FOREIGN TRADE UNIVERSITY

FACULTY OF INTERNATIONAL ECONOMICS

--------------------------

PUBLIC ECONOMICS
Group Assignment
SOLUTIONS FOR INDUSTRIAL WASTES IN VIETNAM

Instructor: Mr. Ly Hoang Phu, PhD

Students:
Pham Thi Thuy Dung
Ngo Phuc Long
Bui Huu Toan

Ha Noi 2015

Public Economics
SOLUTIONS FOR INDUSTRIAL WASTES IN VIETNAM

Preface
Industrialization and modernization in Vietnam started
in 1960s with unification in the 7th Central Executive
Committee Conference. After more than 50 years,
nowadays Vietnam is still in the process of changing
for a new high development level. Especially, industry
has been changed a lot. We reached a number of goals
that bring advantages for the growth of economy.
However, on the contrary, it caused some serious
problems. One of them is the industrial waste. This
consequence

causes

very

bad

impact

on

the

environment, human health, and indirectly inhibits the

development of industry.
To help you understand the problem and in order to
find out the solutions, we decided to research and do an
assignment about the topic Solutions of industrial
waste in Vietnam. While working for this assignment,
we cannot avoid some unexpected mistakes. We are
looking forward to receiving your ideas and thinking to
gain experiences and make it better in the future!

Table of contents
I.

Knowledge about industrial waste ..................................................................................... - 1 1.

Definition of industrial waste........................................................................................ - 1 -

2.

Sources .......................................................................................................................... - 1 -

3.

Characteristics ............................................................................................................... - 4 -

4.
II.

3.1.

Ignitability ............................................................................................................. - 4 -

3.2.

Corrosively ............................................................................................................ - 5 -

3.3.

Reactivity ............................................................................................................... - 5 -

3.4.

Toxicity.................................................................................................................. - 6 -

Situation in Vietnam ..................................................................................................... - 7 Causes of industrial waste ................................................................................................ - 12 -

1.

Cause from businesses and investors .......................................................................... - 12 1.1.

A huge number of factory and arsenal ................................................................ - 12 -

1.2.

The consciousness of businesses, investors in protecting environment .............. - 13 -

1.3.

The high expenditure for wastes treatment technology ....................................... - 14 -

2.
The policy and law normative act system about environment management in industrial
parks - 14 3.

Shortcomings in punishment the environment protection violation ........................... - 15 -

4.

Shortcomings in the implementation of environmental inspections. .......................... - 18 -

III.
1.

2.

Solutions ......................................................................................................................... - 20 Solutions of the firms .................................................................................................. - 20 1.1.

Waste burying ...................................................................................................... - 20 -

1.2.

Recycling ............................................................................................................. - 21 -

1.3.

Collaboration with companies specializing in waste management ..................... - 22 -

1.4.
firms

Completing the organizational structure of environmental management systems in

............................................................................................................................. - 23 -

Solutions of the Government ...................................................................................... - 24 2.1.

Review and supplement the legal documents and policies, strengthen measures of
law enforcement on environmental protection ................................................................. - 24 2.2.
Planning industrial zones linked to the overall planning of economic and social
development and environmental protection ..................................................................... - 25 -

3.

Proposal about Government-Firm Waste Co-management system ........................ - 25 -

-1-

I. KNOWLEDGE ABOUT INDUSTRIAL WASTE

1.

Definition of industrial waste

Industrial waste is the waste produced by industrial activity which includes

any material that is rendered useless during a manufacturing process such as that
of factories, mills, and mining operations. It has existed since the start of
the Industrial Revolution. Some examples of industrial waste are chemical solvents,
paints, sandpaper, paper products, industrial by-products, metals, and radioactive
wastes.
Toxic waste, chemical waste, industrial solid waste and municipal solid
waste are designations of industrial waste. Sewage treatment plants can treat some
industrial wastes, i.e. those consisting of conventional pollutants such
as biochemical
oxygen
demand (BOD).
Industrial
wastes
containing toxic pollutants require specialized treatment systems. Including:
- Hazardous waste: flammable, toxic for human health and corrosive many
other materials
- Non-hazardous solid waste
2.

Sources
Solid waste arises mainly from the following sources:

- From the residential area: Including residential area, detached residential

households. Littering mainly: food scraps, glass, wood, plastic, rubber, ... there are
a number of hazardous waste
- From the trade: benches, restaurants, markets, office agency, hotel, ... waste
sources have similar components for residential areas (food, paper, cotton ,. .)
- The agencies and offices: Schools, hospitals, administrative offices: similar
amount of waste for residential garbage and commercial operations but less
volume.
- From construction: Construction of new homes and bridges, repairing roads,
removal of existing buildings. Waste brought its own characteristics in

