Vietnam provides incentives for environment conservation efforts under LEP2020

On January 10, 2022, the Vietnamese government established the Decree No. 08/2022/ND-CP Detailing a Number of Articles of Law on Environmental Protection 2020 (hereinafter “the Decree”), which came into effect on the same day. The Section 2 in Chapter 10 of the Decree provides for mandatory liability insurance for environmental damages and preferential treatment for environmental protection efforts.

The Decree (No. 08/2022/ND-CP) can be downloaded at:
https://monre.gov.vn/VanBan/Pages/ChiTietVanBanPhapQuy.aspx?pID=277

Entities subject to mandatory liability insurance for environmental damages

Projects and facilities that fall under any of production, trade, and service forms that may cause major environmental pollution, as specified in Annex II (column 3) to the Decree, shall maintain liability insurance for damages caused by environmental accidents.

Entities eligible for preferential treatment for environmental protection efforts

Projects and facilities that fall under any of production, trade, and service forms that pose a risk of environmental pollution, as defined in Annex II to the Decree, as well as organizations and individuals that invest in environmental protection activities (see the table below for details) may be subject to preferential treatment on: amounts invested, taxes, fees, and product prices, through subsidies, for example.