They not only organized public hearings in accordance with legal requirements, but also took the initiative to conduct multiple rounds of communication with local communities and NGOs, carefully listening to and adopting their opinions. This significantly increases the social acceptance of the project.
In terms of technology, the company has adopted the world’s most advanced clean production technology and pollution control equipment, such as efficient dust removal systems, zero wastewater discharge technology, etc., making the project’s environmental performance far better than national standards. This not only won the recognition of the environmental department, but also laid a good foundation for subsequent environmental management.
However, the program also encountered challenges during the application process. The originally submitted EIA report was returned by the Ministry of Environment and Resources, requiring a supplementary assessment of the project’s possible impact on local fisheries. This extended the entire approval process by nearly two months. Businesses learned from this experience that they must consider the full range of potential impacts of projects, including those indirect impacts that may have been overlooked.
Ultimately, the project was approved within 50 days of submitting the EIA report, which was slightly longer than the statutory 45 days, but considering the size and complexity of the project, this time was still ideal. Companies say that planning ahead, selecting experienced consulting teams, focusing on public participation, and adopting advanced environmentally friendly technologies are the keys to their success.
Case 2: Renewal of environmental license for a medium-sized textile enterprise
The second case is a medium-sized textile company that has been operating in Ho Chi Minh City for 10 years. The company is facing an expiration date for its environmental license and needs to renew it. This case is of particular interest as it illustrates how existing businesses are adapting to new requirements amid rising environmental standards in Vietnam.
The main challenge the business faced during the renewal process was new wastewater treatment standards. Under the updated regulations, emission limits for certain specific pollutants in the textile industry have become more stringent. The company’s original wastewater treatment facilities can no longer meet the new standards.
The corporate response strategies are worth learning from. First, they proactively communicated with the local environmental department to understand the specific requirements and implementation schedule of the new standards. After learning that there would be a 6-month transition period, the company immediately started formulating an upgrade plan. Not only did they upgrade their wastewater treatment facilities, they also optimized the entire production process and adopted water recycling technology, which greatly reduced the amount of wastewater produced.
During the renewal application process, companies pay special attention to providing detailed environmental management records. They showed environmental monitoring data, environmental protection facility operation records, and emergency plans for environmental accidents in the past five years. These detailed records strongly demonstrate the company’s long-standing emphasis on environmental management.
Another highlight is the company’s proactive information disclosure. They set up an electronic display at the entrance of the factory to publish wastewater discharge data in real time. This transparency not only wins the trust of the community, but also leaves a good impression on environmental authorities.
In the end, the company successfully obtained the renewal of its environmental license, and the entire process took about 45 days. The environmental department particularly recognized the company’s efforts in technological upgrading and information disclosure. This case shows that in the face of rising environmental standards, companies need to remain vigilant, proactively adapt to changes, and consider environmental management as a core part of corporate operations.
Case 3: Simplified environmental impact assessment of foreign-invested high-tech manufacturing enterprises
The third case involves a foreign-invested high-tech manufacturing company investing in northern Vietnam. Although the investment scale of this project is large, its environmental impact is relatively small due to the adoption of advanced clean production technology, so it is subject to simplified environmental impact assessment procedures.
This case features how the company effectively leveraged its technological strengths to streamline the environmental permitting process. The company fully considered environmental factors during the project design phase and adopted the latest energy-saving technologies and pollution control measures. For example, they use a closed production system to minimize exhaust emissions and implement a strict chemical management system to effectively control the generation of hazardous waste.
When preparing environmental impact assessment documents, companies place special emphasis on the application of these advanced technologies and their environmental benefits. They not only provide detailed technical descriptions, but also demonstrate the successful application of these technologies in other countries through case studies. This approach effectively demonstrates the low environmental risk nature of the project to environmental authorities.
However, the company also encountered some challenges, mainly due to unfamiliarity with Vietnam’s specific environmental standards. For example, some of the technical parameters they initially submitted were based on European standards, which were different from Vietnamese standards. To solve this problem, the company hired local environmental consultants to help “translate” international standards into Vietnam’s specific requirements.
Another noteworthy practice is that companies proactively propose internal environmental management standards that are more stringent than legal requirements. For example, they have committed to controlling emissions of certain key pollutants to less than 50% of national standards. This initiative impressed the environment department.
Ultimately, the project was approved within 30 days of submitting the assessment documents, which was much faster than the normal process. The environment department particularly appreciated the company’s performance in terms of technological innovation and commitment to environmental management. This case illustrates that for projects using advanced environmental protection technologies, even foreign-funded enterprises can speed up the approval process by fully demonstrating technological advantages and making higher environmental protection commitments.
Summary and inspiration:
By analyzing these three different types of cases, we can draw some important implications:
- Planning ahead is crucial: Whether it’s a new construction project or a license renewal, starting preparations in advance can greatly increase your chances of success.
- Choose the right team of professionals: An experienced environmental consulting firm can help companies better understand and meet local requirements.
- Emphasis on public participation: Proactive communication with the community and other stakeholders can improve the social acceptance of the project.
- Use advanced technologies: The use of cleaner production technologies and efficient pollution control measures not only facilitates permitting but also reduces long-term operating costs.
- Maintain transparency: Proactive disclosure of environmental information builds trust and helps maintain good relationships with regulators.
- Continue to pay attention to policy changes: Environmental standards are constantly improving, and companies need to understand and adapt to new requirements in a timely manner.
- Make higher commitments: Commitment to environmental performance that exceeds legal requirements can speed up the approval process and is also beneficial to the long-term development of enterprises.
- Localization is important: even foreign-invested enterprises that adopt advanced international standards need to fully consider Vietnam’s specific requirements and standards.
These cases demonstrate that successfully applying for an environmental license requires not only meeting legal requirements, but also requiring companies to integrate environmental protection into their overall business strategy. Those companies that can perform outstandingly in environmental management will not only have an easier time obtaining permits, but will also gain a competitive advantage in the context of Vietnam’s increasing emphasis on environmental protection. For companies planning to invest in Vietnam, these cases provide valuable experiences and lessons that are worthy of careful study and reference.