Given the extensive existing literature on environmental governance in Vietnam, this chapter does not intend to provide a comprehensive analysis. Instead, it seeks to illuminate Vietnam’s current environmental landscape following nearly four decades of economic liberalisation, drawing connections between this reality and the ongoing process of economic development to outline the environmental challenges confronting the nation. Additionally, the chapter examines the evolution of policies and legal frameworks in Vietnam aimed at addressing environmental management issues and responding to climate change. Furthermore, it highlights the shortcomings and weaknesses within the relevant environmental policy and legal structures, laying the groundwork for recommendations to ensure that foreign investment contributes to sustainable development, as explored in the latter part of this book.