Solutions for industrial waste in Vietnam

-2construction: steel scrap, broken bricks, the gravel, concrete and mortar, cement,
old appliances are not used anymore
- Service of urban public: Cleaning roads, development agencies, fix parks, beaches
and other activities ... waste includes grass, waste from street decoration.
- The wastewater treatment process: from process waste water treatment, garbage
water, the process of industrialization. Source mud waste, composting, ...
- Since the industrial production activities: Includes waste generated from industrial
production and handicrafts, fuel combustion, packaging products ... From wastes
include part of the activities of employees.
- From the agricultural production activities: Source of waste mainly from the
fields after the harvest, farms, orchards, ... Waste mostly food scraps, manure,
garbage agriculture , wastes from farming, from the harvest products, processed
agricultural products.
- Solid waste generated in industrial parks, export processing zones, high-tech zone
According to the Department of Economic Zone Authority under the
Ministry of Planning and Investment, Vietnam IPs each day now solid waste
discharged 8,000 tons, equivalent to approximately 3 million tonnes per year solid
waste. However, the solid waste is increased along with the increase in the
occupancy rate of the industrial park. Calculate the national average, in 2005-2006,
1ha of land lease incurred solid waste about 134 tons / year. By the year 20082009, that figure rose to 204 tons / year, ie an increase of around 50% on average
by 10% each year. The increase in emissions per unit of area reflects the changes in
the structure of industrial production, the appearance of high-emission industries
and growing scale in the industrial zones. Currently, three key economic regions
accounted for 80% of total industrial solid waste, which is the largest in the
southern key economic region. In 2009, this region's total emissions solid waste
3435 tons / day (Table 1).

The total The total The total The

total Solid waste
planning usable
leasable volume of volume per
Solutions for industrial waste in Vietnam

-3area (ha)

area (ha)

area (ha) solid waste 1ha lease 1

(Tons / Day) year *

Dong Nai

8816

5832

3554

384

39

Binh Duong

7010

1819

918

197

78

Ho Chi Minh city

2931

1939

1154

1810

572

Long An

4049

1851

589

128

79

Binh Phuoc

309

73

56

10.220

Ba Ria-Vung Tau 7900

5297

1871

360

70

Tay Ninh

394

259

234

Tien Giang

875

245

84

32

139

464

3437

163

11 Mekong Delta provinces

Total

Table 1: Estimates of solid waste generated in the industrial zone's key economic
zone south of 2009
Note: * The average figures emissions of solid waste per hectare is the total
amount of solid waste (tons / day) multiplied by 365 days, divided by the area
leased.
- Solid waste from mining activities
+ Coal mining
+ Exploitation of bauxite
+ Other mineral mining
- Industrial solid waste from other industries
+ Solid waste from oil and gas activities
Solutions for industrial waste in Vietnam

-4+ Solid waste from the operation of the building industry, repair and demolition
ship
+ Solid waste from thermal power industry
+ Solid waste industry wine, beer, soft drinks
+ Solid waste from scrap imports
3.

Characteristics

Characteristic wastes are wastes that exhibit measurable properties which

indicate that a waste poses enough of a threat to deserve regulation as hazardous
waste. EPA tried to identify characteristics which, when present in a waste, can
cause death or illness in humans or lead to ecological damage. The characteristics
are an essential supplement to the hazardous waste listings. For example, some
wastes may not meet any listing description because they do not originate from
specific industrial or process sources, but the waste may still pose threats to human
health and the environment. As a result, a facility is also required to determine
whether such a waste possesses a hazardous property (i.e., exhibits a hazardous
waste characteristic). The characteristics are applied to any waste from any
industry.
Even if a waste does meet a hazardous waste listing description, the facility
must still determine if the waste exhibits a characteristic. If such listed wastes do
exhibit a characteristic, the waste poses an additional hazard to human health and
the environment, and may necessitate additional regulatory precautions. For
example, wastes that are both listed and characteristic may have more extensive
LDR requirements, than those that are only listed.
EPA decided that the characteristics of hazardous waste should be detectable
by using a standardized test method or by applying general knowledge of the
wastes properties. Given these criteria, EPA established four hazardous waste
characteristics: Ignitability, Corrosively, Reactivity, Toxicity.
3.1.

Ignitability
The ignitability characteristic identifies wastes that can readily catch fire and
sustain combustion. Many paints, cleaners, and other industrial wastes pose such a

Solutions for industrial waste in Vietnam

-5hazard. Liquid and non-liquid wastes are treated differently by the ignitability
characteristic.
Most ignitable wastes are liquid in physical form. EPA selected a flash point
test as the method for determining whether a liquid waste is combustible enough to
deserve regulation as hazardous. The flash point test determines the lowest
temperature at which the fumes above a waste will ignite when exposed to flame.
Many wastes in solid or non-liquid physical form (e.g., wood, paper) can
also readily catch fire and sustain combustion, but EPA did not intend to regulate
most of these non-liquid materials as ignitable wastes. A non-liquid waste is
considered ignitable if it can spontaneously catch fire or catch fire through friction
or absorption of moisture under normal handling conditions and can burn so
vigorously that it creates a hazard. Certain compressed gases are also classified as
ignitable. Finally, substances meeting the Department of Transportations
definition of oxidizer are classified as ignitable wastes. Ignitable wastes carry the
waste code D001 and are among the most common hazardous wastes. The
regulations describing the characteristic of ignitability are codified at 40 CFR
261.21.
3.2.

