Extended Producer Responsibility (EPR) in Vietnam. Legal Framework, Implementation, and Stakeholder Engagement

I. Introduction to Extended Producer Responsibility (EPR) in Vietnam

Concept and Importance of EPR

Extended Producer Responsibility (EPR) is a groundbreaking environmental policy approach that holds producers and importers responsible for the environmental impact of their products throughout their entire lifecycle, especially after the products are discarded. The core objective of EPR is to minimize negative environmental impacts caused by waste, while encouraging businesses to design more sustainable products that are easier to recycle and reuse.  

Beyond its environmental aspect, EPR is also viewed as an economic tool that adheres to market principles. This policy aims to find effective financial solutions for waste management, promote the development of the recycling industry, and create numerous economic opportunities and jobs for society. It is an essential element in fostering and maintaining a circular economy model, moving towards a closed loop of resources, minimizing waste, and achieving net-zero emissions.  

Historical Development and Implementation Roadmap in Vietnam

The concept of EPR was first introduced in Vietnam’s Environmental Protection Law in 2005, with initial regulations on the take-back of certain post-consumer products. However, during this period, the policy’s implementation effectiveness was quite modest.  

A significant change occurred with the promulgation of the 2020 Environmental Protection Law, where the EPR policy was regulated in more detail and with stronger enforcement. From January 1, 2024, Vietnam officially began implementing the EPR policy comprehensively, marking a significant step forward in waste management and promoting the circular economy.  

The shift of the EPR policy from “take-back” regulations in 2005 to “extended responsibility” in the 2020 Environmental Protection Law demonstrates a significant maturation in Vietnam’s environmental policy-making. Initially, the focus was merely on collecting discarded products, but practical effectiveness showed this approach had limitations. With the 2020 Environmental Protection Law, producers’ responsibility is extended across the entire product lifecycle, including design, production, and consumption stages, not just disposal. This indicates that Vietnam has learned from past limitations and adopted international best practices to build a more comprehensive policy aimed at addressing pollution and resource waste at their roots.  

Furthermore, EPR implementation is considered an indispensable strategic tool for Vietnam to fulfill its important international commitments, especially the goal of achieving net-zero emissions by 2050, as pledged at COP26. This shows that EPR is not just a simple environmental regulation but a core pillar in the nation’s sustainable development strategy. Applying EPR is part of a larger effort to transform the economic model, reduce reliance on virgin resources, and enhance recycling capacity, thereby contributing to global climate goals and building a greener economy.  

II. Legal Framework for EPR in Vietnam

2020 Environmental Protection Law: The Legal Foundation

The 2020 Environmental Protection Law serves as the highest legal foundation governing EPR in Vietnam. This Law specifies the responsibilities of organizations and individuals that produce and import products and packaging placed on the market. Accordingly, the Law stipulates two main types of responsibilities:  

• Product and Packaging Recycling Responsibility: Applies to products and packaging with recycling value.  
• Waste Collection and Treatment Responsibility: Applies to products and packaging containing hazardous substances, those difficult to recycle, or those that pose challenges for collection and treatment.  

Decree 08/2022/ND-CP: Detailed Regulations and Implementation Guidelines

To elaborate on the provisions of the 2020 Environmental Protection Law, the Government issued Decree 08/2022/ND-CP, effective from January 10, 2022. This Decree provides detailed guidelines for EPR implementation, including identifying product and packaging groups subject to responsibility, specific implementation roadmaps, and the formula for calculating financial contributions to the Vietnam Environmental Protection Fund (VEPF). The financial contribution formula is determined as F = R x V x Fs, where F is the total amount to be paid, R is the mandatory recycling rate, V is the volume of products/packaging placed on the market, and Fs is the reasonable recycling cost per unit.  

Decree 05/2025/ND-CP: Important Amendments and Additions

Less than three years after Decree 08/2022/ND-CP took effect, the Government continued to issue Decree 05/2025/ND-CP, effective from January 6, 2025, to amend and supplement several articles of Decree 08, particularly those related to EPR. This indicates that Vietnam’s EPR legal framework is continuously being tested and adjusted. This rapid amendment reflects the Government’s proactive approach in addressing practical shortcomings and refining policies to better suit current economic conditions and infrastructure. However, such continuous changes also pose certain challenges for businesses in timely updating and adapting to new regulations.  

