Energy, Natural Resources and Infrastructure Archives

On 26 June 2025, the Ministry of Industry and Trade (MOIT) issued Decision No. 1824/QD-BCT on the electricity price framework for offshore wind power projects in 2025 (Decision 1824), which took immediate effect.

The tariff ceilings for offshore wind power in 2025 has been set at (exclusive of VAT):

(a) Northern region: VND 3,975.1 per kWh;
(b) South Central region: VND 3,078.9 per kWh; and
(c) Southern region: VND 3,868.5 per kWh.

Offshore wind is defined under the 2024 Electricity Law as “turbines built outside the maritime zone of six nautical miles from the shoreline with the lowest mean sea level in multiple years of the mainland towards the sea.”

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.

Dave Seibert

Partner, Co-Head of Regional Energy, Natural Resources and Infrastructure | Head of US Desk

Partner, Co-Head of Regional Energy, Natural Resourc ...

Cambodia, Vietnam

On 29 May 2025, the Prime Minister of Vietnam issued Decision No. 14/2025/QD-TTg on the structure of the retail electricity tariffs (“Decision 14”), which took immediate effect.

Decision 14 defines the retail electricity tariff structure as a percentage of the average retail electricity price, which is used to calculate specific retail electricity prices for each customer group. Under Decision No. 599/QD-EVN dated 7 May 2025, EVN declared the average retail electricity price (excluding VAT) as of 10 May 2025 is VND 2,204.0655/kWh.

The following table is the retail electricity tariff structure attached to Decision 14:

No.	Customer group	Percentage relative to the average retail electricity price adjusted by competent authority (%)
1	Electricity for Production
1.1	High Voltage (>35 kV)
1.1.1	220 kV Voltage Level
	a) Standard hours	84%
	b) Off-peak hours	53%
	c) Peak hours	146%
1.1.2	>35 kV to <220 kV Voltage Level
	a) Standard hours	85%
	b) Off-peak hours	54%
	c) Peak hours	151%
1.2	Medium Voltage (>1 kV to 35 kV)
	a) Standard hours	86%
	b) Off-peak hours	56%
	c) Peak hours	157%
1.3	Low Voltage (≤1 kV)
	a) Standard hours	93%
	b) Off-peak hours	61%
	c) Peak hours	168%
2	Electricity for Public Services
2.1	Healthcare & Educational Institutions
2.1.1	Medium voltage and above (>1 kV)	90%
2.1.2	Low voltage (≤1 kV)	96%
2.2	Public Lighting & Administrative Units
2.2.1	Medium voltage and above (>1 kV)	99%
2.2.2	Low voltage (≤1 kV)	103%
3	Electricity for Commercial Use
3.1	Tourism Accommodation Establishments
3.1.1	Medium voltage and above (>1 kV)
	a) Standard hours	86%
	b) Off-peak hours	56%
	c) Peak hours	157%
3.1.2	Low voltage (≤1 kV)
	a) Standard hours	93%
	b) Off-peak hours	61%
	c) Peak hours	168%
3.2	Electric Vehicle Charging
3.2.1	Medium voltage and above (>1 kV)
	a) Standard hours	118%
	b) Off-peak hours	71%
	c) Peak hours	174%
3.2.2	Low voltage (≤1 kV)
	a) Standard hours	125%
	b) Off-peak hours	75%
	c) Peak hours	195%
3.3	Other Commercial Businesses
3.3.1	Medium voltage and above (>1 kV)
	a) Standard hours	133%
	b) Off-peak hours	75%
	c) Peak hours	230%
3.3.2	Low voltage (≤1 kV)
	a) Standard hours	145%
	b) Off-peak hours	89%
	c) Peak hours	248%
4	Residential Electricity
	Tier 1: For 0-100 kWh	90%
	Tier 2: For 101-200 kWh	108%
	Tier 3: For 201-400 kWh	136%
	Tier 4: For 401-700 kWh	162%
	Tier 5: For ≥701 kWh	180%

For reference, the time-of-use for electricity during the day is specified as follows:

a) Standard hours:

Monday to Saturday
04:00 to 9:30 (5 hours and 30 minutes);
11:30 to 17:00 (5 hours and 30 minutes); and
20:00 to 22:00 (2 hours).

