New decision on the determination of projects with outdated, potentially environmentally hazardous technology

On December 19, 2023, the Prime Minister issued Decision No. 29/2023/QD-TTg on the determination of projects with outdated technology that pose a potential risk of environmental pollution and resource depletion ("Decision 29").

In addition to Decision No. 18/2019/QD-TTg issued on 19 April 2019 regulating the import of used machinery, equipment, and technological lines (“Decision 18”), his decision comes as a crucial step in promoting sustainable development and safeguarding our limited natural resources.

The Decree has come into effect on 15 February 2024. The key contents currently stipulated in Decision 29 are as follows:

Scope of Application

Decision 29 was promulgated in response to the necessity for a detailed procedure to discern investment projects employing obsolete, environmentally hazardous, or resource-intensive technologies. These investment projects are ineligible for amendments or extensions to their operational terms. However, the absence of guidelines on identifying outdated or compliant machinery, equipment, and technological lines poses a challenge.

Dossier and timeline

Application for project technology determination includes, among other forms to be completed by the companies, a valid inspection certificate of machinery, equipment, and technological lines used in the project, which must be issued by a designated inspection body.

Upon the submission of a valid application, the specialized state agencies will have 3 working days to consult the environmental authorities, who will then have 15 working days to response (extended to 20 working days for projects of large scale or using complex technology). Within 5 working days of receiving all required feedback, the specialized state agencies shall issue a written determination on the project's technology. The whole procedure may take up to 2 months to complete.

Designation of inspection bodies

Beyond the purview of specialized state agencies, inspection bodies play a pivotal role in evaluating and pinpointing if the machinery, equipment, and technological lines within projects are up to date and not potentially harmful to the environment in accordance with the law. Specifically, prior to submitting the application dossier for technology determination, companies are required to procure an inspection certificate issued by an authorized inspection body. This certificate holds validity for 12 months from its date of issuance.

For an inspection body to be officially certified and provide technology assessment services, it must obtain a certificate of registration for inspection. Inspection bodies previously certified and designated for assessing imported used machinery, equipment, and technological lines under Decision 18 can apply with competent authorities to expand their inspection fields under Decision 29.

Our Conclusion

The implementation of Decision 29 is poised to have a significant impact on manufacturing companies. It reflects Vietnam's vision and steadfast commitment to addressing environmental concerns, while also signaling efforts to cultivate a sustainable investment environment for the future.