Notable amendments in Decree 05/2025/ND-CP include :  

• Clarifying Responsible Entities: Decree 05 clarifies that entities obligated to implement EPR are “organizations and individuals responsible for the quality and labeling of products and goods in Vietnam.” This provision excludes organizations and individuals that only provide import services, helping to clearly delineate legal responsibilities.
• Amending Exemption Regulations: The criteria for EPR exemption are adjusted, applying to producers and importers with product sales revenue below 30 billion VND (previously, it was sales revenue from goods/services or total import value below 20 billion VND). This adjustment aims to reduce the burden on smaller businesses, giving them time to adapt.
• Adding New Exemption Cases: The Decree encourages packaging reuse by exempting EPR obligations if the producer has placed packaging on the market and then reclaims and re-packages it for continued market placement at a rate equal to or higher than the mandatory recycling rate. This is a significant step, promoting deeper circular economy practices, not just recycling but also direct reuse, helping to reduce the need for new material production.
• Adding Exclusion Cases for Mandatory Recycling Rate Calculation: Cases of recycling packaging that is waste generated from industrial production processes and defective products discarded during production will not be counted towards the mandatory recycling rate. This regulation directs businesses to focus on their responsibility for post-consumer products, rather than just recycling waste generated from their own production processes. This is expected to help shape the recycling market towards greater efficiency and alignment with its true purpose, ensuring EPR resources are used for genuine post-consumer waste.

Table 1: Key Legal Documents on EPR in Vietnam

III. Forms of EPR Implementation and Application Roadmap

Vietnam adopts a hybrid-EPR model, assigning different responsibilities to producers across various sectors, including treatment responsibility and recycling responsibility. Producers and importers can choose one of two main methods to fulfill their recycling obligations.  

Product and Packaging Recycling Responsibility

Producers and importers of six groups of products and commercial packaging must undertake recycling responsibility with mandatory rates and specifications :  

1. Rubber tires and inner tubes  
2. All types of batteries and accumulators  
3. Lubricating oils  
4. Commercial packaging (food, cosmetics, pharmaceuticals, fertilizers, animal feed, agricultural materials, cement, detergents, household, agricultural, and medical preparations)  
5. Electrical and electronic products  
6. Vehicles (cars, motorcycles)  

Businesses have two options to fulfill their recycling responsibility :  

• Organize recycling themselves: Businesses can either carry out the recycling of their product and packaging waste themselves, hire a recycling service provider, fully delegate to a third party such as a Producer Responsibility Organization (PRO), or combine these methods. After choosing a method, businesses must register their recycling plan with the Ministry of Natural Resources and Environment (MONRE) and report annual recycling results.  
• Make financial contributions to the Vietnam Environmental Protection Fund (VEPF): This is an alternative option where producers contribute a sum of money to the VEPF. This amount is calculated based on a specific formula, taking into account the standard recycling cost (Fs) for each type of product and packaging. This fund will be used to support agencies and organizations carrying out sorting, collection, transportation, recycling, and treatment of products and packaging under the EPR system.  

The roadmap for applying recycling responsibility is implemented in stages :  

• From January 1, 2024: Applies to packaging and products such as batteries, accumulators, lubricating oils, and tires.
• From January 1, 2025: Applies to electrical and electronic products.
• From January 1, 2027: Applies to vehicles (cars, motorcycles).

Vietnam’s adoption of a hybrid EPR model, with two flexible implementation methods (self-organized recycling or financial contribution) and a phased implementation roadmap, demonstrates a pragmatic approach. This is designed to balance ambitious environmental goals with the practical reality of the nation’s nascent recycling infrastructure. The financial contribution option to the VEPF serves as a safety net and a funding mechanism for the broader waste management system, especially in the initial stages when infrastructure is still developing. Simultaneously, allowing self-organized recycling encourages private sector innovation and investment in effective recycling solutions. This approach helps alleviate immediate pressure on businesses while gradually promoting the development of a sustainable recycling ecosystem.  

Waste Collection and Treatment Responsibility

For six groups of products and packaging containing hazardous substances, those difficult to recycle, or those that pose challenges for collection and treatment, producers and importers are responsible for financially contributing to the Vietnam Environmental Protection Fund to support waste collection and treatment activities :  

1. Pesticides  
2. Single-use batteries  
3. Disposable diapers, sanitary napkins, wet wipes  
4. Chewing gum  
5. Cigarettes  
6. Certain products containing synthetic plastic components (e.g., balloons, children’s toys, footwear, clothing, single-use plastic items, single-use household items, construction materials, non-biodegradable plastic bags).  

This responsibility came into effect on January 1, 2022. These financial contributions are managed and used transparently and for their intended purpose, solely to directly support product and packaging recycling activities or waste collection and treatment, unlike environmental taxes or fees.  

IV. Organizations and Stakeholders in EPR Implementation

EPR implementation in Vietnam requires close coordination among various stakeholders, from state agencies to private and international organizations.

Ministry of Natural Resources and Environment (MONRE) and State Agencies

The Ministry of Natural Resources and Environment (MONRE) plays a central role in developing national EPR strategies and action plans, as well as approving recycling targets and managing the Vietnam Environmental Protection Fund (VEPF). VEPF, with its headquarters in Hanoi and a representative office in Ho Chi Minh City, is responsible for receiving and managing financial contributions from producers and importers.  

