Extended Producer Responsibility (EPR) for Plastics and Packaging

Obligated Producers

Viet Nam adopts a hybrid-EPR model which assigns different responsibilities to producers across various sectors, encompassing treatment responsibility and recycling responsibility. 

Regardless of the type of responsibility assigned, organizations and individuals who manufacture or import recyclable products and packaging are obliged to comply with the EPR scheme delineated under the Law on Environmental Protection 2020 if they meet the following criteria:

1. packaging producers, with a revenue surpassing 30 billion VND in the preceding year, and

2. importers, with a revenue surpassing 20 billion VND in the preceding year.

Packaging Items Covered

The recycling responsibility extends to six categories of products: packaging, batteries and cells, lubricating oils, tires and tubes, electrical and electronic equipment (WEEs), and vehicles. The packaging prescribed under this scheme include consumer packaging for:

1. food

2. cosmetics

3. medicine

4. fertilizers, feeds, and veterinary drugs

5. detergents, and

6. cement.

The types of packaging specified in Annex XXII of the Decree are as follows:

Paper packaging

Paper packaging and carton packaging, mixed paper packaging

Metal packaging

Aluminum packaging, iron and other metal packaging

Plastic packaging

Rigid PET packaging; rigid HDPE, LDPE, PP, and PS packaging; rigid EPS packaging; rigid PVC packaging; other rigid plastic packaging; mono-material flexible packaging; multi-material flexible packaging

Glass packaging

Glass, bottles, jars, and containers

On the other hand, the products and packaging subject to producers’ treatment responsibility as specified in Annex XXIII of the Decree include:

1. agrochemical packaging (plastic bottles and boxes, plastic bags and packages, glass bottles and jars, mettle bottles, jars and boxes);

2. disposable batteries;

3. chewing gums;

4. disposable napkins, diapers, tampons and wet wipes;

5. cigarettes; and

6. products with synthetic resins, including

   1. disposable trays, bowls, chopsticks, glasses, cups, knives, scissors, chopsticks, spoons, forks, straws, stirrers, containers and food wraps;

   2. balloons, duct tapes, ear buds, toothpicks, disposable toothbrushes, disposable toothpastes, disposable shampoo and conditioner, disposable razors;

   3. clothes of all kinds and accessories;

   4. leather goods, bags, shoes and sandals of all kinds;

   5. toys of all kinds;

   6. furniture of all kinds;

   7. building materials of all kinds; and

   8. non-biodegradable plastic bags with dimensions less than 50 cm x 50 cm and a wall thickness of less than 50 µm.

Mechanism of Implementation

There are two approaches of which producers may select to fulfill their recycling responsibility, as elaborated below.

1. Organize recycling

   This involves recycling the product or packaging waste independently, hiring a recycling service provider, fully delegating a third party such as a Producer Responsibility Organization (PRO), or a combination of these methods. Producers may choose one of the selected recycling solutions for every product category as provided in the Decree. After selecting a method, producers must register their recycling plan with the Ministry of Natural Resources and Environment (MONRE). Additionally, they are required to report their annual recycling results to MONRE. 

2. Making financial contribution 

   Alternatively, producers have the option to make financial contributions to the Viet Nam Environmental Protection (VEP) fund. The amount is calculated using a specific equation that considers different standard recycling costs (Fs) for various types of products and packaging. The collected fund will be directed to support agencies and organizations working on the segregation, transport, recycling, and treatment of the products and packaging covered under the EPR system.

The obligatory amount for recycling is determined by the quantity of products and packaging introduced to the market or imported in the previous year, along with the mandatory recycling rate applied to each product category. Should producers surpass the prescribed recycling rate, any surplus in recycled products can be carried forward to the subsequent year.

In the case of fulfilling waste treatment responsibility, producers are obligated to make financial contributions to the VEP fund (VEPF). The summary of the mechanism of implementation for each responsibility under Viet Nam’s EPR scheme is provided in Table 2.

Implementation Timeline

Targets

For the initial three years of EPR implementation for the recycling responsibility, producers are required to meet the mandatory recycling rates, which are adjusted for different product categories as presented in Annex XXII of the Decree. The recycling rates for packaging are set between 10-22%. These recycling rates will undergo incremental increases every three years, with adjustments kept to less than 5%.

Incentives and Penalties

Producers that fail to comply with the law are imposed with the following penalties:

• fines up to 1 billion vnd for individuals, and 2 billion vnd for legal entities;

• compulsory contract termination;

• removal from the recycling organizations, units, and authorized recycling entities list; and

• violation information publication.

Roles and Responsibilities