Corrosively
The corrosively characteristic identifies wastes that are acidic or alkaline
(basic). Such wastes can readily corrode or dissolve flesh, metal, or other materials.
They are also among the most common hazardous wastes. An example is waste
sulfuric acid from automotive batteries. EPA uses two criteria to identify liquid and
aqueous corrosive hazardous wastes. The first is a pH test. Aqueous wastes with a
pH greater than or equal to 12.5 or less than or equal to 2 are corrosive. A liquid
waste may also be corrosive if it has the ability to corrode steel under specific
conditions. Physically solid, non-aqueous wastes are not evaluated for corrosively.
Corrosive wastes carry the waste code D002. The regulations describing the
corrosively characteristic are found at 40 CFR 261.22.
3.3.

Reactivity
The reactivity characteristic identifies wastes that readily explode or undergo
violent reactions. Common examples are discarded munitions or explosives. In
many cases, there is no reliable test method to evaluate a wastes potential to
Solutions for industrial waste in Vietnam

-6explode or react violently under common handling conditions. Therefore, EPA uses
narrative criteria to define most reactive wastes and requires waste handlers to use
their best judgment in determining if a waste is sufficiently reactive to be regulated.
This is possible because reactive hazardous wastes are relatively uncommon and
the dangers that they pose are believed to be well known to the few waste handlers
who deal with them.
A waste is reactive if it meets any of the following criteria:

It can explode or violently react when exposed to water or under normal

handling conditions
It can create toxic fumes or gases when exposed to water or under normal
handling conditions
It meets the criteria for classification as an explosive under DOT rules
It generates toxic levels of sulfide or cyanide gas when exposed to a pH range
of 2 through 12.5. Wastes exhibiting the characteristic of reactivity are assigned
the waste code D003.
The reactivity characteristic is described in the regulations at 40 CFR 261.23.

3.4.

Toxicity
When hazardous waste is disposed of in a land disposal unit, toxic
compounds or elements can leach into underground drinking water supplies and
expose users of the water to hazardous chemicals and constituents. EPA developed
the toxicity characteristic (TC) to identify wastes likely to leach dangerous
concentrations of toxic chemicals into ground water.
In order to predict whether any particular waste is likely to leach chemicals
into ground water at dangerous levels, EPA designed a lab procedure to replicate
the leaching process and other conditions that occur when wastes are buried in a
typical municipal landfill. This lab procedure is known as the Toxicity
Characteristic Leaching Procedure (TCLP).
The regulations require a facility to apply the TCLP to its hazardous waste
samples in order to create a liquid leachate. This leachate would be similar to the
leachate generated by a landfill containing a mixture of household and industrial
wastes. Once this leachate is created via the TCLP, the waste handler must
Solutions for industrial waste in Vietnam

-7determine whether it contains any of 40 different toxic chemicals in amounts above

the specified regulatory levels (see Figure III-7). These regulatory levels are based
on ground water modeling studies and toxicity data that calculate the limit above
which these common toxic compounds and elements will threaten human health
and the environment. If the leachate sample contains a concentration above the
regulatory limit for one of the specified chemicals, the waste exhibits the toxicity
characteristic and carries the waste code associated with that compound or element.
The regulations describing the toxicity characteristic cannot be individually
measured, the regulatory level for total cresols is used.
4.

Situation in Vietnam

In cities and towns collecting garbage disposal has Urban Environment

Company undertook. Every evening to garbage trucks of the company go through
the garbage bags to bring abandon the car and the people have to pay the fee.
However, in some rural areas where there are no conditions to do so. The overall
situation at present is each handling his family depends on perceptions and
conditions of each person. Some families near lakes or ditches crossing the night
abusing littering bring down, how has consequences other people have. Many
families are in the packaging waste and hauled away to somewhere far from home.
The location of the garbage village, residential areas is now very arbitrary. Walk
along the banks of some rivers and highways, the inter-district road ... we will see
many very nasty garbage.
From the fact that poses problems is urgent need for positive solutions to the
rural environment, where there are more than 70% of people living and generally
low educational level. The first is to strengthen propaganda and education to raise
awareness of people and accompanied by educational measures of caution and
sanction. On the other hand also need to equip them with the knowledge, the habits
necessary to handle right from the root for what usually generates waste and must
be set for all waste separation habits. Should at each fork, crossroads or customary
place of residence, markets should put the trash. There can be two types of bins:
one for organic waste, the other bin for packaging, plastic containers ... For dead
cattle and poultry, they must dig deep and bury antiseptic lime. Immediate problem
posed today is the most local communes and towns have prescribed rapid dump and
garbage collection for each residential area. Place garbage can dig a pit, building
Solutions for industrial waste in Vietnam

-8walled, with doors closed to prevent the dog's cheek as scattered out. Every week,
every month of the heat and dry up the appointment of packaging waste
incineration is to reduce the volume ... But to build such garbage pits also need to
have the initial outlay.
Story rural sanitation is a huge problem involving the health and life of each
person that the health sector and environmental resources sectors also have written
regulations, but we have not done much. Project's resources and environment
sectors with the waste disposal system requires time and great expense to many
years away from mass deployment. We cannot wait, if slow, the following
consequences are very heavy and tackling the consequences will be much more
costly problems.
Industrial sector and construction are always the highest growth rate and the
largest contribution in the economic growth of Vietnam. 2006-2010, although
facing many difficulties due to domestic inflation, financial crisis and global
economic downturn, but the output value of the whole industry remains 1314%
growth. Industry over the years to contribute 70% of export value, contributing to
economic restructuring and labor of the country towards industrialization. Some
industry groups have a lower growth rate, but the whole industry growth levels of
polluting industries such as food processing, food; mining; Welding a ship
industrial, mining, transportation and processing of oil and gas; Thermal...

