A practical scenario: a Vietnamese group buys a factory in Texas. It brings Vietnamese environmental-permitting experience — then discovers America needs federal (EPA) permits + Texas state permits + county rules. “In Vietnam it’s one dossier!” — America is two-tier federalism: environmental permits come in two tiers too.
1. Vietnam: one unified system
Under Environmental Protection Law 2020 (72/2020/QH14): projects prepare an EIA approved before implementation; an integrated environmental permit (since 2022, merging component permits) before operation — one system, one contact point under the current decentralization (provincial/communal levels). Clear, nationally uniform procedures — investors “learn” one rulebook. Post-permit duties: monitoring and periodic reporting for the factory’s lifetime.
2. The US: NEPA + EPA + state permits — three layers
The United States: NEPA (National Environmental Policy Act) requires environmental review for projects with a federal nexus (federal funding, federal land, federal permits) — not every private factory goes through NEPA. But every factory faces: the EPA with the Clean Air Act (air permits), Clean Water Act (NPDES discharge permits); states with their own permit systems (Texas — TCEQ; California — stricter than federal); and possibly county add-ons. Buying a US factory: Phase I/II environmental assessment is mandatory — CERCLA’s joint, retroactive liability (see the M&A topic).
3. Comparing for investors
- Structure: Vietnam — one unified system; the US — federal + state (+ local) layers.
- EIA: Vietnam — mandatory for covered projects; the US — NEPA only with federal nexus.
- Operating permits: Vietnam — one integrated permit; the US — multiple permits (air, water, waste…) per agency.
- Factory transactions: the US — mandatory Phase I/II ESA for CERCLA; Vietnam — EIA/permit status diligence.
- Enforcement: both — surprise inspections, heavy fines; the US adds environmental citizen suits.
Environment: understand each country’s structure before permitting
This article is general information. Each project needs its own procedures. FLAT Law Firm supports investors on environmental law in Vietnam. Contact us for advice.
This article is general information only and does not replace legal advice for any specific case. Regulations may change; please check the current texts.
Frequently asked questions
1. What is NEPA?
The US National Environmental Policy Act — environmental review for projects with federal nexus.
2. What is NPDES?
Discharge permits under the US Clean Water Act — issued by EPA or authorized states.
3. What diligence does buying a US factory need?
Phase I/II Environmental Site Assessment — mandatory given CERCLA’s joint, retroactive liability.
4. How do Texas and California differ?
Each state runs its own permit system; California is often stricter than federal standards.
5. How many environmental permits does Vietnam have?
One — the integrated environmental permit (since 2022) after EIA approval.
This article is pending review by the QA Council.
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