Deviations from EIARs - Change of scale, capacity and technology
Among potential deviations from an Approved EIA, changes in scale, capacity and technology could be an arguable issue in any investment project because of the following:
Which deviations from EIARs could trigger environmental authorities’ consent?
Environmental Impact Assessment Report (EIAR) is required for investment projects which may have material adverse effect on the environment. An EIAR must contain, among others, basic information of the relevant project; technology applied; construction items and activities which are likely to adversely affect the environment; assessment of the project’s impacts to the environment; and measures to mitigate the impacts and protect the environment. An EIAR may run over hundreds of pages.
Offshore subsidiaries of Japanese investors investing in Vietnam
Under the Bilateral Investment Treaty between Vietnam and Japan (VJ BIT) and the Agreement for an Economic Partnership between Vietnam and Japan (VJ Partnership), a subsidiary incorporated outside Japan by a Japanese investor has certain legal grounds to claim for enjoying the rights preserved for Japanese investors when investing into Vietnam under these treaties. This is because:
Application of investment treaties for a Japanese investor in Vietnam
Under Decree 58/2012, if an international treaty has provisions regarding foreign ownership limit (FOL) in a public joint stock company then the provisions of the international treaty will apply. Under Decree 118/2015, if a foreign investor is subject to multiple international treaties on the same industry or business line then the foreign investor is entitled to select one of the applicable international treaty. And if the foreign investor has selected to follow one international treaty then the investor will need to comply the provisions of such international treaty as a whole.