Vietnam Environment Law Overhaul Puts Risk Screening, Waste Collection and Local Accountability to the Test

A proposed 90% reduction puts enforcement at the centre

Vietnam's National Assembly is considering an overhaul of environmental regulation that would remove approximately 90% of the entities currently required to conduct environmental impact assessments or obtain environmental permits from those requirements, according to its Committee on Science, Technology and Environment.

At discussions in Hanoi on October 24, 2026, during the second session of the 16th National Assembly, lawmakers pressed for safeguards covering industrial wastewater, household rubbish, pollution monitoring and carbon trading. National Assembly President Tran Thanh Man also sought an explanation for 887 billion dong paid by businesses into the Vietnam Environment Protection Fund for recycling support that had not been disbursed.

The central choice is practical: Vietnam wants businesses to spend less time obtaining approvals, while public authorities become better at detecting and stopping pollution during operations. That would shift much of the work from checking applications before projects begin to inspecting facilities, examining monitoring records and responding to warnings afterward.

Justice Minister Hoang Thanh Tung presented the proposal as amending 78 of the existing law's 171 articles and adding two articles; figures of 79 amended articles and three additions were also attributed to his presentation. The proposal would reduce environmental project categories from four to three and environmental assessment criteria groups from three to two.

Man called for simpler procedures without reduced responsibility, particularly where public health is involved. Deputies connected that principle to specific decisions: when a factory's risks must be assessed, who keeps sorted rubbish separate, how inspectors obtain evidence and who answers when pollution crosses provincial borders.

The changes remain proposals before the legislature. No final passage date, commencement date or nationwide deadline for the proposed waste sorting arrangements was specified.

Identify risks before investment decisions become costly

Le Hoang Hai, a deputy representing Dong Nai, questioned a draft provision placing environmental impact assessment after approval of investment policy for projects requiring that approval. Investment policy approval is an early decision allowing a proposed development to proceed toward more detailed preparation.

An environmental impact assessment, commonly called an EIA, predicts how a project could affect its surroundings and identifies measures to prevent or reduce harm. Hai argued that major environmental risks should be recognised while the investment decision is still being prepared, in coordination with investment and construction law.

A problem discovered only during a feasibility study can force an investor to change the location, size or technology of a project, or abandon it. Hai said that would waste time and resources for both businesses and public agencies.

Vu Hong Luyen, representing Hung Yen, identified another sequencing problem: detailed construction planning needs environmental information, yet an appraisal application may have to wait for that planning to be approved. She sought a clear order linking EIA appraisal, detailed planning, construction permission and project approval.

Lo Thi Luyen, representing Dien Bien, asked which document must change when wastewater or waste arrangements in detailed construction plans conflict with the EIA appraisal. Resolving that order would give businesses and officials a clearer route through the two sets of requirements.

Industrial park exemptions would need working treatment systems

Projects established inside industrial parks or clusters are a major focus of the proposed exemptions. An assessment of the park's infrastructure can cover shared facilities, but individual factories may introduce different emissions, waste or discharge locations.

Man said exemptions should apply only after environmental treatment infrastructure is fully built. He wanted projects producing large emissions or hazardous waste, or importing scrap, excluded from the exemption.

Dang Bich Ngoc, representing Phu Tho, proposed testing eligibility against the industry, technology, waste characteristics and actual treatment capacity. She also wanted an additional assessment when new risks arise. Lo Thi Luyen sought clarity for projects that do not use shared wastewater treatment, including cases involving industrial wastewater flows below 100 cubic metres a day.

Nguyen Minh Tam, representing Quang Tri, addressed industrial areas already operating with incomplete waste infrastructure. He proposed deadlines for completion and explicit duties for infrastructure investors to build, operate, maintain and disclose the condition of treatment facilities, alongside coordination rules when wastewater exceeds standards.

Small factories can still put communities at risk

Nguyen Phi Hung, representing Da Nang, opposed removing concentrated residential areas and drinking water sources from the environmentally sensitive factors considered under Article 28. He wanted both retained, with measurable thresholds set by the government.

Phan Thi Thuy Linh, representing Thanh Hoa, argued that the affected area and pollution risk should carry more weight than land size alone. A small factory threatening a water source can require closer scrutiny than a larger development with limited environmental effects.

Do Thi Thu Thao, representing Dong Thap, added cumulative effects to the assessment. Several facilities can each meet individual requirements while their combined discharges overwhelm the same river or surrounding environment. She proposed considering project technology, location, environmental sensitivity and the receiving environment's capacity together.

The parliamentary committee recommended controlling wastewater through both pollutant concentration and total pollutant load. Concentration measures how much pollution is present in a given amount of water; load measures the total quantity released. It also sought periodic publication of river basin carrying capacity, meaning how much pollution a water system can receive while meeting environmental requirements.

