Stricter management of scrap metal purchasing activities is needed.

Many shortcomings exist.

On April 2, 2023, abig explosionAn accident occurred at the Le Hien auto repair shop in Quynh Tan commune (Quynh Luu district), resulting in two fatalities and four seriously injured victims. Notably, the incident happened when Mr. Le Tien H. (the owner of the auto repair shop) was asked by a neighbor who works in scrap metal to saw a piece of metal of unknown origin.

A large explosion occurred at a car garage in Quynh Tam commune, Quynh Luu district, killing two people and injuring four others. Photo: Public Security Police.

The explosion, which caused particularly serious consequences, sounded the alarm about vulnerabilities inmanaging scrap metal collection pointsCurrently, the business of buying and selling scrap materials is a very common industry. On the positive side, it contributes significantly to reducing environmental pollution through the collection, sorting, recycling, and reuse of useful household waste, thus reducing the amount of waste that needs to be processed. However, if this industry is not properly managed, it also poses many potential risks to community life.

Like many other localities nationwide, Nghe An currently has hundreds of scrap metal businesses located within residential areas. However, most of these are family-run businesses, interspersed within residential areas, occupying small spaces or even utilizing gardens or vacant land as storage areas. The scrap metal is left outdoors, seeping into the soil, emitting foul odors during hot weather, and posing a health hazard to workers and residents in the area.

Besides affecting the environment and aesthetics of residential areas, most scrap metal collection points currently do not meet fire safety standards. The electrical wiring is old and tangled, easily causing short circuits and fires. Even in cramped warehouses, many items collected, such as old televisions, refrigerators, and oxygen tanks, pose a high risk of fire and explosion, leaving them scattered haphazardly and creating unpredictable hazards.

Walking around the Vinh Market Bus Station area (in Vinh Tan ward, Vinh city), it's easy to spot scrap metal collection points with hundreds of types of scrap materials piled up haphazardly, emitting unpleasant odors. As a gateway for trade and exchange of goods in the area, this region has been considered the "territory" of scrap metal buyers and collectors for decades.

Scrap metal collection facilities located in residential areas pose many risks to residents. (In the photo: A scrap metal collection facility located on the extended Le Huan Street). Photo: An Quynh

According to our investigation, there are nearly 20 scrap metal collection and trading establishments operating in Vinh Tan ward. These establishments are mostly run by people from other areas, operating without prior planning, despite the inherent risks of fire, explosions, and environmental pollution from scrap metal collection. For example, the scrap metal collection facility located at the beginning of Le Huan extended road has been operating for almost a decade. Local residents report that on sunny days, when there is a large amount of scrap metal that hasn't been transported away yet, it emits an unpleasant odor that permeates the entire area. Furthermore, due to the collection and sorting activities, the facility occasionally experiences electrical short circuits and fires, posing a significant danger.

Dien Chau is also an area with many scrap metal collection activities. One of the places considered the "capital" of scrap metal collection is Dien Hong commune. According to statistics, there are currently 49 households registered to do business in scrap metal in Dien Hong commune. Among them, 10 businesses specializing in importing and trading scrap metal are concentrated in a small industrial zone located right next to National Highway 1A, collecting scrap iron and steel for the iron and steel industrial zone in Thai Nguyen province. Other scrap metal collection facilities are scattered throughout the remaining hamlets.

Following the guidance of Mr. Nguyen Hong T., the owner of a scrap metal wholesale business in the industrial zone, we visited the scrap metal collection sites. Here, hundreds of types of scrap metal, such as water pumps, fans, scrap iron, packaging, etc., are collected from various locations and sorted. The imported scrap metal is then sorted, processed, cut, compressed, and then shipped to major distribution companies.

Many types of scrap materials are piled together in warehouses, posing a high risk of fire and explosion. Photo: An Quynh

Mr. Nguyen Hong Trung, Chairman of the Dien Hong Commune People's Committee, said: "Every year, the authorities have all households sign a commitment not to trade or transport scrap materials with a high risk of fire and explosion. To date, there have been no violations regarding the trading of scrap materials that are weapons or explosives in the area. However, some households still leave scrap materials spilling onto the roadside. Local authorities have repeatedly reminded residents to rectify the situation, but it hasn't been completely resolved."

