As one of the fastest-growing economies in Southeast Asia, Vietnam is attracting more and more foreign investors. However, with the rapid economic development, environmental protection has also become a focus of great concern for the Vietnamese government and all sectors of society. In recent years, Vietnam has continuously improved its environmental protection legal framework to achieve a balance between economic development and environmental protection. The Environmental Protection Law and its supporting regulations revised in 2020 provide a more comprehensive and rigorous legal basis for environmental management in Vietnam.

In this context, environmental impact assessment (EIA), as an important tool to prevent environmental pollution and ecological damage, plays an increasingly critical role in project approval and management in Vietnam. Whether it is industrial production, infrastructure construction, or service industry projects, environmental impact assessments may be required to varying degrees. For enterprises, timely and accurate judgment of whether a project needs an environmental impact assessment can not only ensure project compliance, avoid legal risks and economic losses, but also help enterprises better plan project schedules and improve operational efficiency.

This article aims to provide a practical tool for companies that intend to invest in Vietnam or have already started business in Vietnam, helping them to quickly determine whether their projects require an environmental impact assessment. By interpreting the latest environmental impact assessment regulations, providing detailed judgment criteria and processes, and analyzing typical cases, we hope to help companies better understand Vietnam’s environmental impact assessment requirements, so that they can make wise decisions and promote the smooth implementation of their projects. Whether you are just starting to plan your investment in Vietnam or are considering expanding your existing business, this article will provide you with valuable guidance and reference.

Overview of Vietnam’s latest environmental impact assessment regulations

In recent years, the Vietnamese government has continued to improve environmental protection laws and regulations to cope with increasingly severe environmental challenges. In 2020, the Vietnamese National Assembly passed the newly revised Environmental Protection Law, marking a new stage in the country’s environmental management. The law officially came into effect on January 1, 2022, introducing a number of major changes aimed at strengthening environmental protection and promoting sustainable development.

One of the most notable changes in the revised Environmental Protection Law in 2020 is the strengthening of environmental impact assessment (EIA) requirements. The new law expands the scope of projects that require EIA while increasing the rigor of assessment standards. Notably, the law introduces the “environmental license” system for the first time, integrating multiple environmental-related licenses into one comprehensive document, simplifying the application process for companies but also increasing compliance requirements.

To further refine the implementation rules of the new Environmental Protection Law, the Vietnamese government promulgated Decree No. 08/2022/ND-CP on January 10, 2022. The decree details the preparation, review and approval procedures for environmental impact assessment reports. It clarifies the types and scales of projects that require environmental impact assessments, and introduces a more stringent public participation mechanism, requiring full consideration of community opinions during the environmental impact assessment process.

An important trend in the new regulations is the strengthening of requirements for corporate environmental responsibility. For example, the decree requires large industrial projects to establish automated, continuous wastewater and exhaust gas monitoring systems and transmit data to environmental authorities in real time. This measure has greatly improved the efficiency and transparency of environmental supervision.

Another change worth noting is the adjustment of the environmental impact assessment time frame. The new regulations shorten the approval time of environmental impact assessment reports from 45 working days to 30 working days, aiming to improve administrative efficiency, but at the same time, it also puts forward higher requirements for enterprises to prepare environmental impact assessment materials more accurately and comprehensively.

It is worth mentioning that the new regulations also place special emphasis on the importance of strategic environmental assessment (SEA). It requires that SEA must be conducted when formulating regional and industry development plans to ensure long-term environmental sustainability. This reflects the Vietnamese government’s forward-looking thinking in environmental protection.

Overall, Vietnam’s latest environmental impact assessment regulations reflect the country’s determination to balance economic development and environmental protection. These changes will undoubtedly have a significant impact on companies investing and operating in Vietnam, requiring them to pay more attention to environmental protection and make it one of the core considerations in project planning and implementation. For foreign investors interested in entering the Vietnamese market, it is crucial to have a deep understanding of these new regulations and prepare in advance.

