CIRCULAR No.490/1998/TT-BKHCNMT OF APRIL 29, 1998 GUIDING THE MAKING AND EVALUATION OF REPORTS ON THE ASSESSMENT OF ENVIRONMENTAL IMPACTS OF INVESTMENT PROJECTS

Pursuant to the Law on Environmental Protection, passed by the National Assembly of the Socialist Republic of Vietnam on December 27, 1993 and promulgated by the State President's order of January 10, 1994;

Pursuant to Decree No.175-CP of October 18, 1994 of the Government guiding the implementation of the Law on Environmental Protection;

Pursuant to Decree No.10/1998/ND-CP of January 23, 1998 of the Government on a number of measures to encourage and ensure foreign direct investment activities in Vietnam;

Pursuant to Directive No.11/1998/CT-TTg of March 16, 1998 of the Prime Minister on the implementation of Decree No.10/1998/ND-CP of the Government and on the improvement of foreign direct investment procedures;

Pursuant to Decree No.22-CP of May 22, 1993 of the Government on the tasks, powers and organizational structure of the Ministry of Science, Technology and Environment,

The Ministry of Science, Technology and Environment (MOSTE) hereby guides the making and evaluation of reports on the assessment of environmental impacts of domestic investment projects, joint-venture projects and foreign direct investment projects in Vietnam.

I. GENERAL PRINCIPLES

I.1. Domestic investment projects, joint-venture projects, business cooperation projects involving foreign parties, projects with 100% foreign capital and other forms of investment (collectively referred to as investment projects) implemented on the Vietnamese territory shall all have to comply with the provisions of this Circular regarding the protection of environment.

I.2. The MOSTE categorizes the lists of investment projects into two:

1. Projects subject to the making and evaluation of reports on the assessment of environmental impacts, which are referred to in this Circular as projects of the first category (category I), shall include: projects which may cause environmental pollution on large areas as well as environmental incidents and are difficult to control and determine the environmental standards. Projects of this category is listed in Appendix I.

They shall be registered as meeting environmental standards if they are invested in industrial parks and/or export-processing zones, whose reports on the assessment of environmental impacts have been already ratified by the competent level.

2. All remaining projects referred to in this Circular as projects of second category (category II) shall be registered as meeting the environmental standards on the basis of their self-making and analyzing reports on the assessment of environmental impacts.

I.3. A decision ratifying the report on the assessment of environmental impacts or a certificate of the "environmental standards registration paper" shall serve as environment-related legal basis for the State competent agencies to consider and allow the continued implementation of the project in subsequent steps.

II. IMPLEMENTATION STAGES

II.1. The stage of application for investment licenses.

1. For projects of category I.

The dossier of a category I- project must contain a section or a chapter highlighting the project's potential impacts on the environment (Appendix II). This shall serve as a basis for State agencies in charge of environmental protection to consider and evaluate the dossiers.

2. For projects of category II.

The owners of category II- projects shall have to make "environmental standards registration papers" and submit them to the State agencies in charge of environmental protection for consideration.

+ The contents of an environmental standards registration paper are prescribed in Appendix III attached to this Circular.

+ Such a dossier shall include:

- An application for environmental standards registration, made according to the form stipulated in Appendix IV.2.

- Three copies of the environmental standards registration paper. For a foreign direct investment project or a project of joint-venture with foreign party(ies), there must be also an English version of such registration paper.

- 01 copy of the feasibility study report or economic-technical explanation of the project.

II.2. The designing and construction stage.

1. After obtaining the investment license and determining the site for construction, the owners of Category I- projects shall have to make reports on the assessment of environmental impacts and submit it to the State agency in charge of environmental protection for evaluation.

2. The contents of the report on the assessment of environmental impacts are prescribed in Appendix I.2 of Decree No.175-CP of October 18, 1994 of the Government.

3. A dossier of application for evaluation shall include:

- An application for evaluation of the report on the assessment of environmental impacts, made according to the form prescribed in Appendix IV.1.

- Seven copies of the report on the assessment of environmental impacts. For a foreign direct investment project or a project of joint-venture with foreign party(ies), there must be also an English version of such report.

- One copy of the feasibility study report or economic-technical explanation of the project.

II.3. The stage of construction completion.

Before the project is put into use, the State agency in charge of environmental protection shall have:

- To coordinate with the construction permit-granting agency in inspecting the waste treatment facilities and other safety conditions in accordance with the regulations on environmental protection.

- Upon the detection that a project has failed to abide by the already approved environmental protection plan, to request the project owner to take treatment measures in compliance with the already evaluated report on the assessment of environmental impacts or the ratified environmental standards registration paper.

- When a project has fully met the requirements on environmental protection, the State agency in charge of environmental protection shall consider and issue a respective permit.

III. ORGANIZATION OF EVALUATION

1. The assignment of responsibility for evaluation of reports on the assessment of environmental impacts and consideration of the "environmental standards registration paper" shall comply with Appendix II of Decree No.175-CP of October 18, 1994 of the Government.

