The project area is mostly made up of rice fields, but also includes orchards and vegetable gardens. The conversion of this land from agricultural to industrial use will impact the livelihoods of local farmers and likely displace many people, as the local community includes more than 10,000 people.

Aquaculture is also important in the area and will be impacted by the increased pollution of river water and the discharging of the plant’s cooling water into the river.

The construction of the Long Phu complex poses serious risks for health and life of local peoples. According to a recent study by Harvard University, emissions from Vietnamese coal power plants were responsible for 4,300 premature deaths in 2011. This number is predicted to rise to 21,100 by 2030 if new coal power plants are built in Vietnam. For children especially, the risks that stem from the pollution of carbon dioxide, mercury and arsenic are high and can cause lung injuries, lead to nerve diseases and cardiovascular infections.

The Long Phu I project will be responsible for emitting over 7 million tonnes of CO2 each year.

There is evidence that Long Phu I will be more polluting than suggested by the project's feasibility and due diligence studies required to secure funding. A recent report by Friends of the Earth revealed that ERM Vietnam, retained by PetroVietnam and HSBC to conduct a due diligence review, has overestimated the efficiency of Long Phu I and underestimated its CO2 emissions, estimates 'unexplained and unsupported by any engineering analysis', and inconsistent with the estimated emissions of 800g CO2/kWh found by engineering firm Fichtner Viet Namthe (the project manager consulting firm for the project), General Electric (the turbine supplier), and the United States Export-Import Bank.

The Vietnamese government has demanded serious efforts to reduce global warming. In 2016 it announced that it would drop plans for further coal-fired power plants. The Vietnam Sustainable Energy Alliance (VSEA) has, in cooperation with the WWF, published a study according to which Vietnam can supply 100% of its electricity demand from renewable energy, proving that there is no need for the plant in the first instance.

The Long Phu complex is located on the shore of the Hau River. Tuoi Tre News reports that several factories, processing plants and industrial parks on the banks of the river have in places rendered the air ‘too polluted to breathe’, while the water is ‘blackened and full of trash’. The addition of the Long Phu I plant will further contribute to the pollution blighting the Hau river.

The site of Long Phu I is mostly rice field and gardens, with ‘patches of natural brushes, orchards, vegetable gardens, grass lands, ponds, and patches of habitats’ linked by corridors of natural vegetation. These corridors along canals and the river bank offer protection from erosion and provide habitat for wildlife.

Air pollution is a concern during both the construction and operation phases. Pollutants are mainly dust, exhaust fume with CO, SO2, and NOx. In addition, the use of material transport vehicles by the plant will create further air pollution, noise, and will worsen traffic.

Water issues are another environmental concern. It will take an enormous amount of water to construct and run the plant. During the construction phase of the plant, 720.5m3 (more than 700,000 litres) of water will be used per day while during the plant’s operation 4,000 m3 (4 million litres) of fresh water will be required daily.

The plant will use water from the Hau river for cooling and the heated water will be discharged back into the river. This discharged water will be around 10°C hotter than the optimal temperature for various aquatic species, and thus fatal for many of them. Furthermore, river dredging for the construction of a port route for Long Phu I will negatively impact aquatic life by increasing turbidity and destroying habitats.

Officials from PetroVietnam (PVN) face charges for violation of an anti-corruption law related to many projects and activities including the awarding of the Long Phu I EPC contract. Vietnamese state news site Nhan Dan reported investigations and dismissals of Phung Dinh Thuc, Nguyen Xuan Son, and Do Van Hau, who all had senior roles in PVN. Phung Dinh Thuc and Do Van Hau both participated in the signing of Long Phu I.  Financial support for Long Phu I triggers the OECD Convention on Combatting Bribery of Foreign Public Officials in International Business Transactions and the OECD Council Recommendation on Bribery and Officially Supported Export Credits.

The two Russian banks involved in financing Long Phu I - Gazprombank and Vnesheconombank - are on the US and EU sanctions list relating to Russia's violent annexation of Crimea.