Quản lý nhà nước đối với thuế bảo vệ môi trường ở việt nam TT TIENG ANH

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MINISTRY OF EDUCATION AND TRAINING
NATIONAL ECONOMICS UNIVERSITY

THIS RESEARCH IS COMPLETED AT
THE NATIONAL ECONOMICS UNIVERSITY

---------------Scientific instructor:
1. Prof. Dr. NGO THANG LOI
2. Dr. VU NHU THANG

PHAM BACH KHOA
Reviewer 1:

STATE MANAGEMENT ON
ENVIRONMENTAL PROTECTION TAX IN
VIETNAM

Reviewer 2:

Major: Economic Management (Management Science)
Code: 9310110

PHD THESIS SUMMARY

Reviewer 3:

The thesis was defended in front of the thesis grading
committee at National Economics University
At: dated , 2021

The thesis can be consulted at:
- National Library
- National Economics University Library

HANOI - 2021


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INTRODUCTION
1. Research rationale
Firstly, environmental protection is the problematic that have received global
attention in recent years, because the rapid economic development and the world
population explosion have led to the serious pollution of the living environment.
Therefore, some countries have applied policies to limit the harmful effects of
environmental pollution by contributing to raising awareness of environmental
protection.
Secondly, in Vietnam, currently, the environmental pollution is increasing
when facing continuous worrisome phenomena, such as the mass fish deaths due to
marine poisoning in the Central region; the drought in the Central Highlands and the
western provinces; as well as the saline intrusion in the Southwest region, etc.
Meanwhile, the state management on environmental protection tax still has some
limits that negatively affect its effectiveness.
Thirdly, Vietnam has signed international agreements related to the
environment protection. However, because the environmental protection tax policy in
Vietnam is still new, its implementation has created difficulties in policy formulation,
implementation, inspection, and reform objectives of environmental protection tax.
Fourthly, according to the statistics of the Ministry of Finance of Vietnam, the
revenue of environmental protection tax increases continuously. However, during the

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• Specific objectives:
Theoretically, this thesis focuses on clarifying the following contents:
(i) The legal principles and requirements in the state management on
environmental protection tax;
(ii) The contents of the state management on environmental protection tax, by
specifically consisting in: developing and promulgating policies on collection of
environmental protection tax; establishing the state management apparatus for
environmental protection tax; organizing the implementation of environmental
protection tax policies; inspecting and handling violations of the policies on the
environmental protection tax;
(iii) The objectives and criteria for assessing the objectives of state
management on environmental protection tax;
(iv) The factors affecting the state management on environmental protection
tax in order to have an overview of the context of the state management, in
combination with the current situation of state management contents and assessment
of state management objectives for environmental protection tax over the years, from
which to propose some recommendations.
In practice:
(i) This thesis studies some cases of foreign countries by gathering their

• General objective: The current thesis aims to strengthen the theoretical
framework of state management on environmental protection tax; thereby assessing
the current situation of the state management on environmental protection tax in

experiences relating the state management on environmental protection tax.
(ii) This thesis analyzes the current situation of the state management on
environmental protection tax in Vietnam.

(iii) This thesis assesses the state management on environmental protection tax
in Vietnam, including: assessment of the state management objectives, and the factors
affecting the state management on environmental protection tax in Vietnam.
(iv) This thesis proposes some orientations and recommendations for
improving the state management on environmental protection tax in Vietnam.
3. Research question
In the research context mentioned above, the general research question consists
in: What should Vietnam do to improve the state management on environmental
protection tax in the coming time?
The detailed research questions include:

Vietnam; then for proposing the orientations and recommendations for improving the
state management on environmental protection tax in Vietnam.

1. Theoretical framework of state management on environmental protection
tax: what is the origin and objectives of environmental protection tax? What is the

implementation of this Law, some limits have emerged.
Fifthly, currently, in Vietnam, studies focusing on state management on
environmental protection tax are limited. Most of scholars have contributed to the
draft of the Law on Environmental Protection Tax; many ones only approach on
criteria, not on state management, or only on the issue of environmental protection.
On the basis of the above arguments, we decided to choose the subject “State
management on environmental protection tax in Vietnam” in our doctoral program
at Vietnam National Economics University.
2. Research objectives


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nature of the contents, factors and criteria for assessing the effectiveness of state

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 Data analysis methods

management on environmental protection tax?
2. What is the current situation of the contents and implementation of the state

- For secondary data, we use a combination of both inductive and deductive
methods to make our arguments on the basis of knowledge, experience and related

management on environmental protection tax in Vietnam? What is the situation of the
factors affecting the effectiveness of the state management on environmental

research works of domestic and international scholars.
- For primary data through interviews and survey, we use data analysis

protection tax? What are the successes in state management on environmental
protection tax in Vietnam? What are the difficulties? What are their causes?
3. What perspectives and recommendations should be implemented to improve
the state management on environmental protection tax, as well as ensure the tax
compliance of environmental protection taxpayers in Vietnam in the coming time?
4. Research object and scope

methods such as: synthesis, statistical analysis, quantitative methods to assess the
impact of the factors affecting the effectiveness of the state management on
environmental protection tax.
6. New contributions of the thesis
6.1. In theory

- This thesis studies the state management on environmental protection tax in
order to overcome the market failure versus external impacts of the environment,
specifically in terms of: (i) Establishing and promulgating policies on collection of
environmental protection tax; (ii) State management apparatus on environmental
protection tax; (iii) Organizing the implementation of environmental protection tax
policies; and (iv) Inspecting, examining and handling violations of the policy on
collection of environmental protection tax. The approach of this thesis is new in
comparison to previous studies in Vietnam, which mainly focused on how to improve

• Research object: The state management on environmental protection tax in
Vietnam.
• Research scope:
Research content: This thesis analyzes and clarifies the current situation of
state management on environmental protection tax in Vietnam.
Research period: This thesis assesses the current situation in the period 20122019; proposed directions and recommendations for improving the state management
on environmental protection tax to 2025 and in vision to 2030.
Research space: This thesis studies the current situation of the state
management on environmental protection tax in Vietnam.
5. Research methodology
 Data collection methods
We use several data collection methods as follows:
- Secondary data: The secondary data in this research are collected from
reports of state agencies, and published researches.
- Primary data collected through interviews: we collected primary data
through in-depth interviews with 28 experts, researchers and state management
officials in the field of state management on environmental protection tax.
- Primary data collected through a survey: we conducted a survey on 68
experts and target enterprises’ managers about the state management on
environmental protection tax. At the same time, to consolidate the primary data for
the study, we conducted a survey on 155 target enterprises on the state management

on environmental protection tax in Vietnam.

