SCHOOL OF WESTERN SYDNEY

ASSIGNMENT COVER SHEET

STUDENT DETAILS

Student name: Nguyen Minh Trang Student ID number: 21000296

UNIT AND TUTORIAL DETAILS

Unit name: Business Law Unit number: BL-T233WSB-6

Tutorial group: Tutorial day and time:
Lecturer or Tutor name: Mrs. Nguyen Song Ngoc Chung

ASSIGNMENT DETAILS

Title: Sustainable Development: the role of the legal system in Vietnam

Length: 1531 Due date: 20/08/2023 Date submitted: 20/08/2023
Home campus (where you are enrolled):

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ARO 00380 08/15

 Group Project
Sustainable Development: the role of the legal system in Vietnam

Trang, N.M

Western Sydney University

Ms. Nguyen Song Ngoc Chung

BL-T223WSB-6
TABLE OF CONTENT

1. INTRODUCTION......................................................................................................................... 1

2. THE ROLE OF LEGAL SYSTEM TO SUSTAINABLE DEVELOPMENT.................... 1

2.1 What is the role of law in protecting the environment towards

sustainable development?....................................................................................................1

2.2 The role of environmental laws in business: Why must businesses

comply with environmental regulations during operation?................................. 2

2.2.1 Affordable and Clean Energy - Vinamilk case............................................. 4

2.2.2 Clean Water and Sanitation - Formosa case................................................5

2.3 How do government and legislation impact on supporting and

promoting enterprises to enhance environmental protection?..........................6

3. CONCLUSION............................................................................................................................. 7

4. REFERENCES.............................................................................................................................. 8

5. APPENDIX...................................................................................................................................11
 1. INTRODUCTION

Environmental concerns are currently one of the topics of discussion and are

frequently brought up in both the media and daily life. Not just for Vietnam, but

for every nation in the world, this is an essential problem. Therefore, maintaining

the environment is a vital duty, particularly in a situation where human activity

has significantly damaged the environment. Moreover, the law as a system of

norms governing human behavior has a great effect on environmental

protection. Therefore, this essay clearly mentions the role of law in

environmental protection towards sustainable development. It also discusses the

importance of environmental legislation in business and provides examples to

show why companies must abide by environmental laws while operating. In the

last part, it highlights how crucial the law is in encouraging and promoting

enterprises to enhance environmental protection.

2. THE ROLE OF LEGAL SYSTEM TO SUSTAINABLE DEVELOPMENT

2.1 What is the role of law in protecting the environment towards

sustainable development?

Law on Environmental Protection No. 72/2020/QH14: Law on Environmental

Protection in 2020 emphasizes: "Environmental protection is a condition,

foundation, central and prerequisite factor for sustainable socio-economic

development." The role of the law on environmental protection is the legal

foundation for defining state management agencies' organisational structure in

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the area of environmental protection. Also, the legal foundation for monitoring,

investigating, and managing environmental law infractions and the legal basis for

environmental protection. Furthermore, Vietnam has achieved considerable

strides in implementing the Sustainable Development Goals during the past two

decades, particularly SDG target 6 and SDG target 7 (Ngo, 2023). For SDG target

6 - Clean water and sanitation achieved the percentage of safely managed

drinking water (57.9%); Sanitation works are managed safely (43.9%). For SDG

target 7, "Clean energy with reasonable prices," the goal was met with an overall

success rate of 86%.

2.2 The role of environmental laws in business: Why must businesses

comply with environmental regulations during operation?

Although profit is every company's primary objective, based on the fact that the

entire globe is prioritizing green and sustainable development, firms need to

actively shift production in the pattern of "greening" to achieve sustainable

development goals. Realizing such a trend, environmental legislation in Vietnam

is likewise increasingly focused. For Vietnamese businesses, proactively

following environmental laws will bring benefits as follows:

Firstly, adopting environmental protection policies will result in significant cost

savings for enterprises. When businesses accept investment to transform

technology, the production process towards "greening" in the long term will

reduce production costs due to using of green energy and lower legal and

environmental troubleshooting expenses. Hence, production effectiveness will

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rise. According to Thanh (2023), Nestlé was able to improve productivity and

product quality after green transformation by using smart sensors.

Secondly, companies can enhance their reputation, brand and meet the market's

tastes by protecting the environment. When a firm shows that it cares about the

environment, consumers are more inclined to trust a brand and its products. As

a result, the market for products will be more sustainable.

Thirdly, businesses will not face legal risks, inspections or penalties if they follow

the environmental regulations. The degree of the infringement determines the

specific penalties that are applied under Vietnamese law. According to Decree

No. 155/2016/ND-CP (Thuvienphapluat.vn, 2016), enterprises may receive

administrative sanctions from a minimum of as a few tens of millions of dong to

a maximum of 1 to 2 billion dong. In fact, if the firm breaches and is prosecuted

for criminal responsibility, in addition to paying a fine, society would likely

boycott the company and hold it in contempt.

