Vietnam Vietnam provides incentives for environment conservation efforts under LEP2020

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:


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.

Investment projects related to collection, treatment, recycling, and/or reuse of waste
  • Treatment and disposal of solid waste
  • Collection of solid waste
  • Collection and treatment of wastewater
  • Recycling and reuse of waste
Business entities offering technologies, equipment, products, and/or services for environmental protection
  • Provision of waste treatment technology combined with energy recovery and/or energy-saving technology authorized by laws and regulations
  • Provision of municipal wastewater treatment services, co-treatment services for municipal solid waste, and/or air quality measuring services
  • Production of clean energy, renewable energy, and/or environment measurement equipment
  • Manufacturing/provision of on-site municipal wastewater treatment equipment for small-scale (household level) manufacturing and trading facilities
  • Products and services that are certified under the Vietnam Green Label scheme from the Ministry of Natural Resources and Environment
  • Products manufactured from recycling and treatment of waste pursuant to laws and regulations related to products quality
  • Manufacturing of public transportation vehicles (except for those using petroleum)
  • Manufacturing of transportation equipment that: 1) uses electricity or renewable energy; 2) has a high fuel efficiency; or 3) produces low/no emissions
  • Provision of public transportation services using electricity, clean fuel, or renewable fuel
Environmental protection activities that do not fall under any form of investment or trade
  • Improvement and technological advancement for waste treatment system pursuant to a roadmap to be set by a governmental agency
  • Relocation of households that are included in an industrial zone for manufacturing, trade, and services
  • Relocation of existing facilities to ensure environmental safety distances
  • Investment in conservation activities for natural ecosystems or natural heritages
  • Research and development of systems to collect and treat marine plastic waste
  • Implementation of decontamination and environmental rehabilitation at municipal waste landfill sites

Author / Responsibility

AOKI Kenji

Senior Consultant, EnviX Ltd.
General Director, E&H Consulting Co., Ltd.

Business Performance

Expertise in EHS (environment, health and safety) consulting in ASEAN region.
- Environmental regulations updating
- Chemical regulations consulting


MSc in Earth Science, The University of Tokyo

AOKI Kenji