tax law such as tax contents, taxes, tax calculation methods, or environmental
protection tax policies. So, our approach is the one of management science.
- Most of the recent researches on the environmental protection tax in Vietnam
are in financial aspect. The new contribution of our thesis consists in solving the
problem from two perspectives: financial and environmental ones. More importantly,
our thesis emphasizes the second perspective: the state management on
environmental protection tax that must aim mainly at environmental protection.
Accordingly, this thesis identifies the first and most important group of criteria to
evaluate the effectiveness of the state management on environmental protection tax
such as meeting the requirements for environmental protection. The second group of
criteria of increasing tax revenue; it means that these criteria must be also compared
with the objective of environmental protection. This constitutes also another new
contribution of this thesis by comparing with the traditional approaches of
environmental protection. On this new perspective, the factors related to
environmental protection is mainly considered in our thesis by proposing the factors
affecting the state management on environmental protection tax in this thesis.
6.2. In practice


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- In addition to using the quantitative method for identifying 6 factors affecting

Chapter 4: Assessing the impact of the factors affecting state management on

the effectiveness of the state management on environmental protection tax, the new

contribution of this thesis consists in combining also qualitative methods and Likert

environmental protection tax in Vietnam.
Chapter 5: Orientations and recommendations for improving the state

scale in quantitative one by clarifying the current situation of these factors. While
some scholars indicate that the current low efficiency of the environmental protection

management on environmental protection tax in Vietnam.

tax compliance is due to the target enterprises’ financial difficulties, or the
irrationality of tax policies, unscientific tax payment procedures (as some other
studies have indicated); on the basis of regression analysis, our thesis conclude that is
due to: (i) environmental awareness and responsibility, and voluntariness of target
enterprises; (ii) the ineffective functioning of the State management apparatus on
environmental protection tax; (iii) the lack of strictness in organizing the policy
implementation, inspection and sanction of violations according to the law on
environmental protection. These new findings of our thesis are fundamental for the
recommendations proposed for enhancing the State management on environmental
protection tax in Vietnam.
- This thesis confirms that environmental protection and promoting the
sustainable development of our economy - society is the most important goal of
improving the state management on environmental protection tax. The main

CHAPTER 1: OVERVIEW OF THE RESEARCHES RELATED TO THE
STATE MANAGEMENT ON ENVIRONMENTAL PROTECTION TAX
1.1. Foreign researches
Environmental protection tax has been studied by scholars around the world
since the late 1990s, and has received strong attention in the last two decades. The
researches have focused on analyzing the role and impact of environmental protection

tax. From 2010 to now, foreign studies have focused on perfecting and renewing
environmental protection tax in practice.
1.1.1. Researches on tax and environmental protection tax
They are the researches by YipChi (2018), Oueslati (2014, 2015), Abdullah
and Morley (2014), LiuAntung (2013), Wiesmeth (2013), Böcher (2012), Cornelia
and Carmen (2012), Westin (1994) ), and Baumol and Oates (1988).
1.1.2. Researches on state management of tax and environmental protection tax

recommendations of this thesis aim to solve the problems that most negatively affect
the state management on environmental protection tax, which consist in: (i)

They are the researches by Hafstead and Williams III (2018), Bachus (2017),
Kreiser et al. (2015), Goulder and Parry (2008), Bontems and Bourgeon (2005), and

Improving the economic aspects of environmental protection tax in order to enhance
the corporate responsibility versus the environmental protection; (ii) Improving the
organization of the state management apparatus on environmental protection tax,
improving the efficiency of environmental protection tax implementation; and (iii)
Improving the inspection and monitoring of the of environmental protection tax

BaileyIan (2002).
1.2. Domestic researches
In Vietnam, environmental protection tax has only been interested in more than
10 years. Domestic researchers have paid more attention to this tax since the draft
Law on Environmental Protection Tax was born. Some notable studies include the

implementation/.
7. Thesis structure
The current thesis consists of 5 chapters, excluding the introduction and
conclusion, specifically:

Chapter 1: Overview of the researches related to the state management on
environmental protection tax.
Chapter 2: Theoretical framework of the state management on environmental
protection tax

following:
1.2.1. Researches on tax and environmental protection tax
They are the researches by Pham Thi My Linh (2019), Center for Legislative
Science Information (2018), Nguyen Dinh Chien (2017), Dinh Trong Khang (2016),
Ho Hoang-Anh (2016), Nguyen Thi Thanh Hoai (2014), Vu Van Cuong (2013),
Nguyen Van Chan, CoxheadIan (2011), Le Thi Kim Oanh (2010), and Nguyen
Quang Tuan and Le Thi Thao (2008).
1.2.2. Researches on state management of tax and environmental protection tax

Chapter 3: Assessing the current situation of state management on
environmental protection tax in Vietnam.

They include the researches by Pham Nu Mai Anh (2019), Nguyen Quang
Hung (2018), Dinh Nam Thang (2016), Nguyen Dinh Chien (2016), Luu Ngoc Tho


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(2013), Nguyen Hoang (2013), Bui Thanh ( 2013), Nguyen Thi Thuy Duong (2011),

method, for example, qualitative method or quantitative method. Sixthly, the studies

Nguyen Thi Le Thuy (2009), and Tran Vu Hai (2009).

1.3. Review of research overview

on the state management on environmental protection tax are still highly general.
Seventhly, according to our assessment, the studies, especially domestic studies,

1.3.1. Contents inherited from the results of previous researches
Through the above domestic and foreign studies, it can be seen that the

proposed recommendations for improving the state management on environmental
protection tax have low feasibility.

researchers have systematized the basic theoretical and practical issues related to the
state management on environmental protection tax, so that the current thesis can
inherit the results of these studies.
1.3.2. Research gaps and research directions of the thesis
1.3.2.1. Theoretical gaps
So far, although there have been studies related to the subject, they still have
certain limitations concerning theory as follows: Firstly, the perspectives of the
contents, roles and impacts of the environmental protection tax have so far not been
unified and complete. Secondly, the contents of the state management on
environmental protection tax such as policy making, implementation organization,
inspection and examination have not been studied specifically. Thirdly, the goals of
the state management on environmental protection tax have not been focused by
domestic and foreign researchers; most of them only emphasize increasing state

On the basis of synthesizing, analyzing and evaluating published studies, we
found that the research on the state management on environmental protection tax is
still limited in both quantity and quality. There are still many theoretical and practical
issues that need to be resolved, requiring further research on the state management on
environmental protection tax in the current context.

budget revenue or environmental protection. Fourthly, up to now, there is no specific
method to assess the suitability from a bottom-up (taxable object) perspective.

Environmental protection tax is one of the important economic tools for governments
to manage and protect the environment.

Fifthly, the studies only cover a piece of theory related to their subject. Sixthly, most
studies have confirmed the role of the state management on environmental protection
tax. Seventhly, there are very few studies that comprehensively analyze the
difficulties in the state management on environmental protection tax collection,
especially in the context of strong and complex integration today.

