In the context of strong economic development and the increasing number of investment projects in construction and production, environmental protection has become an indispensable concern. Nevertheless, negative environmental impacts arising from investment activities are inevitable, particularly pollution and environmental degradation. Accordingly, the law has established regulations governing environmental rehabilitation and restoration after investment.

In the following article, NPLaw analyzes the legal provisions relating to environmental rehabilitation and restoration after investment in Vietnam.

I. The need for environmental rehabilitation and restoration after investment

1. Importance of environmental rehabilitation and restoration after investment

The importance of environmental rehabilitation and restoration after investment includes:

  • Restoring ecosystem sustainability: Rehabilitating degraded ecosystems helps maintain biodiversity and improve environmental quality.
  • Mitigating pollution and adverse impacts: Restoration processes help reduce pollution and long-term environmental damage, thereby minimizing health risks to the community.
  • Compliance with laws and international commitments: Countries impose stringent environmental protection regulations requiring investors to implement rehabilitation and restoration measures upon completion of investment projects.

2. Factors affecting environmental rehabilitation and restoration after investment

Various factors influence environmental rehabilitation and restoration after investment, including:

  • Scale and type of investment project: The scale and nature of projects determine the level and extent of environmental rehabilitation required after investment.
  • Technology and production methods: The use of environmentally friendly technologies in production, extraction, and construction helps minimize adverse environmental impacts, thereby facilitating restoration and rehabilitation.
  • Policies and legal regulations: Legal provisions on environmental protection and post-investment rehabilitation play an important role in guiding and supervising restoration activities.
  • Financial and technical resources: Environmental rehabilitation and restoration require substantial financial and technical resources. Investors must have clear financial plans and apply effective technical measures to ensure successful restoration.
  • Awareness and commitment of stakeholders: Investors, local authorities, and communities must all possess environmental awareness and a commitment to restoration measures. Without such commitment, restoration efforts may have significant difficulties.

3. Benefits of environmental rehabilitation and restoration after investment

Environmental rehabilitation and restoration after investment take tangible benefits to investors, communities, and society, including:

  • Protection of public health: Polluted environments cause numerous diseases and adversely affect quality of life. Restoration helps clean the environment, reduce pollution, and improve public health.
  • Ensuring sustainable development: Rehabilitation activities help restore natural resources, ensuring stable and long-term development of both the economy and the environment.
  • Enhancing corporate reputation and brand value: Enterprises that properly implement environmental rehabilitation and restoration enhance their reputation and brand image, thereby building trust with customers and partners.
  • Compliance with legal regulations and avoidance of legal risks: Compliance with environmental rehabilitation requirements helps investors avoid legal risks, protect business interests, and prevent sanctions or compensation liabilities.
  • Improving resource-use efficiency: Environmental rehabilitation not only restores ecosystems but also enhances resource-use efficiency, enabling economic development without depleting natural resources.

II. Legal regulations on environmental rehabilitation and restoration after investment

1. What is environmental rehabilitation and restoration after investment?

Pursuant to Clause 1 Article 3 of the Law on Environmental Protection 2020, the environment comprises natural and artificial material elements that are closely interconnected, surrounding humans, and affecting human life, economic and social activities, as well as the existence and development of humans, living organisms, and nature.

Currently, the law does not provide a specific definition of environmental rehabilitation and restoration after investment. However, it may be understood as activities aimed at returning the environment and ecosystems in affected areas to conditions close to their original state or to levels meeting safety and environmental standards, serving beneficial purposes for humans after the completion of investment activities.

2. Is the project owner responsible for environmental rehabilitation and restoration after investment?

Pursuant to Article 126 of the Law on Environmental Protection 2020, the owner of an investment project or facility causing an environmental incident is responsible for implementing environmental restoration within the scope of the facility. The People’s Committee of the commune where the environmental incident occurs is responsible for inspecting and supervising environmental restoration activities.

