The Vietnamese Ministry of Finance (MOF) has suggested that the government collect environmental protection fees for emissions and encourage technological investment in emission facilities. This is in line with the environmental protection policies of the party and the government.
The department stated that in recent years, with social and economic development, the air quality in big cities, industrial parks, and craft villages has been deteriorating, which in turn is affecting the economy.
At the same time, many countries have implemented policies to charge on entities emitting waste that cause air pollution. As result, it is necessary to formulate a decree regarding environmental protection fees for pollution discharge.
Regarding the collection standard of pollution discharge environmental protection fees, and in accordance with the "Charge Law", the MOF proposes a framework consistent with its No. 53/2020/ND-CP.
The framework includes two parts: Additional fees for companies required to monitor emissions, specifically variable fees applicable for 4 substances: synthetic dust, NOx, SOx, CO. Fixed fees for all emission facilities, designed to cover the treatment of substances beyond the four afore mentioned ones.
Currently, the ministry recommends that the government collect this fee only from units engaged in iron and steel production, metallurgy, coking coal, basic inorganic chemicals, inorganic fertilizers and nitrogen compounds, petrochemical oil refining, thermal power, cement enterprise, and other relevant sectors.
The fixed cost of the emission facility is 3 million VND (approximately 125 USD) per year, while the variable cost ranges from 500 to 800 VND per ton. Businesses have the options to pay annually, quarterly, or monthly. Competent departments, such as the Ministry of Natural Resources and Environment, will be responsible for handling the charges.
According to the MOF, the fee represents a new charge item. It is expected that the implementation of this policy will increase the state budget by approximately 1,200 billion VND (approximately 50 million USD) a year. The funding wiil be utilized to combat pollution in regions where air pollution sources are located.
Vietnam currently plans to develop a domestic carbon market, with a primary focus on the mandatory trading of industrial and corporate greenhouse gas emission allowances within the domestic market, while also considering integration into the international market.
All businesses and organizations generating carbon credits within this country must register their credits.