2.1.1.2. Concept, characteristics and purposes
There are many different definitions of environmental protection tax depending
on the laws of each country or region. Currently, there are two popular definitions.
Firstly, in a narrow sense, environmental protection tax is a tax issued by a competent
state agency to regulate related legal relationships. Secondly, environmental

1.3.2.2. Practical gaps
Firstly, so far, there are very few studies that fully and accurately assess the
state of state management on environmental protection tax in Vietnam today.
Secondly, previous studies have not analyzed the causes of inadequacies in the state
management on environmental protection tax. Thirdly, until now, most of the
published studies have used qualitative research methods, quantitative research
methods have not been commonly used to study the factors affecting the
effectiveness of state management on environmental protection tax. Fourthly, the

protection tax is the contributions of entities that have acts of negative impact on the
environment.

Based on its concept and purposes, the environmental protection tax has the
following characteristics (Bailey, 2002; Milne, 2011; Metcalf, 2015). Firstly,
environmental protection tax is an indirect tax, which is added to the selling price of
products and goods. Secondly, on the specificity of objects subject to environmental
protection tax, objects subject to environmental protection tax include products that
have negative impacts on the environment during the process they are used. Thirdly,

research data are mainly from the period before 2014. Fifthly, stemming from the
limitations of research methods, most of the studies only use a specific research

environmental protection tax is considered an important economic tool of the state in
the management and protection of the environment. Fourthly, environmental

CHAPTER 2: THEORETICAL FRAMEWORK OF STATE
MANAGEMENT ON ENVIRONMENTAL PROTECTION TAX
2.1. Theoretical framework of environmental protection tax
2.1.1. Overview of environmental protection tax
2.1.1.1. History and Origins
The first theory of environmental protection tax of Pigou (1920) is the basis for
building the principle of cost reduction developed in the 20th century (Surrey, 1973).


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protection tax is a tool to increase revenue for the state budget. Fifthly, environmental

on different purposes, the State will combine with different taxes to achieve the highest

protection tax has a different nature from environmental protection fees and charges.
The environmental protection tax has five major purposes (Bailey, 2002;

efficiency in environmental protection.
2.2. State management on environmental protection tax

Metcalf, 2015). Firstly, to promote sustainable economic development on the basis of
economic development associated with environmental pollution reduction. Secondly,

2.2.1. Theory of market failure and the necessity of state management on
environmental protection tax

to raise the awareness of organizations and individuals in production and
consumption, thereby improving the awareness and behavior of environmental
protection of the whole society in order to reduce pollution emissions at the source.
Thirdly, it is an important economic tool for the state to manage activities that have
negative impacts on the environment. Fourthly, to contribute to creating more
revenue to solve the problem of environmental protection. Fifthly, to promote
research and application of environmentally friendly technology regulations to reduce
waste and pollutants.
2.1.2. Theories related to environmental protection tax
2.1.2.1. Pigou’s Theory of Environmental Costs
Pigou (1932) introduced the idea of a tax on pollution, which corresponds to the
marginal social damage that pollution causes.
2.1.2.2. Social Costs Theory

2.2.1.1. Market failure and externalities on the environment
In general, market failure is a situation in which the market allocates resources
inefficiently, causing some consequences such as monopoly, externalities, public
goods, environmental pollution, etc. (Bator and Francis, 1958). In this study, we

focus on research from the perspective of market failure in environmental protection.
Accordingly, the development of the market as well as human economic development
has led to the excessive use of natural resources, thereby causing many negative
impacts on the environment while the state cannot solve these problems thoroughly.
The market economy basically works effectively, bringing many economic benefits.
The market economy provides many benefits to consumers and producers through
minimizing costs with better quality goods and services.
2.2.1.2. The necessity of state management on environmental protection tax
The necessity of the state management on environmental protection tax comes

According to the Social Costs Theory, businesses must bear at least part of the
cost of implementing environmental protection measures through taxes.

from some issues. Firstly, the current situation of the environmental pollution.
Secondly, the situation of social awareness. Thirdly, tax is a large revenue and should

2.1.2.3. Theory of Economics and Natural Resource Exploitation
According to Theory of Economics and Natural Resource Exploitation,
increasing the royalty tax on non-renewable resource extraction contributes to
increased sustainability over time. At the same time, the tax on exploitation of
renewable resources contributes to a more sustainable management of this resource.

be allocated and used reasonably, in line with the goals and interests of the whole
society. Fourthly, the management capacity of the state. Fifthly, ensuring funding for
environmental protection activities.
2.2.2. Concept, meaning and principles of state management on environmental
protection tax

2.1.3. Assessments on the theoretical framework of environmental protection tax
To summarize, we make the following conclusions about the theoretical

framework for environmental protection tax. Firstly, environmental protection tax is an
indirect tax (Bailey, 2002; Metcalf, 2015), which means that the payable tax amount is
calculated into the price when buying the products. Secondly, environmental protection
tax is one of the economic tools that are used effectively in environmental protection
and management. Thirdly, the objective of the environmental protection tax is to call
for the responsible contribution of society in environmental protection. Fourthly,

This thesis inherits the definition: State management on environmental
protection tax is a process of purposeful and conscious influence of the State on
mobilizing revenue from environmental protection tax, focusing on the state budget
through legal documents, methods and organizations and authorities to realize socioeconomic goals. From the above concept, it can be seen that the state management on
environmental protection tax includes the following actors: The subject of
environmental protection tax management is the State, with the legislature
performing the tasks of researching and building the legal system of environmental
protection tax; executive agencies (tax offices, customs offices) in charge of
collecting and paying environmental protection tax; and specialized agencies to assist
executive agencies in organizing and implementing environmental protection tax
collection. In addition, although not mentioned in the above definition of state

environmental protection tax is calculated in a specific way, different from that of other
indirect and direct taxes. Fifthly, in addition to environmental protection tax, depending


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management on environmental protection tax, there are judicial agencies, which are
court systems at all levels, which are responsible for handling violations of the law
and settle disputes related to environmental protection tax. Within its scope, this

thesis focuses only on the legislative and executive agencies; do not go into the
judicial agencies, to study the state management on environmental protection tax in
Vietnam today.
2.2.3. Contents of state management on environmental protection tax
a) Developing and promulgating legal documents and policies on
environmental protection tax.
b) Organizing the state management apparatus on environmental protection tax.
c) Organizing the state management on environmental protection tax.
d) Inspecting, examining and handling violations of the law on environmental
protection tax.
2.2.4. Objectives of tax management and criteria for evaluating the effectiveness of
state management on environmental protection tax
Firstly, the state management on environmental protection tax is primarily
aimed at environmental protection.

inspection, examination and handling of violations of the policy on collection of

Secondly, the state management on environmental protection tax aims to
increase tax revenue, in order to overcome the trend of reducing tax collection due to
regional and world economic integration.
2.3. International experiences and lessons learned for Vietnam in state
management on environmental protection tax
2.3.1. Experiences from foreign countries
2.3.1.1. Asian countries
Some countries have experience in state management on environmental
protection tax such as: China, Korea, and Singapore.
2.3.1.2. European countries and the United States
Some countries have experience in state management on environmental
protection tax such as: Denmark, Netherlands, France, Germany, UK, and USA.
2.3.2. Lessons learned for Vietnam

