In the context of increasingly severe environmental pollution arising from production, business, and daily activities, the implementation of environmental protection standards has become an urgent requirement to ensure sustainable development. These standards not only help control pollution and protect natural resources but also contribute to improving the quality of human life. Below, NPLaw respectfully invites our valued clients to explore the legal issues related to the implementation of environmental protection standards.

I. The current need to implement environmental protection standards

At present, the need to implement environmental protection standards has become increasingly urgent due to climate change, environmental pollution, and the growing degradation of natural resources. Enterprises, particularly those operating in manufacturing and industrial sectors, are facing stricter requirements to comply with environmental standards in order to minimize negative impacts on ecosystems. The application of cleaner production technologies, the use of renewable energy, and waste reduction are not only legal obligations but also inevitable trends to ensure sustainable development.

At the same time, environmental standards are becoming an increasingly important factor in international trade agreements, requiring enterprises to comply if they wish to participate in global supply chains. Governments have also introduced various incentive policies, financial support measures, and tax incentives for enterprises that implement environmental protection, thereby promoting the transition toward green and sustainable production models. Accordingly, compliance with environmental protection standards not only enables enterprises to fulfill legal obligations but also enhances competitiveness, protects public health, and contributes to the long-term development of the economy.

II. Legal regulations on the implementation of environmental protection standards

1. What are environmental protection standards?

Environmental protection standards are regulations and technical requirements established to control factors that may cause adverse impacts on the environment, ensuring environmental quality and sustainable development.

2. What sanctions may be imposed if enterprises fail to comply with environmental protection standards as prescribed by law?

Pursuant to Article 4 of Decree No. 45/2022/NĐ-CP, enterprises that fail to comply with environmental protection standards in accordance with the law may be subject to the following sanctions:

Primary sanctions:

  • Warning;
  • Monetary fines of up to 2,000,000,000 VND for organizations (up to 1,000,000,000 VND for individuals).

Additional sanctions: 

  • Suspension of the right to use relevant licenses for a period ranging from 01 month to 24 months;
  • Temporary suspension of operations in cases of serious violations;
  • Confiscation of exhibits and means used to commit the violation.

Remedial measures:

  • Mandatory implementation of measures to mitigate and treat environmental pollution;
  • Mandatory remediation of degraded or damaged environments;
  • Mandatory return of illicit profits obtained from the violations.

3. How is the implementation of environmental protection standards regulated under national and international law?

Pursuant to Article 103 of the Law on Environmental Protection 2020, environmental standards include:

  • Standards on environmental quality, prescribing environmental safety thresholds for air, water, soil, etc.;
  • Environmental standards on waste management, aimed at controlling pollution levels caused by solid, liquid, and gaseous waste;
  • Other environmental standards relating to specific environmental sectors.

4. What legal responsibilities do enterprises take when implementing environmental protection standards during investment and production activities?

Enterprises are required to comply with environmental protection standards throughout the investment and production process in order to limit negative environmental impacts. Specifically:

  • Enterprises must ensure that production and business activities meet environmental quality standards as prescribed in Article 103 of the Law on Environmental Protection 2020;
  • Pursuant to Article 28 of the Law on Environmental Protection 2020, investment projects must be classified based on environmental criteria. Group I and Group II projects with potential adverse environmental impacts are required to prepare an environmental impact assessment report and obtain approval from the competent authority prior to implementation;
  • Enterprises must collect, treat, recycle, or reuse waste in accordance with environmental standards (Articles 86 and 87 of the Law on Environmental Protection 2020);
  • In the case of an environmental incident, enterprises are required to implement remedial and environmental restoration measures and compensate for damages in accordance with Article 133 of the Law on Environmental Protection 2020;
  • Enterprises are required to pay environmental protection taxes, discharge fees, and make environmental rehabilitation deposits for certain industries posing a high risk of pollution (Articles 137 and 138 of the Law on Environmental Protection 2020).

III. Common questions on the implementation of environmental protection standards

1. Are foreign investors required to comply with national environmental protection standards when investing in another country?

Foreign investors investing in another country are required to comply with environmental protection standards under the laws of the host country. In Vietnam, under Article 4 of the Law on Environmental Protection 2020, one of the fundamental principles of environmental protection is that all organizations and individuals operating within the territory of Vietnam are responsible for environmental protection, regardless of whether they are domestic or foreign entities. Compliance with environmental standards is therefore not only a legal obligation but also a crucial condition for ensuring sustainable socio-economic development.

Accordingly, foreign investors must comply with the host country’s environmental laws and proactively implement environmental protection measures to ensure sustainable development and mitigate legal risks.

2. If environmental policies change, may enterprises be exempted from or have their obligations to implement environmental protection standards reduced?

Under the “polluter pays” principle, all organizations and individuals whose activities affect the environment are responsible for implementing environmental protection measures.

Although exemptions from such obligations are not permitted, enterprises may benefit from certain support policies and incentives provided by the State pursuant to Article 141 of the Law on Environmental Protection 2020 when environmental policies change, including:

  • Tax and fee exemptions or reductions: The State may grant exemptions or reductions of environmental taxes or waste treatment fees for enterprises investing in environmentally friendly technologies;
  • Financial support and subsidies: Enterprises may access preferential loans or receive subsidies when applying green technologies or clean energy solutions;
  • Support for technological innovation: Enterprises required to change waste treatment technologies to comply with new standards may receive financial support in accordance with State-established process;
  • Support for relocation of production facilities: Enterprises forced to relocate due to non-compliance with environmental standards at existing locations may receive partial relocation cost support.

Thus, while enterprises cannot be fully exempted from environmental protection obligations, they may benefit from State incentives and support to reduce compliance costs. These policies aim to encourage investment in clean technologies and sustainable development while ensuring environmental protection objectives under the Law on Environmental Protection 2020.

3. What dispute resolution mechanisms are commonly applied in disputes related to the implementation of environmental protection standards?

In disputes related to the implementation of environmental protection standards, common dispute resolution mechanisms include negotiation, mediation, commercial arbitration, or litigation before courts. According to Article 162 of the Law on Environmental Protection 2020, environmental disputes may involve rights and obligations related to environmental protection, determination of pollution causes, or liability for remediation and compensation for damages. Dispute resolution shall be conducted in accordance with civil law, the Law on Environmental Protection, and other relevant legal instruments.

4. How may the implementation of environmental protection standards affect long-term investment contracts?

Pursuant to Article 28 of the Law on Environmental Protection 2020, the classification of investment projects based on environmental criteria has a significant impact on the appraisal, licensing, and supervision of investment projects. Accordingly, investment projects are divided into four groups based on scale, capacity, production type, land use area, and environmental sensitivity factors:

  • Group I: Projects with a high risk of adverse environmental impacts, such as large-scale mineral exploitation, hazardous waste treatment, or scrap import projects, which require detailed environmental impact assessments prior to implementation;
  • Group II: Projects with a medium risk of environmental pollution, also subject to environmental impact assessment requirements but on a smaller scale;
  • Group III: Projects with low environmental impact risks, which may only be required to implement environmental protection plans;
  • Group IV: Projects with no risk of adverse environmental impacts, which are not required to implement complex environmental procedures.

Such a classification directly affects investment contracts, as investors must ensure compliance with legal requirements corresponding to the project group. Therefore, enterprises should take environmental factors into account from the investment planning stage to avoid legal risks and ensure project sustainability.

5. If an enterprise is required to change production technology to comply with environmental protection standards, who takes the financial responsibility?

When an enterprise is required to change its production technology to comply with environmental protection standards, the primary financial responsibility lies with the enterprise itself. Under the Law on Environmental Protection, enterprises are obligated to ensure that their production and business activities do not cause pollution or adverse environmental impacts. Accordingly, if existing technology fails to meet new standards, the enterprise must invest in upgrading, improving, or replacing technology to comply with legal requirements.

However, in certain cases, enterprises may benefit from State support policies prescribed in Article 141 of the Law on Environmental Protection 2020 to reduce financial burdens, including:

  • Tax incentives: Exemptions or reductions in corporate income tax or import duties for machinery and equipment used in technological transformation in accordance with law;
  • Preferential loans: Environmental protection funds or banks may offer loans at preferential interest rates to support investment in cleaner and more environmentally friendly production technologies;
  • State-supported programs: Green enterprise and sustainable development programs may provide financial resources or other incentives to encourage environmentally responsible technological transformation;
  • Cooperation with domestic and international organizations: Enterprises may seek support from non-governmental organizations, sustainable development investment funds, or international environmental cooperation programs.

In summary, while the primary financial responsibility rests with enterprises, support from the State or other organizations may be available to alleviate financial burdens during technology transformation in compliance with environmental standards.

6. How may investors be sanctioned if an investment project causes environmental pollution and fails to comply with environmental protection standards?

If an investment project causes environmental pollution and the investor fails to comply with environmental protection standards, the investor may be subject to administrative, civil, or criminal liabilities, depending on the severity of the violation.

  • Administrative sanctions: Pursuant to Article 4 of Decree No. 45/2022/NĐ-CP, enterprises may be fined up to 2,000,000,000 VND, have their environmental permits suspended, or have their operations suspended for a period ranging from 1 to 24 months. Enterprises may also be required to remedy environmental consequences, treat pollution, and reimburse remediation costs.
  • Civil liability: If environmental pollution causes damage to other organizations or individuals, enterprises may be required to compensate for damages according to Article 133 of the Law on Environmental Protection 2020.
  • Criminal liability: Depending on the nature of the violation, investors may face criminal charges under the Penal Code 2015, as amended in 2017, which provides for environmental crimes such as environmental pollution, violations of regulations on hazardous waste management, and violations of regulations on prevention, response, and remediation of environmental incidents.

Accordingly, compliance with environmental protection standards not only helps enterprises avoid legal risks but also safeguards reputation and long-term sustainable operations.

IV. Legal consulting services related to the implementation of environmental protection standards

The above is NPLaw’s article on the implementation of environmental protection standards. With a team of experienced lawyers and legal professionals, NPLaw is always ready to accompany, advise, and support clients on legal matters related to the implementation of environmental protection standards. Should you require legal assistance, please contact NPLaw using the following details: