I. Reality of Environmental Licenses
In recent years, many countries have increased their awareness of environmental protection, resulting in stricter enforcement of Environmental Licenses and supervision of activities affecting the environment. To ensure that projects and activities comply with environmental standards, the licensing process often requires more steps and procedures.

II. Regulations on an Environmental License
1. What is an Environmental License?
Pursuant to Clause 8, Article 3 of the Law on Environmental Protection Law, an Environmental License is a document issued by the competent State management authority to an organization or an individual with production, business and service activities authorized to discharge waste into the environment, manage waste or import metallic waste from abroad, creating raw materials for production accompanied by requirements and conditions on environmental protection in accordance with the provisions of the law.
2. Entities that must have the Environmental License
Pursuant to Article 39 of the Law on Environmental Protection 2020, the following entities must have the Environmental License:
Entity 1: Group I, Group II and Group III investment projects where generating wastewater, dust and emissions into the environment must be treated or hazardous waste must be managed in accordance with the provisions on waste management when entering into official operation.
The above entities, which are subject to emergency public investment projects under the provisions of the law on public investment, are exempt from Environmental Licenses.
Entity 2: Investment projects, facilities, sites of production, businesses and centralized services, and industrial clusters operating before January 1st, 2022 have environmental criteria as Entity 1.
3. Contents of the Environmental License
Pursuant to Article 40 of the Law on Environmental Protection 2020, contents of the Environmental License are as follows:
- Environmental license contents include general information about the investment project, facility, business production site, centralized service, industrial cluster; application contents of the environmental license; requirements for environmental protection; duration of the environmental license; and other contents (if any).
- Environmental license contents include:
- Source of wastewater; maximum flow of wastewater discharge; flow of wastewater; contaminants and maximum values of contaminants under the flow of wastewater; discharging location and method of wastewater, and reception source of wastewater;
- Emission source; maximum flow of emission; stream of emission; contaminants and maximum values of contaminants according to flow of emission; location, emission method;
- Source and maximum values for noise and vibration;
- Construction and equipment system for hazardous waste disposal; hazardous waste code and volume permitted to be processed; quantity of transportation stations for hazardous waste; operational site for the investment project, and implementation facility for hazardous waste disposal services;
- Type and volume of waste permitted to be imported for the investment project and the facility that has imported metallic waste from abroad creating raw material for production.
4. Is it possible to issue Environmental Licenses for phase-by-phase or construction or not?
Pursuant to Clause 3, Article 42, of the Law on Environmental Protection Law 2020:
- In the case of investment projects or facilities of production, businesses and services, sites of production, businesses and centralized services, and industrial clusters that are performed in several phases; however, there are many constructions and categories of constructions, then Environmental Licenses can be issued for each phase, each construction, and each category of construction generating waste. A subsequently issued Environmental License will incorporate the content of the previously issued Environmental License, which is still valid.
Thus, according to the above regulation, if an investment project (or facilities of production, businesses and services, sites of production, businesses and centralized services, and industrial clusters) is performed in several phases and there are many constructions or categories of constructions, then Environmental Licenses can be issued for each phase, each construction, or each category of constructions that generate waste.
Accordingly, the subsequent Environmental License will be integrated with the content of the previously issued Environmental License that is still valid.
5. Dossiers for issuing the Environmental License
Environmental license dossiers are regulated under Article 43 of the Law on Environment Protection 2020 as follows:
+ A written proposal for issuing the Environmental License;
+ A proposal report for the Environmental License;
+ Other legal and technical documents of investment projects, facilities, sites of production, businesses and services, and industrial clusters.
III. Resolve some questions about Environmental Licenses
1. In what ways can investors apply for the environmental license?
Pursuant to Point a, Clause 2, Article 43 of the Law on Environmental Protection 2020 stating for the following application methods:
+ Direct submission to the competent authority;
+ Submission by the postal service;
+ Online submission: sending the electronic copy through the online public service system.

2. Is it necessary to apply for the Environmental License for an investment project that supplies domestic water?
Pursuant to Article 39 of the Law on Environmental Protection 2020, the entities must have the environmental license, as follows:.
- Entity 1: Group I, Group II and Group III investment projects where generating wastewater, dust and emissions into the environment must be treated or hazardous waste must be managed in accordance with the provisions on waste management when entering into official operation.
- Investment projects, facilities, sites of production, businesses and centralized services, and industrial clusters operating before the date of this Law being valid have environmental criteria as specified in Clause 1 of this Article.
Therefore, it is necessary to determine specifically how the company's investment project has an impact on the environment in order to determine whether the investment project is subject to the Environmental License.
3. Does the packing of fertilizer require the Environmental License?
Pursuant to Appendix II promulgated along with Decree 08/2022/ND-CP and Article 39 of the Law on Environmental Protection 2020, the above business line does not belong to the type of production and business carrying harmful impacts on the environment.
So, the packing of fertilizers doesn't require the Environmental License.

4. Does the aluminum casting plant need the Environmental License?
Pursuant to Appendix II issued with Decree 08/2022/ND-CP and Article 39 of the Environmental Protection Law 2020, the above business line belongs to the type of metallurgy production and is at potential risk of environmental pollution. So, this project needs to proceed with the environmental licensing proposal.
5. When will the Environmental License be revoked?
Pursuant to Clause 5, Article 44, of the Law on Environmental Protection 2020, the Environmental License is revoked in the following cases:
- Licenses that are issued beyond the competence;
- The license contents are contrary to the Law.
Thus, the Environmental License will be revoked when its content doesn’t comply with the Law or the competence to issue .
The above information revolves around the subjects of the Environmental License. In order to receive support as well as obtain information about the regulations of the Law on Environmental License, valued Clients can contact NPLaw for advice from a team of professional lawyers and legal experts.