From the experiences of other countries on the state management on
environmental protection tax, some lessons are drawn for Vietnam in the coming time
as follows: (1) Concerning the development and issuance of policies on collection of
environmental protection tax; (2) Concerning setting up the state management
apparatus for environmental protection tax; (3) Concerning the organization of
implementation of environmental protection tax policy; and (4) Concerning the

environmental protection tax.
CHAPTER 3: ASSESSING THE CURRENT SITUATION OF STATE
MANAGEMENT ON ENVIRONMENTAL PROTECTION TAX IN
VIETNAM
3.1. Overview of the history and the state management apparatus of
environmental protection tax in Vietnam
3.1.1. History of the environmental protection tax in Vietnam
In the period before 2010, Vietnam has not issued a separate tax on
environmental protection to limit the production and consumption of goods that cause
environmental pollution during use.
On November 15, 2010, the National Assembly passed the Law on
Environmental Protection Tax. The President signed Order No. 14/2010/L-CTN on
promulgating the Law on Environmental Protection Tax on November 29, 2010 and
took effect from January 1, 2012. Basically, the Law on Environmental Protection
Tax refers to taxable objects, non-taxable objects, taxpayers, tax bases, tax
declaration, tax calculation, tax payment and environmental protection tax refund. In
addition, competent state agencies have issued many sub-law documents to detail and
guide the implementation of this Tax Law.
3.1.2. State management apparatus of the environmental protection tax in Vietnam


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To achieve the goal of sustainable development, environmental protection is a

GOVERNMENT

top important task of the Government. Therefore, Law on Environmental Protection
Tax No. 57/2010/QH12 was promulgated on November 15, 2010 at the 12th National
The Ministry of
Finance

People's
Committees of
provinces and

Assembly, the 8th session and took effect from January 1, 2012. After that, the
National Assembly Standing Committee, the Government, and the Ministry of

centrally-run cities
General Department
of Taxation

People's
Committee of
Districts

Tax Departments of
provinces and centrally-run
cities

Central treasury,
treasury of
provinces and
cities; and
treasury of
districts

General Department of
Customs

Customs Departments
of provinces and
centrally-run cities

Tax Branches of
Districts

Customs Branches at
the border gates

Figure 3.1: Organization of the current tax management apparatus in Vietnam
Source: results of analysis and synthesis
The state management apparatus of tax in our country is now organized
vertically from the central to the local. Headed by the Government, the superior tax
sector and the chairperson of the People's Committee at the same level are
responsible for directing the tax administration agencies located in each locality.
Environmental protection tax management apparatus is a part of the overall
organization of the current State tax administration apparatus, established under
Decree No. 281-HDBT dated August 7, 1990 of the Council of Ministers (now
known as the Government) on the establishment of a state tax collection system under

the Ministry of Finance. Specifically, the current tax collection management
apparatus includes the domestic collection system (General Department of Taxation)
and the import and export tax collection system (General Department of Customs).
3.2. Assessment of the current situation of state management on environmental
protection tax in Vietnam
3.2.1. Current situation of developing and promulgating the legal documents on the
state management on environmental protection tax

Finance issued many legal documents such as Resolutions, Decrees and Circulars to
clarify, supplement, amend and guide the implementation of the Law on
Environmental Protection Tax.
In general, the Law on Environmental Protection Tax has gradually stabilized
over time, is transparent, clear and uniformly applied in the prescribed cases,
although there are still some limitations as the survey results show only 3.19/5 points
of enterprises that are subject to environmental protection tax participating in the
survey. At the same time, based on the level of impact on the environment or the
costs used to remedy the consequences of actions harmful to the environment, the
Law on Environmental Protection Tax stipulates the Environmental Protection Tax
Framework with the tax rate of absolute minimum and absolute maximum. This
regulation creates favorable and flexible conditions for the administration and
enforcement of the law, and at the same time does not cause disturbance to revenue
management and production and consumption activities. The declaration, calculation
and payment of environmental protection tax prescribed in the law must comply with
the provisions of the law on tax administration, without conflicting or hindering the
collection of current taxes. This ensures that the implementation of tax policies takes
place conveniently, synchronously and uniformly.
3.2.2. Current situation of the organization of the state management apparatus of
the environmental protection tax
The environmental protection tax management apparatus is organized based on
the objectives, capacity of full-time staff and the ability to apply technology in

management so that the apparatus is streamlined and effective, although there are still
some limitations such as assessment survey price only reached 3.16/5 points. The
State management apparatus on environmental protection tax is organized based on
the principles of state administrative management, following the regulations on the
division of boundaries between provinces, cities, districts, communes... This criterion
has been highly appreciated, 3.53/5 points from the enterprises that are subject to
environmental protection tax participating in the survey.


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3.2.3. Current situation of implementing the state management on environmental

Finance are 03 specialized units under the Ministry of Finance, responsible for

protection tax
Currently, the organization of environmental protection tax management in

assisting the Minister of Finance in the inspection, examination and handling of taxrelated violations..., including Environmental Protection Tax. This thesis focuses on

Vietnam has achieved many encouraging results, reflected in the collection of
environmental protection tax.

assessing and analyzing the current status of inspection activities of the Tax Sector.
According to the data reported by the Ministry of Finance, it can be seen that

The results of collection of environmental protection tax in the period 20122019 show that the total amount of environmental protection tax has grown steadily
since 2012 is the first year of implementation of the Law on Environmental

Protection Tax, reaching 11,160 billion VND; by 2019 it has increased nearly 6
times, reaching VND 64,463 billion; accounting for 4.16% of total state budget
revenue and contributing 1.07% to annual GDP; the proportion of environmental
protection tax collection over total domestic tax increased from 2.654% in 2012 to
5.06% in 2019; in which, the amount of environmental protection tax revenue from
the group of petroleum products accounted for the majority (93.57%) of the total
amount of environmental protection tax over the years.
Total state budget expenditure for environmental protection activities in the
period 2012-2019 is about 231,857 billion VND.
The survey results show that the organization of environmental protection tax

although the environmental protection tax inspection and inspection data has not been
analyzed clearly, but through the 9-year results from 2011-2019, the whole industry
has been inspected and examined 706,907 enterprises; with a total of 362,849.6
billion dong handled through inspection and examination, of which: the total tax
arrears, refund and fine through inspection and examination is 126,657.5 billion
dong; deduction is 12,453.6 billion dong, total loss reduction is 223,738.8 billion
dong.
The number of enterprises inspected and inspected as well as the amount of tax
processed through inspection and examination has continuously increased over the
years. The efficiency of tax inspection and examination is also better, reflected in the
average revenue for an inspection, which increased significantly from 379.33
million/case in 2011 to 654.79 million/case in 2019.
According to the survey results, the inspection and handling of environmental

management in Vietnam has achieved many encouraging results. This is shown in
detail through the survey results when most of the evaluation criteria achieved an

protection tax violations in Vietnam has achieved many remarkable achievements.
First of all, it is necessary to comply with the provisions of the Law on Tax

average score of over 3.30 points, except for the criterion of environmental
protection law enforcement activities of 3.13/5 points. Specifically, in recent years,
the State has issued many legal documents on environmental protection which have
been implemented timely and effectively. The average score of this criterion
according to the survey results is 3.53/5 points.

