worker inspects Minh Duc company's waste-treatment system in Quang Minh Industrial Park, Me Linh ward, Ha Noi.

Pham Van Khanh, the department's deputy director, said the companies had seriously polluted the local environment and could face fines of up to VND500 million (US$28,000). He added that the firms faced closure if they did not find adequate ways to dispose of their waste.

The department's report said liquid waste discharged by the companies, some of which have been in operation since 2003, had a Nickel index 11.63 times higher than permitted and a Coliform count 10 times above the safety level.

In addition, the report said hazardous gas had not been treated properly.

Of 75 enterprises that the department inspected earlier this month, 45 were found not treating their hazardous solid waste.

The industrial zone, one of the largest in the city, is situated in Me Linh District, which before August 2008 was part of northern Vinh Phuc Province. Following Ha Noi's expansion two years ago, the ward became part of the capital and is now under the control of the municipal authorities.

In 2002, Vinh Phuc People's Committee began looking for investors to develop 407ha of land in Me Linh District. By 2003, there 87 enterprises had begun projects in the area.

In the same year, the people's committee appointed Minh Duc company to manage the conversion of the site into Quang Minh Industrial Park. The firm was put in charge of managing public infrastructure and waste treatment. The company's waste-treatment system for the whole area has a capacity of 3,000 cu.m a day. However, just 68 enterprises in the park are connected to the treatment facility.

Vu Hai Bang, president of timber firm Woodland, said his company had not been able to agree a price with Minh Duc for treating the firm's liquid waste. Woodland is among the 87 companies that signed a contract with Vinh Phuc People's Committee in 2002.

Bang said Minh Duc had raised their charges unreasonably.

"We have discussed the matter with them many times and we hope to reach a more reasonable price," he said.

A report by Me Linh People's Committee, which was released earlier this month, stated that 46 enterprises were not connected to Minh Duc's waste-treatment system because of the cost involved. The remaining 12 companies had not done so because it was not physically possible, the report said.

Nguyen Khac Son, Minh Duc's deputy president, said the treatment system was inaccessible to a number of businesses because the company had not been able to clear the land and agree compensation levels for residents.

Son added that Minh Duc would meet again with those firms that had complained about the cost of waste treatment to agree an acceptable price.

Meanwhile, hazardous waste is still being discharged into the environment everyday.

Khong Thi Tuyen, who has been living in Quang Minh Village since 1975, said that many households relied on well water for their domestic needs.

"The water now has a strange smell and has turned yellow," she said.

The village has 3,100 households. There are about 12,000 permanent and 4,000 temporary residents.

Le Van Hoan, chairman of Quang Minh Town People's Committee, said: "Many people have complained to us about the water source being polluted by industrial waste."

Since early 2009, three groups of Government experts visited the industrial zone to inspect the waste-treatment system.

Pham Van Khanh, deputy head of Department of Natural Resources and Environment, said fines totalling VND750 million (US$42,000) were meted out to companies that had not disposed of their industrial waste properly. However, he said the fines were too small to deter firms from continuing to pollute the environment.

"Since March 1, a new fine framework was adopted, and each firm will now have to pay up to VND500 million for breaking environmental laws," Khanh said.

"After March 30, another group of experts will inspect waste treatment at the industrial park. Companies that don't follow environmental regulations after that time will get a big fine," he said.

Hoang Duc Hanh, deputy director of Ha Noi Department of Health, said that he had not received a report on the environmental pollution in Quang Minh area.

"Untreated liquid waste discharged by companies can seep into the soil and contaminate the water supply," he said.

"I will have a group of inspectors visit the village immediately to check on the village's water quality. The results will be made known to the local residents as soon as we know," he said.