Financial contributions to the VEPF are calculated based on the formula F = R x V x Fs, where Fs is the reasonable recycling cost per unit of product/packaging. These funds are used to support activities such as sorting, collection, transportation, recycling, and waste treatment, as well as related administrative management costs. Before September 30 each year, MONRE publicly announces the criteria, priorities, and financial support levels for recycling activities for the following year. Requests for financial support are submitted to the National EPR Council Office for appraisal and submission to MONRE for approval.  

Producer Responsibility Organizations (PROs)

Producer Responsibility Organizations (PROs), such as Packaging Recycling Organization Vietnam (PRO Vietnam), play a crucial role in assisting businesses to fulfill their EPR obligations. PRO Vietnam is a pioneering alliance of leading businesses in the consumer goods, packaging, retail, import, and recycling industries.  

Key activities of PRO Vietnam include:

• Business Support: Providing information, consulting, organizing research activities, workshops, training, and building sustainable recycling models.  
• Collection and Recycling: In 2024, PRO Vietnam collected and recycled over 64,500 tons of various packaging, completing 100% of the recycling volume authorized by its members.  
• Policy Participation: Actively participating in policy forums and contributing ideas to ensure feasibility during EPR implementation.  
• Connecting Stakeholders: Connecting businesses with regulatory agencies, recyclers, and informal waste pickers to form an efficient collection and recycling ecosystem.  
• Raising Public Awareness: Implementing communication campaigns on 3R (Reduce – Reuse – Recycle) to encourage waste separation at source and sustainable consumption.  

PROs help optimize operational costs and reporting for producers and importers, especially in achieving mandatory recycling rates and recycling according to specifications.  

International and Non-Governmental Organizations (NGOs)

The process of developing and perfecting EPR policy in Vietnam has seen significant contributions from non-state and international organizations. This indicates that successful EPR implementation in Vietnam heavily relies on a multi-stakeholder collaborative ecosystem. The broad participation of government agencies, PROs, and international/non-governmental partners reflects the complexity of waste management and the necessity of shared responsibility, as well as leveraging diverse expertise from all parties.  

These organizations have actively supported the Ministry of Natural Resources and Environment, particularly providing technical assistance in developing and refining EPR regulations. Some prominent organizations include:  

• Australian Embassy, Korean Ministry of Environment, Royal Norwegian Embassy, Taiwan: Providing support at the government level.  
• World Wide Fund for Nature (WWF – Vietnam): Has been implementing various plastic waste reduction initiatives, collaborating with local authorities to improve waste management and raise public awareness.  
• International Union for Conservation of Nature (IUCN – Vietnam): Has participated in building the national EPR platform, organizing workshops and pilot projects on the circular economy, especially in waste reduction and enhanced recycling.  
• GIZ and Expertise France (under the EU-Rethinking Plastic Project): Supporting the transition to a circular economy for plastics, providing advisory services and pilot projects on plastic waste management, EPR design, and marine litter reduction in Southeast Asia, including Vietnam.  
• GreenHub, Vietnam Zero Waste Alliance (VNZWA): Other domestic and international organizations also contribute to policy development and awareness-raising.  

Informal Sector

The informal waste collection sector plays an incredibly important role in Vietnam’s solid waste management system, although it is often under-recognized and faces many challenges. This workforce, comprising nearly 3 million people, 90% of whom are women, contributes to collecting over 30% of recyclable plastic waste. They are a crucial “link” in sorting waste at the source, reducing financial pressure on formal collection units, and saving public budgets.  

However, this sector still faces many difficulties such as economic instability, social stigma, health risks due to working without contracts, and outdated recycling technologies causing environmental pollution. Managing and integrating this workforce into the formal EPR system is a major challenge but also a key factor for the policy’s success. Experts recommend targeted interventions such as capacity-building programs, financial empowerment, and trust-building initiatives to bridge the gap between the informal and formal systems. Formalizing and properly supporting this workforce will provide an opportunity to build a more comprehensive, efficient, and sustainable waste management system.  