Administration and other legal regulations related to environmental protection tax
and comply with the inspection process. Specifically, the inspection and payment of
environmental protection tax for enterprises are implemented in good compliance
with the provisions of the Tax Administration Law and other legal regulations related
to environmental protection tax and comply with the process of environmental

3.2.4. Current situation of the inspection, examination and handling of the
violations of the tax law on environmental protection
Currently, the statistics of the inspection and examination by topic on
Environmental Protection Tax have not been detailed statistics and analysis. There
are very few thematic inspection and examination programs on Environmental
Protection Tax because the functions, tasks and powers of the inspection agencies are
built to cover all areas of state management. The inspections are conducted by the
overall inspection agencies, including the inspection and examination of

protection tax inspection, the average score of this criterion is 3.61/5 points.
In general, the difficulties and inadequacies in the inspection and examination
of the implementation of environmental protection tax are due to a number of
reasons. Concerning the resources for tax inspection, in general, the organization of
the tax inspection and examination apparatus is not commensurate with the increasing
number of taxpayers, including businesses and organizations and individuals).
Although there have been positive signs in increasing the number and quality of
inspectors, this number still does not meet the actual demand. In addition, the internal

Environmental Protection Tax. Inspector of General Department of Taxation,
Inspector of General Department of Customs and Inspector of the Ministry of

organization of departments performing the tax inspection function is still not highly
specialized and lacks an inspection quality control department. According to the


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assessment of the international consulting team, the quality of the tax inspectors in

For the objective of the environmental protection tax for tax collection, it is

Vietnam is generally not of high quality, with limited knowledge and skills.
3.3. General assessments of the state management implementation on

shown through two evaluation criteria: compliance and efficiency. Environmental
protection tax has contributed to increase the state budget revenue (state budget) to

environmental protection tax in Vietnam
3.3.1. Successes by the objectives of the environmental protection tax

perform socio-economic tasks, including the task of spending on environmental
protection.

3.3.1.1. Assessments of the implementation of the objectives of the environmental
protection tax for the environment

The implementation of environmental protection tax contributes to raising the
awareness of environmental protection among actors in society, helping to change
their behavior in the production and consumption of products that pollute the
environment, towards the sustainable economic development. At the same time, the
implementation of environmental protection tax contributes to helping Vietnam fulfill
its commitments to the international community in the field of environmental
protection. In addition, the implementation of the environmental protection tax
contributes to promoting enterprises to reform and innovate technology to find
alternative energy sources that are environmentally friendly.
In general, the objectives of the environmental protection tax for the
environment have been relatively well implemented in Vietnam in the past time,

The survey results show that the state management on environmental
protection tax has been conducted reasonably in the past time in accordance with the
law and the context of the industry subject to environmental protection tax, with an
assessment score of 3.78/5 points. The second criterion indicates the state
management on environmental protection tax, also reaching 3.85/5 points according
to the survey results, confirming that over the past time, state management activities
have been implemented and implemented in accordance with the objectives and
regulations of the law on environmental protection tax in Vietnam.
3.3.2. Limits and causes of limits
3.3.2.1. Limits
Firstly, concerning the development and promulgation of legal documents on
state management on environmental protection tax, currently, the environmental
protection tax law is not really transparent, fair, clear and uniformly applied in

indicated in two criteria, namely: reasonableness - feasibility and appropriateness of
environmental protection tax.

specified cases.

Secondly, concerning the organization of the state management apparatus for

The survey results show that the state management on environmental
protection tax in the past time has ensured the correct and sufficient collection of tax
payment objects and time, but it is only at an average level with 3.64/5 rating points.
Similarly, the assurance of sufficient tax collection and the appropriate amount of
environmental protection tax also only achieved an evaluation score of 3.65/5 points.

environmental protection tax, at present, the state management apparatus for
environmental protection tax has not really been organized based on the objectives,
capacity of full-time officials and the ability to apply technology in management to
make the apparatus lean and efficient.
Thirdly, concerning the organization and implementation of the state

3.3.1.2. Assessments of the implementation of the objectives of the environmental
protection tax for the tax collection
With the average collection of environmental protection tax in the period 20122019 reaching about 32,600 billion VND/year; the average annual rate of
environmental protection tax collection compared to total state budget revenue has
increased from more than 1% to more than 4% (in 2019 it was 4.07%), contributing
to an increase in state budget revenue to carry out social economic tasks, including
the task of spending on environmental protection (Total state budget expenditure for

management on environmental protection tax, the form of propaganda, dissemination,
explanation and education of environmental protection law to enterprises is still not
really diverse, there is no assessment of advantages and disadvantages of propaganda
forms in each locality to draw experience in choosing forms suitable to the awareness
level of enterprises in different localities.
Fourthly, concerning the inspection, examination and handling of the
violations of the law on the environmental protection tax, the bases for analyzing
information and data related to tax paying enterprises have not been collected and

environmental protection tasks is on average higher than the amount of
environmental protection tax revenue).

analyzed accurately, objectively and honestly.
3.3.2.2. Causes of limits


21

Firstly, for the limitations on the development and issuance of legal documents
on the state management on environmental protection tax, the main reason is the
system of agencies that develop and issue legal documents on the state management
on environmental protection tax is still limited in terms of resources, structure, and
functions.
Secondly, for the limitations on the organization of the state management
apparatus for environmental protection tax, the cause of these limitations is mainly
the procedural legal system in Vietnam that has not yet allowed the tax management
agencies to conduct criminal investigation, initially prosecutes a number of cases of
invoice violations or tax evasion.
Thirdly, for the limitations on organization and implementation of state
management on environmental protection tax, the reason is partly the lack of
synchronization in the time of promulgating laws and policy circulars, which has led
to the phenomenon of overlapping. Cross-section in tax collection enforcement leads
to a decrease in the efficiency of tax collection management activities. High-quality
human resources are not commensurate while the workload and subjects are
increasing.
Fourthly, for the limitations on the inspection, examination and handling of the
violations of the law on environmental protection tax, these activities for plastic bag
production enterprises, individuals and organizations using plastic bags are still

limited mainly because the identification of the shape of plastic bags is the subject to
environmental protection tax or not due to the unclear regulations and documents
guiding the implementation of the law on plastic bags is subject to tax.
In general, the State's supervision, management and implementation of tax
collection for environmental protection are still confused and limited. The lack of
completeness, lack of synchronization and overlap in State management regulations
related to financial policy in general in environmental protection work partly stems
from the delay in promulgating regulations related to fees, environmental protection
tax, in addition to the overlap of too many regulatory documents leading to
difficulties in implementation. An inherent problem that the tax industry is no
exception to is the lack of high-quality human resources. Reviewing, researching and
proposing amendments and supplements to mechanisms and policies... requires a
team of experts with high professional qualifications, while the tax industry currently
lacks a professional team.

