Decree No. 153/2024/ND-CP, which governs the environmental protection fees on exhaust gas emissions, was issued by the Government of Vietnam on November 21, 2024 (“Decree 153“). This new regulation will take effect from January 5, 2025. Emission-discharging facilities in all parts of Vietnam will be impacted by this law.

The main notable points are as follows:

1. Scope of application

Under Decree 153, environmental protection fees apply to dust and industrial emissions released into the environment, which must be treated by emission-discharging facilities holding environmental licenses in accordance with regulations on environmental protection.

2. Fee payment

Emission-discharging facilities shall pay the environmental protection fees to the Department of Natural Resources and Environment, or the Office of Natural Resources and Environment. The provincial People’s Committees will determine which entity, either the Department of Natural Resources and Environment or the Office of Natural Resources and Environment, is authorized to collect fees within the management area.

3. Timeline for fee payment

The fee is payable quarterly for emission-discharging facilities that are subject to emission monitoring, and annually for others.

4. Fee calculation

The payable environmental protection fees are calculated based on a fixed fee and a variable fee. The fixed fee is VND 3,000,000 per year, applicable to both emission-discharging facilities required to conduct emission monitoring and those exempt from this obligation, while the variable fee is determined, on a quarterly basis, by the total emission fees from each emission stream, applicable to such emission-discharging facilities  as oil refineries, petrochemical plants, coke manufacturing facilities, coal gas production plants, thermal power plants, cement plants, etc.

Implications for Enterprises

Decree 153 encourages businesses to better manage emissions from operations, and adopt clean technologies to reduce emissions. This not only aids in combating air pollution and protecting public health, but also motivates companies to innovate, improve production processes, cut costs, and become more environmentally sustainable.

The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.

Baongoc Nguyen, Senior Legal Adviser, Vietnam