CIRCULAR

GUIDELINES FOR IMPLEMENTATION OF LAW ON ENVIRONMENTAL PROTECTION REGARDING RESPONSE TO CLIMATE CHANGE

Pursuant to the Law on environmental protection dated November 17, 2020;

Pursuant to the Government’s Decree No. 36/2017/ND-CP dated April 04, 2017 defining functions, tasks, powers and organizational structure of the Ministry of Natural Resources and Environment;

Pursuant to the Government’s Decree No. 06/2022/ND-CP dated January 07, 2022 on mitigation of greenhouse gas emissions and ozone layer protection;

At the request of the Director of Department of Climate Change and the Director of Legal Department;

The Minister of Natural Resources and Environment of Vietnam promulgates a Circular providing guidelines for implementation of the Law on Environmental Protection regarding response to climate change.

Chapter I

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Article 1. Scope

This Circular elaborates on the provisions of Point g Clause 2 Article 27, Point c Clause 3 Article 90, Point c Clause 4 Article 91, Point b Clause 3 and Clause 6 Article 92 of the Law on Environmental Protection, and Point d Clause 4 Article 10, Clause 5 and Clause 6 Article 11, Point d Clause 5 Article 22 and Clause 4 Article 28 of the Government’s Decree No. 06/2022/ND-CP dated January 07, 2022 prescribing mitigation of greenhouse gas (GHG) emissions and ozone layer protection.

Article 2. Regulated entities

This Circular applies to regulatory authorities, organizations and individuals involved in the climate change response; inventory and mitigation of GHG emissions; activities related to ozone-depleting substances (ODS) and substances that cause greenhouse effects controlled under the Montreal Protocol on Substances that Deplete the Ozone Layer.

Article 3. Definitions

For the purposes of this Circular, these terms shall be construed as follows:

1. “climate change impact assessment” means the act of determining positive, negative, short-term and long-term effects; the vulnerability, risks and loss or damage caused by the climate change to the natural, economic and social systems at any given time and place.

2. “hazard" means the possibility of unusual climate events or phenomena that cause damage to people, property, material facilities, social – economic activities, natural resources and environment.

3. “exposure” means the presence of people, social – economic activities, ecosystems, natural resources, infrastructure, and cultural structures in places that could be adversely affected by climate change.

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5. “adaptive capacity” means the ability of natural systems, social – economic activities, institutions, policies and human resources to mitigate negative effects and take advantage of opportunities of effects of climate change.

6. “vulnerability” means the susceptibility of a natural, economic or social system to the negative effects of climate change. The components of vulnerability include a combination of sensitivity and adaptive capacity to negative effects of climate change.

7. “risk” means the potential for consequences of hazards caused by climate change to people, property, material facilities, social – economic activities, natural resources and environment. Risk is the outcome of a combination of vulnerability, exposure and hazards caused by climate change.

8. “loss and damage” means economic and non-economic loss and damage caused by negative effects of climate change to natural, economic and social systems.

9. “GHG sink” means a natural or artificial system that is capable of absorbing and storing greenhouse gases (GHG) from the atmosphere. The main GHG sinks are forests (through photosynthesis) and ocean (through phytoplankton and ocean circulation).

10. “global warning potential – GWP” means the ability of GHG to trap heat in the atmosphere over a period of time (usually 100 years) compared to carbon dioxide (CO₂).

11. “ozone depletion potential – ODP” means the relative amount of degradation to the ozone layer that a substance can cause.

Chapter II

ASSESSMENT OF IMPACTS, VULNERABILITY, RISKS, LOSS AND DAMAGE CAUSED BY CLIMATE CHANGE

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1. Assessment of impacts, vulnerability, risks, loss and damage caused by climate change (hereinafter referred to as “climate change impact assessment”) must be carried out in an objective manner and on scientific basis; adequately and consistently reflect the information and methods of assessment employed as well as assessment results.