Fourthly, businesses will benefit from numerous investment possibilities, and

competitive advantages and gain many incentives from State policies. This can

especially function as a sustainable foundation for businesses in order to move

forward in the integration process. Given the present trend's emphasis on

environmental preservation, a green development company would appeal to

investors and customers more. In addition, the law policy on the environment in

Vietnam is giving more significant thought, consideration, and priority over the

criteria of sustainable economic-environmental development.

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Finally, businesses may have a clean, green workspace thanks to environmental

protection. In addition, most of the companies that protect the environment can

show the community that they are environmentally responsible.

2.2.1 Affordable and Clean Energy - Vinamilk case

Vinamilk is one of the enterprises that place a strong emphasize on

environmental protection during its operation. With the criterion of focusing on

four key fields: Sustainable Agriculture - Green Production - Environmentally

Friendly Logistics - Sustainable Consumption, Vinamilk was recognized as the

first dairy company in Vietnam, according to Vinamilk, to have factories and

farms achieve carbon neutrality according to PAS 2060 standards. Vinamilk's

factories have all undergone significant transformations, implementing

high-tech and circular economy practices from an early age to cut emissions. As

a result, according to the confirmed report by the Ministry of Industry and

Trade of Vietnam (2023), the total amount of greenhouse gas emissions that have

been neutralized is 17,560 tons of CO2 (equivalent to about 1 .7 million trees). The

strategic goal of Vinamilk is to implement the principle that the result of one

process can be fully utilized as an input for other processes, therefore

minimizing resource exploitation, waste treatment expenses, and environmental

pollution in the construction and operation of the farm (Kinh te do thi article,

2023). This is significant not only for Vinamilk but also serves as the "nucleus" for

advancing agriculture and the dairy sector as a whole toward more sustainable

and cutting-edge practices in line with global trends.

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 2.2.2 Clean Water and Sanitation - Formosa case

However, most enterprises in Vietnam have not well-implemented legal

regulations on environmental protection (Nam Hằng, 2009). Enterprises

consider investment in environmental protection as an unprofitable investment,

even reducing their competitiveness, due to the increase in input costs of

production. According to statistics, 65% of industrial parks in the country have

been put into operation, but have not yet been granted a certificate of

completion of environmental protection works; 10.7% of industrial parks have

not yet built a centralized wastewater treatment system. For example, in 2016,

Hung Nghiep Iron and Steel Company Formosa Ha Tinh, hundreds of tonnes of

black, foul-smelling rubbish were found. In the contract signed between Ky Anh

Urban Environment Company and Formosa Company, Formosa Company must

supervise the location where Ky Anh Urban Environment Company treats sludge,

however, Company Formosa does not perform. Likewise, Ky Anh Urban

Environment Company could not produce legal documents to prove that the

unit has sufficient functions to treat ordinary industrial waste and hazardous

waste. Besides, the consequences worth mentioning are 100,000 people losing

their jobs, also, the loss of inshore fisheries productivity is estimated at 1,600

tonnes per month. Moreover, it has an impact on certain tourism businesses and

lowers room occupancy by 40–50% (TUOI TRE, 2016). What is more, numerous

consumers have canceled their agreements with businesses that have seafood

processing facilities in four central regions (danviet.vn, n.d.). Due to a serious

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shortage of raw materials, the company's purchase was only 40%, there were no

products for export, and the business' sales also dropped sharply.

2.3 How do government and legislation impact on supporting and promoting

enterprises to enhance environmental protection?

The United Nations' 17 Sustainable Development Goals (SDGs), which were

established on September 15, 2015, highlighted the crucial role that business, in

addition to governments and other organizations, plays in applying the SDGs

into practice. The government facilitates enterprises in their efforts to preserve

the environment associated with manufacturing and commercial operations.

Developing training programs for businesses on environmentally friendly

benefits, new business opportunities resulting from environmental protection,

and corporate sustainability reporting via coordination between professional

social organizations, partners, sponsors, and pioneering enterprises (VCCI,

2023). In addition, the government creates a favorable mechanism for businesses

with domestic and international green financial needs to change technologies

and ways of production and business activities to be environmentally friendly.

According to the Politburo issued Directive 36-CT/TU on strengthening

environmental protection in the period of industrialization and modernization of

the country. The directive set out a program such as developing a plan to

address the root causes of serious environmental pollution caused by industrial

enterprises.

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3. CONCLUSION

Human destruction is the main cause of environmental degradation. The

open-door policy has created favorable conditions for the expansion and

development of businesses in the context of the current high growth economy.

Across the country, industrial parks, export processing zones, factories and

other projects have flourished. Environmental protection is an extremely

challenging and complex task, requiring a system of competent organizations. As

a result, the essay points out the importance of environmental legislation for

business activities through two examples: Vinamilk's environmental

conservation work toward clean energy in production and the case that caused

environmental problems and controversy in Formosa because the act of

discharging waste possesses serious consequences not only for people and the

environment but also for business transactions. Thereby, the government needs

to define specifically the roles, powers and responsibilities of enterprises in

protecting the environment and provide policies to encourage businesses to pay

more attention to the current ecosystem through Vietnamese legislation.

