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Some regulations on business investment conditions in natural resources and environment

10/10/2016

   On 1/7/2016, the Prime Minister promulgated Decree no. 60/2016/ND-CP regulating some business investment conditions in the field of natural resources and environment (Decree). The Decree regulates some business conditions in water resources, minerals and environmental protection.

   The Decree consists of 5 chapters, 33 provisions and 5 annexes and was developed based on viewpoints: in compliance with legislations on investments and other relevant sectoral legal documents; in consistence with regulations on business investment conditions stated in other Circulars of the Ministry of Natural Resources and Environment (MONRE) meeting the requirements of state management on natural resources and environment; the Decree amends and removes inappropriate business investment conditions, in order to create the investment environment for enterprises.

   Business investment conditions in water resources

   Based on business investment conditions regulated in Circular no. 40/2014/TT-BTNMT and Circular no. 56/2014/TT-BTNM of the MONRE, the Decree regulates conditions on underground water drilling profession; conditions on capacity of organisations and individuals conducting baseline investigations of water resources, consultancy for planning of water resources, preparation of schemes and reports of the profile applying for water resources licenses....

   According to the Decree, the extent of underground drilling profession is classified into three types: small-scale extent refers to drilling and construction of underground water wells with well casing or well diameters of less than 110 mm and the capacity of less than 200 m3/day; medium-scale extent refers to drilling and construction of underground water wells with well casing or well diameters of less than 250 mm and the capacity between 200 m3/day and 3,000 m3/day; large-scale extent refers to those not belonging to above two types.

   In order to get the licence for underground drilling, organisations and individuals conducting underground water drilling must fulfil adequately following conditions: having the establishment decision by an authorised agency or having one of these certificates including business registration certificate, business registration certificate and tax registration, enterprises registration certificate for organisations or household business registration certificate for individuals and households granted by authorised agencies; the head of the organisations (Director or General Director) or the main technical responsible person of the organisations and households, must meet required conditions; drills and drilling equipment must ensure technical features to meet the requirements.

   Conditions for organisations conducting mineral exploration

   According to the Decree, when organisations that implement mineral exploration sign contracts conducting mineral exploration with organisations and individuals that have the mineral exploration licence, they must meet regulations of Article 35 of the Mineral Law and other regulations: Enterprises established according to the Enterprise Law; Scientific and technological organisations established by the Law on Science and Technology; Cooperatives, cooperative associations established according to the Cooperative Law; Geology professional organisations established by authorised state agencies with mandate and tasks of mineral exploration.

   The mineral exploration task team leader must meet the requirements regulated at point b, Clause 1, Article 35 of the Mineral Law and regulations: Under graduate degree or higher of geology, mineral exploration or equivalent; for mineral water exploration project, mineral water is the hydrology geology - work geology; having at least five years of experience in implementing projects on investigating geology, mineral exploration; having the certificate of mineral exploration task team leader granted by the MONRE...

   Equipment and tools used for mineral exploration implementation must ensure quantity, quality, and technical features to be appropriate with items and works in the exploration project appraised while applying for the mineral exploration certificate; to explore radioactive minerals and rare earth, it is obligatory to have professional equipment and tools and the technical staff that meet requirements on radioactive safety according to legislations on nuclear radiation safety.

   Conditions for business investment in environmental protection

   Based on business investment conditions regulated in Circular no. 19/2010/TT-BTNMT, Circular no. 52/2013/TT-BTNMT; Circular no. 43/2014/TT-BTNMT and Circular no. 35/2015/TT-BTNMT of the MONRE, the Decree regulates business conditions on bio-products in waste treatment in Việt Nam; conditions on transportation of dangerous goods inducing toxic and contaminant matters; conditions for licencing of hazardous waste treatment.

Hazardous waste transportation vehicle must meet technical requirements

   Business conditions on bio-products in waste treatment

   Bio-products in waste treatment are biological-originated products used in waste treatment including: microorganisms, enzymes and extracts from animals, flora, microorganisms, excluding genetic-modified organisms. Some bio-products are considerably sensitive; in some situations, they are contagious and spreading and become hazardous in suitable conditions; therefore, it is necessary to have strict controls.