2. Contents and procedures for climate change impact assessment set out in this Circular shall be complied.

Article 5. Information and data used for assessment

1. Updated climate change scenarios published by the Ministry of Natural Resources and Environment of Vietnam, including the following maps and spatial and temporal information/data:

a) Temperature: including mean annual temperature, mean seasonal temperature, maximum temperature and minimum temperature;

b) Rainfall: including mean annual rainfall, mean seasonal rainfall; highest 1-day rainfall, highest 5-day rainfall, and number of days with rainfall greater than 50 mm;

c) Extreme climate events: including storms and tropical depression, monsoons, severe and harmful cold, heat waves, droughts and other extreme climate events.

d) Sea level rise: including sea level rise in coastal areas and islands, extreme sea level (including storm tide, coastal tide, and combination of storm surge and tide), and risk of flooding due to sea level rise;

dd) Other relevant information.

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3. Sectoral and socio-economic development strategies and plans.

4. Regulations on technical-economic norms, unit prices, and investment rates promulgated by competent authorities.

5. Statistical reporting data and relevant documents.

Article 6. Assessment contents

1. Contents of climate change impact assessment include:

a) Assessment of impacts of climate change on natural systems, including soil, water, minerals and forest resources, biodiversity, marine resources, islands and other resources and environmental factors;

b) Assessment of impacts of climate change on economic systems, including production, business and service provision activities, infrastructure facilities in the fields of agriculture, forestry, transport, construction and urban development, industry, energy, information and communication, tourism, commerce and services, and other relevant activities;

c) Assessment of impacts of climate change on social systems, including population distribution, housing and living conditions, medical services, healthcare, culture, education, vulnerable communities, gender and poverty reduction.

2. Assessment of impacts of climate change on a specific area or region should base on the assessment contents specified in Clause 1 of this Article.

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1. Determine assessment scope

a) Spatial scope is a geographic scope of a region subject to climate change impact assessment;

b) Temporal scope is the period of time over which the assessment is carried out, including the past and the future. The assessment period includes a period in the past of at least 5 years before the assessment date and a period in the future which is determined in conformity with the objectives of the assessment.

2. Determine subjects of the assessment, including: subjects of natural, economic and social systems as prescribed in Clause 1 Article 6 of this Circular.

3. Carry out analysis of climate change scenarios

Based on updated climate change scenarios published by the Ministry of Natural Resources and Environment of Vietnam, determined scope and subjects of assessment, the following tasks will be performed:

a) Provide additional and/or detailed information and data on the scope and subjects of the assessment;

b) Carry out analysis of characteristics and trends of climate change;

c) Determine and analyze climate factors which are important to the subjects of assessment;

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4. Carry out analysis of socio-economic development forecasts

The analysis of sectoral and socio-economic development strategies and plans, and other relevant documents is carried out for the purposes of determining:

a) development objectives and orientations in the future of the assessment region or sector;

b) spatial scope and contents of development plans in the future related to the subjects of assessment.

5. Select assessment methods

a) The climate change impact assessment may be carried out using either quantitative or qualitative method. The quantitative method includes predictive modeling, map overlaying, rapid assessment and empirical statistics. The qualitative method includes evaluation matrix, checklist, network method, investigation and interview, professional solution and participatory assessment;

b) The vulnerability and risks of climate change shall be assessed adopting investigation and interview, consultation, empirical statistics, modeling or map overlaying method;

c) Loss and damage caused by climate change shall be assessed adopting methods for determining economic and non-economic loss and damage. Economic loss and damage may be determined adopting investigation and interview, statistics, or cost-benefit analysis method. Non-economic loss and damage may be determined adopting predictive modeling, analysis of general risk indicators or participatory assessment method;

d) The selection and application of any of the assessment methods specified in Points a, b, c of this Clause must be conformable with the subjects and scope of assessment; the ability to meet information requirements as well as data availability.

