Strong reaction to the draft decree on environmental law

Eleven associations of good industries including Association of Food Transparency (AFT), Vietnam Timber and Forest Product Association (VIFORES), Vietnam Textile and Apparel Association (VITAS), Vietnam Dairy Association (VDA), and Vietnam Association of Seafood Exporters and Producers (VASEP) have jointly submitted a petition to the Prime Minister on six inadequacies in the drafted Decree detailing a number of articles in the Law on Environmental Protection 2020 which is rapidly completed by the Ministry of Natural Resources and Environment (MoNRE) to submit to the Government.

According to the VASEP business community, the draft dated October 5, 2021, is the revised version issued after the Ministry of Justice’s appraisal meeting on September 27, 2021.

The VASEP said that although this draft includes many amendments compared to the previous one, careful studies conducted by businesses and experts under the associations show it still has many contents that are not consistent with the current Law on Environmental Protection and Vietnam's practical conditions, causing difficulties for businesses, and increasing administrative procedures, thus it "needs to clarify the legal basis" of some contents as stated in the appraisal report by the Ministry of Justice.

The associations have committed to complying with the Environmental Protection Law with sustainable development for not only a better integration, a better living environment, but also for survival conditions of future generations. Therefore, the business community and industry associations have been particularly interested in and have made many direct recommendations to the MoNRE on the draft during the past time.

After an appraisal meeting at the Ministry of Justice on September 27, 2021, and through appraisal report of the Ministry of Justice dated October 6, 2021, as well as the post-appraisal revised draft (October 5, 2021), the associations have urgently requested the Prime Minister to carefully consider contents of this draft Decree before signing for promulgation.

Specifically, the associations say environmental licensing procedures need to be simplified, transparent and switched to post-audit instead of just pre-audit. The procedures are now very complicated in the Draft with an increase of unclear administrative procedures so easy to pay the way for a request-for-grant mechanism and cause effects on the business-investment environment in Vietnam. It (the draft) does not even help achieve the goal of better environmental protection but only relies on pre-tests, so not much management efficiency will be achieved.

At the same time, the associations also recommended the Prime Minister consider amending or abolishing regulations that are not suitable for Vietnam's practical conditions, such as those on safe distances from residential areas. In the past, if local people move to settle near the production areas, the existing businesses often had to be relocated, but who pays for the relocation cost?; those on installing automatic wastewater monitoring system (Article 100); those on "ensuring no circulation and use of single-use plastic products and plastic packages difficult to decompose after 2025". The associations say such regulations and many others will lead to the closing of many factories from January 1, 2026, because there is no package for packaging and materials for production.

The associations also recommend abolishing the establishment of EPR Office (multi-functional management software solution) and the EPR Council because they are not mentioned and regulated in the Law on Environmental Protection 2020. There is also no legal basis to set up such units thus they could increase the inadequacy. The operating regulations have many points that are contrary to current laws. The Ministry of Justice’s appraisal report dated October 6, 2021, also clearly raises concerns about the EPR Office and the EPR Council with the above views.

In addition, a clear legal framework should be added to manage “financial contributions in packaging, product recycling and waste treatment; adjust the compulsory recycling rate to recycle products and packages. The contribution rate in waste treatment should be suitable based on the scientific and practical conditions of Vietnam, so that not to let the regulated rate be inadequate, without scientific basis, unfair and with overlapping fees, causing difficulties for businesses, increasing product prices, and affecting people's lives.

The associations also propose to remove the requirement that forces manufacturers and importers to fulfill a certain percentage of waste collection and recycling or contribute to recycling for biodegradable products/packages (because they are not harmful to the environment), or products/packages with commercial value at the end of their useful life such as metal equipment, old cars and motorbikes (because they cannot be collected by themselves) that are usually sold by their owners, but not be disposed of.

The associations proposed the Prime Minister delay the implementation of recycling contribution regulation until January 2025 so that businesses have time to build a recycling industry and get ready for the application feasibility, at the same time helps them have more time to recover after the Covid-19 pandemic.