Accordingly, the contents of an environmental restoration plan include:

  • Description and assessment of the post-incident environmental status, including the extent, scope, and nature of environmental pollution in each area; pre-incident environmental conditions, site conditions, and ecosystem characteristics (if any); and requirements for environmental treatment in accordance with technical environmental standards on ambient environmental quality, site rehabilitation, and restoration of main ecosystem characteristics;
  • Environmental restoration solutions; analysis, evaluation, and selection of the optimal solution for environmental rehabilitation and restoration;
  • List and quantities of environmental restoration items corresponding to the selected solution;
  • Implementation plan; division of implementation stages for environmental restoration; management, monitoring, and supervision programs during the restoration period; and acceptance plan for restoration results.

3. When must mineral exploitation project owners prepare and appraise environmental rehabilitation and restoration plans?

Pursuant to Point a Clause 1 Article 36 of Decree No. 08/2022/NĐ-CP, owners of mineral exploitation investment projects are required to set up environmental rehabilitation and restoration plans during the environmental impact assessment process, and such plans shall be appraised during the appraisal of the environmental impact assessment report.

III. Questions on environmental rehabilitation and restoration after investment

1. On what basis is the environmental rehabilitation and restoration deposit for mineral exploitation projects calculated?

Pursuant to Clause 1 Article 37 of Decree No. 08/2022/NĐ-CP, the environmental rehabilitation and restoration deposit payable by owners of mineral exploitation projects is calculated based on the rehabilitation and restoration contents approved by the competent authority. The calculation must apply local norms and unit prices effective at the time of preparation of the rehabilitation and restoration plan. 

Where local norms and unit prices are unavailable, those issued by relevant ministries or sectors shall apply; if a standard unit price still does not exist, market prices shall be used.

2. Upon completion of the investment project, what measures must stakeholders take to ensure environmental rehabilitation and restoration?

Upon completion of the investment project, relevant stakeholders, including investors, state management authorities, and the community, must implement measures such as:

  • Conducting a final environmental impact assessment and preparing a detailed restoration plan;
  • Treating pollution and rehabilitating land, including waste treatment and soil fertility restoration;
  • Restoring ecosystems by replanting vegetation, protecting flora and fauna, and rehabilitating affected species;
  • Conducting water management, including wastewater treatment and restoration of polluted water sources;
  • Monitoring and reporting restoration processes and results;
  • Ensuring long-term environmental protection through continued mitigation measures;
  • Fulfilling financial contributions for long-term environmental protection.

3. Are foreign investors bound by the host country’s regulations on environmental rehabilitation and restoration after investment?

Foreign investors are fully bound by the environmental rehabilitation and restoration regulations of the host country. All investors, whether domestic or foreign, must comply with legal provisions on environmental protection and environmental rehabilitation and restoration upon completion of investment projects.

4. What responsibilities do investors take if their projects cause pollution or negative environmental impacts?

Project owners must take responsibility for environmental rehabilitation and restoration after investment if land pollution or other adverse environmental impacts are caused, including:

  • Conducting preliminary surveys and assessments of polluted land areas;
  • Performing detailed investigations and assessments of land pollution;
  • Handling treatment, rehabilitation, and restoration measures based on assessment reports and approved rehabilitation and restoration plans;
  • Reporting the results of land environmental treatment, rehabilitation, and restoration to the provincial environmental protection authority.

5. If an investor fails to execute environmental rehabilitation and restoration obligations after investment, who takes substitute responsibility?

Pursuant to Clause 9 Article 37 of Decree No. 08/2022/NĐ-CP, as amended by Point c Clause 16 Article 1 of Decree No. 05/2025/NĐ-CP, where an organization or individual fails to execute environmental rehabilitation and restoration in accordance with the approved plan, the authority approved the project dossier is responsible for using the deposited funds, including accrued interest, to implement environmental rehabilitation and restoration.

Accordingly, if an investor fails to fulfill environmental rehabilitation and restoration obligations after investment, the competent authority approving the investment project shall assume substitute responsibility.

IV. Legal consultancy services on environmental rehabilitation and restoration after investment

The above constitutes all detailed information provided by NPLaw to assist clients regarding environmental rehabilitation and restoration after investment. Should you have any further inquiries on this matter or other legal issues, please contact NPLaw for direct consultation and guidance from our team of lawyers.