Sunday: From 04:00 to 22:00 (18 hours).

b) Peak hours:

Monday to Saturday
9:30 to 11:30 (2 hours); and
17:00 to 20:00 (3 hours).

Sunday: No peak hours.

c) Off-peak hours:

All days of the week: 22:00 to 04:00 of the following day (6 hours).

For further advice, please contact our team.

Dave Seibert

Partner, Co-Head of Regional Energy, Natural Resources and Infrastructure | Head of US Desk

Partner, Co-Head of Regional Energy, Natural Resourc ...

Cambodia, Vietnam

Combined-cycle gas turbine power plants using liquefied natural gas (LNG)

On 13 May 2025, the Ministry of Industry and Trade (MOIT) issued Decision No. 1313/QD-BCT (“Decision 1313”), which took immediate effect.

Decision 1313 sets a tariff ceiling of VND 3,327.42 per kWh (excluding VAT) for electricity generated by combined-cycle gas turbine power plants using LNG in 2025.

Wind Power Plants

On 30 May 2025, the MOIT issued Decision No. 1508/QD-BCT (“Decision 1508”), also with immediate effect.

Decision 1508 establishes a tariff ceiling in 2025 as follows:

Type of Wind Power Plant	Northern Region	Central Region	Southern Region
Onshore Wind Power	1,959.4 VND/kWh	1,807.4 VND/kWh	1,840.3 VND/kWh
Nearshore Wind Power (same for all three regions)	1,987.4 VND/kW

Dave Seibert

Partner, Co-Head of Regional Energy, Natural Resources and Infrastructure | Head of US Desk

Partner, Co-Head of Regional Energy, Natural Resourc ...

Cambodia, Vietnam

On 19 March 2025, the Ministry of Natural Resources and Environmental Conservation (“MONREC”) issued the Procedures for Gemological Laboratories under Section 69(b) of the Myanmar Gemstone Law. These procedures establish a comprehensive regulatory framework to standardize the registration, operation, testing, certification, and oversight of gemological laboratories authorized by the Myanmar Gems Enterprise (“MGE”), aiming to enhance quality assurance, promote research, and support sustainable development in Myanmar’s gemstone industry. These procedures took effect immediately upon publication.

Registration and Licensing Requirements

To legally operate, gemological laboratories must obtain a Registration Certificate from the MGE, valid for up to three years. Applicants must fulfill several prerequisites, including providing adequate laboratory facilities equipped with approved instruments ranging from basic tools like UV lights and microscopes to advanced technologies such as FTIR, Raman Spectrometers, and LA-ICP-MS. Employing qualified personnel is mandatory, including a Laboratory In-Charge with relevant gemological education and experience, alongside credentialed experts and trained staff. Environmental safeguards and compliance with all applicable laws and operational protocols are required.

Applicants submit a detailed registration dossier to the MGE, including laboratory information, staff qualifications, equipment inventories, and operational procedures. Upon meeting all legal and technical standards and paying the registration fee—300,000 Kyats annually or 900,000 Kyats for three years—a Registration Certificate is issued. Laboratories must apply for renewal at least 90 days before expiry, and certificates must be returned if operations cease prematurely.

Laboratory Operations and Testing Protocols

Registered laboratories are responsible for conducting accurate, reliable, and impartial testing, analysis, and certification of gemstones, including rough stones, finished gems, jewelry, and related products. Testing involves a combination of physical inspection and advanced scientific methods. Each test report must comprehensively document details such as laboratory name, report serial number and date, initial gemstone description, weight, clarity grade, dimensions, inclusions, shape or cut, transparency, color, origin, and photographic evidence. Test findings must be strictly based on verified laboratory analyses, excluding unverified or speculative information. Reports are signed by the Laboratory In-Charge, who bears full responsibility for their validity and integrity. Laboratories must maintain thorough records of all procedures—from gemstone acceptance through testing, reporting, and return—in registration books and digital databases.

Transparency and Applicant Rights

Laboratories must clearly inform applicants prior to gemstone submission about available services, fees, expert qualifications, safety measures, report formats, and terms of service. Upon receiving gemstones, laboratories are required to inspect, measure, photograph, and issue receipts to applicants. Test results must be explained thoroughly before returning both gemstones and original certified reports. Applicants may file complaints within specified timeframes if dissatisfied, submitting the originally tested gemstones and reports. Laboratories must address complaints according to established procedures. Laboratories are responsible for establishing such timeframes and procedures.