1. GDP growth

2005

2006

2007

2008 2010

8.44

8.23

8.46

6.2

6.78

Industrial and construction

10.69 10.38 10.22 6.11

7.07

Agriculture, forestry and fishery

4.02

3.69

3.76

4.7

2.78

Service industries

8.48

8.29

8.85

7.18

7.52

Solutions for industrial waste in Vietnam

-92. The growth rate of production value 17.1

industries

16.8

16.7

13.9

Inside:
Industry operators

2.04

1.4

1.9

4.5

0.6

Processing industry

19.2

19.2

18.8

15.3

12.6

Electricity, gas and water

14.5

11.4

10.8

11.7

14.9

Table 2: The growth of the industry in 2005-2010 (unit:%)

According to the joint assessment, the level of compliance with
environmental regulations, Vietnam enterprises often consciously abide inferior
law firms invested abroad, investment environment less. As a result this area often
have higher levels of pollution FDI area. Vietnam industry distributed fairly
concentrated, with nearly 80% of total industrial production value generated in
three key economic regions. During the period 1995-2005, the Southeast region has
the industrial production value of the largest, followed by the Red River Delta, in
the 7 regions of the country, but the new Red River Delta region has the fastest
growth with an average growth rate of 17.9% annually. Looking at the distribution
structure of industrial production value by region, the Red River Delta and the
South East will probably encounter the problem of serious industrial pollution than
other regions again. In the period 2006-2010, the growth rate of three key economic
regions, industry continues to reach higher than the national average, however,
within three key economic regions also have change. Central Coast region with the
arrival of mass industrial complexes such as petrochemical, steel, nuclear power
and seaport are growth accelerated. High level of concentration and lack of
planning of rational industrial distribution in key economic areas, partly due to
historical reasons, and both industrial planning lacks long-term vision, especially in
the area large urban areas like City. Ho Chi Minh city and Hanoi. According to the
Institute of Strategic Studies, industrial policy, which is responsible for the
formation of environmental hotspots, social issues are not easily solved today.
From macro aspect, industrial distribution lacks coherence, does not allow
Solutions for industrial waste in Vietnam

- 10 operators and shared resources effectively, natural advantages and different

environmental backgrounds of each locality.
According to a forecast calculation, the total emissions from the industrial
zone solid waste 2015 will be about 6 to 7.5 million tons / year, and reached 9.0 to
13.5 million tons in 2020. According to the experts, solid waste component IPs can
change the direction of increasing hazardous waste. The result of the increasing
level of industrialization and the use of chemicals is increasing. Apart from the
manufacturing business establishments are concentrated in the industrial zones, the
number of independent facilities are scattered, with relatively large numbers.
However, the solid waste is not yet complete statistics, the management of the unit
solid waste unfulfilled scale, usually collected with the domestic waste urban areas.

The total The total The total Solid

waste The
amount
planning
usable area leasable
amount Option solid
waste
area (ha)
(ha)
area (ha)
1 (tons / year) Option 2 (tones
/ year)
2005

24950

16663

7433

996.022

996.022

2010

58389

34171

16125

3.225.000

3.225.000

2015

70000

50000

30000

6.000.000

7.500.000

2020

80000

64000

45000

9.000.000

13.500.000

Table 3: Estimates and forecasts of solid waste industrial areas of Vietnam to 2020
Percentage of soil removal in coal mining output decisions arising solid
waste. In Vietnam, land stripping ratio in surface mining is very high, ranging from
3-13 m3 / ton of product. As planned development of coal industry for 2025, from
5.9 to 10.2 coefficient m3 / ton of coal. The total volume of discharged solid waste
from coal mining operations of 4.6 billion m3 / year.
Solutions for industrial waste in Vietnam

- 11 According to the 2006 survey of the Institute for Strategic Studies and
Industrial Policy, the total volume of solid waste collected from drilling and
exploitation of oil and gas exploration is estimated at 5-6 thousand tons / year.
Ingredients include solid waste on chemical containers, greasy rags, tools broken
electronic equipment, waste from the rig. As at 2006, the company Green River (Ba
Ria-Vung Tau Province) is the only recognized waste disposal of the rig, with a
contract value of 10-15 billion / year. In particular, the assessment of processing
units, solid waste from offshore operations have a high proportion of hazardous
waste, up to over 50%.
Thermal coal continues to rise in the coming period, accounting for over
50% of electricity generation capacity. Towing a 2006 total coal demand for
electric heat estimated 5-6 million tons and forecast to 2030, Vietnam will have to
use about 80 million tons of coal, including imported coal (Electricity Corporation
Vietnam, 2007). From the survey results show that the ratio solid waste (ash) from
the use of coal in thermal power sector ranged from 30-40% of the coal used, the
equivalent of coal dust ash from 26-45 %. In 2006, on the whole industry is about
2.0 to 2.4 million tonnes emitted solid waste / year. solid waste from slag are
currently many units used as tiles, but only partially addressed the emissions.
Because coal-fired power demand increases, the amount of solid waste and dust
emissions will also rise in the coming years (Table 4).
Year