For projects affecting neighbouring provinces, Ngoc proposed consultation with the affected authorities, response deadlines and a mechanism to resolve disagreements. A shared river would also need a coordinating authority and common data, even where individual permits are issued locally.

Waste sorting must survive the collection truck

Tran Manh Huy, representing Da Nang, proposed linking the preservation of sorted waste to service quality assessments, acceptance of completed work and payment under Article 77. That would make keeping waste separate part of the collector's contractual performance.

His proposals across Articles 75, 77 and 78 would require local arrangements to identify waste groups, storage methods, receiving organisations and treatment destinations. Households would also receive clear information about how waste weight or volume is measured and how fees are calculated.

Le Nu Thuy Duong, representing Dong Nai, wanted separate collection vehicles, schedules and routes suited to each waste stream. If a collector refuses rubbish, it should explain why, tell the household how to correct the problem and notify the competent authority.

Huy argued that refusal should depend on residents having received adequate guidance and access to a suitable collection service. Duong proposed reduced collection fees for correct sorting and penalties for failure to sort, while Nguyen Binh Tan of Ca Mau also sought fee incentives.

Le Thi Ngoc Linh, representing Ca Mau, proposed allowing two or three waste groups according to local infrastructure, with a transitional model separating recyclables from other rubbish. Nguyen Thanh Hai, chair of the parliamentary committee, supported considering an initial two group approach while collection and treatment capacity develops.

Food scraps expose the treatment gap

Nguyen Thi Thuy Ngan, representing Hung Yen, said food waste accounts for more than 50% of household solid waste, while capacity to turn it into organic fertiliser meets nearly 13%. She argued that separating rubbish must be matched by facilities able to use the separated material.

The figures place food scraps at the centre of investment decisions: more than half the household waste stream consists of material that needs a suitable collection and treatment route. Ngan proposed separate food waste collection first in areas already equipped to handle it.

Huy and Phan Thi Thuy Linh proposed local or clustered treatment around markets, schools, communal kitchens and accommodation businesses. Their recommendations included separate storage equipment, operating guidance, suitable technology and arrangements for safe agricultural use of the resulting fertiliser.

Ngoc Linh warned that food waste's moisture, rapid decomposition, smell and contaminated liquid require appropriate handling. Her proposed flexibility would let local authorities select a sorting model compatible with their treatment technology, then upgrade it as infrastructure improves.

Duong also wanted batteries, light bulbs, medicines, paint and packaging containing those substances separated because of their risks to health and the environment. Pham Van Hoa, representing Dong Thap, called for clearer responsibility for electronic waste, including batteries and equipment used in solar power systems.

Recycling and energy recovery need a clear order

Duong proposed prioritising energy recovery for rubbish left after reuse and recycling, including electricity generation through incineration where environmental requirements are met. She also sought a staged end to direct burial of untreated waste, replacing the less specific aim of limiting it.

Her proposal would require provincial People's Committees to prepare replacement treatment investment plans and report annually to the government. Large cities and areas generating substantial waste would have integrated facilities for sorting, recycling, licensed hazardous waste treatment and recovery of energy from the remaining material.

Investors should be assessed on technology, treatment performance, reduced landfill use and compliance with environmental standards, Duong said. Capacity, initial construction cost and the lowest tender price would be only part of the decision. Service contracts would specify waste quantities, environmental standards, ash management, acceptance procedures and price adjustments.

Hoa proposed allowing provinces to share large treatment facilities, citing Dong Thap and Vinh Long as a possible pairing. He sought budget, land and infrastructure support for mountainous areas and places with weak public revenues, where commercial investment is harder to attract.

Recycling funds and public spending face scrutiny

The proposed Article 72a would govern recycled materials recovered from waste and authorise a government roadmap for recycling rates in products and goods. The draft also promotes reuse of waste as materials or fuel and incentives for using recycled inputs.

Changes to producer and importer responsibilities would remove the existing financial contribution option through the Vietnam Environment Protection Fund in favour of other arrangements intended to produce actual collection and recycling. Man's question about the undisbursed 887 billion dong puts the handling of existing payments alongside the design of the replacement system.

The parliamentary committee sought a transition period, or the ability to offset obligations among products in the same group, while recycling infrastructure catches up. Nguyen Thanh Hai also called for obligations to reflect businesses' ability to comply.

The committee proposed allocating at least 2% of annual state budget expenditure to environmental protection. Nguyen Thi Kim Thoa, representing Vinh Long, supported the allocation but wanted spending to be public, targeted at identified problems and assessed against results, particularly waste collection, treatment and pollution remediation.

