Last November, the Vietnamese Government adopted the amended Law on Environmental Protection (72/2020/QH14). In its articles 54 and 55, the law gives a legal framework on the Extended Producer Responsibility (EPR). The application decree, scheduled for July 2021, will be followed by a circular application by January 1st, 2022. In this context, companies are asked to find solutions to take responsibility for their plastic consumption and production.
What is EPR?
Extended producer responsibility is a practice and a policy approach in which producers take responsibility for management of the disposal of products they produce, once those products are designated as no longer useful by consumers. Therefore, contributing to circular economy.
In practice, EPR involves producers taking responsibility for the management of products after becoming waste, including: collection; pre-treatment, e.g. sorting, dismantling or de-pollution; (preparation for) reuse; recovery (including recycling and energy recovery) or final disposal.
EPR systems can allow producers to exercise their responsibility either by providing the financial resources required and/or by taking over the operational aspects of the process from municipalities. They assume the responsibility voluntarily or mandatorily; EPR systems can be implemented individually or collectively.
Who is concerned?
Organizations and individuals who manufacture and / or import products and packaging with recycling value must recycle according to mandatory recycling rates and specifications, except for temporarily exported or imported products and packaging. , re-export or manufacture or import for research, study or testing purposes.
What does it means for my business?
In this scenario, businesses in Vietnam have different solutions offered by the new law:
1. Organize by themselves the recycling system for their products and packaging.
In this case the work can be done by the company itself or handle by a certified service company. To ensure the compliance with the law, the producer will have to register recycling plans and report recycling results annually to the Ministry of Natural Resources and Environment.
2. Make a financial contribution to the Vietnam Environment Protection Fund to support product and packaging recycling.
The financial contribution for recycling support will be determined by the volume or unit of product or packaging.
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Notes: Some changes could be added to these elements the during 2021, for every businesses concerned, we advise you to follow closely the evolution of the regulation before it’s implementation in January 1st 2022.