Recently, the Vietnam General Department of Environmental Protection has been conducting a major environmental protection inspection of renewable resource enterprises across the country. The main focuses of the inspection include the factory's sewage discharge system, dust removal system in production workshops, the environmental protection disposal of waste after dismantling, and the environmental protection operation of processing facilities. Affected by this, many enterprises are actively responding to the inspections by government departments, leading to a decline in production and processing volumes.

       According to Vietnam News on November 26, the Vietnamese government has recently issued Government Decree No. 155/2016/ND-CP, which increases the administrative penalties for violations of environmental protection regulations. According to the decree, the maximum fine for individuals for environmental violations will be 1 billion Vietnamese dong (approximately US$44,400), and the maximum fine for institutions and organizations will be 2 billion Vietnamese dong (approximately US$88,800).

       According to the decree, individuals who violate environmental protection regulations in industrial zones, export processing zones, trade zones and trade towns will be fined between 5 million and 500 million Vietnamese dong (approximately US$220-2,220). Individuals who illegally discharge pollutants, especially toxic pollutants, will be fined between 300,000 and 1 billion Vietnamese dong (approximately US$13-44,400). Those who violate marine environmental protection regulations will be fined between 250 million and 1 billion Vietnamese dong (approximately US$11,100-44,400). If the above acts are committed by institutions or organizations, the fines will be twice those for individuals.

       In 2016, after Formosa Plastics was fined $500 million in Vietnam for pollution discharge issues, the Vietnamese government launched a nationwide crackdown and rectification of pollution-emitting enterprises. Pollutant-related enterprises began to massively introduce and purchase environmental protection technologies and equipment to ensure their discharge standards comply with environmental protection requirements.

       If you intend to invest abroad, it is essential to engage a professional investment institution or law firm to assist with the preliminary groundwork, assess investment risks, and then consider whether to establish a factory there.

       Whether it is Southeast Asia or any other region, you must at least understand the local customs, as well as the country's politics and laws. Failing to grasp these aspects before investing is akin to giving away your money.

       In fact, both overseas markets and domestic markets are full of challenges and competition. The editor reminds all Chinese enterprises engaged in processing in Vietnam to pay close attention to the local relevant environmental protection policies.