2015
2020
2025
2030

Capacity (MW)

demand Solid waste and

ash quantity (tons
/ year)
3.500
7.000.000
2.100.000
32.500
65.000.000
19.500.000
50.000
100.000.000
30.000.000
77.000
154.000.000
46.200.000
Table 4: Solid Waste Thermal Power Forecasts to 2030

Solutions for industrial waste in Vietnam

Coal
(tons)

- 12 -

II. CAUSES OF INDUSTRIAL WASTE

According to previous real situation, we can see the state of alert about the
environmental reality in Vietnam caused by industrial wastes. This reality caused
by many sources, including two main causes, the first one is the sense of
businesses, investors in letting wastes out during production process, the second
one is the weakness in environmental management of government and related
institution. Moreover, system of legal documents are incomplete, a division of
responsibility between related institutions in environmental protection of industrial
park still in trouble, the function of management participation still overlap. There
is industrial park development plan but its not united, less logical, the
implementation of management tools is not really effective, the manpower for
environment protection task of industrial zone is still weak.
1.

Cause from businesses and investors

1.1.

A huge number of factory and arsenal

As we already known, recently, industry of Vietnam is developing strongly,
this leads to the appearance of a hundreds of industrial park with factories and
arsenals which mainly gather in town and crowed areas. This is a good signal for
the development of our country, however, having too many factories and arsenals
in one area will have bad effect on environment around people life. Because during
production process, businesses will discard many industrial wastes from their
factory and arsenal to environment like wastewater and solid wastes. Statistics
show that in average, industrial parks discard tens of thousands tone of solid wastes
per day ( more than 3 million tone/ year). This number is increasing more and more
with the development of industry. According to the forecast, in the last month of
2015, the total quantity of solid wastes from industrial parks will be about 6-7,5
million tone/year and by 2020, this number will increase to 9-15 million tone/year.
Specially, pollution issue caused by wastewater is becoming more
concerned. Recently, almost all industrial parks do not have gathered waste
treatment station. In the Southeast, the amount of wastewater from industrial parks
accounts for 49% of the amount of wastewater of almost all of the country,
meanwhile, the proportion of industrial parks which have gathered waste treatment
station just accounts for 66%, many industrial parks starting their business
activities totally do not deploy to build partial waste treatment system or have this
system but do not run it or run it in ineffective way. According to the estimation,
Solutions for industrial waste in Vietnam

- 13 there is about 70% the amount of wastewater from industrial parks is discarded
directly to the environment without processing. From these alarming matters, if
there is no timely solution, the consequence will be very serious to the future
generation.
The problem here shows that having so many factories, arsenals or industrial
parks in general, waste treatment during production process is becoming concerned
issue. This is also a cause leads to the situation of pollution nowadays.
1.2.

The consciousness of businesses, investors in protecting environment

As I said before, the number of factory, arsenal, industrial park in our
country is increasing more and more in a crazy way. Besides, the amount of
industrial wastes discard to the environment is also rising with an incredible ratio.
Because of this, the consciousness of businesses and investors in processing theirs
industrial wastes is very important. In reality, beside enterprises who implement
strictly the waste treatment to protecting environment, there is still exist unaware
ones in this matter. They just focus on their private profit and discard to the
environment so many industrial wastes braving the reaction of citizens. Moreover,
they fool the government and appropriate authorities to avoid responsibility. One
special example about this moral hazard is the situation of Vedan firm in 2008.
This firm had discarded wastes to Thi Vai river for a long time. Because of the
reflection of people who live around Thi Vai river about the stealthy activity of
Vedan company, after 3 months, on 13/9/2008, the interdisciplinary inspection
team surprised the stealthy activity of Vedan company which place in Long Thanh
district, Dong Nai province discarded a huge amount of wastes to Thi Vai river.
According to the estimation, Vedan discarded 5000m3/day to the river. Another
special example, environment inspection team of Vietnam department of resources
and environment had an unscheduled inspection and surprised An Hoa paper jointstock company (place in Son Duong district, Tuyen Quang province) discarded a
huge amount of industrial wastes to the Lo river about 5500m3/day without
processing. An Hoa paper joint-stock company has large production scale with
7.500m3/day amount of wastewater. The factory have processing system but this
system run in wrong way so every day there is just 500m3/day amount of
wastewater flow to the processing system. Previously, this company was fined 225
million VND by environment police for over standard discarding activity and
causing pollution.
Solutions for industrial waste in Vietnam

- 14 -

1.3.

The high expenditure for wastes treatment technology

Vietnam is a developing country so the development of science and
technology is still slow in comparison with others countries in all over the world.
We have to buy and use the science and technology product of other country so the
cost is always higher than normal. The expenditure for industrial waste treatment
technology is not an exception. In reality, the industrial waste treatment technology
cost is heavy high, meanwhile the some companies do not have enough financial
ability to pay this fee so discarding industrial wastes to the environment more or
less is unavoidable. According to statistics that recently announced by the
inspection of Vietnam department of resource and environment, in average, there is
240.000 m3 amount of wastewater directly discarded to environment without
processing from industrial park every day. Moreover, many businesses will ready
to pay fine if they are required because of the high price to run the gathered
wastewater treatment system is very costly.
2.