2. The evaluation of reports on the assessment of environmental impacts must be conducted in accordance with the spirit of Decision No.1806/QD-MTg and Regulation No.1807/MTg, promulgated by the MOSTE on December 31, 1994.

3. The level which is in charge of evaluation shall decide the ratification of the reports on the assessment of environmental impacts (Appendix V) for projects of category I and certificates of environmental standards registration papers (Appendix VI) for projects of category II, and at the same time shall also have to inspect and supervise environmental protection activities of the project.

4. In some cases, the State agency in charge of environmental protection in a locality may evaluate projects of Category I and consider projects of category II, which do not come under its competence, after sending a written request for authorization to the MOSTE and getting consent therefrom.

5. The time-limit for evaluation of a report on the assessment of environmental impacts shall not exceed 60 days after the State agency in charge of environmental protection fully receives the valid dossier. If the dossier fails to meet the prescribed requirements, the evaluating agency shall, within 5 days have to inform the project owner so that the latter may adjust and supplement the dossier.

Within 10 days after the report on the assessment of environmental impacts is approved, the evaluating agency shall have to issue a decision ratifying the report on the assessment of environmental impacts for the project.

6. The time-limit for considering an "environmental standards registration paper" and issuing a "certificate" thereof shall not exceed 20 days after the State agency in charge of environmental protection fully receive the valid dossier. In cases where the dossier fails to meet the prescribed requirements, the evaluating agency shall, within 5 days have to inform the project owner thereof so that the latter may adjust and supplement the dossier.

IV. ENVIRONMENTAL STANDARDS

1. All projects implemented on the Vietnamese territory must apply Vietnam's environmental standards issued by the Minister of Science, Technology and Environment. Projects implemented in localities that have their own environmental standards may apply the local environmental standards, provided that they are stricter than the standards issued by the MOSTE.

2. In cases where the environmental standards that need to be applied are not prescribed in the Vietnam's environmental standards yet, the project owner may apply the environmental protection standards of any developed country when he/she is so permitted in writing by the MOSTE.

V. IMPLEMENTATION PROVISIONS

This Circular replaces Circular No.1100/TT-MTg issued by the MOSTE on August 20, 1997.

The MOSTE assigns the provincial/municipal Science, Technology and Environment Departments to inspect and closely supervise the implementation of the decisions ratifying reports on the assessment of environmental impacts and certificates of environmental standards registration papers as well as the observance of the current regulations on environmental protection by all projects implemented in their respective localities. Project owners violating the regulations on environmental protection shall be strictly handled in accordance with the provisions of law.

The Environment Department under the MOSTE or the provincial/municipal Science, Technology and Environment Departments shall have to consider and issue certificates of environmental standards registration papers for projects according to the assignment of responsibility prescribed in Point 1, Section III of this Circular.

Reports on the assessment of environmental impacts already submitted to the State agency in charge of environmental protection before the effective date of this Circular shall be evaluated in accordance with the previous provisions.

This Circular takes effect 15 days after its signing.

Minister of Science, Technology

and Environment

CHU TUAN NHA

APPENDIX I

LIST OF PROJECTS TO BE SUBMITTED FOR RATIFICATION OF REPORTS ON ENVIRONMENTAL IMPACT ASSESSMENT

1. Projects to be implemented inside or near environmentally sensitive areas, nature preservation areas, tourist resorts, cultural or historical relics of national or international magnitude.

2. Planning:

2.1. Regional development;

2.2. Branch development;

2.3. Urban areas;

2.4. Industrial parks and/or export-processing zones.

3. Regarding oil and gas:

3.1. Exploitation;

3.2. Processing;

3.3. Transportation;

3.4. Petroleum depots (with a capacity of 20,000 m3 or more).

4. Metallurgical factories (with a capacity of 100,000 tons of products/year or more).

5. Tanneries (with a capacity of 10,000 tons of products/year or more).

6. Weaving and dyeing factories (with a capacity of 20 million meters of fabrics/year or more).

7. Paint factories (with a capacity of 1,000 tons of products/year) and rubber processing factories (with a capacity of 10,000 tons of products/year or more).

8. Sugar factories (with a capacity of 100,000 tons of sugarcane/year or more).

9. Food processing factories (with a capacity of 1,000 tons of products/year or more).

10. Freezing plants (with a capacity of 1,000 tons of products/year or more).

11. Thermo-electric plants (with capacity of 200 MW and more).

12. Pulp and paper factories (with a capacity of 40,000 tons of paper pulp/year or more).

13. Cement factories (with a capacity of one million tons of cement/year or more).

14. Tourist and entertainment resorts (with area of 100 ha or more).

15. Airports.

16. Seaports (accommodating ships of 10,000 DWT and more).

17. Railways, expressways, motor roads (of level I to level III according to Vietnamese standards TCVN 4054-85) of over 50 km long each.

18. Hydro-electric power plants (reservoirs with a capacity of 100 million m3 or more).

19. Irrigation works (for watering, water discharging, salinity preventing..., with area of 10,000 ha and more).

20. Waste treatment (concentrated waste water treatment areas with a capacity of 100,000 m3 /day or more; sites for burial of solid waste matters).

