The Ministry of Agriculture and Environment has submitted a draft decree on Extended Producer Responsibility (EPR) to the Ministry of Justice for appraisal , a key step toward consolidating scattered regulations and ensuring the policy becomes a practical tool for circular economy transition.
A unified framework for recycling responsibilities
According to the draft submission, Decree No. 08/2022/ND-CP and Decree No. 05/2025/ND-CP have laid the foundation for implementing EPR under the 2020 Law on Environmental Protection. However, in practice, provisions remain fragmented across multiple documents, making them difficult for businesses to follow and for regulators to monitor effectively.
The Ministry said EPR is still new to Vietnam, covering a wide range of stakeholders , from producers and importers to recycling enterprises. As a market-based environmental policy, EPR plays a key role in steering the country toward a circular economy by requiring producers to take responsibility for the post-consumer stage of their products.
Given the complexity and wide scope of the policy, the Ministry believes that issuing a standalone decree dedicated solely to EPR is essential. The move would unify current rules, enhance transparency, and provide a clear framework for businesses to comply while improving state oversight.
The draft decree consolidates and updates regulations from Decrees No. 08/2022 and No. 05/2025, expanding its coverage to include the recycling and disposal of end-of-life vehicles. It also introduces clarifications to ensure fairness and consistency in how responsibilities are assigned.
To make implementation more practical, the decree defines several special cases. For instance, if products or packaging bearing the same brand are produced at multiple factories, the entity responsible for labeling the goods will bear recycling obligations.
The Ministry of Agriculture and Environment is developing a draft decree on recycling responsibilities and waste treatment obligations for producers and importers under the Extended Producer Responsibility (EPR) framework.In cases of contract manufacturing, the party commissioning production, not the processing facility, will be responsible for fulfilling recycling duties. For entrusted imports, if the entrusting company’s name appears on the label, it must carry out EPR obligations. Conversely, if the entrusted importer labels the goods, the EPR-related revenue base will include both the import value and the entrustment fee.
Three groups are proposed for exemption from recycling obligations: Producers and importers of products or packaging for export, temporary import for re-export, or for research, education, or testing; Producers and importers with annual revenue under VND 30 billion; Producers who collect and reuse their packaging for repackaging at rates equal to or higher than the mandatory recycling rate.
The draft also sets a phased implementation timeline. Packaging, batteries, lubricants (excluding two-stroke engine oils), and tires will continue under the existing 2024 schedule. Electrical and electronic products will start from January 1, 2025, and road vehicles will be included from January 1, 2027.
Flexible recycling targets and business adaptation
Under the proposed decree, producers and importers can choose between organizing recycling directly or contributing financially to the Vietnam Environmental Protection Fund to support recycling activities.
To prevent duplication, the draft stipulates that if a product’s components , such as batteries, tires, or lubricants , have already fulfilled recycling obligations, their weight will be deducted from the total recycling rate of the finished product.
A new provision addresses the recycling of end-of-life vehicles, which are high-value products used over long periods and difficult to collect due to owner discretion. Owners will be responsible for delivering their vehicles to dismantling facilities that meet environmental protection standards once they reach end-of-life.
For lithium batteries used in vehicles , a relatively new and still limited category , the mandatory recycling rate is temporarily set at 0%.
Notably, the decree introduces a three-year adjustment cycle for mandatory recycling rates. Starting in 2029, the Minister of Agriculture and Environment will review and may increase recycling targets by up to 10% every three years.
According to the Ministry, this gradual approach allows businesses to prepare financially and technically, helping them avoid abrupt changes while ensuring progress toward sustainable production.
For waste collection and treatment, the decree specifies who must comply, when obligations begin, and which cases may qualify for exemption. The only method of compliance will be through financial contributions to the Vietnam Environmental Protection Fund, which will support waste treatment and recycling operations nationwide.
Contribution levels are defined by product and packaging category, and all producers and importers must declare and pay the required amount in full. The definition of the recycling fee (Fs) has also been clarified to emphasize that it represents a financial contribution rather than a “technical or economic benchmark”.
The Fs fee will be calculated per kilogram of product or packaging and adjusted every three years by ministerial decision, starting in 2029.
Under the new system, producers and importers must declare their financial obligations by April 1 each year, based on the products and packaging they placed on the market in the previous year. Payments to the Environmental Protection Fund must be made by April 20.
Some business associations have proposed extending the payment deadline to the end of the year, citing the large sums involved. However, the Ministry said the current schedule is reasonable, since companies will only be paying for obligations accrued during the previous year, giving them time to prepare while ensuring fiscal accountability.
The draft EPR decree marks a major step toward refining Vietnam’s environmental governance. By streamlining responsibilities, clarifying compliance mechanisms, and setting realistic adjustment cycles, the new regulation seeks to balance environmental objectives with business feasibility.
Officials expect the decree to not only strengthen compliance among producers and importers but also enhance Vietnam’s reputation as a country committed to sustainable production and circular economy principles.
As Deputy Director of the Department of Environmental Policy (Ministry of Agriculture and Environment) explained, the unified decree “aims to make EPR implementation practical, transparent, and fair, ensuring that environmental responsibility becomes an integral part of business growth”.