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4. REFERENCES

1. Cổng thông tin điện tử Bộ Công Thương. (2023, May 31). Việt Nam có Nhà

Máy và Trang trại đạt trung hòa carbon theo tiêu chuẩn PAS 2060.

moit.gov.vn.

https://moit.gov.vn/phat-trien-ben-vung/viet-nam-co-nha-may-va-tran

g-trai-dat-trung-hoa-carbon-theo-tieu-chuan-pas-2060.html

2. danviet.vn. (n.d.). Hậu sự cố Formosa: Doanh nghiệp thủy sản trước nguy cơ

đóng cửa. Danviet.vn. Retrieved August 8, 2023, from

https://danviet.vn/hau-su-co-formosa-doanh-nghiep-thuy-san-truoc-n

guy-co-dong-cua-7777703949.htm

3. Formosa thừa nhận vi phạm pháp luật về bảo vệ môi trường. (2016, July 15).

Https://Thanhtra.com.vn.

https://thanhtra.com.vn/xa-hoi/moi-truong/Formosa-thua-nhan-vi-ph

am-phap-luat-ve-bao-ve-moi-truong-106150.html

4. Nam Hằng. (2009, February 25). Thực thi pháp luật môi trường trong doanh

nghiệp : Thực trạng và giải pháp. Moj.gov.vn.

https://moj.gov.vn/qt/tintuc/Pages/thong-tin-khac.aspx?ItemID=1072

5. Ngo, T. L. (2023, July 9). Giải pháp thực hiện mục tiêu phát triển bền vững

đến năm 2030 của Việt Nam. Tạp Chí Công Thương.

https://tapchicongthuong.vn/bai-viet/giai-phap-thuc-hien-muc-tieu-ph

at-trien-ben-vung-den-nam-2030-cua-viet-nam-107167.htm

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6. Pháp luật về bảo vệ môi trường trong việc bảo đảm phát triển bền vững |

Tạp chí Điện tử Luật sư Việt Nam. (2022, March 21). Lsvn.vn.

https://lsvn.vn/phap-luat-ve-bao-ve-moi-truong-trong-viec-bao-dam-p

hat-trien-ben-vung1647873543.html

7. Pv. (2023, July 26). Để CÓ “Trang trại Sinh Thái”, “Trung hòa carbon”,

Vinamilk đã Chuẩn Bị Như Thế Nào? Báo Kinh tế đô thị.

https://kinhtedothi.vn/de-co-trang-trai-sinh-thai-trung-hoa-carbon-vin

amilk-da-chuan-bi-nhu-the-nao.html

8. Thanh, H. (2023, May 22). Chuyển đổi SỐ “xanh” - Chìa Khóa để phát triển

Bền vững. Báo Kinh tế đô thị.

https://kinhtedothi.vn/chuyen-doi-so-xanh-chia-khoa-de-phat-trien-be

n-vung.html

9. Thuvienphapluat.vn. (2016, November 18). Nghị định 155/2016/NĐ-CP quy

định xử Phạt VI Phạm Hành Chính Trong Lĩnh vực bảo vệ môi Trường. THƯ

VIỆN PHÁP LUẬT.

https://thuvienphapluat.vn/van-ban/Vi-pham-hanh-chinh/Nghi-dinh-15

5-2016-ND-CP-quy-dinh-xu-phat-vi-pham-hanh-chinh-trong-linh-vuc-

bao-ve-moi-truong-331295.aspx

10. TUOI TRE. (2016, July 28). Chính phủ công bố chi tiết thiệt hại do Formosa

gây ra. TUOI TRE ONLINE.

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 https://tuoitre.vn/chinh-phu-cong-bo-chi-tiet-thiet-hai-do-formosa-ga

y-ra-1145284.htm

11. Vai trò của pháp luật trong công tác bảo vệ môi trường ở Việt Nam - [Cập

nhật 06/2023]. (2021, July 29).

https://www.luatquanghuy.edu.vn/tu-van-phap-luat/doanh-nghiep/giay

-phep/ve-sinh-an-toan-thuc-pham/vai-tro-cua-phap-luat-trong-cong-t

ac-bao-ve-moi-truong-o-viet-nam/

12. Vinamilk là công ty sữa đầu Tiên Tại Việt Nam có Nhà Máy và Trang trại

đạt chứng nhận Trung Hòa Carbon. Vinamilk. Available at:

https://www.vinamilk.com.vn/vi/mobile/tin-tuc-su-kien/2538/vinamilk

-la-cong-ty-sua-dau-tien-tai-viet-nam-co-nha-may-va-trang-trai-dat-c

hung-nhan-trung-hoa-carbon

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5. APPENDIX

Appendix 1: Clean energy - Vinamilk case

Appendix 2: Clean Water and Sanitation - Formosa case

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