Vietnam Environment protection fee proposed for emissions
In response to the evolving economic and social landscape in the country, Vietnam’s Ministry of Finance (MoF) has announced measures to address the deteriorating air quality in major cities, industrial zones and craft villages. The worsening environmental conditions pose serious threats to public health, inflict damage on the economy, and jeopardize the overall well-being of the environment.
The ministry recently proposed a method and formula to calculate the Environment Protection Fee for emissions in a draft decree to the government.
According to the draft, there are two methods for emissions fee calculation.
Method one is for organizations that need regular emission monitoring. These organizations must pay a quarterly fee of VND750,000 ($31), plus a variable cost in accordance with this table:
Method two is for organizations that do not require constant emission monitoring. These organizations only have to pay a fixed annual fee of VND3 million.
The draft also proposed bonuses for organizations that restrict pollutant emissions.
Organizations that have a pollutant concentration level lower or equal to 30% of the amount regulated in the National Technical Standards of Industrial Emission only have to pay 75% of the fee, in accordance with the aforementioned formula.
Organizations that have a pollutant concentration level from 30% to less than 50% of the amount regulated in the National Technical Standards of Industrial Emission only have to pay 50% of the fee, in accordance with the aforementioned formula.
Fee collecting organizations must transfer all collected fees to the state budget.
Currently, the nation boasts approximately 5.1 million cars and a large number of motorcycles in circulation. There are also numerous industrial complexes, including those focused on bauxite production, steel manufacturing, oil refining and power plants, which discharge substantial industrial emissions daily. Additionally, there are around 120,000 industrial production facilities, with 138 identified as causing serious environmental pollution.
According to the draft regulations, two sources of pollution - dust and industrial emissions - require management and control. These sources include: vehicles, machinery, equipment, and construction projects emitting dust and industrial emissions, as well as production, business and service facilities emitting industrial emissions.
Some suggestions propose imposing environment protection fees on all types of emissions causing environmental pollution and all emission sources mentioned above. However, determining environment protection fees for emissions must ensure feasibility, effectiveness, and alignment with the current economic and social conditions.
The establishment of an environment protection fee for emissions is deemed necessary to institutionalize the Party and the State's policies, construct a comprehensive legal system on fees suitable to practical environmental protection conditions, and gradually raise awareness about environment-impacting activities among pollutant-emitting organizations and individuals, and society as a whole.
Timely and reasonable mobilization of resources from emission sources will create funding for environmental protection activities related to air quality.