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CHAPTER 4: ASSESSING THE IMPACT OF FACTORS AFFECTING THE
STATE MANAGEMENT ON ENVIRONMENTAL PROTECTION TAX IN
VIETNAM
4.1. Factors affecting the state management on environmental protection tax in
published researches
On the basis of the theoretical research of published studies, we summarize the
following three groups of factors:
4.1.1. Macro factors and factors related to State management agencies
Political - economic - social factors; State policy and the strictness of the law;
the effectiveness of the environmental protection tax management apparatus;
qualifications and ethics of the environmental protection tax staff; and tax facilities.
4.1.2. Factors related to taxpayers, nature of operations, and characteristics of
enterprises

Situation and characteristics of production and business activities of taxpayers;
Payment methods and procedures; Education level and awareness of taxpayers.
4.1.3. International factors related to environmental protection
Including International trade; and Trends of environmental protection in the
world.
4.2. Research model, hypothesis and design for assessing the impact of the
factors
4.2.1. Proposing theoretical research models and hypotheses
Macro factors and factors related to State management
agencies
• Politics, law, economy, and society (H11)
• Tax industry on environmental protection (H12)
• Procedures and records for payment of environmental
protection tax (H13)
Factors related to environmental protection tax payers
• Situation and characteristics of production and business
activities (H21)
• Education level and awareness (H22)
International factors related to environmental
protection
• International Trade (H31)
• Trends in environmental protection in the world (H32)

H1

H2

H3

The

effectiveness of
the state
management
on
environmental
protection tax


23

Figure 4.1: Theoretical model of the impact of the factors of the effectiveness of
the state management on environmental protection tax
From the developed theoretical research model, the author proposes 3 groups
with 7 research hypotheses as follows:
• H1: The state management on environmental protection tax is significantly
affected by macro factors and factors related to the state management
agencies on environmental protection tax.
• H2: The state management on environmental protection tax is significantly
affected by factors related to taxpayers.
• H3: The state management on environmental protection tax is significantly
affected by international factors related to environmental protection.
4.2.2. Development of variable measurement
On the basis of the synthesis of previous studies on the topic, the observed
variables were established and normalized with a set of scales of variables (Items) in
the model. we establish the variable measurement including: (i) 27 observed variables

24

b) Confirmatory Factor Analysis (CFA) for each independent variable
c) Testing the scale of the dependent variable

4.3. Multiple linear regression analysis and testing the research model and
hypotheses
4.3.1. Multiple linear regression analysis and testing the research model
a) Correlation analysis of independent variables
The above results show that the Pearson correlation coefficient is statistically
significant between pairs of variables ranging from 0.001 to 0.632 (<0.7), allowing
confirmation of the discriminatory value between independent variables or research
concepts achieved with 95% confidence; multicollinearity between the independent
variables in the research model can be eliminated.
b) Multiple regression analysis of the impacts of the factors affecting the state
management on environmental protection tax
The results of multiple regression analysis by Enter method are summarized in
the table below.
Table 4.6: Results of multiple regression

of 7 independent variables, corresponding to 7 influencing factors belonging to 3
groups that we selected to analyze, and (ii) 4 variables Observation of the dependent
variable of the effectiveness of the state management on environmental protection
tax.
4.2.3. Quantitative research design
The quantitative research aims to collect data to test scales, models and
established theoretical research hypotheses on the impact of factors affecting the state
management on environmental protection tax in Vietnam.
The survey results collected 249 votes, of which 26 votes were invalid because
of lack of information, so they were discarded, in the end, the sample size of 223
survey questionnaires of 155 enterprises and 68 experts, researchers and state
management officials. The survey period is from June to September 2020.
4.2.4. Validating the variable measurement
Using the method of Principal Component Analysis with varimax rotation, we
performed EFA analysis to evaluate the convergence of observed variables according

to each component of the theoretical research model.
a) Exploratory Factor Analysis (EFA) of the observed variables of the
independent variable

Unstandardized
Standardized
Multicollinearity
coefficients
coefficients
T
Sig.
B
Std. Error
Beta
Tolerance VIF
1 (Constant)
0.000
0.030
0.000 1.000
X1
0.192***
0.044
0.192 4.376 0.000
0.456 2.192
X2
0.088**
0.030
0.088 2.900 0.004
0.960 1.042
X3

0.124**
0.036
0.124 3.426 0.001
0.670 1.493
X4
0.229***
0.044
0.229 5.202 0.000
0.456 2.193
X5
0.308***
0.043
0.308 7.115 0.000
0.471 2.122
X6
0.276***
0.040
0.276 6.911 0.000
0.554 1.803
X7
0.022
0.033
0.022 0.660 0.510
0.828 1.208
R = 0,900; R2 = 0,810; Adjusted R2 = 0,804; F value = 131,136***, Sig (F) = 0,000
Notes: * Statistical significance level p < 0.05
** Statistical significance level p < 0.01
*** Statistical significance level p <0.001
Model

Source: Processing survey data using SPSS 22
- The obtained multiple regression model can be represented by the following
formula:
Y = 0.0000000000000000455+ 0.192*X1 + 0.088*X2 + 0.124*X3 +
0.229*X4 + 0.308*X5 + 0.276*X6 + 0.022*X7


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4.3.2. Testing research hypotheses on the impact of the factors affecting the state

• Politics, law, economy, and society of the country (X1)

management on environmental protection tax
The above results confirm that:

• Procedures and records for payment of environmental protection tax (X3)

- Hypothesis H1: The state management on environmental protection tax is
significantly affected by macro factors and factors related to the state management
agencies of environmental protection tax.
- Hypothesis H2: The state management on environmental protection tax is
significantly affected by the factors related to taxpayers.
- Hypothesis H3 is partly accepted: The state management on environmental
protection tax is only significantly affected by international trade factors and the
trend of protection with environmental technical barriers; but not affected by the
trend of environmental protection in the world having begun to spread to Vietnam.
In general, to assess the intensity of the influence of the factors, according to

the coefficient B of the results of quantitative regression analysis, factor X5 Environmental awareness and responsibility of environmental protection tax payers
has the strongest impact on the effectiveness of state management on environmental
protection tax (with the largest price B = 0.308); next is factor X6 - International
trade and trend of protection with environmental technical barriers (B = 0.276), factor
X4 - Production and business situation of environmental protection tax payers (B =
0.229), factor X1 - Politics, law, economy, and society of the country (B = 0.192),
factor X3 - Procedures and records for payment of environmental protection tax (B =
0.124), factor X2 - Environmental protection tax industry (B = 0.008).
4.3.3. Assessments of the factors affecting the effectiveness of state management on
environmental protection tax in Vietnam
Combining the above quantitative results and conducted interviews, this
section analyzes and assesses in detail the factors affecting the effectiveness of the
state management on environmental protection tax in Vietnam. Specifically,
according to the level of impact from strong to low, as follows:
• Environmental awareness and responsibility of environmental protection
tax payers (X5)
• International trade and the trend of trade protection with environmental
technical barriers (X6)
• Situation and characteristics of production and business activities of
environmental protection tax payers (X4)

