For years, no due attention has been given to environmentally-related development projects, including foreign-invested projects.

Food processing plants, sugar mills, manufacturing, engineering and chemicals factories have all released waste causing huge amounts of environmental pollution.

Under the Environment Law, which was put into effect in 1993, all investment projects must submit reports assessing their environmental impact to ensure that they are not causing environmental pollution, but many have failed to meet these requirements.

There is growing concern over the environmental legal framework as it still has many loopholes and lacks a necessary deterrent. According to the Ministry of Justice, Vietnam has issued around 300 documents on environmental protection, many of which are still short of fundamental and specific regulations.

For example, there are no environmental protection taxes, detailed regulations on compensation for environmental damages or specific measures to encourage environmental protection. In addition, the wording in the Environment Law can be interpreted in different ways and many laws, which have been in effect for less than one year, are already outdated.

For example, the Bai Bang Paper Corporation in Phu Tho province was recently fined VND30 million for causing a high risk of pollution. However, this is too low and not deterent enough to a company earning up to VND10 billion per year.

The Hanoi Beer Factory, which has caused environmental pollution for many years, still has to pay a fine of VND32 million. With such a low fine, other beer producers find it much cheaper than the cost they have to pay for a waste treatment system. 

Another example is the pollution of the Thi Vai river caused by Vedan Vietnam. Over the past 14 years, Vedan has discharged 25 million cubic meters of untreated wastewater into the Thi Vai River using an underground discharge system. A lot of fish have been killed and the river water has turned black. However, the level of pollution was only mentioned after many foreign vessels had refused to dock at ports in the Thi Vai river last year.

The public has a good reason to worry about the Vedan case. Although Vedan has had to pay a huge fine but the worst consequences are not yet over. Thousands of farmers still demand compensation for the damage Vedan has caused to them.