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a) Identify, screen and determine types of climate change impacts based on assessment subjects, climate change scenarios and contents to be performed, including positive, negative, short-term and long-term effects;

b) Investigate, collect and consolidate information used for determining climate change impacts in the past, including information on natural, economic and social systems of the assessment subjects specified in Clause 1 Article 6 of this Circular.

c) Investigate, collect and consolidate information used for forecasting effects of climate change in the future, including data and maps of factors included in climate change scenarios; information and maps showing development plans (including land use maps, population and urban development plans, and infrastructure development plans), and other relevant information;

d) Analyze and determine positive, negative, short-term and long-term effects of climate change on assessment subjects.

7. Assess vulnerability and risks of climate change

a) Determine hazards to the assessment subjects on the basis of analysis of negative effects of climate change;

b) Determinate attribute components of hazards, exposure, sensitivity and adaptive capacity which must be suitable for the scope and subjects of assessment and ensure the representation and feasibility.

Attribute components of hazards shall be determined according to climate change factors (including temperature, rainfall, sea level rise, and extreme climate events) which may negatively affect the assessment subject.

Attribute components of exposure shall be determined according to the level of exposure (positions) of the assessment subject to negative effects of climate change.

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Attribute components of adaptive capacity shall be determined according to the relevant organization's ability, technical and financial capacity, and other factors;

c) Investigate, collect and consolidate relevant information for determining attribute components of sensitivity, adaptive capacity, hazards and exposure;

d) Normalize values of the selected attribute components to 0-1 range. Each attribute component shall be normalized within the spatial scope and on the basis of positive or negative relationship between components to be normalized and the vulnerability or risk indicator for determining and employing appropriate normalization formula;

dd) Determine weighing factor of each attribute component based on the importance of that attribute component;

e) Determine the vulnerability based on the sensitivity and adaptive capacity; determine risks based on hazards, exposure and vulnerability. Detailed guidelines for selection and determination of attribute components of vulnerability and risks caused by climate change are provided in Appendix I.1 enclosed herewith;

g) Consolidate and, based on assessment values normalized to the 0-1 range, classify vulnerability and risks into 05 levels as follows: very low, low, average, high or very high;

h) Map the vulnerability and risks caused by climate change to each assessment subject for each type of hazards according to technical regulations on measurement and mapping.

8. Assess loss and damage caused by climate change

a) Determine economic and non-economic loss and damage to natural, economic and social systems following to the rule that loss and damage must be identifiable, direct and measured in terms of volume and extent of loss and damage.

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Non-economic loss and damage shall be applied to natural and social systems. With regard to natural system, attribute components include land loss due to flooding, landslides, soil salinity, biodiversity loss, ecosystem decline and others. With regard to social system, attribute components include damage to people, health, traditional knowledge, cultural heritage and others;

b) Investigate, collect and consolidate information/data on loss and damage caused by climate change in the past. Information/data to be investigated and collected include occurrence time, volume, level/extent of damage, remedial costs and other relevant information;

c) Investigate, collect and consolidate information/data on loss and damage caused by climate change in the future for the periods determined according to assessment objectives. Information/data to be investigated and collected include estimated volume, level/extent of loss and damage;

d) Calculate and analyze economic loss and damage in the past and in the future according to subjects, and loss and damage components determined.

Value of loss or damage to each attribute component shall be calculated adopting the following formula:

L = D x C

Where:

L is the value of loss or damage in cash (VND);

D is the volume of loss or damage;

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Values of loss and damage in the past and in the future should be converted into equivalent values at the assessment time using an appropriate discount ate. The discount rate shall be selected on the basis of the real return of a market investment, inflation rate and risk offsetting rate. Average values of these rates shall be calculated on the basis of data obtained in the period of at least 05 years before the assessment date;

dd) Analyze economic loss and damage in the past and in the future according to subjects and loss and damage components through description and assessment of determined loss and damage types;

e) Consolidate results and determine economic and non-economic loss and damage to the assessment subject;

g) Detailed guidelines for determination of loss and damage caused by climate change are provided in Appendix I.2 enclosed herewith.