Compliance and Professional Conduct

All laboratories and personnel must fully comply with relevant laws, MONREC directives, and MGE regulations. Staff, including foreign experts, must act with integrity, maintain impartiality, and continuously develop their gemological expertise to uphold professional standards. Laboratories are also required to observe legal procedures for handling mounted gemstones and implement environmental and safety safeguards.

Enforcement and Penalties

Violations of the procedures or related regulations may result in graduated enforcement actions, including written warnings, fines, temporary suspension, or permanent cancellation of the Registration Certificate and laboratory closure. Unauthorized laboratories operating without certification will receive notices to register; failure to comply within 30 days may lead to prohibition of operations by relevant authorities.

Administrative Oversight and Record-Keeping

The MGE manages all aspects of Registration Certificates, including issuance, renewal, suspension, and cancellation, while maintaining detailed records and reporting registered laboratories to MONREC. Certificates must be returned during temporary service suspensions, and replacements for lost or damaged certificates may be obtained subject to fines and Police Clearance Certificate.

Electricity imported from China to Vietnam

On 5 May 2025, the Ministry of Industry and Trade (MOIT) issued Decision No. 1231/QD-BCT (“Decision 1231”), which took immediate effect.

Decision 1231 sets a tariff ceiling of USD 9.3 cents per kWh for electricity imported from China.

Waste-to-Energy Power Plants

On 6 May 2025, the MOIT issued Decision No. 1251/QD-BCT (“Decision 1251”), also with immediate effect.

Decision 1251 establishes a tariff ceiling of VND 2,575.18 per kWh (excluding VAT) for electricity generated by waste-to-energy power plants in 2025.

Dave Seibert

Partner, Co-Head of Regional Energy, Natural Resources and Infrastructure | Head of US Desk

Partner, Co-Head of Regional Energy, Natural Resourc ...

Cambodia, Vietnam

On 26 April 2025 the Ministry of Industry and Trade (MOIT) issued Decision No. 1198/QD-BCT (“Decision 1198”) with immediate effect.

Decision 1198 prescribes the price tariff ceiling of VND 3,457.02/kWh for electricity produced from pumped storage hydropower plants in 2025.

Dave Seibert

Partner, Co-Head of Regional Energy, Natural Resources and Infrastructure | Head of US Desk

Partner, Co-Head of Regional Energy, Natural Resourc ...

Cambodia, Vietnam

On 28 March 2025, the Government of Vietnam issued Decree No. 71/2025/ND-CP (“Decree 71”) amending and supplementing a number of articles of Decree No. 35/2021/ND-CP (“Decree 35”) detailing and guiding the implementation of the law on investment in the form of public-private partnerships (“PPPs”). Decree 71 is effective from 28 March 2025.

Details of Decree 71’s key updates, compared to Decree 35 are presented in the following table:

Key Updates	Decree 71	Decree 35
Scope and Applicability	Decree 71 outlines regulations for:[1] the appraisal council for PPP projects; matters related to the preparation of PPP projects, projects under a build-transfer (“BT”) contract without payment requirements; selection of investors for PPP project implementation; confirmation of completion and transfer of works and infrastructure systems; termination of PPP project contracts; and handling of situations and violations in PPP investment. Decree 71 excludes projects using BT contracts with payment from the state budget or BT contracts paid with land funds. Decree 71 annulled the regulations on investment sectors and the scale of PPP projects in Decree 35.	Decree 35 outlines regulations for:[2] the appraisal council of PPP projects; matters related to the preparation of PPP projects; investment sectors; the scale of PPP projects; ; selection of investors to implement PPP projects; confirmation of completion and transfer of works and infrastructure systems; termination of PPP project contracts; and handling of situations and violations in PPP investment.
The Inter-Agency Appraisal Council	The inter-agency appraisal council:[3] is established by the Prime Minister upon the Ministry of Finance’s proposal, or by the Minister of Finance, if authorized; consists of a chairperson, a vice chairperson, and other members: the chairperson of the council is the Minister of Finance; the vice chairperson is a representative from the leadership of relevant ministries or agencies; and the other members of the inter-agency appraisal council include representatives from relevant ministries and agencies.	The inter-agency appraisal council:[4] is established by the Prime Minister’s decision for each project based on the Ministry of Planning and Investment’s proposal; consists of a chairperson, a vice-chairperson, and other members: the chairperson of the council is the Minister of Planning and Investment; and the vice chairperson and other members are representatives from the leadership of relevant ministries and agencies.
State Capital Participation in Difficult Areas	Road projects in socio-economically difficult areas can receive state capital exceeding 50% but not more than 70% of the preliminary total investment, provided they meet specific conditions (e.g. financial feasibility challenges due to low traffic volume, toll fee, public service, revenue recovery period, revenue).[5]	No equivalent provision.
Investor-Proposed Projects	An investor submits to the relevant authority a written proposal for implementing the project applying the O&M contract or PPP project with a total investment equivalent to group B[6] or group C[7] project (defined by the Law on Public Investment) and not using state capital.[8] The investor formulates feasibility study report for the proposed project in case the investor’s project proposal is approved by the relevant authority.[9]	No equivalent provision.
Conditions for BT Projects Without Payment Requirements, Proposed By The Investor	A project applying BT contract without payment requirements, as proposed by the investor, must meet the following conditions:[10] the project must align with the conditions for selecting PPP projects for investment as specified in the PPP Law; the project must not overlap with any PPP project which the competent authority is organizing the preparation of a pre-feasibility study report, feasibility study report, or has already approved another investor to prepare such reports; and the project must comply with relevant planning in accordance with the provisions of the Law on Planning.	No equivalent provision.
Investor Selection Process	For projects applying open bidding and competitive negotiation, minimum bidding document preparation times vary by project scale:[11] 45-60 days (National Assembly/Prime Minister projects), 30-45 days (Group A projects); 20 days (Group B/C projects); and 10 days (applicable to projects requiring economic-technical reports). An appraisal unit (e.g. Department of Finance together with an expert team) is defined to evaluate bidding documents and investor selection results.[12]	For projects applying open bidding and competitive negotiation as stipulated in Article 38.1 of the PPP Law, the minimum time for bid preparation is 60 days for the selection of domestic investors or 90 days for the selection of international investors, counted from the first day of issuance of the bidding documents to the bid closing date.[13]
Contract Performance Guarantees	For O&M PPP projects, where the total investment amount includes the value payable to the state budget by the investor, after the investor fulfills the obligation to remit this amount to the state budget, the investor shall be refunded or released from the performance guarantee in proportion to the value paid into the state budget.[14] The remaining portion of the performance guarantee shall be refunded or released after the investor or the PPP project enterprise has fulfilled the remaining obligations under the contract.[15]	No equivalent provision.
Consortium Requirements	In the case of a consortium, the lead investor must commit to contributing a minimum of 30% of the equity capital, and each member of the consortium must commit to contributing at least 15% of the equity capital, as specified in the consortium agreement.[16] For projects applying the O&M contract, at least one consortium member must have experience in operating and managing infrastructure works or systems to provide public products or services.[17] For BOT, BTO, BOO, BTL, BLT, or hybrid, PPP projects, at least one consortium member must have experience in operating and managing infrastructure, or the lead investor must have a cooperation agreement with a partner experienced in operating and managing similar infrastructure works or systems to provide public products or services.[18]	No equivalent provision.
Special Investor Selection Cases	The Prime Minister delegates authority to ministers, the head of another authority (e.g. provincial people’s committee’s chairman) to appoint investors for projects involving national defense, security, urgent needs, or offshore wind power.[19]	If a PPP project involves unique conditions that prevent standard investor selection methods or risk harming national interests, the competent authority may propose a special investor selection method, submit it to the Prime Minister for approval, and send it to the Ministry of Planning and Investment for appraisal.[20]
Supplemental conditions for negotiating early contract termination	The agreement on early contract termination between the parties must include the following information, among others:[21] The timeframe for the parties to remedy the situation; the proposed cost handling plan in the event of early contract termination; the engagement of an independent auditing organization (if necessary) in cases where the investor or the PPP project enterprise is entitled to compensation for early contract termination; and the request for the State Audit Office to audit the compensation costs related to early contract termination prior to making any payments to the investor or the PPP project enterprise.	The agreement on early contract termination between the parties must include the following information, among others:[22] Timeframe for the parties to remedy the situation; proposed cost handling plan in case of early termination of the contract; selection of an audit organization (if necessary).
Appendices and Model Contracts	Decree 71 updates forms for pre-feasibility and feasibility study reports.[23] Decree 71 revises guidance on formulating PPP project contract template.[24] New appendices provide model contract guidelines for BT projects (no payment) and O&M projects, detailing terms like financial plans, penalties, and dispute resolution.[25]	Decree 35 provides templates for pre-feasibility and feasibility study reports (Appendixes II & III) and guidance on formulating PPP project contract template (Appendix VI).

[1] Decree 71, Article 1.1.
[2] Decree 35, Article 1.
[3] Decree 71. Article 1.2.
[4] Decree 35, Articles 8.1 and 8.2.
[5] Decree 71, Article 1.4.
[6] Under Article 10 of the Law on Public Investment, Group B projects typically have moderate to high investment capital, falling within specific ranges depending on the sector:

In sectors like transportation, electricity, oil and gas, and construction materials, Group B includes projects with investment capital from VND 240 billion up to under VND 4,600 billion.
In sectors such as irrigation, electronics, telecommunications, pharmaceuticals, and mechanical works, Group B includes projects with capital from VND 160 billion to under VND 3,000 billion.
In sectors like agriculture, mining, and new urban infrastructure, projects are Group B if they have investment from VND 120 billion to under VND 2,000 billion.
In sectors like health, education, IT, tourism, warehousing, and civil construction, Group B includes projects with investment from VND 90 billion to under VND 1,600 billion.

[7] Under Article 11 of the Law on Public Investment, Group C projects are essentially the lower-tier classification, often involving local or smaller development initiatives. The classification depends on the sector:

In sectors like transportation, electricity, oil and gas, and construction materials, Group C includes projects with capital under VND 240 billion.
In sectors such as irrigation, electronics, telecommunications, pharmaceuticals, and mechanical works, Group C includes projects with capital under VND 160 billion.
In sectors like agriculture, mining, and new urban infrastructure, Group C projects are those with capital under VND 120 billion.
In sectors like health, education, IT, tourism, warehousing, and civil construction, Group C covers projects with capital under VND 90 billion.

[8] Decree 71, Article 1.10(a).
[9] Decree 71, Article 1.10(a).
[10] Decree 71, Article 1.11.
[11]Decree 71, Article 1.12.
[12]Decree 71, Article 1.15.
[13]Decree 35, Article 31.6.
[14]Decree 71, Article 1.16.
[15]Decree 71, Article 1.16.
[16]Decree 71, Article 1.17(b).
[17]Decree 71, Article 1.17(b).
[18]Decree 71, Article 1.17(b).
[19]Decree 71, Article 1.23.
[20]Decree 35, Article 69.1.
[21]Decree 71, Article 1.29.
[22]Decree 35, Article 81.2(dd).
[23] Decree 71, Articles 1.33 and 1.35.
[24] Decree 71, Article 1.34.
[25] Decree 71, Article 1.35.

Dave Seibert

Partner, Co-Head of Regional Energy, Natural Resources and Infrastructure | Head of US Desk

Partner, Co-Head of Regional Energy, Natural Resourc ...

Cambodia, Vietnam

On 14 April 2025 the Ministry of Industry and Trade (“MOIT”) issued Decision No. 1007/QD-BCT (“Decision 1007”) with immediate effect.

Decision 1007 prescribes the price tariff ceiling for electricity imported from Laos to Vietnam for hydropower, coal-fired, and wind power plants which reach commercial operation between 31 December 2025 and 31 December 2030 as:

6.95 US cents/kWh for hydropower;
7.02 US cents/kWh for coal-fired; and
6.95 US cents/kWh for wind power.

The electricity price is valid at the border, the power seller is responsible for the transmission line up to the Vietnam border.

Decision 1007 requires that the cost of energy would be negotiated by the sellers and Electricity Vietnam (EVN) “in line with market mechanisms and prices” under a 25-year power purchase agreement.

Decision No. 2647/QD-BCT, dated 8 October 2024 of the MOIT is repealed.

