You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

April 8, 2021

Vietnam Updates Regulations on Oil Spill Response

Subscribe to Updates

On March 24, 2021, the Prime Minister of Vietnam issued Decision No. 12/2021/QD-TTg issuing regulations on oil spill response (Decision 12). Decision 12 will take effect on May 10, 2021, replacing Decision No. 02/2013/QD-TTG as amended by Decision No. 63/2014/QD-TTg (together, Decision 02).

Broadly speaking, the changes introduced by Decision 12 are minor, and serve mainly to update aspects of Decision 02. One of the more notable changes is the introduction of templates for oil spill response plans (OSR plans) which are provided under Decision 12 to support localities to formulate and prepare their own OSR plans, which must then be approved by the relevant authorities.

Another notable change is the introduction of the timeline for evaluation and approval of OSR plans at all levels. Accordingly, such timelines are elaborated as follows:

  • For OSR plans requiring approval from the National Committee for Natural Disaster Response and Search and Rescue (VINASARCOM): Within 30 working days from the date of receipt of complete and valid dossier.
  • For OSR plans requiring approval from the provincial People’s Committee: Within 20 working days from the date of receipt of a complete and valid dossier.
  • For OSR plans requiring approval from the district-level People’s Committee: Within 15 working days from the date of receipt of a complete and valid dossier.

Another change is related to financial security for payment of compensation for loss and damage caused by oil spills. Accordingly, Decision 12 requires the owners of Vietnamese and foreign seagoing vessels carrying more than 2,000 tons of raw material to have a certificate of insurance or a financial guarantee as security to discharge their civil legal liability to pay compensation for loss and damage caused by oil spills in accordance with provisions under the 1992 CLC Convention.

Decision 12 also requires owners of Vietnamese seagoing vessels with a total tonnage of more than 1,000 GT operating on international routes to have a certificate of insurance or have a financial guarantee as security to discharge their civil legal liability to pay compensation for loss and damage caused by oil spills in accordance with the provisions of the 2001 Bunker Convention. Further, it is worth noting that the requirement to establish a compensation fund or trust fund, which was imposed on the owner of the ship or the owner of the establishment which caused the oil spill and its insurer under Decision 02, have been removed by Decision 12.

For more information on Decision 12, please contact us at [email protected].

Related Professionals

Industries

Energy

Location

RELATED INSIGHTS​ 

May 19, 2023
On May 15, 2023, Vietnam’s Deputy Prime Minister Tran Hong Ha signed Decision No. 500 of the Prime Minister approving the National Power Development Plan for the period 2021-2030, with a vision to 2050 (“PDP VIII”), following extensive public consultations and multiple rounds of review since the first draft version was circulated in 2021. The plan was approved in the context that in the past few years, a number of large power projects have been behind schedule for operation, while new projects have not been able to be implemented due to waiting for additional planning. PDP VIII is the master plan for the development of the power source and transmission grid at 220kV or higher; services in renewable energy and new energy in Vietnam; and works connecting the power grids of Vietnam and neighboring countries. We set out below some quick updates regarding PDP VIII. 1. Development Targets Key development targets are summarized in the table below: Investors in coal, domestic gas, and LNG projects may need to have a conversion plan ready given the 2050 targets to convert to other sources of energy. 2. Solar Projects A list of 27 solar power projects that were planned for the period of 2021-2030 but which have not been assigned to investors are not allowed to be deployed but can be considered after 2030, except in the case of deployment in the form of self-production and self-consumption (Appendix IV). These projects represent 4,136.25 MW of capacity that will be left on the sidelines until 2030. 3. Hydropower Projects A list of 14 potential hydropower projects can be considered if economic and technical conditions allow for more hydropower development (Appendix III). These projects represent 1,244 MW of capacity that can be added to the hydropower targets for 2030. 4. Projects Prioritized for
Read More
March 22, 2023
Attorneys from Tilleke & Gibbins have contributed the Cambodia, Laos, Myanmar, and Vietnam sections to DLA Piper’s Global Government Contracting Country by Country guide, which provides essential information for businesses in 75 jurisdictions on how to source and enter into government contracting opportunities. The guide provides procurement information for jurisdictions in Africa, the Americas, Asia-Pacific, Europe, and the Middle East, and includes information on how to find procurement opportunities, the structure of procurement laws, and in-country resources and relevant publications. Each jurisdictional section includes valuable information on procedures for government tenders, bidding, and contract execution, as well as an overview of the legal and regulatory framework governing government procurement. Businesses can refer to the guide to gain a better understanding of procurement processes and regulations in each jurisdiction, which can help them identify potential opportunities and make informed decisions when pursuing government contracts. The guide’s procurement information for Cambodia, Laos, Myanmar, and Vietnam, combined with the online platform’s comprehensive resources, provides businesses and governments with a valuable tool to navigate the complex regulatory landscape of government contracting in the region. The full Global Contracting Country-by-Country guide is available on the DLA Piper website.
Read More
February 20, 2023
On December 20, 2022, the Notification re: Rules, Procedures, and Conditions on Transfer of Energy Licenses of the Thailand Energy Regulatory Commission (ERC) became effective. The notification sets out the new standard and procedure for transferring licenses for energy industry operation. The notable changes in the notification are provided below. Anti-Competition Consideration and Impact Assessment Report In considering the transfer of a license, in addition to ensuring the transferee meets all the qualifications for an applicant for the license, the ERC will consider if the transfer would (1) create a monopoly, reduce or restrict competition, or result in market dominance; (2) affect the contracting parties of the transferors or energy users; or (3) affect energy security or the public interest. In this respect, the vetting process for an application for license transfer would be separated into two different approaches. If the ERC believes that the transfer of the energy license would affect competition, energy users, energy security, or the public interest, the transferor will need to submit an impact assessment report on the license transfer to the ERC. In this regard, the ERC may establish a sub-committee or an independent consultant to contemplate the transfer at the transferor’s expense. However, if the ERC believes that the transfer of license would not lead to any impact, the transferor will not be required to submit the impact assessment. Also, if the license transfer is related to any transactions specified under the ERC’s Regulation re: Rules and Procedures on Merger and Cross-Shareholding in Energy Businesses, B.E. 2565, the ERC can combine the license transfer application with the M&A application. After approval, the ERC might require the transferee to periodically report to the ERC and comply with measures stipulated by the ERC. Therefore, an energy license holder which plans to carry out M&A
Read More
February 3, 2023
The Federation of Thai Industries (FTI) announced on January 16, 2023, the opening of registration for carbon credit trading on its Renewable Energy and Carbon Credit Exchange Platform. This new online platform supports the domestic carbon market and provides Thai exporters with the ability to purchase carbon credits, allowing them to address demands from importing nations to conform to carbon emission reduction regulations. This is expected to be a positive step forward for the current practice in Thailand, in which the carbon market operates as a voluntary and unregulated buy-sell platform, free from government regulation. Developed in partnership with the Thailand Greenhouse Gas Management Organization (TGO), the FTI: CC/RE/REC X Platform, or FTIX, is intended to increase the promotion of national carbon credits, renewable energy, and renewable energy certificates, thus improving the country’s efforts to mitigate climate change. Entrepreneurs interested in registering for carbon credit trading on the FTIX can do so through the FTIX website at fti-cc.com. The platform initially supports carbon credit trading through over-the-counter methods. In the near future, the FTIX will be developed to support 100% renewable energy (i.e., RE100 energy) and renewable energy certificate trading. However, the related tax and carbon pricing policies have not yet been issued. The TGO is currently in discussions with the Fiscal Policy Office and the Ministry of Finance regarding fiscal policy for the FTIX. For more information on the FTIX, or on any aspect of renewable energy activities in Thailand, please contact Charuwan Charoonchitsathian at [email protected], Napassorn Lertussavavivat at [email protected], or Ratchapat Triteeyaputranonta at [email protected].
Read More