Amending Law on Environmental Protection: Paving the way for green economy

The MAE is actively advancing the amendment of the 2020 Law on Environmental Protection. This aims to create a strong institutional boost. The goal is to resolve legal bottlenecks and open space for green and circular economy models. This is more than a technical adjustment; it marks a shift in environmental governance. The approach moves from “control” to “enabling sustainable development.”

Removing institutional bottlenecks, reducing compliance costs

After more than three years in effect, the 2020 Law on Environmental Protection has delivered several breakthrough policies. However, practical experience has revealed overlapping regulations and administrative hurdles. These issues, especially in procedures and decentralization, have driven this amendment.

One major highlight is the strong reform of environmental administrative procedures. Under the draft, regulations related to environmental impact assessments (EIA) and environmental permits will be simplified to be clearer, more transparent, and easier to implement. Instead of the previous complex approach, investment projects will be classified into three groups based on environmental risk levels, each with corresponding procedural requirements.

This approach not only helps investors clearly identify their legal obligations but also significantly reduces time and compliance costs. Projects with low environmental risks will follow streamlined procedures, even requiring only environmental registration or simplified permits before implementation.

Another notable reform is the shift from “pre-inspection” to “post-inspection.” This means the State will reduce initial intervention, granting businesses greater autonomy while strengthening supervision during operation. This marks a fundamental change aligned with modern governance trends and the need to improve the investment climate.

In addition, decentralization to local authorities will be further strengthened. It is estimated that around 80% of environmental administrative procedures previously under ministerial authority will be delegated to local levels. This not only reduces the burden on central agencies but also shortens processing time and enhances local responsibility and initiative.

Beyond cutting procedures, the draft law also removes certain outdated requirements, such as mandatory trial operation of waste treatment facilities after licensing. In practice, this regulation has shown little effectiveness while increasing costs and delays for businesses.

Laying the foundation for modern environmental management

If administrative reform is the “front face” of the amendment, then digital transformation and innovation in management tools form its backbone.

For the first time, the concept of real-time, data-driven environmental management is explicitly introduced. Accordingly, a national environmental management system will be built on a digital platform, integrating monitoring data, emissions inventories, and waste information from central to local levels.

A key innovation is the shift from “warning” to “forecasting” pollution. Instead of reacting after incidents occur, authorities will be able to anticipate risks and take preventive measures. This is particularly important as air pollution in major cities becomes increasingly complex.

Waste management is also being redefined by treating waste as a resource. The draft law introduces provisions to promote recycling, reuse, and the use of waste as input materials and fuel for production, laying a critical foundation for circular economy development.

In particular, waste collection, transportation, and treatment activities will be digitized, requiring electronic data updates into the management system. This enhances transparency and enables tighter control over waste flows, reducing losses and improper handling.

Concerning climate change, the draft also proposes strategic changes. Greenhouse gas emissions management will become more comprehensive, covering inventory, reduction, and carbon market operations. Importantly, the inventory cycle will be shortened to annual reporting and conducted online, enabling faster and more accurate data updates.

Carbon market mechanisms will be refined to ensure transparency and control risks. This is considered a necessary step for Viet Nan to achieve its long-term net-zero emissions commitment.

Beyond management tools, the draft law also expands development space for the environmental industry. The addition of the concept of “environmental industrial services,” along with investment incentives, is expected to foster a domestic ecosystem of environmental enterprises and reduce dependence on imported technologies.

As Viet Nam pursues ambitious growth targets, even double-digit expansion, the key challenge is ensuring that economic development does not come at the expense of the environment. The revised draft law reflects efforts to strike that balance. On one hand, it creates more favorable conditions for investment and business activities through procedural reforms and reduced compliance costs. On the other hand, environmental management tools are strengthened to be more modern, transparent, and effective.

The addition of clearer responsibilities for local governments in managing environmental quality, particularly air and water, is a significant step forward. The principle of “local decision-making, local implementation, local accountability” not only enhances autonomy but also increases pressure to improve governance effectiveness.

Public disclosure of environmental information and the application of digital technologies enable citizens and communities to better monitor compliance. This is a key factor in ensuring that legal provisions are effectively enforced in line with the country’s new development stage.