Tool for Quickly Judging Project Environmental Assessment Requirements

In Vietnam, Environmental Impact Assessment (EIA) is a necessary step before most projects are carried out. However, not all projects require a comprehensive EIA. To help investors and project managers quickly determine whether their projects require an EIA, we have developed this simple and practical judgment tool. By considering key factors such as project type, scale, environmental sensitivity and pollutant emissions, you can preliminarily assess the EIA needs of your project.

1. Determine the project type

The type of project is the primary factor in determining the need for an EIA. Vietnamese law divides projects into several categories:

Industrial production projects: including manufacturing, processing, mining, etc. These projects usually involve complex production processes and various pollutant emissions, so most of them require environmental impact assessments. For example, textile factories, electronic product assembly plants, food processing plants, etc. all belong to this category.

Infrastructure construction projects: such as large infrastructure projects such as roads, bridges, ports, airports, industrial parks, etc. Due to their large scale and wide impact, these projects almost all require comprehensive environmental impact assessments.

Service industry projects: including hotels, restaurants, commercial centers, etc. Although the pollution level is relatively low, service industry projects that are large in scale or located in environmentally sensitive areas may still require environmental impact assessments.

Other types of projects: such as agriculture, forestry, fishery projects, etc. The need for environmental assessment of these projects depends on their specific scale and potential impact on the environment.

2. Determine the scale of the project

The scale of a project directly affects the extent of its environmental impact and is therefore an important basis for determining the need for an environmental assessment:

Large Project Criteria: Generally, projects with an investment capital of more than VND500 billion (approximately USD21.8 million) are considered large projects. Such projects are almost always subject to a comprehensive environmental impact assessment.

Medium-sized project criteria: Projects with investment capital between VND100 billion and VND500 billion (approximately USD4.35 million to USD21.8 million) are generally classified as medium-sized projects. Most medium-sized projects require an environmental impact assessment, but specific requirements may vary by industry and location.

Small project standards: Projects with investment capital of less than VND100 billion are generally considered small projects. Although some small projects may be exempted from a full environmental assessment, they may still need to submit an environmental protection plan or conduct a simplified environmental impact assessment.

3. Environmental sensitivity judgment

The environmental sensitivity of the project site is another key consideration:

Located in or near protected areas, national parks, etc.: If a project is located in or near ecologically sensitive areas such as nature reserves, national parks, biodiversity reserves, etc., a rigorous environmental impact assessment is usually required, regardless of the size.

Involving water resources such as rivers, lakes, and coastlines: Any project that may affect water resources, such as projects near major rivers, lakes, or coastlines, requires special attention to its impact on the aquatic environment and is likely to require a comprehensive environmental assessment.

Significant impact on air quality: Projects that emit significant amounts of waste gas or dust, even if small in scale, may require an environmental impact assessment to ensure they comply with Vietnam’s increasingly stringent air quality standards.

Projects involving significant land use changes, such as converting agricultural land to industrial land or developing original forest land, usually require an environmental impact assessment.

4. Pollutant emission judgment

Pollutant emissions during project operation are the last key factor in determining environmental impact assessment needs:

Wastewater discharge and treatment: Industrial wastewater with a daily discharge of more than 20 cubic meters usually requires an environmental impact assessment. In addition, even if the discharge volume is small, if the wastewater contains hazardous substances, an environmental impact assessment may also be required.

Types of waste gas emissions and treatment: Projects that emit harmful gases, greenhouse gases, or large amounts of dust are likely to require an environmental impact assessment, especially those that may affect the air quality of surrounding communities.

Solid waste generation and treatment: Projects that generate large amounts of solid waste, especially hazardous waste, usually require an environmental impact assessment. Vietnam’s management of industrial waste is becoming increasingly stringent, and compliance is critical.

Other pollution factors such as noise and vibration: Although some projects do not produce significant wastewater, waste gas or solid waste, they may affect the surrounding environment due to noise or vibration. For example, quarries or heavy industrial projects near residential areas may therefore require environmental impact assessments.

