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 Document source:                  [Version: 15 August 1997]
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MoSTE                   Independence - Freedom - Happiness
Ref. 715/MTg                           Hanoi, 3 April 1995

CIRCULAR GUIDING THE SETTING UP AND APPRAISAL OF ASSESSMENT
REPORT ON ENVIRONMENTAL IMPACT

I.   GENERAL PRINCIPLES

1.   All foreign investment projects which are subject to
Decree 191/CP dated 28 December 1994 of the Government
promulgating the Rules for the setting up, appraisal and
implementation of foreign direct investment projects, shall
be required to comply with the stipulations of this
implementing Circular in the field of environmental
protection.

2.   The results of appraisal of environmental impact in the
investment licensing stage as well as the results of
appraisal of the assessment reports on environmental impact
shall be a specific basis for considering and licensing
investment projects in all the stages stipulated in Decree
191/CP.

II.  STAGES OF IMPLEMENTATION

1.   Investment Licensing Stage

1.1  On account of various characteristics, forms of
activity, technological standards and the level of
environmental impact of the projects and with a view to
creating favourable conditions for foreign investors, a
number of investment projects shall in accordance with the
Government's policy on administrative reforms be exempted
from the requirement for assessment report on environmental
impact (see the list in Annex 1) but in the project file the
investors must nevertheless make an explanatory report
covering any factors which may cause any impact on the
environment together with relevant proposals aiming at
minimizing the pollution and give their undertakings for
environmental protection during the development as well as
for operation of the projects.

1.2  When submitting the investment licensing application,
the investors of projects not exempted by Clause 1.1 above
must prepare an explanatory report (which may be an integral
part of the econo-technical feasibility study or a separate
document) describing in brief any factors of project which
may cause any impact on the environment (see the list in
Annex 2). This shall be the basis to which the relevant
State management agencies dealing with environmental
protection shall give appropriate consideration when
appraising the project file.

The appraisal of environmental impact at this stage shall
not exceed 20 days after the relevant State management
agency in charge of environment receives the duly-made file
in full.

2.   Designing and development stage

After receiving the investment licence, project investors
must

set up an assessment report on environmental impact and
submit the same to the relevant State management agency in
charge of environmental protection for appraisal in
conformity with the powers and authority stipulated for each
level as specifically set out in Annex 3 to this Circular.
The appraisal note made in respect of the assessment report
on environmental impact (the "Appraisal Note") shall be the
basis for the construction licensing

agencies to consider and approve any designs for
technological systems and pollution treatment equipment. The
Appraisal Note is necessarily required for obtaining any
construction permits.

The content of the assessment report is set out in Annex 4.

The documents to be submitted in the file are set out in
Annex 5.

3.   Completion stage

After completion of the construction and before putting the
construction work into operation, the relevant State
management agency in charge of environmental protection
shall co-ordinate with the construction licensing agencies
to inspect all

the waste treatment works and other safety facilities in
accordance with the Law on Environmental Protection. If any
project does not meet the approved environmental
requirements, the project investors must undertake any
necessary measures to comply with the requirements set out
in the environmental impact assessment report as appraised
and only after that can the project start its operation. The
State management agency in charge of environmental
protection shall issue the official environmental licence
only if all the requirements for

the environmental protection have been complied with.

Environmental protection inspection and licensing are to be
dealt with by the State agencies at the same level as those
which deal with the appraisal of environmental impact.

III. ENVIRONMENTAL REQUIREMENTS

Pending issuance by the State of Vietnam of the official
environmental standards, projects investors when setting up
an assessment report on environmental impact shall comply
with the provisional requirements stipulated by the Ministry
of Science, Technology and Environment in the book entitled
"Mot so tieu chuan tam thoi ve moi

truong" ("Some provisional environmental standards") and
published by Khoa hoc Ky thuat ("Science and Technology")
publishers in 1993. When the official environmental
standards are promulgated, these provisional standards shall
be replaced step by step.

In the event a standard is not stipulated for a particular
case of application or is obviously not appropriate for
application, the project investor shall apply for a permit
to apply a similar standard of the country of the technology
or equipment transferred into Vietnam or a similar standard
of a third country. Such standard may be applied

only after obtaining a permit from the Ministry of Science,
Technology and Environment.

CONTENT OF AN ASSESSMENT REPORT ON ENVIRONMENTAL IMPACT

I.   BRIEF DESCRIPTION OF THE PROJECT

1.   Name of the project;

2.   Name of the project investor, the author of the
econo-technical feasibility study or the document similar to
the same;

3.   Essential content of the project. Possible economic and
social benefits from the project;

4.   Development schedule of the project;

5.   Expenses for the project. Anticipated investment
timetable for the whole process of the development of the
project.

II.  CURRENT ENVIRONMENTAL STATUS OF THE LAND SITE

1.   Brief description of geographical, economic and social
conditions related to the land site;

2.   Current pollution degree observed at the land site.

III. POSSIBLE IMPACT OF THE PROJECT ON ROYALTY AND
ENVIRONMENTAL FACTORS

1.   Description of any impact caused by the project on each
of the environmental factors at the land site

The description shall cover nature, scope, degree, process
of each of the possible impacts in particular periods of
time.

A.     Impacts on each integral part of the environment:
hydrosphere, atmosphere, lithosphere, and soil.

B.     Impacts on biological resources and ecological
system:

i)    Biological resources in waters;

ii)   Biological resources on the land.

C.     Impacts on economic activities and techno-material
base:

i)    Water supply;

ii)   Communication and transport;

iii)  Agriculture;

iv)   Water resources;

v)    Energy;

vi)   Mineral material mining;

vii)  Industry;

viii) Handicraft;

ix)   The use of land for various purposes;

D.     Impacts on factors related to the living standards of
the human beings:

i)    Social and economic activities;

ii)   Cultural and historic vestiges.

2.   Combined environmental evolution during the
implementation of the project

*      Analysis of the combined environmental evolution,
which may be observed while applying each of the solutions
proposed for the implementation of the project.

*      Possible losses and damages from the viewpoint of
ecological and environmental aspects while applying each of
the solutions proposed for the project.

*      Comparison of possible economic, social and
environmental benefits/damages and gains/losses while
applying each of the solutions proposed for the project.

3.   Proposed solutions for settling the project's negative
impact on the environment

Any technical, technological, organisational and operational
measures aimed at settling any negative impacts caused by
the project to the environment are to be clearly set out.

4.   Overall assessment

An overall assessment of the correctness and truth of the
assessment reports on environmental impact is to be set out.

Further investigations and surveys are required to be
carried out for making a true conclusion and further
adjustments in the environmental impact forecast in future.

IV.  PROPOSED SOLUTIONS FOR THE PROTECTION OF THE
ENVIRONMENT

1.   Proposal on the choice of the solution for the
implementation of the project in light of requirements for
environmental protection;

2.   Proposal on environmental protection measures together
with the technical and technological solutions for disposal
treatment and estimates of environmental standards to be
achieved thereafter.


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