The policy and law normative act system about environment management in
industrial parks

During the period of industrialization and modernization of Vietnam,

environment issue is always concerned by our Party and the government. In 2005,
the newest environment protection law was promulgated, law writing system about
environment is still modified, complemented and completed. In comparison with
others developing countries, the environment protection field is quite new and start
to be concerned by the government in about 5 years from now because the
requirement of managing environment is developing strongly in the society. So
there is still exist some core errors in the content of environment protection law in
our country. In the check report about environment protection law, Mr Nguyen
Van Cuong (the doctor of Vietnam institute of legal and science) shows 17
insufficient point of environment protection law in 2005 divided to 6 groups:

The Environment technique standard.

Protecting environment in export and import activity.
The environment impact assessment.
The management jurisdiction of state institution.
Protecting environment in production activity and waste management.
The treatment of breaking the environment protection law

Solutions for industrial waste in Vietnam

- 15 As we already known, in 135 total article of 2005 environment protection

law, the report indicated and mentioned to insufficient point in particular of 25
articles (article 3, 7, 18, 19, 24, 36, 37, 41, 42, 43, 44, 49, 52, 65, 67, 74, 75, 79, 83,
84, 86, 113, 121, 126). In almost all of these articles, Mr.Nguyen Van Cuong
indicated unclear point about regulation of environment protection law in force,
regulations are still conflict with each other, overlap and not really reasonable.
Namely:
The resolution no.62/Q-BKHCNMT is not consistent in regulations and
content of gathering management, not regard industrial zone as independent
organized entity, not has rules associated with the organization and support for the
organization activities. In many industrial parks, companies reach an agreement
with authorities to have their own waste treatment system without connecting with
public waste collecting system of industrial park. It leads to the consequence that
there are too many waste outputs to control. As a result, connecting to the public
gathered waste treatment system is an effective way to reduce industrial waste,
however, it is not become a compulsory rule in this resolution.( Source: the institute
of strategic research, industrial policy, ministry of trade and policy 2009)
3.

Shortcomings in punishment the environment protection violation

Although our country has enacted legislation for environmental protection in

2005 and it has significant positive impacts on environment, there are still many
businesses violating the regulation of the state and discarding industrial wastes to
the environment. Moreover, despite they are breaking the rules, they are not or not
yet processed. Besides, there are many cases that be discovered by the people but
related institutions delay in receiving. The administrative processing against acts
causing environmental pollution is not resolute and thorough. There is no criminal
processing case is done for acts causing environmental pollution. Although the
level of fine in 2013 was increased 10 times in comparison with 1996, the police
force of preventing environment crime found 13.386 violations, increase 34%
compare with 2012. (the department of environment crime preventing police).
These behaviors can be regarded as environment corruption when investors do
not want to pay fee to prevent damage or retaliate environmental damage to the
government and effected people. They just want to transform these fees to their
production profit and gain more money as much as possible. These behaviors are
Solutions for industrial waste in Vietnam

- 16 also cause many conflict between firms and people in many areas. This reality
proves that there is still insufficient point in the rule of government or in
implementation the environment rule.
This problem can be illustrated detail through the research of the violation of
Vedan joint-stock company. As I said before, Vedan company discarded industrial
waste to Thi Vai river and be surprised in 2008. Then, Vedan company paid 276
million VND for their violation and this amount of money was a record number at
time. However, the environment protection fee that Vedan company have to pay in
proportion to the amount of illegal wastewater discarded was 127 billion, more than
476 times with the environment protection fee. In addition, Vedan company is
forced to invest 33 million USD to improve technology to make sure that the
wastewater get the environment standard. So, the total amount of money that
Vedan company have to pay to fix the consequence was higher 3000 times in
comparison with the environment protection fee. This number was not included
nearly 220 billion VND to retaliate the farm produce damage to 4700 farm
household in Dong Nai, Ba Ria- Vung tau province and Ho Chi Minh city. The
situation of Vedan company shows the warning in not only punishment form with
the violation in discarding waste but also the solution that force enterprises to pay
fee for their violation. However, in reality, money collecting method and
consequence overcome requirement is rarely applied. For example, after Vedan
situation, some violated cases surprised by the department of resource or
environment or environment police rarely has decision about forcing firms to pay
environment protection fee and overcome consequences. This leads to the problems
that many companies still discard wastes to the environment.

Measurement

Administrative
violated fine
Environmental
protection

The amount
money

of Compare with the administrative

violated amount of money
Percentage
Times
267.500.000 VND 100%
1 time
127.268.067.520
VND

Solutions for industrial waste in Vietnam

48%

476 times

- 17 Consequence
overcome
measurement
(investment,
renovation,
technology
advancement
Investigation fee,
damage statistics
of
function
institution of Ba
Ria- Vung Tau,
Dong Nai province
and Ho Chi Minh
city
Investigation,
exploration,
assessment,
consultation,
appraisement for
department
of
natural
resource
and environment
of Ho Chi Minh
national university
and for Vietnam
department
of
science
and
technology.
Total money to
overcoming
consequences
compared with the
money
of
administrative

33.187.516 USD to 248 %

667.750.320.000
VND 248 % 2.481

2.481 times

1.500.000.000
VND

561%

5 times

3.076.000.000
VND

1.150%

11 times

795.594.387.520
VND

297%

2974 ln

Solutions for industrial waste in Vietnam

- 18 violated
punishment
The comparison between the money level of administrative violated punishment and the fee
for overcoming consequence in situation of Vedan

Source : the document no.2041/BTNMT-TCMT on 07/6/ and the report no.165/TBBTNMT on 10/08/2010 of department of resource and environment.

The number of crime treatment cases of surpreme

people's court from 2001 to 2010
Cause water pollution

Cause soil pollution

Import techinique, machine, equipment

Disease spreading

Destroy the benefit of sea products

Destroy the forest

Violate the rule of protecting wild animals.

2%

0%

0%

1%

2%

48%
47%

4.

Shortcomings in the implementation of environmental inspections.

The institution related to environmental management in the industrial zones

are: Ministry of Natural Resources and Environment (for IPs and projects for large
scale IPs), Provincial People's Committees, District People's Committees and
several other ministries (for peculiarity projects). In addition, there are industrial
park manager, investors of construction and industrial park technical infrastructure
business. About monitoring force, specialized workforce in environment protection
in Vietnam is lower than many countries in the region. While some state managers
about the environment more than 1 million people in China are 40 people, Thailand
is 42 people, 55 people of Cambodia, Malaysia is 100 people, Singapore is 350
Solutions for industrial waste in Vietnam

- 19 people, Canada is 155 persons, the UK has 204 people and in Vietnam, it is just 29
people (Ministry of Natural Resources and Environment, 2013). The number of
state managers about environment is very modest when compared with the number
541.103 businesses across the country at the time of 01/01/2012 (GSO, 2012).
Because of the humble specialized staff force, mobilizing external resources, there
is many problems in organizing environment inspection activity. Namely, the
inspector of department of natural resource and environmental general directorate
inspector operate parallel to each other so the efficient is limited. The
environmental general directorate inspector, environmental police and local
environmental inspection operate overlapped, causing unnecessarily inconvenience
to the agents. Specially, the department of natural resource and environment rarely
implement administrative investigation. it leads the situation that there are many
factory, arsenal discard wastes to the environment defy breaking the rule of the
government.

Solutions for industrial waste in Vietnam

- 20 -

III.SOLUTIONS
After researching about industrial waste in Vietnam, due to the reasons we have
just shown above, we realized that the problems of industrial waste could be solved
in many ways. We decided to show our research in three small parts.
1.

Solutions of the firms

As we can easily see, firms play the most important role in industrial production
and they directly discharge waste into the environment. Therefore, to solve the
problem of waste, we have to highly focus on what firms did and are doing
related to waste discharging.
In Vietnam, industrial waste include solid waste, liquid waste, wastewater, and
CO2. For each kind of these, firms need to have plans to deal with them.
With the situation of Vietnam, while the technology is not highly developed, we
still have to use some of the traditional ways to dealt with waste.

1.1. Waste burying

This is the most simple and cheap method to deal with waste. After being
collected from production process, waste is moved to some remote areas or
isolated ground. They will be poured down into some kind of big hole dug
before. Then, they will be burned first or immediately covered by soil.
In some industrial zones along Vietnam, they have their owed waste yards and
the process of burying happen there. Other regions, or some others small firm,
they have to transport waste to only one area and did their duty there.
Below is a graph illustrating the process of burying waste:

Solutions for industrial waste in Vietnam

- 21 -

In reality, with a huge amount of waste, Vietnam do not have any safety waste
yard. The dealing process also cause some bad effects to human health and
environment. It also a waste of time, land and money because the waste is still
there, just covered by sold and we cannot bury all of them.
However, in the last few year, there were some waste yards that worked
effectively. For example, dumps processing and industrial waste landfill yard
located in the complex treatment solid waste yard Nam Son - Soc Son - Hanoi.
This facility was designed and expected to work until 2020 with high quality of
dealing with waste in the North of Vietnam.
1.2. Recycling
This method is related to some transformation process of material form. We
have to use some kinds of chemical compounds or fire to treat the waste simply,
and then use other chemicals or fire again to turn waste into pure materials of
production.
This method is very potential due to the fact that we can use waste to make
materials. However, the high costs and requirement of very advanced

Solutions for industrial waste in Vietnam

- 22 technology are the barriers preventing the access of developing countries, such
as Vietnam.

In fact, only some productive firms which have a large amount of capital are
able to buy the technology of recycling process to reuse what they throw out.
The rest of the industry can only wait for technology transfer or the help of the
others without a detail point of time.
1.3. Collaboration with companies specializing in waste management
This method is very popular in the whole world but not in Vietnam.
Productive firms and waste management companies sign a contract together.
Due to this contract, two sides will have their rights and obligations to deal with
waste. The waste management company will make sure that the industrial waste
of the others is safely dealt.
This collaboration has lots of potential aspects. First, for productive firm, they
can reduce the cost of production or the environment tax. On the other hand, for
the waste management company, they have the material for their duty, not only
create profit but also reduce the amount of waste and clean the environment,
bring back the fresh air or clean water.
Solutions for industrial waste in Vietnam

- 23 -

One of
the most famous waste management company in the US is California Waste
Solutions (CWS) of Mr.David Duong (Duong Tu Trung). He is a Vietnamese,
however, he move to US in 1980s. After a period of hard living time, he founded
CWS and began to success. In the last few year, he came back to Vietnam several
times and founded Vietnam Waste Solutions (VWS), with 100% capital from
CWS. His worth billions company is always leading the field of waste
management and providing great services about waste. If this organization can be
replicated throughout the country, the benefits that it offers is enormous.
1.4.
a.

