How Vietnam Plans to Improve Urban Air Quality: Insights for Businesses

The newly introduced National Action Plan on Pollution Remediation and Air Quality Management outlines detailed objectives to enhance air quality in Vietnam’s major cities. Backed by specific tasks and 28 priority projects, these goals aim to strengthen environmental regulation for businesses in Vietnam, particularly in industrial sectors, while also creating new opportunities for green industries.

As air pollution in Vietnam’s key metropolitan areas is getting more serious, the Prime Minister has approved the National Action Plan on Pollution Remediation and Air Quality Management for 2026–2030, with a vision to 2045.

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The plan will be implemented with specific objectives for air-quality improvements, emission control, construction management, and the creation of green scenery.

For the 2026-2030 period, the Vietnamese government will strengthen national air-quality management by reducing pollution in major economic hubs, especially Hanoi, Ho Chi Minh City (HCMC), and surrounding provinces, thereby enhancing public health and supporting Vietnam’s shift toward a green, sustainable economy.

From 2030 onward, the plan is to reduce Hanoi’s PM2.5 levels by an average of 5 μg/m³ every five years, with the goal of meeting national air-quality standards by 2045. Air quality across all major cities is expected to stay at “good” levels nationwide.

See also: Understanding Vietnam’s New Environmental Criteria for Green Investment Projects

Specific objectives of the national plan

Air-quality improvements

The plan aims to lower annual PM2.5 levels in Hanoi to under 40 μg/m³ by 2030, representing a 20 percent reduction from 2024 levels, while ensuring that 80 percent of days each year are classified as “good” or “moderate” by the Vietnam Air Quality Index (VN_AQI).

PM2.5 levels are expected to reduce 10 percent in Hanoi’s surrounding areas, including Thai Nguyen, Phu Tho, Bac Ninh, Hung Yen, Hai Phong, and Ninh Binh, by 2030.

Meanwhile, the government aims to ensure year-on-year improvement in VN_AQI results. For HCMC and other cities: Ensure year-on-year improvement in VN_AQI results.

Emission reduction

Overall, emissions in Vietnam’s urban areas will face stricter controls, with key actions targeting three sectors:

• Industrial and vehicle emissions;
• Urban transport and infrastructure; and
• Open burning.

Specifically, all major industrial emitters – such as cement, thermal power, steelmaking, and boiler facilities – will be put under strict oversight and a phased emissions-reduction pathway, while all vehicles will be required to comply with national emissions standards.

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Urban transport systems will be upgraded to expand green mobility, with all public-transport vehicles in Hanoi and HCMC mandated to run on clean or green energy by 2030, and incentives for freight and ride-hailing operators to shift to low-emission vehicles.

At the same time, the government aims to eliminate open burning of waste and agricultural by-products, ensuring full reuse or recycling of crop residues. Local authorities will also require religious establishments to adopt measures that reduce dust and emissions from incense and votive-paper burning.

Green cityscape

The government plans to strengthen street-cleaning and waste-removal efforts to eliminate dust in public areas, while expanding multi-layered urban greenery, parks, and lakes in accordance with approved planning.

All construction sites will be required to implement proper shielding, cleaning, and environmental protection measures, with construction waste managed under strict rules. The government also aims to end open burning of waste and agricultural by-products, ensure full reuse or recycling of crop residues, and require religious establishments to adopt measures that reduce dust and emissions from incense and votive paper burning.

In parallel, Vietnam aims to develop 1,200 certified green buildings by 2030, including at least 200 in Hanoi and 500 in HCMC.

Monitoring technology application

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Scalable digital infrastructure tailored to local environments

Vietnam will invest in upgrading and modernizing its air-quality monitoring infrastructure, integrating science, digital technologies, and artificial intelligence to strengthen emissions tracking, forecasting, and early-warning capabilities.

It will also establish and operate a National Air Pollution Warning, Forecasting, and Control System to support inter-agency coordination, real-time monitoring, and rapid response measures in cases of severe air-quality deterioration.

Implementation: Responsibility delegation and priority projects

To achieve the strategic objectives, the plan outlines nine tasks and solution groups, along with 25 priority investment projects promulgated under Annex II of Decision 2530. It also allocates responsibilities to each ministry, sector, and locality.

Implications for businesses

The National Action Plan signals significant regulatory tightening with direct implications for businesses operating in Vietnam’s major urban centers. As air pollution control becomes a national priority, companies should expect more stringent compliance requirements, higher operational standards, and growing pressure to adopt cleaner technologies.

Stricter compliance obligations for industries

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Industrial enterprises in high-emission sectors, such as cement, thermal power, steelmaking, and boiler operations, will face tightened environmental permits, more frequent inspections, and mandatory investment in emissions-control technologies.

On November 27, 2025, the Ministry of Agriculture and Environment (MAE) issued a directive to address potential air pollution in Hanoi and nearby provinces at the end of November and early December. Accordingly, the directive calls on all power plants, steel mills, chemical plants, and fertilizer factories in the north to take three urgent measures, including:

• Ensuring the effective operation of emission treatment systems;
• Adjusting production schedules to minimize emissions during unfavorable weather conditions; and
• Closely monitoring and controlling dust emissions and air quality data.

With the national plan established, it is anticipated that similar directives will be issued more frequently in the future. Organizations may be required to upgrade their equipment, implement cleaner fuels, or transition to low-emission processes to ensure compliance with the phased emissions reduction pathway.

This shift also creates opportunities for providers of pollution-control systems, industrial filtration, waste-heat recovery, and energy-efficiency solutions.

See also: Greenwashing in Vietnam: Assessing Legal Consequences and Future Direction

Accelerated transition to clean and green transport

The transport and logistics sectors will experience regulatory acceleration, particularly in Hanoi and HCMC, where all public-transport fleets must switch to clean or green energy by 2030. Freight operators, delivery platforms, and ride-hailing companies will face increasing pressure, and potential incentives, to adopt electric or low-carbon vehicles.

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This opens market opportunities for:

• Electric vehicle (EV) manufacturers and assemblers;
• Battery and charging-infrastructure providers;
• Fleet-management and telematics companies; and
• Green-finance lenders enabling vehicle transition.

Companies that delay transitioning to cleaner fleets may face rising compliance costs and restricted access in urban areas.

See also: Green Incentives and Preferable Policies in Vietnam

New requirements in construction and real estate

Construction companies will be required to apply stricter dust-control and waste-management practices at all sites, increasing the need for shielding systems, monitoring devices, and environmentally compliant construction methods.

Real estate developers will be influenced by the national target of 1,200 green buildings by 2030, creating long-term demand for:

• Green building materials;
• Energy-efficient design and engineering services; and
• Smart-building technologies.

Developers who incorporate green standards early will benefit from regulatory alignment and market differentiation.

Growing market for environmental services and monitoring technologies

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The government’s plan to upgrade air-quality monitoring networks and integrate digital technologies, AI, and forecasting tools will generate demand across Vietnam.

Technology vendors and consulting firms specializing in environmental data, climate-tech, and ESG analytics will find new commercial opportunities, particularly as the National Air Pollution Warning and Forecasting System comes online.

Increased ESG pressure and corporate reporting expectations

With the rollout of this national plan, investors and regulators may expect businesses to disclose more detailed environmental performance metrics.

Companies with high emissions profiles may face reputational and regulatory pressures if they do not demonstrate clear pathways toward compliance and decarbonization.

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