21. Exploitation of minerals and construction materials (with total amount of solid minerals and soil of 100,000 m3/year or more).

22. Lumber camps (all of them).

23. Aquaculture regions (with an area of 200 ha or more).

24. Production, storage and use of toxic chemicals (of all types).

25. Nuclear reactors (of all types).

* The above-said projects, if being invested in industrial parks and/or export-processing zones, that have reports on the assessment of environmental impacts already ratified by the competent level, shall be entitled to registration of meeting the environmental standards on the basis of their self-making and analyzing the reports on the assessment of environmental impacts.

APPENDIX II

EXPLANATION ON FACTORS AFFECTING THE ENVIRONMENT

(in the feasibility-study report or economic-technical explanation in order to apply for investment licenses)

I. BRIEF EXPLANATION OF MAIN FACTORS AFFECTING THE ENVIRONMENT

1. Materials on the current environmental status at the place where the project is to be implemented (the quality of surface and underground water; the quality of air and ecological system...). General comments on the extent of pollution at the place where the project is to be implemented.

2. Description of the diagram/production technological process, materials/fuel to be used, list of chemicals... (if they are not clarified in the economic-technical explanation).

3. When the project is implemented, main factors that may affect the environment due to the operation of the project must be clarified (estimated amount of waste gas and water, solid waste matters, noises...). Estimate of the extent of potential impacts on the environment.

II. PROPOSAL (BRIEF) ON SOLUTIONS TO OVERCOME THE PROJECT'S NEGATIVE IMPACTS ON THE ENVIRONMENT.

APPENDIX III

(for projects in the period of application for investment licenses)

CONTENTS OF THE ENVIRONMENTAL STANDARDS REGISTRATION PAPER

Project's name:

Address:

Telephone: Fax:

1. Description of the place where project's operations are expected to be carried out:

- Location

- Ground area

- The nearest distance to the population centers and other industrial establishments.

- The current status of the land area in use.

- Source of water supply, place of water exploitation and the water demand/day, night.

- Communications system for raw materials supply and transportation of products.

- Place for discharge of waste water from operations of the project.

- Place for keeping and treating solid waste.

2. Brief description of production technology (note: if the project also covers the raw materials exploitation and supply zone, the related matters must be clearly described).

- Total investment capital.

- List of raw materials, fuels and auxiliary materials (their characteristics and annual demand, place of supply).

- Mode of transportation, supply and preservation of such raw materials, fuels and auxiliary materials.

- The capacity.

- Diagram of production line (note: there must be a full description of the supportive processes: treatment of supplied water, electricity generators, boilers, heaters, equipment cooling system, etc).

- Equipment's properties.

- Products' quality.

- Mode of preservation and transportation of products.

3. Polluting sources:

- Waste gas:

+ Sources,

+ Estimated amount,

+ Pollutants' concentration.

- Waste water (note: it is necessary to point out related data on cooling water and water circulating in the production process):

+ Sources,

+ Estimated amount,

+ Pollutants' concentration.

- Solid wastes:

+ Sources,

+ Estimated amount,

+ Pollutants' concentration.

- Incidents caused by the project's operations (fires, explosions, chemical leakage, oil spill, etc.)

+ Causes of such incidents,

+ Affected area.

4. Measures to minimize pollution:

- The system for gathering and treating waste gas:

+ Chimneys' height,

+ Properties of treating equipment,

+ Applicable technology and treatment's efficiency,

+ Applicable chemicals (quantity, composition),

+ Waste matters discharged from the treatment process,

+ The estimated costs of construction, installation and operation.

- The system for gathering and treating waste water:

+ The waste water gathering and discharging channels,

+ Structure of treating tanks

+ Applicable technology and treatment's efficiency,

+ Applicable chemicals (quantity, composition),

+ Waste matters discharged from the treatment process,

+ The estimated fund for construction, installation and operation.

- Process of gathering and treating solid wastes:

+ Structure of solid waste tanks/stores,

+ Transportation process,

+ Techniques of treatment (sun-drying, solidifying, burying, destroying, making fertilizers, etc)

+ The estimated fund for construction, installation and treatment.

- The coverage of trees planted the factory's premise.

- The plan on incident prevention, combat and rescue:

+ Equipment,

+ Process,

+ Applicable chemicals

+ Efficiency,

+ Estimated fund for the purchase of equipment and periodical training.

5. Environmental supervision program:

- Place of supervision;

- Supervision norms;

- Supervision frequency;

- The estimated fund for implementation thereof.

6. Commitment to attain the environmental standards:

- Vietnam's applicable standards;

- Foreign applicable standards in case of unavailability of the Vietnamese standards (name of the concerned country, year of issue, name of the issuing agency and their application validity); (note: a copy of the whole contents of the applicable standards must be attached thereto);

- The time of completion of the treating project;

- The commitment to be accountable before Vietnamese laws if violating international conventions and/or Vietnamese standards or causing accidents which lead to environmental pollution.

(Place of making the registration paper) Date..., month..., year 199...

Investor representative

(full name, post and stamp)