In brief
Vietnam’s environmental, health and safety (EHS) regulatory framework is undergoing a significant shift following the issuance of Decree No. 48/2026/NĐ-CP and Decree No. 110/2026/NĐ-CP.
These developments reflect a transition toward a regulatory model where compliance must be continuously demonstrated through actual operational performance and reliable data, rather than primarily evidenced through permits and approvals.
For industrial and manufacturing companies, this represents a fundamental change in compliance management, requiring closer alignment between operations, environmental data and regulatory thresholds.
Key takeaways
- Performance-based compliance model: Environmental compliance is shifting from a permit-based approach to one focused on real-time operational performance and data consistency.
- Permits as operational limits: Environmental licenses increasingly function as binding operational ceilings tied to quantifiable thresholds.
- Increased inspection risk: Authorities are empowered to conduct unscheduled inspections, requiring continuous compliance readiness.
- EPR as recurring obligation: Extended producer responsibility introduces ongoing financial and operational exposures linked to product volumes.
- Structured compliance cycle: Annual reporting and payment timelines require coordination across EHS, operations and finance functions.
- Enhanced data accountability: Greater emphasis is placed on traceability, verification and auditability of environmental data.
In more detail
1. Environmental licenses as operational constraints
Environmental licenses are increasingly treated as active operational constraints, requiring companies to operate strictly within the discharge limits, capacity thresholds and conditions specified therein.
The updated framework strengthens the link between permits and quantifiable environmental indicators, such as wastewater discharge volumes and emission flow rates. These parameters define the boundary of permitted operations, and even incremental changes in production may trigger compliance risks if thresholds are exceeded.
Operational changes — such as increased capacity, changes in raw materials or adoption of new technologies — may require prior amendment of environmental licenses where these changes affect environmental impact.
2. Increased exposure to unscheduled inspections
The regulations reinforce a more proactive enforcement approach, with authorities empowered to conduct inspections without prior notice in accordance with applicable procedures.
Inspection teams may access production areas, waste treatment facilities and related systems upon issuance of a valid inspection decision. This reflects a shift toward assessing compliance based on actual operating conditions and real-time data, rather than solely on submitted documentation.
Companies should therefore maintain a state of continuous inspection readiness, with consistent alignment between operational practices, monitoring systems and documentation.
3. Extended producer responsibility (EPR)
Decree 110 introduces a structured EPR framework, under which producers and importers are responsible for recycling or contributing financially in respect of products and packaging placed on the market.
Entities may comply by:
- Organizing recycling activities directly
- Engaging authorized recyclers or producer responsibility organizations (PROs); or
- Making financial contributions to the Vietnam Environmental Protection Fund
This creates a recurring and scalable compliance cost, typically linked to product volumes and applicable regulatory rates, which may be subject to periodic adjustment.
4. Structured annual compliance cycle
The EPR framework introduces a fixed annual compliance timeline, requiring entities to:
- Submit declarations and reports within prescribed deadlines; and
- Make corresponding financial contributions within a defined timeframe thereafter.
This establishes a recurring compliance cycle requiring coordination across EHS, operational and finance functions, with a particular focus on timely and accurate data availability.
5. Enhanced documentation and verification requirements
The new framework places greater emphasis on the traceability and verifiability of environmental data, particularly for EPR compliance.
Companies are required to maintain structured records relating to the collection, transfer and processing of recyclable materials, ensuring that such records are segregated, complete and auditable.
Where third-party recyclers are involved, companies remain responsible for ensuring that contractual and operational arrangements enable the provision of reliable and verifiable data.
Strategic implications
The 2026 regulatory developments underscore a fundamental shift toward performance- and data-driven compliance, where regulatory expectations prioritize the ability to demonstrate continuous alignment between:
- Operational activities
- Environmental performance data; and
- Product lifecycle obligations
For industrial and manufacturing companies, this requires a more integrated compliance approach across EHS, operations and finance, with increased focus on data integrity, forward planning and proactive compliance management.