Three notes on Vietnamese laws pertaining to the Extended Producer Responsibility of producers and importers

Amid increasingly severe environmental pollution and growing demand for a sustainable future, Extended Producer Responsibility (“EPR”) has become a top priority. Accordingly, organizations, individuals and enterprises involved in producing and importing (“Producers and Importers”) not only create products but also must consider the lifecycle of the products after they have been consumed.

In this article, BLawyers Vietnam presents three notes for Producers and Importers when implementing EPR.

1. What is EPR?

Extended Producer Responsibility or EPR is a practice and policy in which producers are responsible for managing the disposal of products they create once those products are deemed no longer useful by consumers. As a result, EPR contributes to the circular economy. In Vietnam, EPR is legislated in Articles 54 and 55 of the Law on Environmental Protection 2020. Specifically, Producers and Importers have two key responsibilities:

1. Recycling responsibility: Organizations and individuals who produce or import recyclable products and packaging must recycle them according to mandatory rates and recycling standards.
2. Waste collection and treatment responsibility: Organizations and individuals who produce or import products or packaging containing hazardous substances, difficult-to-recycle materials, or those that complicate waste collection and treatment must contribute financially to the Vietnam Environmental Protection Fund to support waste treatment activities, including:
   1. Collecting, transporting and treating household waste generated by families and individuals;
   2. Researching and developing technologies, techniques and initiatives for treating household solid waste; and
   3. Collecting, transporting and treating packaging containing pesticides.

Accordingly, EPR applies to Producers and Importers of specific types of packaging and products as regulated.

2. Which subjects are required to implement EPR?

Depending on the type of responsibility, Producers and Importers required to implement EPR are specified as follows:

i. Recycling responsibility: Producers and Importers of the products and packaging listed in the following categories:

1. Packaging that refers to commercial packaging (including both primary and secondary packaging) of products such as food; cosmetics; medicine; fertilizers, animal feed, veterinary drugs; cleaning products, chemicals, and cement.
2. Products that include batteries and accumulators; lubricants; tires; electrical – electronic products; and vehicles.

Note: According to the EPR implementation schedule, electrical and electronic products must comply with EPR starting from 01 January 2025; electronic vehicles starting from 01 January 2027; and packaging and other products starting from 01 January 2024.

ii. Waste collection and treatment responsibility: Producers and Importers of the following products and packaging, including pesticide packaging; disposable batteries of all kinds; disposable diapers, sanitary napkins, wet wipes; chewing gum; cigarettes; products containing synthetic plastics.

In addition, Producers and Importers are exempt from implementing EPR if they fall under one of the following situations:

1. A producer or importer of products or packaging for export, temporary import for re-export, or for research, study, or testing purposes; or
2. A producer has sales revenue and service provision from the previous year of less than VND30 billion; or
3. An importer has total import value (based on customs value) from the previous year of less than VND20 billion.

3. How is EPR implemented?

The EPR mechanism is implemented through the following methods:

1. Recycling organization for products and packaging;
   • In this case, Producers and Importers must register a recycling plan and report the annual recycling results to the Ministry of Natural Resources and Environment.
2. Financial contribution to the Vietnam environmental Protection Fund to support recycling of products, packaging, and waste collection and treatment.
   • The contribution and use of financial resources to the Vietnam Environmental Protection Fund must adhere to the following principles:
     1. The financial contribution and the funding for recycling are determined based on the volume or unit of product and packaging;
     2. The financial contribution is used to support the recycling of products and packaging and to support waste treatment activities;
     3. The receipt and use of financial contributions must be transparent, publicly disclosed, and used for the intended purposes in accordance with the law.

The above is not official advice from BLawyers Vietnam. If you have any questions or suggestions about the above, please contact us at info@blawyersvn.com. BLawyers Vietnam would love to hear from you.

Date: 14 January 2025

Writers: Thao Luu & Chau Dang