New Regulations on Recycling Rates and Mandatory Recycling Standards for Producers and Importers

New Regulations on Recycling Rates and Mandatory Recycling Standards for Producers and Importers

The government has introduced significant amendments to the Extended Producer Responsibility (EPR) policy, requiring producers and importers to comply with revised recycling rates and mandatory recycling standards. These changes, outlined in Decree 05/2025/NĐ-CP, modify and supplement several provisions of Decree 08/2022/NĐ-CP, which details aspects of the Environmental Protection Law.

The government has introduced significant amendments to the Extended Producer Responsibility (EPR) policy.

1. Mandatory Recycling Rates and Standards

The mandatory recycling rate represents the minimum percentage of products and packaging that producers and importers must collect and recycle according to specified standards. This rate is calculated based on the product’s lifecycle, disposal rate, collection rate, national recycling targets, environmental protection requirements, and socio-economic conditions.

This rate is calculated based on the product’s lifecycle, disposal rate, collection rate, national recycling targets, environmental protection requirements, and socio-economic conditions.

1.1. Key Provisions on Recycling Rates

• The mandatory recycling rates for each product and packaging type will be set for an initial three-year period and adjusted every three years to gradually increase recycling efforts.
• The Minister of Natural Resources and Environment will determine and issue updated recycling rates for each three-year cycle.

1.2. Producers’ and Importers’ Recycling Obligations

• Producers and importers can either recycle their own products and packaging or recycle similar products from other companies to meet the mandatory recycling rate.
• Imported scrap materials, industrial waste packaging, and defective products discarded during production will not count toward the mandatory recycling rate.
• If a company exceeds its required recycling rate in a given year, it can carry forward the excess amount to meet future obligations.

Producers and importers can either recycle their own products and packaging

2. New Recycling Standards and Compliance Rules

A major update in Decree 05/2025/NĐ-CP is the introduction of mandatory recycling standards.

• Unlike previous regulations that required a minimum recovery of materials and fuels from recycling, the new rules focus on specific recycling solutions for each product and packaging type.
• These mandatory recycling solutions are specified within the decree.

The new rules focus on specific recycling solutions for each product and packaging type.

2.1. Regulations on Recycling Facilities and Authorized Entities

• Recycling facilities hired by producers or authorized entities must have an environmental permit that includes approval for recycling activities.
• To be authorized, a recycling facility must be contracted by at least three producers or importers subject to the EPR policy.
• The Ministry of Natural Resources and Environment will publish a list of approved recycling facilities and authorized recycling entities on the National EPR Information System.

3. Alignment with Real-World EPR Implementation

To enhance practicality, Decree 05/2025/NĐ-CP aligns recycling obligations with actual business operations:

• Recycling obligations are determined after the end of the year, based on actual production, import, and market distribution figures.
• Producers and importers who recycled products in 2024 based on pre-registered plans can carry forward their recycling performance to count toward 2025 targets.
• Those opting for financial contributions instead of self-recycling must pay a lump sum before April 20 of the reporting year.

3.1. Exemptions and Special Cases

• Chewing gum manufacturers and importers are exempt from EPR responsibilities for their commercial packaging.
• Producers and importers who recover and reuse their own packaging (e.g., beverage companies using refillable bottles) are not required to recycle that packaging under EPR rules.
• Whether a company must comply with packaging recycling obligations depends on revenue from covered products, excluding revenues from non-recyclable products or import value.

4. Financial Contributions and Use of Environmental Protection Fund

• Financial contributions paid into the Vietnam Environmental Protection Fund will support waste classification, collection, transportation, recycling, disposal, and compliance monitoring.
• Interest earned on the fund’s bank deposits will be used for management and oversight costs.
• The Ministry of Natural Resources and Environment will publish an annual report on fund usage before March 31 each year.

 

3.1. Financial Contribution Process

• Producers and importers must declare their financial contributions to the Ministry of Natural Resources and Environment by March 31 each year.
• Payments must be made to the Vietnam Environmental Protection Fund by April 20.
• If a company already paid contributions in 2024, that amount can be carried forward to the 2025 reporting period.

5. Implementation Timeline for Recycling Obligations

Additionally, the Ministry of Natural Resources and Environment will propose regulations for the disposal of end-of-life vehicles before January 1, 2026.

Conclusion

The new EPR regulations in Decree 05/2025/NĐ-CP introduce more structured recycling obligations, clear compliance standards, and financial contribution rules for producers and importers. These amendments are expected to enhance recycling efficiency, align Vietnam’s waste management policies with international standards, and promote environmental sustainability.

 

Edited by Luu Hana

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Operating under the motto of “Pioneering Quality,” Hoang Vuong consistently aims for sustainable and environmentally friendly packaging solutions. We proudly hold the following certifications:

• FSC Certification: FSC-C187470
• GMI Certification
• G7 Certification
• ISO 9001:2015

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