• Environmental protection tax industry (X2)
• Environmental protection trends (X7)
CHAPTER 5: ORIENTATIONS AND RECOMMENDATIONS FOR
IMPROVING THE STATE MANAGEMENT ON ENVIRONMENTAL
PROTECTION TAX IN VIETNAM
5.1. Basis for the proposal of orientations and recommendations for improving
the state management on environmental protection tax in Vietnam
5.1.1. International context
The Asia-Pacific region has grown rapidly but is not sustainable. The

increasingly serious natural disaster situation has greatly affected the lives of people
all over the world. The international commitment of countries to environmental
protection is increasing.
5.1.2. National context
In our country today, the growth is mainly based on the exploitation of natural
resources, not on the application of high technology; despite the high economic
growth rate, the environmental pollution is becoming more and more serious. The
trend of international integration, trade agreements and treaties oblige Vietnam to
protect the environment.
5.1.3. Policies of the Vietnam Party and State
- Continuing to institutionalize the perspectives and guidelines of the Party and
the State on tax policy improvement in order to restructure state budget revenue that
the Politburo and the National Assembly have set out in Resolutions No. 07 -NQ/TW
and Resolution No. 25/2016/QH14. Overcoming problems of the current Law on
Environmental Protection Tax.
- Environmental protection is the responsibility of everyone, every home, every
agency and organization. Any beneficiaries of the environment, including
individuals, households, agencies and organizations, are obliged to make financial
contributions to environmental protection. Those who commit acts of causing harm to
the environment shall be subject to sanctions prescribed by law.
- Environmental protection should be associated with economic development,
social security, biodiversity conservation and response to climate change.


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- The State always encourages and creates favorable conditions for individuals,

Firstly, some provisions of the Law on Environmental Protection Tax are not

households, agencies and organizations to take actions to protect the environment.
For green production and business activities, the State has a mechanism to encourage

consistent with relevant laws such as the Law on Customs, the Law on Import and
Export Tax; the principle of collection of environmental protection tax has not yet

and support in terms of finance and land.
- The State focuses on building resources for environmental protection,

been ensured for goods that, when used, cause adverse impacts on the environment in
Vietnam. Therefore, these contents need to be reviewed and perfected during the

including human resources, technology and capital; arrange a separate expenditure in
the budget of at least 1% of GDP, and at the same time, this proportion will increase
gradually according to the economic growth rate of the country.
5.2. Proposed orientations and recommendations for improving the state
management on environmental protection tax in Vietnam
5.2.1. Orientations for improving the state management on environmental
protection tax in Vietnam
Firstly, the environmental protection is an important, urgent and vital
requirement of mankind globally, not only the Vietnamese. Secondly, the
implementation of the law on environmental protection tax needs to be consistent
with the scientific theory on environmental protection. Thirdly, the state management
on environmental protection tax in Vietnam needs to be consistent with the level of
socio-economic development of the country in each certain period. Fourthly, the

formulation of the revised Law on Environmental Protection Tax. Secondly, the scope
of taxable objects in the law is still limited, it is not possible to ensure the fairness

factor when taxing because there are many types of products and goods that can
cause environmental pollution when used such as industrial cleaners, tobacco,
batteries, fertilizers, radioactive waste, etc.). Thirdly, it is necessary to develop a
reasonable tax schedule with taxable objects. Fourthly, it is necessary to establish a
reasonable tax rate for a number of taxable objects. Fifthly, it is necessary to add to
the Law on Environmental Protection Tax with preferential policies, tax exemption
and reduction for a number of subjects. Sixthly, it is necessary to put in place strict
sanctions for violations of tax payment obligations to prevent subjects from taking
advantage of the voluntary permission of the state to evade taxes. Seventhly, it is
necessary to complete the legal provisions on environmental protection to be able to
influence the social process and people’s awareness on all three aspects: (1)

implementation of state management on environmental protection tax needs to be
associated with the overall implementation of relevant regulations, policies and laws

exploitation and use of natural resources, (2) preserving and protecting the
environment, and (3) preventing incidents and restoring the environment. It is

in the Vietnamese legal system. Fifthly, the state management on environmental
protection tax needs to be consistent with the trend of international integration, trade
agreements and treaties. Sixthly, in order for the state management on environmental
protection tax to be effective, it is necessary to implement synchronously and
systematically the solutions, policies and strategies proposed by the Party and State.

proposed to raise the penalty level higher than the current penalty.
5.2.2.2. Recommendations for improving the organization of the state management
apparatus of environmental protection tax
Firstly, it is necessary to build an effective state management apparatus to well
manage the application of taxes in practice and strengthen the inspection and

Seventhly, step by step raising the ratio of environmental protection tax to GDP,
because environmental protection tax is an important economic and financial
solution, a significant source of contribution to the state budget to reduce
environmental pollution and excessive use of non-renewable natural resources,
thereby contributing to the country’s socio-economic development in a sustainable
way.
5.2.2. Recommendations for improving the state management on environmental
protection tax in Vietnam

supervision of the tax implementation process. Secondly, it is necessary to strongly
implement the construction and development of e-government and digital
government in order to apply scientific and technological advances to innovate
working methods, improve management capacity, improve the administration and
effectiveness of the management agencies of environmental protection tax. Thirdly, it
is necessary to promote decentralization and clearly define responsibilities between
the central environmental protection tax management agency and the locality;
overcome the situation of overlapping functions, tasks and powers. Fourthly, it is

5.2.2.1. Recommendations for developing and improving the legal documents on
environmental protection tax

necessary to focus on promoting the reform of the civil service and civil servant
regime, having a mechanism to encourage the spirit of dedication, creating