By comprehensively considering the above four aspects, investors can make a preliminary judgment on whether the project needs an environmental impact assessment. However, given the complexity and continuous updating of Vietnam’s environmental laws and regulations, we strongly recommend that you consult a professional environmental assessment agency or local environmental protection department before making a final decision to ensure full compliance with the latest legal requirements.

Quick judgment process

First, we start with the project type. Users need to determine whether their project belongs to industrial production, infrastructure construction, service industry or other categories. Different types of projects may have different environmental impact assessment requirements, so this is a key starting point.

Next, we consider the size of the project. Large projects are generally more likely to require a full environmental impact assessment, while small projects may only require a simplified procedure. Users need to determine whether their project is large, medium or small based on the criteria set out in Vietnam’s latest regulations.

The third step is to assess the project’s location and its environmental sensitivity. If the project is located in or near a protected area, national park, important water source, or other ecologically sensitive area, a more rigorous environmental assessment is likely to be required. Users need to answer several key questions about the project’s geographic location.

We then delve into the specific features and potential environmental impacts of the project. This includes expected pollutant emissions, such as the amount of wastewater, waste gas, and solid waste generated and how they will be treated. We also consider whether the project involves a significant change in land use or will have a significant impact on surrounding communities.

Based on a combination of the above factors, the decision tree leads the user to one of three possible outcomes: a full environmental impact assessment is required, only an environmental impact registration is required, or an environmental impact assessment is exempted. For each outcome, a brief explanation and suggestions for next steps are provided.

Finally, this flowchart also includes some key tips and warnings. We remind users that while this tool can provide a preliminary assessment, complex projects may require a professional environmental assessment consultant to conduct a more detailed analysis. At the same time, we also emphasize the importance of conducting environmental assessments in a timely manner to avoid project delays and potential legal risks.

IV. Detailed explanation of environmental impact assessment requirements for different types of projects

When developing a project, different types of projects have different requirements for environmental impact assessment (EIA). Understanding these requirements can help project applicants better prepare the corresponding materials and ensure the smooth progress of the project. The following is a detailed explanation of three common types of EIA requirements.

1. Projects that require a complete environmental impact assessment report

Projects that require a complete environmental impact assessment report are usually those that may have a significant impact on the environment. For example, large-scale infrastructure construction, heavy industrial projects, chemical plants, mining activities, etc. Due to their large scale and wide impact, these projects must undergo a detailed environmental impact assessment, including a comprehensive analysis of various aspects such as ecosystems, air, water resources, and noise pollution. The environmental impact assessment report should include a description of the project’s environmental status, a prediction of potential environmental impacts, mitigation measures, and an environmental management and monitoring plan to ensure that the project can minimize negative impacts on the environment during the planning and construction stages.

2. Projects that only require environmental impact registration

Projects that only require environmental impact registration are usually small and medium-sized projects or projects with little impact on the environment, such as small construction projects, light industrial production lines, educational and cultural facilities, etc. For these projects, the environmental impact assessment requirements are relatively simple, and only environmental impact registration is required. This type of environmental assessment does not require the submission of a detailed assessment report, but instead uses a simplified environmental impact registration form to explain the potential impact of the project on the environment and its response measures. The registration form mainly involves the basic situation of the project, the current status of the surrounding environment, possible environmental impacts and their prevention and control measures, etc. Since these projects have a small impact, relevant departments usually adopt a fast approval procedure.

Project types exempted from EIA

Some projects may be exempted from environmental impact assessment requirements due to their small scale, special nature or little impact on the environment. Such projects usually include some small daily living facilities, public facilities maintenance, environmental protection projects or other projects that are explicitly exempted by laws and regulations. Projects exempted from environmental impact assessment usually do not have a substantial impact on the environment, or their impact has been fully considered and controlled in other environmental management measures, so there is no need for a separate environmental impact assessment. In this case, the project unit still needs to comply with relevant environmental protection laws and regulations to ensure environmental compliance during project construction and operation.