V. Opportunities and Challenges in EPR Implementation in Vietnam

Opportunities

The EPR policy brings many important opportunities for Vietnam in the context of sustainable development and international integration:

• Promoting Circular Economy and Reducing Environmental Pollution: EPR is a breakthrough solution to promote the circular economy, extend product lifecycles, minimize waste causing environmental pollution, and conserve resources for the future.  
• Developing the Recycling Industry: EPR creates a stable financial source through contributions to the VEPF, which is a major driving force for promoting Vietnam’s nascent recycling industry. This policy encourages investment, upgrading recycling technologies, and transforming manual, polluting recycling activities into more modern and sustainable models.  
• “Green Certificate” for Exports: EPR implementation helps Vietnamese businesses meet the increasingly high “green standards” of demanding markets like the European Union (EU), especially in sectors such as textiles. EPR becomes an important “green certificate,” helping to maintain and expand export opportunities, enhancing the competitiveness of businesses in the global supply chain. This is a strong external driver, encouraging businesses to proactively comply and innovate.  
• Raising Public Awareness: Communication and education campaigns accompanying EPR contribute to raising public awareness about waste separation at source and sustainable consumption, changing behavior in a positive direction.  

Challenges

Despite many opportunities, the EPR implementation process in Vietnam also faces numerous challenges:

• Incomplete Collection and Recycling Infrastructure: The current collection and recycling system is fragmented, lacking synchronized links between stakeholders in the value chain. Vietnam’s recycling industry is still nascent, lacking large recyclers with modern technology, and recycling activities primarily rely on spontaneous craft villages, posing potential environmental pollution risks.  
• High Compliance Costs and Burden on Businesses: Implementing EPR requires businesses to bear compliance costs, including investment in technology, collection systems, or financial contributions. This places significant financial pressure, especially on small and medium-sized enterprises (SMEs), which account for over 97% of all businesses in Vietnam and often face difficulties in accessing capital and resources.  
• Unclear Legal Guidance and Business Confusion: Although the legal framework is being refined, the continuous changes in decrees (such as Decree 05/2025/ND-CP amending Decree 08/2022/ND-CP) can leave businesses confused about choosing implementation methods and updating new regulations. This creates a dynamic legal environment, requiring businesses to constantly adapt and invest in understanding and legal consultation.  
• Management and Integration of the Informal Sector: Formalizing and effectively managing the informal waste collection workforce is a significant challenge. Although they contribute greatly to collection, the lack of labor contracts, inadequate working conditions, and outdated technology are barriers that need to be addressed to integrate them into the formal system sustainably.  

VI. Conclusion and Recommendations

The Extended Producer Responsibility (EPR) policy in Vietnam is a crucial step in the nation’s efforts to promote a circular economy, minimize environmental pollution, and realize international commitments on net-zero emissions. The legal framework, with the 2020 Environmental Protection Law and detailed Decrees (08/2022/ND-CP and 05/2025/ND-CP), has created a solid foundation for EPR implementation, while demonstrating the Government’s flexibility and adaptability to practical realities.

The active participation of organizations like PRO Vietnam, along with technical and financial support from international and non-governmental organizations, has significantly contributed to capacity building, awareness-raising, and the development of the recycling ecosystem. Notably, the role of the informal sector in the waste collection chain is undeniable, although many challenges remain to be addressed to formalize and improve their working conditions.

However, EPR implementation still faces certain difficulties, including unsynchronized recycling infrastructure, high compliance costs for businesses (especially SMEs), and the need for continuous updates to legal guidelines. To maximize EPR’s effectiveness and turn challenges into opportunities, the following recommendations are put forth:

• Refine and Stabilize the Legal Framework: Continue to review and fine-tune legal regulations to ensure clarity, transparency, and stability, reducing confusion for businesses. A clearer roadmap for mandatory recycling rates and standard recycling costs is needed to enable businesses to plan long-term.
• Special Support for Small and Medium-sized Enterprises (SMEs): Develop financial, technical, and specialized training programs on EPR for SMEs. This could include preferential loan packages, simplified reporting process guidelines, and platforms for sharing knowledge and practical experiences.
• Integrate and Enhance the Capacity of the Informal Sector: Develop specific policies to formalize, protect the rights, and enhance the capacity of the informal waste collection workforce. This includes providing training on occupational safety, supporting access to simple technologies, and creating conditions for their participation in the formal recycling value chain.
• Invest in Modern Recycling Infrastructure: Encourage and attract investment in advanced recycling technologies, building large-scale, environmentally compliant recycling facilities. There should be preferential policies on land, capital, and credit for investment projects in the recycling industry.
• Strengthen Multi-stakeholder Cooperation: Continue to promote close cooperation among the Government, businesses, PROs, international organizations, and the community to build a comprehensive and effective EPR ecosystem. Learn from the experiences of countries that have successfully implemented EPR to adapt to Vietnam’s conditions.
• Raise Awareness and Change Behavior: Maintain and expand communication and education campaigns to raise community awareness about the importance of waste separation at source, recycling, and sustainable consumption, creating social consensus for EPR implementation.

The synchronized implementation of these solutions will help Vietnam not only achieve its environmental goals but also create new momentum for sustainable economic growth, affirming its position in the global value chain and moving towards a greener future.