Producers and Importers Must Pay Recycling Support Fee by April 20
Producers and importers in Vietnam must fulfill their financial obligations for recycling by April 20 each year, either by self-recycling or contributing to the Vietnam Environmental Protection Fund (VEPF). Before that, they are required to declare their financial contributions by March 31.
Producers and importers in Vietnam must fulfill their financial obligations for recycling by April 20 each year
1. New Recycling Responsibilities for Producers and Importers
Under the 2020 Environmental Protection Law, companies that manufacture or import products and packaging are responsible for recycling them. The implementation timeline is as follows:
- From January 1, 2024: Applies to packaging, batteries, accumulators, lubricating oil, and tires.
- From January 1, 2025: Extends to electrical and electronic products.
- From January 1, 2027: Covers vehicles.
Under the 2020 Environmental Protection Law, companies that manufacture or import products and packaging are responsible for recycling them
2. How Financial Contributions Are Calculated
According to Decree 05/2025/ND-CP, amending Decree 08/2022/ND-CP, businesses that opt for financial contributions instead of self-recycling must calculate their fees using the formula:
F=R×V×FsF = R \times V \times FsF=R×V×Fs
Where:
- F = Total financial contribution to the VEPF
- R = Mandatory recycling rate for each product type
- V = Volume of products/packaging introduced to the market in the previous year
- Fs = Standardized recycling cost per unit, covering collection, transportation, processing, management, and oversight
The cost varies based on the recyclability of the product:
- Higher collection and recycling value → Lower cost
- Lower collection and recycling value → Higher cost
Additionally, 2% of the total recycling cost is allocated for management, supervision, and compliance support.
2% of the total recycling cost is allocated for management, supervision, and compliance support.
3. Declaration Process and Fund Utilization
Producers and importers must submit their financial contribution declaration to the Ministry of Natural Resources and Environment by March 31 each year. They are legally responsible for ensuring accurate information in their reports.
The Vietnam Environmental Protection Fund will use the collected contributions to support waste sorting, collection, transportation, recycling, disposal, and oversight activities. Interest from fund deposits will also be reinvested into these efforts.
Producers and importers must submit their financial contribution declaration to the Ministry of Natural Resources and Environment by March 31 each year
4. Standardized Recycling Costs (Fs) for Businesses
To implement the policy, the Ministry of Natural Resources and Environment has released standardized recycling cost rates (Fs) for various products:
Packaging Materials:
| No. | Product/Packaging Category | Product/Packaging Type | Recycling Cost (VND/kg) | Collection, Transport, Recycling Cost (VND/kg) | Adjustment Factor | Management & Compliance Cost (VND/kg) | Total Fs (VND/kg) |
|---|---|---|---|---|---|---|---|
| A. PACKAGING | |||||||
| A.1 Paper Packaging | |||||||
| A.1.1 | Carton packaging | 8,900 | 8,900 | 0.1 | 315 | 9,215 | |
| A.1.2 | Multi-layer paper packaging | 15,800 | 15,800 | 0.5 | 315 | 16,115 | |
| A.2 Metal Packaging | |||||||
| A.2.1 | Aluminum packaging | 7,500 | 7,500 | 0.5 | 169 | 7,669 | |
| A.2.2 | Other metal packaging | 11,250 | 11,250 | 0.5 | 169 | 11,419 | |
| A.3 Plastic Packaging | |||||||
| A.3.1 | PET plastic packaging | 11,750 | 11,750 | 0.6 | 169 | 11,919 | |
| A.3.2 | HDPE, LDPE, PP, PS rigid plastic packaging | 7,300 | 7,300 | 1.0 | 169 | 7,469 | |
| A.3.3 | EPS foam packaging | 11,250 | 11,250 | 1.0 | 169 | 11,419 | |
| A.3.4 | PVC plastic packaging | 7,350 | 7,350 | 1.0 | 169 | 7,519 | |
| A.3.5 | Other plastic packaging | 7,150 | 7,150 | 1.0 | 169 | 7,319 | |
| B. BATTERIES AND ACCUMULATORS | |||||||
| B.1 | Lead-Acid Batteries | ||||||
| B.1.1 | Used lead-acid batteries | 24,600 | 24,600 | 1.0 | 246 | 24,846 | |
| B.2 Lubricating Oil | |||||||
| B.2.1 | Engine oil (lubricants, fuel, transmission oil, etc.) | 82,500 | 82,500 | 1.0 | 2,475 | 84,975 |
Standardized Recycling Costs Table
5. Why These Fees Matter
This marks the first time the Vietnamese government has issued standardized Fs rates. These rates will be reviewed every three years to ensure they align with market conditions and recycling costs.
Experts emphasize that Fs rates are essential for the Extended Producer Responsibility (EPR) program, which holds manufacturers accountable for their products’ environmental impact. Without a standardized Fs, businesses would struggle to fulfill their obligations, affecting contract negotiations between importers, manufacturers, and recycling companies.
By implementing Fs, companies have two choices:
- Self-recycle their products.
- Contribute financially to the national recycling system.
This system allows businesses to decide the most economically viable approach while ensuring compliance with environmental regulations.