Environmental Assessment Process and Timeline

Before undertaking any construction project, it is vital to understand the Environmental Impact Assessment (EIA) process and its timeline. The EIA process mainly includes the preparation, application and approval process of the EIA report. The EIA requirements may vary for different project types, but the basic process usually follows the following stages:

1. Preparation of environmental impact assessment report

The first step in the EIA process is the preparation of an EIA report. The preparation of an EIA report is a systematic process that requires the project unit or a commissioned professional EIA agency to conduct detailed environmental investigations and studies. The EIA report should include a description of the project’s environmental status, an analysis of possible environmental impacts, recommendations for environmental protection measures, and an environmental management and monitoring plan. When preparing the report, public participation and expert review are also required to ensure that all possible environmental impacts are fully considered and mitigated. The preparation time of an EIA report usually depends on the complexity and scale of the project, and generally takes 2 to 6 months.

2. Application and approval process

After the environmental impact assessment report is completed, the project unit needs to submit an application to the relevant environmental protection authorities. The application materials usually include the environmental impact assessment report and other relevant documents, such as the project feasibility study report, planning and design drawings, etc. After submitting the application, the environmental protection authorities will conduct a preliminary review to examine whether the content of the environmental impact assessment report complies with the requirements of relevant laws and regulations. If the preliminary review is passed, the report will enter a further review stage, including technical review and expert review. During this process, the report may be required to be supplemented or modified to ensure its completeness and accuracy. The entire application and approval process usually takes 1 to 3 months, depending on the nature of the project and the requirements of the approval department.

3. Estimation of time required for each stage

The time required for different stages of the environmental impact assessment process will vary. Generally speaking, the environmental impact assessment report preparation stage takes 2 to 6 months, depending on the complexity of the project and the amount of environmental survey data required. The application and approval process takes about 1 to 3 months, which includes preliminary review, technical review, and expert review. Overall, it usually takes 3 to 9 months from the preparation of the environmental impact assessment report to the final approval. This timeline may be affected by a variety of factors, including the complexity of the project, the efficiency of the approval process, and the degree of public participation. Therefore, the project unit should start the environmental impact assessment work as early as possible and reserve enough time in the project plan to ensure compliance with environmental protection requirements.

Understanding the EIA process and timeline can help project units better plan project progress and avoid project delays or legal risks caused by incomplete EIA procedures.

Frequently Asked Questions about Environmental Assessment (FAQ)

During the environmental impact assessment (EIA) process, project developers and investors often encounter questions and challenges. The following are some common questions and answers during the EIA process, aiming to help project parties better understand and respond to EIA requirements.

1. Does the project expansion require a new environmental assessment?

Project expansions usually require a re-evaluation of the environmental impact, depending on the scale and nature of the expansion. If the expansion project results in changes in environmental impacts, such as increased emissions, changes in production processes, or expansion of production scale, the environmental impact assessment report must be resubmitted for review. Even if the environmental impact of the expansion seems small, the regulator may still require an environmental impact assessment to ensure that the environmental impact of the expansion project is within controllable range. Therefore, before planning an expansion project, it is recommended that the project party communicate with the relevant environmental impact assessment agency to determine whether a re-evaluation is required and what materials need to be submitted.

2. How to remedy the situation if the environmental impact assessment fails?

If the EIA fails, the project party should first carefully review the opinions and suggestions given by the EIA agency to find out the specific reasons for failure. Remedial measures usually include modifying the project design, improving pollution prevention measures, adding environmental protection facilities, etc. to meet the EIA requirements. The project party can hire a professional EIA consulting agency to assist in adjusting the project plan and resubmit the assessment. Keeping in touch with the EIA agency in a timely manner to understand the direction and requirements for improvement is the key to ensuring the smooth passage of the EIA. In addition, during the remediation process, all environmental protection issues mentioned in the EIA opinions should be fully considered to ensure that all potential environmental impacts are effectively controlled and managed.

