Vietnam Vietnam seeks opinions on a draft circular on the environmental protection fund to boost recycling

Vietnam seeks opinions on a draft circular on the environmental protection fund to boost recycling

On June 3, 2022, the Legislation Department of Vietnam’s Ministry of Natural Resources and Environment (MONRE) held an event titled “Seminar to Exchange Opinions on the Draft Circular on the Management of the Amount of Contribution Paid by Producers and Importers to the Vietnam Environmental Protection Fund to Support Waste Recycling and Treatment” in Hanoi. The seminar was attended by a total of over 200 participants from ministries, Natural Resources and Environment Departments of centrally governed municipalities and provinces, private businesses, recyclers, the waste treatment association, and other organizations.

Producers and importers of any product or packaging material specified in Annex XXIII of the Decree No. 08/2022/ND-CP (i.e., pesticide packages, batteries, diapers, cigarettes, and various plastic products) will be required to pay into the Vietnam Environmental Protection Fund for the purpose of supporting waste treatment. Such contributions made to the Fund will be utilized for recycling of such products/packages or proper waste treatment for such products/packages. More specifically, the fund is planned to be used for 1) supplementing local government budgets to solve the issue of domestic waste, 2) help developing the recycling industry, and 3) solving problems of collection and treatment of domestic waste in rural areas that are facing economic and social difficulties.

In order to ensure the contributions made to the Fund are managed and used legally, the Legislation Department of the MONRE has prepared a draft circular (hereinafter “the draft circular”) and is seeking opinions from a wide range of stakeholders. The draft circular stipulates the following two supporting schemes:

    • Support for recycling of discarded products and packaging materials
    • Support for waste treatment

 

Support for recycling of discarded products and packaging materials

For recycling activities, the draft circular stipulates the following two types of support:

    • Support for recyclers
    • Support for organizations and individuals who sort and collect discarded products and/or packaging materials

The amount of grants to be provided will be determined based on: the weight of products and packaging materials to be recycled (for recyclers); or the weight of products and packaging materials sorted and collected (for organizations and individuals who sort and collect discarded products and/or packaging materials).

 

Support for waste treatment

The draft circular stipulates the following three types of support:

    • Support for those who make new investments in projects that collect, transport, and/or treat domestic waste
    • Support for projects that apply cutting-edge technologies for treating domestic waste
    • Support for organizations that carry out collection, transportation, and/or treatment of domestic waste (including pesticide packages)

The amount of grants to be provided for organizations that treat waste is determined based on the waste concerned, covered areas, and type of activities.

In addition to the matters described above, the draft circular provides detailed rules to support the product recycling and waste treatment, including: basic principles, requirements, documents and procedures for making applications, and inspection of the management and use of contributions paid by producers and importers.

The draft circular is expected to be promulgated by MONRE by the end of 2022 and to enter into force on January 1, 2023.