Vietnam: Extended producer responsibility ̶ latest legislative development

In brief

In the period between 2020 and 2022, the new Law on Environmental Protection (LEP) and its guiding Decree No. 08/2022/ND-CP ("Decree 08") were promulgated, providing a fundamental legal framework for extended producer responsibility (EPR). EPR-related regulations impose a number of obligations on manufacturers and importers of certain types of products and packaging in Vietnam. Nonetheless, the EPR legal framework is not yet complete.

Summarized below are the latest developments of the EPR regime in Vietnam.


Contents

In depth

  • EPR, an extension of the responsibility of the producer and importer of a product to the disposal stage in the product's life cycle, comprises two primary responsibilities: (i) responsibility for recycling products and packaging; and (ii) responsibility for waste collection and treatment. While the obligations in (ii) took effect on 10 January 2022, the recycling obligations in (i) will be effective soon (see effective dates of relevant products in the table below).
  • Subjects of EPR must comply with various recycling requirements and obligations once such requirements become effective.

Extended producer responsibility

Effective date of compliance

(i) Waste treatment and collection responsibility

From 10 January 2022

(ii) Recycling responsibility

Packaging and batteries; lubricating oil; tires

From 1 January 2024
Electrical and electronic products

From 1 January 2025

Transport

From 1 January 2027

  • On a side note, the following two major draft legislations are on their way to be issued so that the EPR regime can be fully implemented:
No. Draft EPR regulation Tentative date of issuance

Status

1

Draft Circular on the promulgation of rules on the management and use of the financial contribution of producers and importers into the Vietnam Environment Protection Fund (VEPF) for supporting recycling and waste treatment

Q1 2023 Pending at the Ministry of Natural Resources and Environment (MONRE).
2 Draft Decision of the Prime Minister on the promulgation of the norms of recycling costs for products and packaging Q4 2023

Currently being drafted by the MONRE and yet to be available for public comment.

  • Notwithstanding the forthcoming deadlines, there remain a number of major concerns around the draft regulations above, including but not limited to their justification, reasonableness, and enforceability (e.g., the reasonableness of the norm proposed for each type of packaging and product, or the narrow scope of entities eligible to receive financial support from the VEPF).
  • Close attention should be paid to the two draft EPR regulations that are expected to be promulgated in 2023, given that they are prerequisites for the implementation of EPR in practice.

Baker McKenzie has been closely following up with MONRE and relevant authorities with regard to the development of the EPR legal framework in Vietnam, and we will keep you posted accordingly. Please let us know if you have any inquiries regarding EPR or the draft regulations. Meanwhile, keep an eye out for our upcoming article, which will provide a detailed analysis of major issues in the EPR regime and their effect on businesses.

Contact Information
Van Trung Khuat
Special Counsel
Ho Chi Minh City
Read my Bio
vantrung.khuat@bmvn.com.vn
Tuan Linh Nguyen
Government Affairs Manager
Hanoi
tuanlinh.nguyen@bmvn.com.vn

Copyright © 2024 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.