9. Prepare reports on climate change impact assessment.

Article 8. Assessment reports

1. Reports on climate change impact assessment shall be prepared using the form in Appendix I.3 enclosed herewith.

2. A report on climate change impact assessment shall, inter alia, include the following information:

a) Objectives, contents, subject, scope and method of assessment;

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c) Analysis of climate change scenarios;

d) Analysis of socio-economic development forecasts and other relevant documents;

dd) Assessment results of affects of climate change, vulnerability, risks and loss and damage caused by climate change;

e) Proposed climate change adaptation solutions.

2. Agencies or organizations that carry out the assessment shall publish reports on climate change impact assessment on their websites.

Chapter III

VERIFICATION OF GHG INVENTORY RESULTS AND GHG EMISSIONS MITIGATION

Article 9. Verification requirements

1. The verification of sectoral and internal GHG inventory results and GHG emissions mitigation shall be carried out in an objective manner and on scientific basis.

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Article 10. Procedures for verification of sectoral GHG inventory results

1. The sector management ministry shall establish and organize meeting of the council for verification of sectoral GHG inventory results. The valuation council is comprised of representatives of the sector management ministry, the Ministry of Natural Resources and Environment of Vietnam and relevant ministries, and relevant specialists.

2. Members of the verification council shall verify GHG inventory results according to the following primary contents:

a) Adequacy of GHG inventory contents, information and data;

b) Conformity of determination of emission sources and GHG sinks;

c) Conformity of GHG inventory method, applied emission factor, quality control and quality assurance measures, and the GHG emissions information/data system of the sector management ministry;

d) Assessment of the accuracy and reliability of GHG inventory results.

3. Within 05 business days, the verification council shall ratify and provide the sector management ministry with the meeting minutes which have the following primary contents:

a) Assessment of GHG inventory process and results;

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c) Recommendations for revision of GHG inventory results based on opinions given by the verification council;

d) Conclusions given by the verification council.

4. The sector management ministry shall organize revision of GHG inventory results according to conclusions given by the verification council for use as the basis for preparing consolidated reports of the sector management ministry which shall be then used for serving national GHG inventory.

Article 11. Procedures for verification of sectoral GHG emission mitigation

1. The sector management ministry shall establish and organize meeting of the council for verification of sectoral GHG emission mitigation. The valuation council is comprised of representatives of the sector management ministry, the Ministry of Natural Resources and Environment of Vietnam and relevant ministries, and relevant specialists.

2. Members of the verification council shall verify the GHG emission mitigation report according to the following primary contents:

a) Conformity of sectoral GHG emission mitigation policies and measures with sectoral development strategies and plans;

b) Reliability and adequacy of GHG inventory information/data and BAU (Business-As-Usual) scenario in the planning period;

c) Conformity of measures for determining decreases in GHG emissions of GHG emission mitigation policies and measures;

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dd) Possibility for double counting of GHG emission mitigation results.

3. Within 05 business days, the verification council shall ratify and provide the sector management ministry with the meeting minutes which have the following primary contents:

a) Assessment of GHG emission mitigation process and results;

b) Shortcomings and restrictions of GHG emission mitigation report;

c) Recommendations for revision of GHG emission mitigation report based on opinions given by the verification council;

d) Conclusions given by the verification council.

4. The sector management ministry shall prepare the report on evaluation of sectoral GHG emission mitigation using the form in Appendix II.1 enclosed herewith, and submit it together with the report on sectoral GHG emission mitigation which has been completed according to conclusions given by the verification council to the Ministry of Natural Resources and Environment of Vietnam.

5. The sector management ministry shall manage and retain all documents and reports on evaluation of sectoral GHG emission mitigation.

Article 12. Procedures for verification of internal GHG inventory results

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2. The verification agency shall verify the internal GHG inventory results according to the following primary contents:

a) Adequacy of contents, information and data of the report on internal GHG inventory;

b) Conformity of determination of emission sources and GHG sinks in the report on internal GHG inventory;

c) Conformity of GHG inventory method, applied emission factor, quality control and quality assurance measures, and the GHG emissions information/data system of the verified establishment;

d) Accuracy of internal GHG inventory results.