3. Common pitfalls in the environmental impact assessment process

There are some common traps and misunderstandings in the EIA process, and project parties need to be cautious in dealing with them. First, underestimating the environmental impact is a common problem. Project parties may underestimate the environmental impact of the project, resulting in an incomplete EIA report, which in turn affects the assessment results. Secondly, ignoring the public participation link is also a trap. In the EIA process, public opinion and participation are an indispensable part. Ignoring this link may lead to an incomplete assessment process. Finally, insufficient preparation of EIA materials or inaccurate data are also common reasons for EIA failure. Project parties should ensure that all submitted data and materials are accurate and are prepared and submitted in strict accordance with regulatory requirements to avoid unnecessary delays and failures in the EIA process.

Practical suggestions and best practices

To ensure that projects proceed smoothly and comply with environmental protection laws and regulations, project developers should adopt some practical suggestions and best practices when conducting environmental impact assessments (EIAs). These measures can help reduce obstacles in the EIA process and improve the overall feasibility and environmental compliance of projects.

1. Plan ahead and include environmental impact assessment in the project timeline

During the project planning stage, environmental impact assessment should be included in the overall schedule as an important preparatory work. Preparing environmental impact assessment in advance can not only help project developers identify potential environmental problems, but also provide a scientific basis for project design and site selection, avoiding project delays or adjustments due to non-compliance with environmental protection standards in the later stage. This forward-looking planning can effectively reduce project risks and increase the success rate of projects. Therefore, when formulating a detailed project schedule, it is important to consider the time requirements and approval process of environmental impact assessment.

2. Select a qualified environmental assessment consulting agency

Choosing a professional and qualified environmental assessment consulting agency is crucial for the environmental assessment of the project. High-quality environmental assessment agencies not only have rich experience in environmental impact assessment, but also have a deep understanding of local environmental laws and policies. They can provide comprehensive environmental impact analysis and practical environmental protection measures for the project. Choosing a qualified environmental assessment consulting agency will help ensure the quality and authority of the environmental assessment report, so that it can pass the review of the environmental protection department smoothly. Therefore, project developers should conduct sufficient market research and choose environmental assessment consulting agencies with good reputation and professional capabilities.

3. Maintain good communication with local environmental protection departments

During the EIA process, maintaining good communication with the local environmental protection department is the key to ensuring the smooth progress of the project. The environmental protection department is an important decision-maker in environmental assessment approval. Establishing a good communication channel with it can timely obtain the latest information on policy changes and approval requirements. Developers should actively participate in seminars and workshops organized by the environmental protection department to enhance their understanding of environmental assessment requirements and processes, and seek guidance and advice from the environmental protection department when necessary. Through this active interaction, uncertainty in the environmental assessment process can be reduced, ensuring that the project meets environmental protection requirements and obtains approval in a timely manner.

By combining the above practical suggestions and best practices, project developers can more efficiently respond to various challenges when conducting environmental impact assessments and ensure that projects are successfully implemented while complying with environmental protection requirements.

Conclusion

Environmental impact assessment (EIA) plays a vital role in the planning and implementation of projects. It is not only a requirement of laws and regulations, but also an important means to ensure the harmonious coexistence of projects with the environment and achieve sustainable development. EIA can help identify potential environmental risks and formulate effective mitigation measures, thereby reducing the negative impact of projects on the environment and improving the feasibility and long-term benefits of projects. Therefore, whether it is large-scale infrastructure construction or small-scale development projects, the importance of EIA should be taken seriously and regarded as a key link in the project decision-making process.

We encourage readers to use this tool to make a preliminary environmental impact assessment in order to better understand the environmental requirements and potential risks of the project. However, it is worth noting that environmental impact assessment involves complex laws, regulations and technical requirements, and it is not enough to rely on tools for preliminary assessment. In order to ensure the compliance and success of the project, it is recommended to seek professional environmental consulting services to obtain professional advice and support. By combining the preliminary assessment of the tool with the in-depth analysis of professional consulting, project parties can plan and implement projects more effectively to ensure compliance with relevant environmental protection requirements.