Local health and livelihoods The construction of the Vung Ang II coal power plant will exacerbate negative health and livelihoods impacts local communities are already dealing with, as the power plant will be constructed on a site next to the Formosa Steel plant and the Vung Ang I coal power plant. Both of these plants have been heavily opposed by local communities and have already caused environmental disasters as well as health issues in the area.

In 2016, a toxic chemical spill occurred at the Formosa Steel plant. This disaster caused miles of ocean coastline to become unfishable, which deprived local communities of both food and income. The Vung Ang I coal power plant is considered controversial as well, because of the close proximity of its ash pile to residential areas and farmland, as well as the air pollution the plant causes.

According to a study by Harvard University, pollution from coal power plants in Southeast Asia, South Korea, Japan and Taiwan causes 20,000 premature deaths annually. The study states that, if all planned coal projects are constructed, this number could rise to 70,000 deaths per year by 2030. The research also found that Vietnam is one of the countries most affected by this air pollution.

The construction of Vung Ang II alongside the already existing plants will worsen pollution and health hazards for local communities.

Consultation with local communities According to Friends of the Earth (FOE) Japan, there are signs that ''there was a failure to ensure proper information disclosure and obtain consent from residents''. For instance, FOE Japan states that media reported a meeting that officials held in October 2019 during which local residents were forced to sign papers agreeing to sell their farmland despite the price not being set yet. Furthermore, it is reported that some families that had been relocated for the construction of the Vung Ang I coal power plant were not informed that they would have to be relocated once more for the Vung Ang II coal power plant.

Other issues around consultation were already identified in the Environmental Impact Assessment that was signed off in 2011. Read more about these issues here.

Climate change 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.

Besides the fact that this coal power plant contradicts government demands and is not needed, its construction and operation will cause a worsening of climate change. All fossil fuel expansion is incompatible with the goals of the Paris Agreement and significantly decreases our chances of staying below 1.5°C of global warming.

Air pollution The Vung Ang II coal power plant will cause severe impacts on air quality once in operation. Major air pollutants from the plant include sulphur-dioxide (SO2), nitrogen-oxide (NOx) and fine particulate matter (PM). According to Market Forces, the emissions caused by these pollutants are much higher than limits for new coal plants in other countries.

In addition to smoke, the plant will create a huge amount of coal ash. The disposal of this ash poses significant threats to the environment, such as the contamination of ground and surface water.

Water use is another environmental concern. The Vung Ang II coal power plant will use sea water for cooling, after which 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” threatens aquatic ecosystems, affecting the livelihoods of communities as well as the local ecology.

International standards According to the Environmental Law Alliance Worldwide (ELAW), the Environmental and Social Impact Assessment that was signed off in 2018 does not align with international standards. In April 2020, ELAW found that the 2018 report:

1. Failed to examine alternatives that prevent or minimise adverse environmental impacts of the proposed thermal power plant;
2. Used the wrong choice of an air pollutant dispersion model that renders meaningless predictions of air quality impacts;
3. Applied weaker emission standards for the project than those used internationally;
4. Allowed continued wet handling of ash contrary to international guidelines; 
5. Allowed discharge of thermal effluent in excess of international guidelines; and
6. Erroneously dismissed potentially significant impacts to marine species.

Already in 2016, Deputy Minister of Natural Resources and Environment Nguyen Manh Hien stated that the methodology of drafting Environmental Impact Assessments is often inaccurate and has in the past led to environmental disasters and pollution. The Minister for Resources and Environment, Hong Ha, said that the "regulation on EIA has proved infeasible, making it hard to have high-quality EIA reports."