New approach to environmental factors

Vietnam faces a range of new development pressure points, with the environment becoming a prerequisite for sustainable growth rather than simply an area for protection. At the same time, stricter global environmental standards - including carbon border measures, green product traceability, and transparency requirements - are increasing the pressure from environmental regulations. 

Draft amendments to the Law on Environmental Protection are expected to not only address existing bottlenecks but also to mark an important shift in environmental governance thinking, establishing a legal foundation for a circular economy, a green economy, emission reductions, and climate adaptation.

Proposed amendments

Revising and supplementing the Law on Environmental Protection 2020 is considered necessary to address shortcomings that have emerged during implementation while ensuring consistency and alignment with related legislation. The amendments are also expected to modernize environmental management tools, making them more transparent and better suited to economic development linked to environmental protection and sustainable growth in the new era.

The Ministry of Agriculture and Environment said the focus of the proposed amendments is to continue streamlining administrative procedures, particularly those related to Environmental Impact Assessments (EIAs) and environmental permits, while ensuring effective oversight of projects and facilities with a high risk of adverse environmental impacts. The reforms are also intended to simplify procedures and facilitate socio-economic development projects.

The revised law is expected to establish a sufficiently robust legal foundation for digital transformation in environmental management, creating strong momentum for the development of a green and circular economy in Vietnam. At the same time, it seeks to strengthen environmental quality management mechanisms to prevent pollution risks early and proactively, alongside enhanced forecasting, warning systems, and public disclosure of environmental quality information.

In parallel, the amendments aim to remove unresolved regulatory bottlenecks so as not to hinder development, while mobilizing and unlocking resources to support the country’s goal of double-digit growth and foster a more favorable investment environment.

Deputy Minister of Agriculture and Environment Le Cong Thanh said at a recent consultation workshop that the draft law is built on a new legislative philosophy: the law itself will establish only broad frameworks and principles to ensure flexibility, while technical matters will be delegated to the government and competent authorities for detailed regulations.

Accordingly, the proposed amendments focus on five strategic directions. First, substantive administrative reform and stronger decentralization: procedures such as EIAs and environmental permits will be simplified and made more transparent to reduce compliance costs for businesses. 

Second, a new approach to waste: shifting from “waste treatment” to viewing waste as a “resource.” “We will create a legal corridor to strongly develop the environmental industry and promote the circular economy,” the Deputy Minister said.

Third, pioneering digital transformation: building a synchronized, transparent, and publicly-accessible environmental data ecosystem to better serve regulators, citizens, and businesses.

Fourth, moving from “reactive remediation” to “proactive prevention”: strengthening forecasting and early warning capabilities while tightly controlling emissions at the source amid rapid urbanization and industrialization.

Fifth, enhancing the effectiveness of economic instruments: improving market mechanisms, particularly the carbon market, to transform environmental protection and climate adaptation into economic drivers that encourage businesses to innovate and improve competitiveness.

Narrowing the scope

Mr. Nguyen Hung Thinh, Deputy Director of the Vietnam Environment Authority, said the draft law focuses on key priorities, including administrative simplification and stronger decentralization, while maintaining strict oversight, digital and green transformation in waste management, expanded recycling and reuse, and improvements in environmental quality management.

Regarding EIA appraisals, the draft law proposes significant reforms to improve the investment and business environment while maintaining targeted environmental oversight during the project preparation stage. Specifically, the law would reduce the number of projects required to undergo EIAs, shifting many toward environmental registration procedures and simplifying appraisal processes.

The draft proposes classifying projects into three groups instead of four under the current law. It would also eliminate certain environmentally-sensitive criteria used for project classification, such as proximity to concentrated residential areas, water sources used for domestic supply, and resettlement requirements. Projects located in industrial parks or clusters, projects not considered high-risk for environmental pollution, and smaller-scale projects without environmentally-sensitive factors would no longer be subject to EIAs.

According to the Vietnam Environment Authority, EIAs would instead focus on sectors with high pollution risks, including toxic mineral processing, paper manufacturing, inorganic chemicals, leather tanning, textile dyeing, coal-fired power generation, and cassava starch production, as well as projects involving land use in protected natural areas. “The remaining projects, accounting for more than 90 per cent of total investment projects, would only be required to complete environmental registration procedures,” Mr. Thinh said.

The EIA appraisal process would also be simplified. The draft law proposes two forms of reporting, appraisal, and approval based on a project’s level of environmental risk.

The draft also seeks to further decentralize environmental administrative procedures to local authorities. It is estimated that around 90 per cent of EIAs would be delegated to local governments compared with the current framework.

In addition, the draft proposes abolishing requirements for trial operation of waste treatment facilities after obtaining environmental permits, reducing compliance costs and implementation timelines for businesses while shifting from pre-approval to post-inspection and strengthening enforcement against violations.

Meeting environmental governance demands

Experts have broadly welcomed the proposed reforms, particularly those related to EIAs and environmental permits, which seek to maintain effective oversight of high-risk projects while simplifying administrative procedures.

According to specialists, reducing bureaucracy, simplifying EIA procedures, strengthening post-inspection mechanisms, and expanding decentralization are positive steps. The broader shift from procedural management to risk- and data-based governance also represents a new approach to environmental management.

Dr. Tran Van Minh, former Vice Chairman of the National Assembly’s Committee on Science, Technology and Environment, said the amendments demonstrate progress and are aligned with both practical realities and emerging requirements. The proposed revisions, he said, simplify and clarify those environmental criteria used to classify investment projects, making compliance easier for investors and businesses.

On EIAs, Dr. Minh praised the draft law’s clearer criteria and three-group project classification system. However, he stressed that because EIAs directly affect administrative procedures and business costs, the requirements for both detailed and simplified EIAs should be further clarified.

Dr. Hoang Duong Tung, Chairman of the Vietnam Clean Air Partnership, emphasized the importance of data-driven governance. While revisions related to EIAs and environmental permits represent progress by shifting from procedural to risk-based management, he argued the framework still falls short of fully embedding data-based governance.

He suggested requiring standardized and interoperable data in EIA reports and permit applications, along with a comprehensive environmental data lifecycle spanning EIAs, permits, and post-inspection.

Experts also stressed that environmental governance should become fully digitalized, data-driven, and interconnected. Such an approach would allow authorities to forecast risks earlier and prevent pollution proactively.

At a recent consultation workshop, Mr. Ta Dinh Thi, Vice Chairman of the National Assembly’s Committee on Science, Technology and Environment, emphasized the importance of institutionalizing Party guidelines through amendments to the Law on Environmental Protection. He said environmental protection should be placed at the center of development and move in parallel with socio-economic growth. In particular, he argued that it is time to shift policy thinking from reaction to proactive environmental stewardship.

As Vietnam pursues double-digit growth, he said, environmental protection must be positioned in a way that ensures both growth quality and environmental quality. He expressed hope that the revised law would be practical, highly feasible, and supportive of sustainable development in the new phase.