Do Thi Thu Thao sought clearer liability when waste is transferred illegally or treated improperly. Under her proposal, signing a collection or treatment contract would leave the waste generator responsible for meeting its legal obligations alongside those of the receiving operator.

Inspectors need equipment, evidence and clear triggers

Lo Thi Luyen described the difficulties of enforcement across mountainous terrain, where factories are scattered and reaching a site takes time. Night discharges, intermittent dumping or waste burning may happen quickly, leaving inspectors a narrow opportunity to gather evidence.

She proposed more specialist staff, funding, rapid measuring equipment, mobile sampling tools and access to monitoring databases. Additional responsibilities for local authorities would come with technical personnel and operating guidance.

Ngoc proposed that Article 48 select facilities for inspection according to risk, compliance history, monitoring results and substantiated public complaints. Warnings above permitted thresholds, treatment equipment stopping or signs of an incident would trigger timely checks. Inspection plans would be coordinated to reduce duplication for compliant businesses.

Nguyen Ngoc Son, a deputy serving on the Committee on National Defence, Security and External Relations, proposed three inspection risk levels: high, medium and low. Nguyen Dinh Xuan of Tay Ninh called for regular monitoring rather than depending mainly on penalties after damage occurs.

Man supported tying agency leaders' responsibilities to measurable environmental quality indicators published and reviewed periodically. Nguyen Vu Trung, representing Ho Chi Minh City, proposed responsibility for provincial People's Committee chairpersons, annual disclosure of environmental spending and pollution hotspot progress, and a requirement that polluters cover prevention, treatment, restoration and compensation costs.

Digital records must support public scrutiny

The draft would connect national environmental and climate databases with the National Data Center and National Public Service Portal. Electronic records would cover waste generation, collection, transport, recycling, treatment and handovers, alongside online assessment and permit procedures.

The parliamentary committee proposed identification codes, timestamps and electronic logs across the monitoring data chain. It sought separate penalties for unlawful interference, deletion or falsification, including suspension or withdrawal of professional authorisation. It also wanted monitoring providers' capabilities disclosed and reliable monitoring data usable as legal evidence.

Nguyen Lan Hieu, a deputy and director of Hanoi Medical University Hospital, proposed linking environmental records with health data, including admissions for respiratory and cardiovascular conditions. He wanted air quality announcements to include practical health advice for vulnerable groups.

Hieu also sought strict time and scope limits, continuous monitoring, public results and financial deposits for trials of new environmental technologies. For radiotherapy and nuclear medicine facilities already assessed for radiation safety, he proposed either an EIA exemption or a combined procedure to reduce delays in expanding cancer treatment.

Tam called for convenient access to public environmental information without additional applications for data already open to use. Hung proposed a maximum 30 day response to community oversight recommendations under Article 157, while Thu Thao sought public explanations of how consultation comments and pollution complaints are handled.

Carbon trading requires clear rights and reliable measurement

Lo Thi Luyen proposed common emissions inventory methods, credit creation standards and a registration and verification system. Mountainous provinces have forest resources but often lack the staff and funding needed to measure carbon stocks and verify reductions.

A carbon credit represents a verified quantity of reduced or removed greenhouse gas emissions. Luyen wanted ownership, benefit sharing and selling rights clarified, with safeguards against counting the same reduction twice. She also proposed help with measurement and verification costs for small projects, transparent transaction prices and controls on international transfers to protect Vietnam's emissions targets.

Thoa sought consistent rules across Articles 3, 39, 139 and 159 on whether emission reductions can be traded directly or require recognition as credits, and which bodies verify or approve them. The committee proposed annual inventories for large or sharply changing emitters, with a cycle of two years for stable facilities and reporting when conditions change.

The October 24 discussions also covered the marine and island resources bill. Nguyen Thanh Hai called for unified management of marine space, while National Assembly Vice President Nguyen Hong Dien sought a clear division between integrated spatial coordination and activities governed by sector laws. Both debates place coordination at the centre of managing environmental effects that extend beyond a single project or locality.

Key Points

• The parliamentary committee estimates that approximately 90% fewer entities would need EIAs or environmental permits under the proposal.
• Deputies want earlier risk screening and strict conditions for industrial park exemptions.
• Waste sorting proposals link household duties to separate collection, suitable treatment and transparent fees.
• Lawmakers questioned 887 billion dong in undisbursed recycling contributions and proposed a minimum environmental budget allocation of 2%.
• Stronger inspections would require staff, sampling equipment, reliable monitoring records and clear responsibility for local leaders.
• Carbon market proposals address ownership, verification, community benefits and international transfers.
• The legislation remains under consideration, with implementation deadlines still to be settled.