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motivation and pressure so that all cadres, civil servants and public employees can

examination. Fifthly, it is necessary to develop a strict regulation to supervise tax

best fulfill their tasks assigned. Fifthly, it is necessary to build a state management
apparatus on environmental protection tax to ensure the necessary conditions

inspection activities. Sixthly, it is necessary to build a system of tools to support tax
inspection activities; strengthening the application of information technology in

associated with adequate investment in facilities and equipment to support the work;
strengthen the coordination relationship between state management agencies in

specialized tax inspection activities.
5.3. Recommendations to the State

charge of environmental protection tax at all levels and functional units. This helps to
support the process of collecting and verifying the accuracy of information, as well as
updating the status of all subjects for the management.
5.2.2.3. Recommendations for improving the implementation of environmental
protection tax
Firstly, it is necessary to increase the amount of Environmental Protection Tax
in GDP by continuing to improve to simplify procedures and apply scientific and
technological advances to the management system. Secondly, the use of tax revenues
in the state budget should be open and transparent. Thirdly, the authorities need to
plan, direct as well as invest in the development of alternative products to meet the
needs of consumers, such as conducting research projects; competitions to find talent
to improve the environment. Fourthly, it is necessary to enhance the role of the
community in monitoring the implementation of guidelines, policies and laws on

Firstly, in order to improve the legal provisions of the Law on Environmental

Protection Tax, the State should focus on reforming the environmental protection tax
through amending and supplementing this law, thereby improving the uniformity of
the related policy system. Secondly, the State should study and implement solutions
on tax incentives for businesses with environmental protection activities such as
switching to using clean fuels in production and business. Thirdly, in parallel with the
improvement of the law on environmental protection, the State should improve
regulations and standards related to the environment such as: national technical
regulations on the environment. Fourthly, it is necessary to constantly strengthen the
environmental protection tax inspection activities in Vietnam. Fifthly, it is necessary
to strengthen the propaganda, dissemination and education of the law to raise
awareness of environmental protection among the people.

environmental protection in the locality. Fifthly, it is necessary to strengthen
propaganda on the environmental protection tax law with a plan, methodical and
easy-to-understand content to help people, especially those who are obligated to pay
taxes, understand the importance of environmental protection tax.
5.2.2.4. Recommendations for improving the inspection and examination of the
implementation of environmental protection tax
Firstly, it is necessary to improve the legal framework on environmental
protection tax, amending and supplementing the Law on Environmental Protection
Tax and its sub-law documents to make inspection and examination easier. Secondly,
the General Department of Taxation, the General Department of Customs and the Tax
Departments, the Customs Departments of the provinces cooperate with competent
authorities to promote inspection and examination to promptly detect and handle
cases of fraud or evasion of environmental protection tax payment, settlement of tax
arrears. Thirdly, it is necessary to invest in environmental protection tax inspection
and testing from an inspection plan to a tax inspection strategy following the trend of
developed countries in the world. Fourthly, it is necessary to improve the apparatus,
organization and human resources for environmental protection tax inspection and

CONCLUSION
The current thesis studied the theoretical framework of the state management
on environmental protection tax. Specifically, we focused on clarifying (i) the
principles and requirements set forth in the management of environmental protection
tax; (ii) four contents of environmental protection tax management: Developing and
promulgating policies on collection of environmental protection tax; Setting up
environmental protection tax management apparatus; Organizing the implementation
of environmental protection tax policies; and Inspecting and handling violations of
the policy on collection of environmental protection tax. At the same time, we also
clarified the factors affecting the effectiveness of the state management on
environmental protection tax. To assess the effectiveness of the state management for
environmental protection tax, we have compiled the criteria. From there, we choose
to measure the effectiveness of state management on environmental protection tax
according to 4 criteria, namely: (i) validity or compliance; (ii) effectiveness; (iii)
reasonableness – feasibility; and (iv) suitability. Three groups of the factors affecting
the effectiveness of state management on environmental protection tax are also
clarified, including: (i) factors related to State management agencies; (ii) factors


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related to taxpayers, operation nature, characteristics of taxpayers; and (iii)

implementation of environmental protection tax; (iv) and recommendations for

international factors related to environmental protection. On the basis of theoretical
research and interviews with some typical enterprises and experts, researchers and

improving the inspection and examination of the implementation of environmental
protection tax. At the same time, this thesis also clarifies some conditions for

state management officials on environmental protection tax, theoretical research
models and research hypotheses have been built, and at the same time the scale of

organizing the implementation of recommendations, as well as some
recommendations for the State and the Ministry of Finance to improve the state

research variables in the model has also been completed.
Another important research result consist in assessing the state management on
environmental protection tax, according to four contents: (i) current situation of
developing and promulgating the legal documents on the state management on
environmental protection tax; (ii) current situation of the organization of the state
management apparatus of the environmental protection tax; (iii) current situation of
implementing the state management on environmental protection tax; and (iv) current
situation of the inspection, examination and handling of the violations of the tax law
on environmental protection.
We also conduct quantitative analysis to test the regression model on the
impact of influencing factors. The results show that 6/7 factors have a positive impact
on the effectiveness of the state management on environmental protection tax, with
decreasing intensity as follows: (1) Environmental awareness and responsibility of

management on environmental protection tax in Vietnam.
Besides the above successes and contributions, this thesis also has certain
limitations. The secondary data from reports of agencies, the Ministry of Finance, the
General Department of Taxation, and the Inspectorate are few. In addition, we only
focused on assessing the management of environmental protection tax of the General
Department of Taxation agencies, while that of the agencies under the General
Department of Customs has not received much attention. The number and scope of

subjects participating in the survey are concentrated in a few large cities and
provinces; access from reports on environmental protection tax inspection and
examination is still limited... These constitutes the future directions in our next
research./.

environmental protection tax payers; (2) International trade and the trend of trade
protection with environmental technical barriers; (3) Situation and characteristics of
production and business activities of environmental protection tax payers; (4)
Politics, law, economy, and society of the country; (5) Procedures and records for
payment of environmental protection tax; and (6) Environmental protection tax
industry. Combined with the interview results, we also analyzed and assessed in
detail these factors, including the factor on environmental protection trends in
Vietnam, which does not have a significant impact on the effectiveness of the state
management on environmental protection tax according to the regression results.
Based on the results of analyzing the current situation, evaluating the successes
and limitations of the state management on environmental protection tax in the past
time in Vietnam, by combining with the viewpoints and improvement orientations of
Vietnam government, this thesis proposed four group of solutions to improve the
state management on environmental protection tax, specifically: (i) recommendations
for developing and improving the legal documents on environmental protection tax;
(ii) recommendations for improving the organization of the state management
apparatus of environmental protection tax; (iii) recommendations for improving the


33

LIST OF OUR RESEARCHES RELATED TO THE THESIS

1.

Pham Bach Khoa (2020), “Factors affecting the effectiveness of state
management on environmental protection tax in Vietnam”, Economy &
Forecast Review, No. 30, p.3.

2.

Pham Bach Khoa (2020), “Analysis of theory and proposal of orientation
to improve state management on environmental protection tax in
Vietnam”, Review of Finance, No. 739, p.3.

3.

Pham Bach Khoa (2020), “State management on environmental protection
tax: Experiences in some countries and lessons for Vietnam”, Review of
Finance, No. 740, p.44.

4.

Pham Bach Khoa (2020), “State management on environmental protection
tax in Vietnam to achieve the goal of green and sustainable growth”,
Vietnam Finance Forum 2020, p.327.