Reader’s Question:
The project has had its Environmental Impact Assessment (“EIA”) report approved by a provincial-level department (under the Provincial People's Committee). According to its current scale, the project is classified as Group B, does not involve environmentally sensitive factors, and is not engaged in industries or sectors with a high risk of environmental pollution as stipulated in Appendix II of Decree No. 08/2022/ND-CP. Accordingly, the project is categorized as a Group III project and falls under the jurisdiction of the District-level People’s Committee for the issuance of the Environmental Permit (“EP”).
In the event that the district-level administrative unit is dissolved due to administrative merger, will the authority to process the application for the Environmental Permit be transferred to the Commune-level People’s Committee where the project is located, or will it be escalated to the Provincial People’s Committee?
ATA’s Response:
Dear Valued Client,
Thank you for placing your trust in ATA Legal Services (“ATA”). Based on the case you described, we are pleased to offer the following legal opinion:
1. Legal Status of the Project
According to the information you provided, your ongoing project has been approved by the Department of Natural Resources and Environment and the Provincial People's Committee for the environmental impact assessment report. At the same time, the project:
(i) Belongs to group B;
(ii) Does not have sensitive environmental factors;
(iii) Is not in an industry with a risk of causing environmental pollution;
(iv) Has no information indicating that the project is located in the territory of two or more district-level administrative units.
Thus, your project is a production, business, and service type project with a small scale and capacity that may cause environmental pollution as stipulated in Point a, Clause 5, Article 28 of the Environmental Protection Law and belongs to the list of Group III investment projects with low risk of adverse environmental impact according to Appendix V issued together with Decree No. 05/2025/ND-CP.
With the above characteristics, your project will be under the authority of environmental impact assessment appraisal by the Provincial People's Committee (through the specialized agency, the Department of Natural Resources and Environment) according to Clause 3, Article 35 of the Environmental Protection Law, and under the authority of issuing environmental licenses by the District People's Committee according to Clause 3, Article 41 of the Environmental Protection Law.
Regarding your question on the authority to handle the environmental license dossier after the administrative unit reorganization and the dissolution of district-level units, we understand that your project may be in the process of or about to carry out procedures to apply for environmental licenses or to re-issue, amend, renew, or revoke environmental licenses according to regulations.
2. Environmental Permit Issuance Authority for the Project
At this time, ATA is unable to definitively determine the licensing authority for your project after the dissolution of district-level administrative units. However, in principle, legal regulations remain in effect until new legal documents are issued to amend and/or replace them.
Currently, pursuant to Official Dispatch No. 500/TTg-KSTT dated May 4, 2025, issued by the Prime Minister regarding the delineation of authority in handling district-level administrative procedures to ensure effective implementation without interrupting the management, monitoring, receipt, and resolution of administrative procedures for citizens and businesses upon the termination of district-level local government and the organization of two-tier local government. Accordingly, the Prime Minister requests a review of administrative procedures under the jurisdiction of district-level authorities in order to issue normative legal documents to reduce and redefine the resolution authority, including procedures under the Ministry of Agriculture and Environment: (i) Issuance of environmental licenses (district level); (ii) Re-issuance of environmental licenses (district level); (iii) Amendment of environmental licenses (district level); (iv) Renewal of environmental licenses (district level), before June 10, 2025. Accordingly, no later than June 10, 2025, the Ministry and ministerial-level agencies shall issue detailed guidance documents on the redefinition of authority in handling environmental license administrative procedures, and concurrently, promptly announce and publicize the administrative procedures immediately after the amendments are made to serve as a basis for localities to apply within their provinces and cities.
The Ministry of Home Affairs has published the Draft Law on the Organization of Local Government (amended), which includes proposals related to the resolution of district-level administrative procedures from July 1, 2025. If the proposal is approved, the Chairman of the provincial People's Committee shall have the authority and responsibility to assign specialized agencies and administrative bodies to resolve the procedures as follows:
- For construction works and investment projects under the approval authority of district level that, as of July 1, 2025, have not yet been completed, or those completed before July 1, 2025 but arise issues to be resolved afterwards: the grassroots-level People's Committee where the construction work or project is located shall continue implementation;
- For construction works or projects involving two or more newly formed grassroots-level administrative units after the reorganization, or beyond the implementation authority of the grassroots level: other specialized agencies or administrative bodies under the provincial People's Committee shall continue to handle them.
Accordingly, if the Draft Law on the Organization of Local Government (amended) is passed, your project will continue to be implemented by the grassroots-level People's Committee where the project is located. In case the project involves two or more newly formed grassroots-level administrative units after the reorganization or exceeds the implementation authority of the grassroots level, it shall be handled by the provincial-level People's Committee.
Therefore, from now until before July 1, 2025 [1], in the event your project requires the resolution of an environmental permit, you shall continue to carry out the relevant administrative procedures with the District-level People’s Committee in accordance with current legal regulations.
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[1] Resolution No. 60-NQ/TW of 2025 adopted at the 11th Plenum of the 13th Party Central Committee provides: "Regarding the organization of the two-tier local government structure: (1) Approves the policy to organize local governments at two tiers: the provincial level (provinces and centrally-run cities) and the commune level (communes, wards, and special zones under the provinces and centrally-run cities); the operation of district-level administrative units shall cease as of July 1, 2025, after the amended and supplemented Resolution revising a number of articles of the 2013 Constitution and the 2025 Law on Organization of Local Government (amended) comes into effect"
Comment: