When does illegal corporate discharge result only in administrative sanctions, and when does it become a crime? The answer lies in Article 235 of the Penal Code — the crime of causing environmental pollution, comprehensively amended by Law No. 86/2025/QH15 (effective 1 July 2025): higher penalties, lowered quantitative thresholds, and sharply increased fines for legal entities. This article analyses the new framework, with a focus on corporate liability.
1. The new Article 235 — what did Law 86/2025 change?
Item 12 of Article 1 of Law 86/2025/QH15 comprehensively amended Article 235, effective 1 July 2025. Core changes:
- higher imprisonment: clause 1: 2–3 years (old version: VND 50–500 million fine or 3 months–2 years); clause 2: 3–5 years; clause 3: 5–7 years;
- higher fines (clause 1: VND 100 million–1 billion; clause 2: VND 1–2 billion; clause 3: VND 2–6 billion);
- lowered thresholds for hazardous environmental parameters exceeding national technical regulations — easier to constitute the crime;
- doubled fine framework for legal entities — up to VND 24–40 billion.
Always cite the new version — never the old Article 235 (2015/2017).
2. “Illegal discharge” — conduct groups at Article 235(1)
- Illegally burying, filling, dumping or discharging hazardous waste: quantified by weight — 1,000–under 3,000 kg of especially hazardous waste / 3,000–under 10,000 kg of other types; lower thresholds where the offender was previously administratively sanctioned or convicted (record not expunged) for this conduct and reoffends;
- Discharging wastewater with hazardous environmental parameters exceeding national technical regulations (QCVN): quantified by m³/day combined with the multiple of exceedance — e.g. clause 1: 500–under 5,000 m³/day at 3–under 5 times the limit; or 300–under 500 m³/day at 5 times or more (point (c)); lower thresholds for repeat offenders after administrative sanction/conviction (point (d)). Clause 2: e.g. 5,000–under 10,000 m³/day at 3–under 5 times, or 500–under 5,000 m³/day at 5 times or more. Clause 3: e.g. 10,000 m³/day or more at 3–under 5 times, or 5,000 m³/day or more at 5 times or more;
- Emitting exhaust gas exceeding QCVN: quantified by m³/hour combined with the multiple of exceedance;
- Ordinary solid waste (100,000–under 200,000 kg), radioactive substances;
- Clause 2 adds “causing serious consequences”; clause 3 adds “causing very serious or especially serious consequences”.
“Illegal” in Article 235 is determined by violation of national technical regulations on the environment and the environmental licence under the Law on Environmental Protection (specific QCVN numbers must be verified before citation).
3. How are companies punished? — The legal-entity framework (clause 5)
Article 235 falls under Article 76 of the Penal Code — commercial legal entities bear criminal liability for this crime. The framework at Article 235(5):
| Case | Penalty |
|---|---|
| Clause 1 | Fine of VND 6–14 billion |
| Clause 2 | Fine of VND 14–24 billion or suspension of operations for 6 months–2 years |
| Clause 3 | Fine of VND 24–40 billion or suspension of operations for 1–3 years |
| Cases under Article 79 | Permanent suspension of operations |
| Supplementary penalty | Fine of VND 2–10 billion; ban from business or operating in certain sectors for 1–3 years |
This is the highlight of the article: a company illegally discharging at clause 3 may be fined up to VND 40 billion plus suspension of operations.
4. Supplementary penalties for individuals (clause 4)
Fine of VND 60–400 million; ban from holding office, practising or performing certain work for 1–5 years. (The personal liability of factory directors is analysed separately in the article on Article 235 — personal liability of managers.)
5. The dividing line: administrative sanctions vs criminal prosecution
Not every discharge exceeding the standards is a crime. Below Article 235’s quantitative thresholds → administrative sanctions under Decree 45/2022/ND-CP (issued 7 July 2022, effective 25 August 2022 — still in effect at the time of writing, verified 14 October 2026):
- fines of up to VND 1 billion (individuals) / VND 2 billion (organisations);
- deprivation of the right to use the environmental licence for 1–24 months;
- suspension of the waste-generating source for 1–6 months;
- remedial measures.
Note the “ladder” of liability: conduct below the criminal threshold → administrative fine; conduct previously administratively sanctioned for Article 235 conduct, then reoffending at lower quantities → may still constitute the crime (points (b), (d), (e), (g) of Article 235(1)).
6. Transitional rule — Article 4 of Law 86/2025/QH15
The transitional rule of Law 86/2025: the new provisions are unfavourable to offenders → they apply only to conduct from 1 July 2025; conduct before 1 July 2025 is governed by the old law (clause 1: VND 50–500 million fine or 3 months–2 years; clause 2: VND 500 million–1 billion or 1–5 years; clause 3: VND 1–3 billion or 3–7 years; legal entities: VND 3–7 / 7–12 / 12–20 billion). When assessing a specific case, the time of the conduct determines the applicable framework.
7. The current administrative environmental law framework
The Law on Environmental Protection 72/2020/QH14 (effective 1 January 2022) remains in effect; most recently amended by Law 146/2025/QH15 (passed 11 December 2025, effective 1 January 2026). The environmental licence and periodic environmental monitoring are the company’s core preventive tools.
Conclusion
From 1 July 2025, Article 235 of the Penal Code tightens significantly: lower constitutive thresholds, higher imprisonment, and legal entities facing fines of up to VND 40 billion plus suspension of operations. Companies should review their environmental licences, monitoring systems and waste treatment processes — because once the quantitative thresholds are crossed, the consequences no longer stop at administrative fines.
Note: This article is for reference only and is not legal advice. Each specific case must be assessed on its own facts, evidence and applicable law — please consult a lawyer for detailed advice.
For reference only, not legal advice. Content quality-checked by the AI Legal Council; not yet reviewed by a human lawyer.