In Quynh Nghia commune (Quynh Luu district), although there are only 4 scrap metal collection points, besides concerns about fire hazards and environmental pollution, these scrap metal collection facilities also pose many "difficult problems" for the local authorities regarding security and order in the commune.

According to Mr. Ho Duy Thuong, Deputy Chief of Police of Quynh Nghia commune: Old electric bicycles and motorbikes, all without registration papers, are also present alongside piles of scrap metal and waste materials. Instead of pawning them at pawn shops that require paperwork and complicated procedures, the thieves choose to sell them at scrap metal collection points. Because the money is exchanged quickly and no paperwork is needed, many stolen vehicles have been brought here, labeled as scrap, and sold for 500,000 to 900,000 VND.

Are the penalties insufficient?

Based on the 2020 Investment Law's regulations on the list of conditional investment and business sectors, the activity of purchasing scrap materials is not included in this list; only the import of scrap materials is a conditional business sector.

The purchase and trading of scrap materials without importing them is not a conditional business activity, so businesses only need to prepare an environmental impact assessment report, environmental permit, or environmental registration as guided by the 2020 Law on Environmental Protection. Besides ensuring environmental compliance in business operations, attention should also be paid to fire prevention and fighting regulations, specifically Article 5 of Decree 136/2020/ND-CP.

Specifically, scrap metal purchasing facilities are required to ensure fire safety conditions such as: having regulations, prohibition signs, and fire safety guidance signs; having a fire fighting force corresponding to the type of facility that is professionally trained in fire fighting and meets on-site fire fighting requirements; having a fire fighting plan approved by the competent authority; having a transportation, water supply, and communication system for fire fighting; having a design approval certificate and design approval document, etc.

A scrap metal collection facility in Dien Hong commune, Dien Chau district. Photo: An Quynh.

Despite regulations, in reality, most scrap metal businesses and collection points in the province do not meet the required conditions. Most establishments operate without environmental protection plans, merely signing environmental protection commitments similar to those of other households. Therefore, it is very difficult for the People's Committees at the commune, ward, and town levels, which are the agencies directly responsible for managing these scrap metal collection points, to enforce penalties.

Furthermore, Decree No. 98/2020/ND-CP clearly stipulates the handling of administrative violations by scrap metal collection and trading points. However, only individuals and organizations engaged in scrap metal import (a conditional business sector) are subject to the Decree's regulations and will be subject to measures such as suspension of operations, revocation of the right to use, or revocation of business licenses when violations occur. Scrap metal collection facilities that do not import scrap metal are not subject to the Decree's regulations and are only managed by the People's Committees at the commune and ward levels.

Lieutenant Colonel Nguyen Dinh Hanh, Deputy Head of the Fire Prevention and Rescue Police Department of Nghe An Provincial Police, stated: Currently, scrap metal collection facilities operating as household businesses combined with production and trading activities are under the management of the People's Committees at the commune and ward levels. Local police coordinate in disseminating information and conducting periodic fire safety inspections at these facilities. However, the penalties for violations are still limited, leading to many shortcomings in the scrap metal business. To ensure safety in residential areas, the People's Committees at the commune and ward levels need to strengthen inspection and supervision, and include these facilities in the list for regular inspections. They should also advise local authorities to issue clear guidelines on penalties for scrap metal collection facilities that violate regulations. Furthermore, they should intensify propaganda efforts to help facility owners understand that scrap metal collection must ensure environmental protection and fire safety.

Given the above situation, relevant agencies and authorities need a more comprehensive view of this type of business. This will lead to the planning of rational centralized collection points and facilities, regular inspections and supervision, and improved awareness and skills in occupational safety and hygiene, and fire prevention for scrap collection and processing workers, gradually reducing safety risks and preventing unfortunate incidents.