3. Within 20 business days, the verification agency shall give a notice of verification results, including required revisions (if any) to the report on internal GHG inventory. In case revisions are required, the verified establishment shall complete its report on internal GHG inventory according to the notice of verification results.

4. The verified establishment shall send its completed report on internal GHG inventory to the verification agency and the Ministry of Natural Resources and Environment of Vietnam.

5. During verification, the verification agency is entitled to:

a) invite organizations and/or individuals with appropriate professional qualifications, capacity and experience to participate in the verification process;

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c) request to carry out verification visit and take representative samples at the establishment (if deemed necessary).

6. The verification agency shall manage and retain verification documents and send the report on internal GHG inventory which has been completed by the establishment to the sector management ministry for updating the online database GHG inventory in their managing sector.

Article 13. Procedures for verification of internal GHG emission mitigation

1. The verification agency shall organize verification of GHG emission mitigation when receiving the report on GHG emission mitigation from the establishment.

2. The verification agency shall verify the internal GHG emission mitigation report according to the following primary contents:

a) Reliability and adequacy of information/data included in the report;

b) Conformity of GHG emission mitigation measures, measures for determining decreases in GHG emissions, and the establishment’s information and data system described in the report;

c) GHG emission mitigation results according to the establishment’s plan for GHG emission mitigation and GHG emission quota allocated to the establishment.

3. The verification agency shall prepare the report on verification of GHG emission mitigation using the form in Appendix II.2 enclosed herewith, and send it to the verified establishment.

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Article 14. Procedures for verification of consolidated report on GHG emission mitigation

1. The Ministry of Natural Resources and Environment shall establish a council in charge of verifying the consolidated report on GHG emission mitigation. The verification council is comprised of at least 09 members, including the council’s chairperson, the council's deputy chairperson, secretary, 02 review members and at least 04 other members. Members of the verification council include representatives of relevant regulatory authorities affiliated to the Ministry of Industry and Trade, the Ministry of Transport, the Ministry of Agriculture and Rural Development, the Ministry of Natural Resources and Environment, the Ministry of Construction, and other specialists with appropriate professional qualifications.

2. Members of the verification council shall examine the consolidated report on GHG emission mitigation and give their opinions about the following primary contents:

a) Adequacy of contents, information and data of the consolidated report on GHG emission mitigation;

b) Conformity of GHG emission mitigation policies and measures in sectors with the national development strategies and plans;

c) Conformity of measures for determining decreases in GHG emissions of GHG emission mitigation policies and measures;

d) GHG emission mitigation results which must be compared with the national BAU scenario in the planning period;

dd) Possibility for double counting of GHG emission mitigation results.

3. Within 10 business days from the date of the verification meeting, the verification council shall consider ratify and provide the Ministry of Natural Resources and Environment with the meeting minutes which shall, inter alia, include the following primary contents:

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b) Shortcomings and restrictions of the consolidated report on GHG emission mitigation;

c) Recommendations for revision of the consolidated report on GHG emission mitigation based on opinions given by members of the verification council;

d) Conclusions given by the verification council.

4. The Ministry of Natural Resources and Environment of Vietnam shall organize completion of the consolidated report on GHG emission mitigation according to conclusions given by the verification council.

5. The verification council shall convene a meeting if it is attended (directly or online) by at least two thirds of its members which include its chairperson or deputy chairperson, secretary and at least a review member.

6. The council’s chairperson shall:

a) directly chair or authorize the council's deputy chairperson to chair the meeting;

b) respond to opinions stated at the meeting, reach conclusions and assume responsibility for such conclusions;

c) sign the meeting minutes and assume responsibility for the accuracy and truthfulness of contents of the meeting minutes.

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LIST, GUIDELINES ON USE, COLLECTION, TRANSPORT, RECYCLING, REUSE AND TREATMENT OF CONTROLLED SUBSTANCES

Article 15. List of controlled substances

1. The list of controlled substances which are banned from production, import and consumption as prescribed in Point d Clause 5 Article 22 of the Decree No. 06/2022/ND-CP is provided in Appendix III.1 enclosed herewith.

2. The list of controlled ozone-depleting substances as prescribed in Point b Clause 3 Article 92 of the Law on Environmental Protection is provided in Appendix III.2 enclosed herewith.

3. The list of substances that cause greenhouse effects controlled as prescribed in Point b Clause 3 Article 92 of the Law on Environmental Protection is provided in Appendix III.3 enclosed herewith.

4. The list of products, equipment or goods containing or made of controlled substances as prescribed in Point b Clause 3 Article 92 of the Law on Environmental Protection is provided in Appendix III.4 enclosed herewith.

Article 16. Guidelines on use of controlled substances

1. Any producers, importers, exporters and users of controlled substances are required to strictly implement the following management methods:

a) Registration of use of controlled substances;

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c) Production/import quotas.

Detailed information on management measures and validity period for each of the controlled substances are provided in Appendix III enclosed herewith.

2. Importers/exporters of products, equipment or goods containing or made of controlled substances shall clearly provide information on controlled substances when following customs procedures.

3. Importers/exporters of controlled substances bearing the same HS code shall clearly provide information on each of such controlled substances when following customs procedures.

Article 17. Collection, transport, recycling, reuse and treatment of controlled substances

1. Any users of controlled substances or equipment or products containing controlled substances prescribed in Clause 6 Article 92 of the Law on Environmental Protection include:

a) Producers of controlled substances as prescribed in Point a Clause 1 Article 24 of the Decree No. 06/2022/ND-CP;

b) Producers or importers of equipment or products containing or made of controlled substances as prescribed in Point c Clause 1 Article 24 of the Decree No. 06/2022/ND-CP;

c) Owners of equipment containing controlled substances, including: air conditioners with a nominal cooling capacity greater than 26.5 kW (90,000 BTU/h) and with a total nominal cooling capacity greater than 586 kW (2,000,000 BTU/h), and industrial refrigeration equipment with electric power greater than 40 kW as prescribed in Point d Clause 1 Article 24 of the Decree No. 06/2022/ND-CP;

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2. The entities prescribed in Clause 1 of this Article are required to strictly comply with regulations on collection, transport, storage, recycling, reuse and treatment of controlled substances laid down in Article 28 of the Decree No. 06/2022/ND-CP.

3. Technicians in charge of installing, operating, maintaining and repairing equipment containing controlled substances as prescribed in Clause 4 Article 28 of the Decree No. 06/2022/ND-CP are required to possess vocational secondary qualification or higher in one of the following majors:

a) Thermal engineering technology;

b) Electronics and building energy engineering;

c) Mechanical engineering, heating and air conditioning;

d) Refrigeration equipment installation;

dd) Maintenance and repair of thermal equipment;

e) Refrigeration machine and air conditioning engineering;

g) Refrigeration equipment operation and repair;

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Article 18. Treatment of controlled substances

1. Controlled substances which have been collected but cannot be recycled o reused must be properly treated to avoid being released into the environment.

2. The treatment of controlled substances shall comply with regulations of law on hazardous waste management.

Chapter V

IMPLEMENTATION

Article 19. Transition

The results of climate change impact assessment carried out before the effective date of this Circular shall be considered and verified in accordance with the provisions of the Circular No. 08/2016/TT-BTNMT dated May 16, 2016 of the Minister of Natural Resources and Environment of Vietnam.

Article 20. Effect

1. This Circular comes into force from January 07, 2022.

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Article 21. Implementation organization

1. Ministries, ministerial agencies, Governmental agencies, provincial People’s Committees, and relevant organizations and individuals are responsible for the implementation of this Circular.

2. Difficulties that arise during the implementation of this Circular should be promptly reported to the Ministry of Natural Resources and Environment of Vietnam for consideration./.

PP. MINISTER
DEPUTY MINISTER




Le Cong Thanh