FACULTY OF DEVELOPMENT ECONOMICS

[VIETNAM INVESTMENT REVIEW] Nguyen Canh Cuong, senior advisor of VNU-UEB: Looking to the UK for clean air legislation fit for Vietnam

UEB Media 16:13 20/03/2025

This article, originally published in Vietnam Investment Review, presents insights from on how Vietnam can learn from the UK’s experience in developing effective clean air legislation. His analysis helps raise public awareness on climate change and supports efforts toward sustainable development. Below is the full article published on Vietnam Investment Review.

Vietnam, like many developing countries, faces serious air quality challenges due to rapid urbanisation, industrial growth, and inadequate environmental governance. To reverse this trend and build a more sustainable future, Vietnam must take bold action - one of which is the formulation and adoption of a clean air act, inspired by successful international models such as the UK’s Clean Air Act 1993.

Markets consistently fail to internalise the social costs of pollution. Emissions from industries, power plants, and transportation continue to inflict significant health and environmental damage - costs that are not reflected in the price of goods and services. This externality problem results in overproduction and overconsumption of polluting activities.

For instance, coal-based electricity, although relatively cheap in financial terms, incurs massive costs in terms of public health, reduced worker productivity, and environmental degradation.

In Vietnam’s major cities, the rising concentration of fine particulate matter (PM2.5) has led to increasing cases of respiratory and cardiovascular diseases, yet these impacts remain unpriced in the energy and transport sectors.

Vietnam can draw valuable lessons from the United Kingdom’s long-standing efforts to tackle air pollution. The UK Clean Air Act, a comprehensive legal framework, has played a vital role in reducing urban air pollution and protecting public health.

The act embraces key features that have far and wide impacts on socioeconomic development, including public health. It prohibits dark smoke from industrial and domestic chimneys, enforcing the use of approved fuels and equipment. It also allows local governments to declare areas where only clean fuels are permitted. In addition, it also imposes stricter emission limits on high-pollution industries, backed by permit requirements.

What is more, the act also covers regulations on chimney height in order to ensure proper pollutant dispersion through minimum height requirements. Besides waste burning regulations, the act also bans open burning of materials like tyres or plastics to prevent toxic smoke. It empowers local authorities to inspect, enforce, and penalise violations.

These measures have not only improved air quality in British cities but also stimulated the development of cleaner technologies and encouraged public awareness.

To effectively address its air pollution crisis, Vietnam must move beyond fragmented policies and adopt a unified legal framework similar to the UK’s model. A proposed Vietnam clean air act could serve as a cornerstone of national environmental governance.

It is recommended that this act covers important provisions. First is emission control standards, in which enforceable national standards for industrial, vehicular, and residential emissions are to be carved, while it is necessary to require industries to obtain permits based on emission intensity and environmental impact.

Second is smoke control zones and promotion of clean technology. Specifically, it is needed to empower provincial and city governments to designate “clean air zones” where only low-emission fuels and technologies are allowed; to mandate energy efficiency benchmarks; and to provide fiscal incentives for using renewable energy, electric vehicles, and clean heating systems.

Third is waste burning regulation, in which the government is advised to prohibit the burning of materials that generate toxic smoke, and encourage modern waste treatment technologies and a circular economy model.

Vietnam also needs to set chimney and stack height regulations by introducing national guidelines to ensure adequate pollutant dispersion.

Next is to promote monitoring, transparency, and enforcement through strengthening environmental monitoring systems, while there is a need to mandate public disclosure of emissions data, and enforce penalties for non-compliance with air quality standards.

Clean air legislation should also be accompanied by broader reforms to ensure the effectiveness of carbon pricing mechanisms. The government needs to introduce carbon taxes or emissions trading schemes to internalise environmental costs. It is necessary to create proper mechanisms to lure in green infrastructure investments, and expand public transport, urban green spaces, and renewable energy facilities.

In addition, public awareness and education must be promoted through the launch of nationwide campaigns and integrate environmental education into school curricula. The country also needs to provide more technical and financial support to businesses shifting towards cleaner production methods.

Another issue of no less importance is to harness the role of business and consulting expertise. Large corporations in Vietnam are already demonstrating leadership in reducing emissions. The government should leverage this momentum by partnering with sustainability consulting firms to provide strategic guidance, conduct impact assessments, and facilitate clean technology transfers.

Vietnam is at a critical juncture. The country’s growth trajectory must align with the need for a healthy environment and climate resilience. A clean air act for Vietnam is no longer optional - it is a strategic imperative.

NGUYEN CANH CUONG

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