The information provided 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.

Dave Seibert

Partner, Co-Head of Regional Energy, Natural Resources and Infrastructure | Head of US Desk

Partner, Co-Head of Regional Energy, Natural Resourc ...

Cambodia, Vietnam

On 5 February 2025, the Ministry of Natural Resources and Environmental Conservation (“MONREC”) set service fees for submitting environmental assessment reports and management plans. Under Section 42(b) of the Environmental Conservation Law (“ECL”), MONREC authorizes the Environmental Conservation Department (“Department”) to implement these fees for project proponents in accordance with the Environmental Impact Assessment Procedures (“Procedures”).

Under Section 21 of the ECL and Rules 62 of the Environmental Conservation Rules (“ECR”), any project or project expansion by ministries, government departments, organizations, corporations, local authorities, companies, or individuals that may impact the environment must obtain prior permission. These projects, including field sites, factories, and businesses, must conduct an Initial Environmental Examination (“IEE”), an Environmental Impact Assessment (“EIA”), or develop an Environmental Management Plan (“EMP”) and obtain an Environmental Compliance Certificate (“ECC”) as per the Procedures.

Environmental assessment reports and management plans must be submitted to the Department in both digital and paper copies, along with the prescribed service fee as required by the Procedures. The newly introduced fees are intended to standardize the submission process and enhance administrative efficiency. Payments must be made to Account No. MD-012207 of the Department under MONREC via the Myanmar Economic Bank in Nay Pyi Taw. The applicable fees are as follows:

No	Type of Report	Service Fees (Kyats)
(a)	Initial Environmental Examination – IEE	200,000
(b)	Environmental Impact Assessment – EIA	300,000
(c)	Environmental Management Plan – EMP	100,000

Implications for Project Proponents

Project proponents undertaking projects that require environmental assessments must allocate budgets for the newly established fees as part of their compliance obligations. Adherence to the Procedures remains essential for obtaining environmental approvals. To avoid potential delays in project approvals, project proponents should ensure the timely submission of the prescribed fees along with the required documentation.

Introducing the Corporate Renewable Energy Supply Scheme (CRESS) marks a significant step toward Malaysia’s remarkable transition to open grid access and the nation’s aspiration of incorporating 70% renewable energy into its capacity mix by 2050.

CRESS allows corporate consumers to directly source renewable energy from renewable energy developers in line with their sustainable goals, paving the way for a more sustainable electricity market.

This publication discusses the key takeaways from the CRESS town hall organised by the Ministry of Energy Transition & Water Transformation and the Energy Commission of Malaysia earlier this month. It provides a glimpse of the CRESS framework, its participating requirements, and information on battery energy storage systems (BESS).

Don’t miss out on this insightful update on Malaysia’s energy transition. Click on the download button below.

Caera Lee

Partner

Malaysia

“DFDL has a skilled corporate and M&A group that has particular expertise in the oil and gas and renewables industries. The team regularly advises on joint venture and foreign investment matters in industries such as aviation, infrastructure, manufacturing, power and transportation.” – Legal500 2025

“DFDL Thailand demonstrates particular capabilities in managing cross-border deals across CLMV region. The team leverages its experience across a variety of industries, such as energy, infrastructure and manufacturing, to handle matters for a diverse roster of clients that includes private clients and Thai and international corporations.” – Legal500 2025

“DFDL Myanmar stands out as one of the few international law firms with deep expertise in energy and infrastructure projects in Myanmar. The firm’s in-depth knowledge of local laws, combined with a strong understanding of market standards, ensures seamless compliance and effective navigation through Myanmar’s complex regulatory landscape.” – Legal500 2025

“DFDL’s experienced team is known for its role as legal counsel on renewable energy projects, with particularly strong credentials in Vietnam’s solar space, regularly assisting lenders, developers and sponsors. The firm also handles wind energy projects and has strong project development knowledge, including PPA and EPC contracts.” – Chambers Asia Pacific 2025

“DFDL’s team in Bangladesh is highly regarded for its contributions to the development of major power, energy and infrastructure projects. The firm often advises investors on their project financings and acquisitions and enjoys a strong region-wide reputation.” – Chambers Asia Pacific 2025

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.

Baongoc Nguyen

Senior Legal Adviser

Vietnam