   According to the Decree, organisations and individuals trading and importing bio-products in waste treatment must be granted with bio-product circulation certificate by the Vietnam Environment Administration (VEA), MONRE as regulated. Bio-products already included in the bio-product circulation certificate that have changes in components or concentrations of constituents of bio-products which affect the treatment efficiency and safety to human health are subject to applying for a new bio-product circulation certificate as regulated.

   Bio-product circulation certificate will be confiscated if they were granted inappropriately; if there are changes in components of bio-products; if there is a confirmation of the authorised agency on industrial ownership right violations of registered bio-products. Organisations and individuals that have bio-product circulation certificates confiscated are responsible for collection and treatment of bio-products which were produced, imported and circulated according to regulations. When the bio-product circulation certificate is confiscated, the VEA is responsible for removing this bio-product out of the List of bio-products in waste treatment in Việt Nam and publishing the information on the website of the VEA and of the MONRE.

   For bio-product trials, trial facilities must be an organisation that has functions in biological research and transfer or environmental technology; have adequate equipment, materials and human resources to implement field applications according to bio-products use manual. Furthermore, trial facilities can select a collaboration agency during the trial process and are responsible for keeping the results at least 60 months after the trial. Organisations and individuals that register the circulation of bio-products can select trial agencies and locations and pay trial expense according to the agreed contracts.

   Conditions for trade and transportation of dangerous goods including hazardous and contagious matters

   Organisations and individuals when transport dangerous goods by road vehicles with the amount equal to or higher than the limit regulated in column 5, Appendix 3 of this Decree must have the transportation licence. When the volume of each dangerous goods is less than the amount required for the transportation licence, but the total volume of dangerous and contagious goods transported in a road vehicle is more than 1 tonne/vehicle (excluding packaging volume), the transportation license is also required.

   Organisations and individuals do not need a licence for dangerous goods transportation in following cases: transport by road vehicles with the amount under the allowed limits, but there must be a plan for environmental incident prevention and response and compliance with transportation conditions; transport by waterway or railway vehicles, but strictly follow regulations in Decree no. 29/2005/ND-CP or Decree no. 14/2015/ND-CP and follow transportation conditions.

   Road, waterway and railway vehicles transporting dangerous goods must meet following conditions: in the same vehicle do not transport dangerous goods together with passengers, domestic animals and other goods, do not transport dangerous goods that potentially react with each other to cause fires and explosions or to create new dangerous matters that cause harm to the environment and human health; have appropriate equipment, cover fully the cargo section; ensure adequate equipment and materials responding to incidents during the transportation; meet the regulations, qualifications and standards on transportation of dangerous chemicals or dangerous goods, conditions on fire safety, fire rescue as regulated...

    Conditions on licencing of hazardous waste treatment

   Organisations and individuals that register hazardous waste treatment licence must meet the requirements regulated in Article 9, Decree no. 38/2015/ND-CP dated 24/4/2015 by the Government on waste and refuse management and technical requirements and management procedures relating to licencing of hazardous waste treatment including:

   Facilities and equipment for storage, transportation and treatment of hazardous waste must meet technical requirements, management procedures at Annex V of the Decree; transportation vehicles must have GPS connected with the online information system for location identification and record of the transportation route of hazardous wastes; one vehicle, one equipment is registered with only one hazardous waste treatment licence, except for maritime, railway and airway vehicles; environmental protection facility at hazardous waste treatment entity and hazardous waste transportation stop-over (if any) must meet technical requirements, management procedures regulated in Annex V of the Decree.

   Organisations and individuals that register hazardous waste treatment licence must adequately develop contents on safe operation procedures of systems, vehicles and equipment; plans on pollution control and environmental protection, labour safety and health protection, incident prevention and response, annual periodic training, pollution treatment and environmental protection after operation cease; environmental monitoring program, monitoring of hazardous waste treatment operation and assessment of hazardous waste treatment effectiveness.

   Organisations and individuals that register hazardous waste treatment licence must prepare a short guideline or a chart on safe operation procedure  regulated in Clause 5 of this Article with appropriate dimension and have them posted in a proper location for viewing in transport vehicles, in treatment entities and stop-over (if any).

   The Decree regulating some conditions on business investment in natural resources and environment is to ensure the consistency and unification of the legal system, creating favourable conditions for the increasing development of investment and trade activities in the natural resources and environment sector.

Lê Minh Ánh

Vietnam Environment Administration

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