Completing the organizational structure of environmental management

systems in firms
Decentralization and assigning clear responsibilities towards organizing
specific centralized management

IP Management Committee should be authorized to grant the industry to become a

master be fully assigned full authority and responsibility related to environmental
protection inside the IP. This is the unit in charge of implementing things like:
Evaluating and approving new investment report, confirming its commitment
to preserve the environment in the projects;
Check and confirm the results of the waste in the Industrial Zones;
To propagate and disseminate legal documents on environmental protection
Solutions for industrial waste in Vietnam

- 24

for investors and businesses

To receive and resolve disputes and petitions between production facilities
business in the industrial zones;
Department of Natural Resources and Environment, need to perform the
functions of state management of the environment in local, responsible for:
Construction, the promulgation of legal documents on environmental
management IPs in the jurisdiction.
Evaluating organizational environmental protection charge IPs.
Coordinate and support IP perform tasks by management IPs in charge of
implementing.
b.

Strengthening the capacity of staff in charge of environmental protection

It should focus on improving the qualifications and strengthening staff set.
Improving the quality of evaluation work established special industrial zones is
competent the environmental factors as well as the inspection supervision and
monitoring make enforced the regulations on environmental protection industrial
zones.
c. Strengthening coordination between the units concerned
Strengthen the coordination between central and local (the NRE, facility
NRE management of the industry) in implementing activities environmental
protection industrial zones
Strengthening coordination between authorities concerned including NRE
facility, environmental police, the People's Committees of districts with IP in
monitoring, checking and preventing violations of the law on environmental
protection of businesses in the industrial zones

2.

Solutions of the Government

Government do not directly intervene the method of waste management of the

firms. However, they can use their power to intervene how firm deal with
problems.
2.1.

Review and supplement the legal documents and policies, strengthen

measures of law enforcement on environmental protection
Legal documents and policies have the influence to force every firm to obey them.
Therefore, they have a big impact on the whole industry. Government have to:
Solutions for industrial waste in Vietnam

- 25 Discuss, consider every change as if it can change the whole situation of a

country
Create a complete legal framework for environmental protection in industrial
zones with the building act as mandatory sanctions for investors to build
waste treatment systems, review the technical guidelines in environmental
protection in industrial zones
Strengthen law enforcement on environmental protection
Strengthen the application of economic tools with reasonable cost in
environmental management. For example, environmental protection charge,
discharge permits, fund measures
2.2.

Planning industrial zones linked to the overall planning of economic and

social development and environmental protection
Study the transformation, how to make the current industrial zones more
environmentally friendly, strive to build eco-industrial zoness
Add more formulation and evaluation of strategic environmental assessment
for the planned development of industrial zones in Vietnam until 2020
Analyze the interactions between development plan of a regional industrial
zone to economic development plan of economic sectors - other communities
in the region: match the condition of natural resources and socio-economic
characteristics prospects for the world market

3.

Proposal about Government-Firm Waste Co-management system

After researching, we realized that both Government and firms are very
important in this problem. And due to the actual situation of Vietnam, we have a
proposal about a system, called Government-Firm Waste Co-management.
Our idea came from the fact that in Vietnam, Government have almost all
power to control firms. Besides that, the Vietnam Waste Solutions Company of
Mr.David Duong in Vietnam now are very effective in dealing with industrial
waste. If we can combine both of these characters in to one, we can come up with a
result that a system of many waste management companies, leaded by Government,
will deal with industrial waste in the whole country.
This system cover almost all regions of Vietnam, from North to South. They
collect waste from productive firms, industrial zones, and then distribute to the
factory in system, when the waste is treated safely.
Solutions for industrial waste in Vietnam

- 26 The advantage of this system is that because every factory is part of it, so
they can easily distribute the waste to reach the balance point. No factory is too
busy when others are free. Also, it is leaded by Government, so maybe it require a
lower cost to run.
On the contrary, there are also some disadvantages. For example, at the very
start it requires a huge amount of capital. And we need a lot of time to build the
facility as well as buy technology from foreign countries. We also need time to
train the labor to a new high level where they can control perfectly the technology
invested.

Solutions for industrial waste in Vietnam

- 27 Conclusion
In conclusion, although we are trying to reduce the amount of industrial
waste as well as their consequences, it seems that the situation is not really getting
better. For some reasons, we are still very passive in controlling. Not mention the
low technology or capital, Vietnamese firms also do not care about this problem
seriously. The solutions we raised above cannot go into reality if the Government
and the firms keep their recent attitude. We need more than just theories. It is the
determination of each party in the economy.
Thank you!

Solutions for industrial waste in Vietnam