The plant will impact livelihoods of local residents because the construction of the plant and its coal ash area will affect local farming land. A study published in the Environmental Science and Technology Review has analyzed the impact of Southeast Asian coal power plants emissions. Its authors estimate that coal plant emissions account for 19,880 deaths annually. With increasing reliance on coal power and the continued construction of coal plants, this number will rise drastically during the next decades.

The project sponsor promises that the plant will create jobs for local people, but these will mainly be temporary, low wage jobs during the construction phase. Furthermore, during the operation phase, it is likely that the plant discharges waste water at high temperature, which will affect local aquaculture.

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 plant will cause severe impacts on air quality. Major air pollutants from the plant include fine dust, SOx, NOx, CO2 and mercury. While the plant will be equipped with systems to control fine dust, SOx and NOx, there are no measures to address CO2 and mercury. In addition to smoke, the plant will create a huge amount of coal ash, which is likely to be dumped in open pits, as has happened at other sites in Vietnam, thereby worsening pollution.

The methodology of drafting Environmental Impact Assessments is often inaccurate and has in the past led to environmental disasters and pollution, according to the former Deputy Minister of Natural Resources and Environment Nguyen Manh Hien. The Minister for Resources and Environment, Hong Ha, said that the "current regulation on EIA has proved infeasible, making it hard to have high-quality EIA reports." For the Vung Ang II power plant, no EIA is publicly available.

Water issue is another environmental concern. The plant will use sea water for cooling and the heated water will be discharged back into the sea. This discharged water is usually between 5 and 11°C hotter than its original temperature. This “thermal water” will kill aquatic life and threaten ecosystems.

The construction of the Vung Ang II 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 are responsible for 4,300 deaths. 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.

Importantly, the environmental and social impact assessment that was signed off in January 2011, does not align with international standards. First of all, the assessment does not demonstrate that the local community was consulted properly. Furthermore, the affected communities were not informed about the basics of the project. During a survey, 136 out of 186 households said that they did not know who the owner of the project was, where exactly it would be constructed and what type of project it concerned.

In light of the marine life disaster in 2016, which was caused by the disposal of toxic waste from a steel factory run by Formosa Plastics, and ongoing heavy air pollution by coal power plants, local people are very sensitive to new projects that pose environmental risks. Protests, blockades and repression of activists have often been the result. In protest against similar coal power plants, protestors have been met with police aggression and teargas attacks.