Vietnam Vietnam sets comprehensive EPR regulations for WEEE, ELV, packaging and batteries

Vietnam sets comprehensive EPR regulations for WEEE, ELV, packaging and batteries

On January 10, 2022, the Vietnamese government established and enacted the Decree No. 08/2022/ND-CP Detailing a Number of Articles of the Law on Environmental Protection (hereinafter the “the Decree”). Articles 77–86 of the Decree provide detailed rules on recycling of discarded products and packaging materials under the Extended Producer Responsibility (EPR) scheme as stipulated in Articles 54 and 55 of the Law on Environmental Protection 2020. The Decree sets out a list of regulated products and compulsory recycling rates, and provides for rules on the Environmental Protection Fund, producers’ obligations to formulate recycling plans, disclose product information, and report recycling performance.

Furthermore, the Ministry of Natural Resources and Environment (MONRE) on the same day established the Circular No. 02/2022/TT-BTNMT on Implementation Rules for a Number of Articles of the Law on Environmental Protection (hereinafter “the Circular”). The Circular stipulates formats of application and report forms required to perform treatment responsibilities.

These Decree and Circular can be downloaded at:

Decree No. 08/2022/ND-CP
https://monre.gov.vn/VanBan/Pages/ChiTietVanBanPhapQuy.aspx?pID=277

Circular No. 02/2022/TT-BTNMT
https://monre.gov.vn/VanBan/Pages/ChiTietVanBanPhapQuy.aspx?pID=276

 

Responsibility for recycling

Producers and importers who intend to sell any products or packaging materials specified in Annex XXIII of the Decree are required to recycle such products or packaging materials according to the applicable compulsory recycling rate and the recycling standards as stipulated in Article 78 of the Decree. The specific products subject to such responsibility and details of the recycling required are as follows.

No Regulated products and packaging Compulsory recycling rate Effective date
1 Various packaging materials
(paper, metal, plastic, glass)*The following products types are covered under the scheme.

    • Food products
    • Cosmetics
    • Pharmaceutical products
    • Fertilizers, feed, veterinary drugs,
    • Detergents, household products, agricultural products, medical products
    • Cement
10–22%(*) January 1, 2024
2 Cells and batteries (Lead-acid, rechargeable batteries, etc.) 8–12%(*) January 1, 2024
3 Lubricating oil (engine oil) 15% January 1, 2024
4 Tire, tube 5% January 1, 2024
5 Electrical and electronic equipment January 1, 2025
Refrigerators, freezers, air conditioners 5%
Tablets, laptops, etc. 9%
TVs, PC displays 7%
Compact fluorescent lamps, straight tube fluorescent lamps 8%
Induction cooktops, ovens, microwaves, etc. 5%
Washing machines and dryers 9%
Cameras, audio equipment 9%
Desktop PCs 9%
Printers, copiers 9%
Cell phones 15%
Solar panels 3%
6 Mode of transport January 1, 2027
Motorcycles, motor tricycles 0.5%
Motorized bicycles, including electric motorcycles and electric bicycles 0.7%
Automobiles (up to 9 seats) 0.5%
Automobile (more than 9 seats) 0.5%
Cargo vehicles (trucks) 0.5%
Construction vehicles 1%

(*) Applied compulsory recycling rate differs by product type.

Producers and importers of the above listed products and packaging materials are obliged to implement recycling in accordance with either (1) or (2) below:

1) Implementation of recycling

(a) Perform in-house recycling

(b) Outsource recycling to external recyclers

(c) Delegate recycling to a third-party intermediary, or

(d) Combine methods (a), (b) and/or (c) above

2) Contribution to the Vietnam Environmental Protection Fund

Producers and importers who choose to make contributions to the Fund will be exempted from the obligation to implement recycling.

Compulsory recycling rate

The Compulsory Recycling Rate means the minimum percentage of products and packaging materials that must be recycled according to the mandatory recycling standards out of the total annual production and import of the products and packaging materials put on the market. The compulsory recycling rate of various products and packaging materials will be determined based on the life cycle, disposal rate and recovery rate of each product or packaging material, and national targets for recycling, as well as economic and social conditions. It should be noted that the compulsory recycling rates specified in Annex XXII of the Decree shall be effective for three years from the application date.

In order to meet applicable compulsory recycling rates, producers/importers are allowed to recycle not only their own products and/or packaging materials but also equivalent products and/or packaging materials produced by other business entities. In the event that a producer or importer’s recycle rate exceeds the relevant compulsory recycling rate, the producer or importer may carry over the excess amount to the following year to include it in the calculation of recycling rate for the following year.

Contribution the Vietnam Environmental Protection Fund

If a company choose to pay a contribution to the Vietnam Environmental Protection Fund, the company must submit, by March 31 every year, a declaration to the Fund based on the production and import volumes of products and packaging materials that were put onto the market during the previous fiscal year.

The formula for calculating the payable amount of contribution is as follow:

Payable amount (F)

=

Compulsory recycling rate (R)

x

Quantity of products/packaging materials (V)

x

Recycling cost constant (Fs)

Here, Fs is the total recycling cost per unit weight, including the cost of sorting, collection, transportation and recycling of products and packaging materials, as well as administrative costs to support the performance of obligations of recycling by producers and importers. Specific Fs values for various products and packaging materials will be determined by MONRE.

 

NOTE:
EnviX can provide any consulting service for EPR regulations of Vietnam. Please feel free to contact us.
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Author / Responsibility

AOKI Kenji

Senior Consultant, EnviX Ltd.
General Director, E&H Consulting Co., Ltd.

Business Performance

Expertise in EHS (environment, health and safety) consulting in ASEAN region.
- Environmental regulations updating
- Chemical regulations consulting

Background

MSc in Earth Science, The University of Tokyo

AOKI Kenji