Vietnam has proposed changes to its extended producer responsibility (EPR) rules to strengthen recycling and support a circular economy.
The Vietnam Environment Agency, part of the Ministry of Agriculture and Environment, hopes to connect collection, recycling and demand for secondary raw materials. Its proposals would introduce mandatory recycled content requirements for packaging and products. They would also add provisions covering design for recycling.
The amendments complement the EPR rules that were introduced in May.
Creating a stronger market
Hoang Duc Vuong, vice president of the Vietnam Plastics Association, welcomed the proposals. He believes mandatory recycled content could give Vietnam a ‘much stronger position’ in Southeast Asia’s recycling sector.
Vượng also points to challenges in Vietnam’s existing packaging system. Much packaging has not been designed with recycling in mind.
Today, Vietnam’s packaging industry is worth almost EUR 12 billion. Paper and cardboard-based packaging top the list of materials, though flexible plastics is a fast-growing segment.
Nguyen Thanh Giang, general director of Tetra Pak Vietnam, predicts that the food and beverage (F&B) sector in Vietnam will witness ‘rapid expansion’. He cites an expected compound annual growth rate of about 10.3% until 2027.
Fixed recycling fee
Another major change would remove an existing option for producers and importers. Currently, companies can contribute to the Vietnam Environment Protection Fund to support recycling activities. Under the proposal, companies would instead organise collection and recycling themselves. Alternatively, they could appoint qualified organisations to fulfil these obligations.
Vượng sees the change as a significant policy decision. However, he also warns that removing the financial contribution mechanism could create challenges. The recycling industry remains relatively young and lacks sufficient capacity, he argues.
Direct negotiations between producers and recyclers could also create pressure on recycling fees. This could affect long-term investment decisions. Vượng therefore sees value in creating a minimum recycling fee to provide greater certainty for investors.
‘If recycling fees are no longer fixed, they will no longer provide sufficient signals to investors,’ he comments.
Informal collection remains a challenge
Vietnam also faces difficulties in proving the origin of collected materials. The country’s collection system still relies heavily on informal workers. These include waste pickers and scrap collectors.
Vượng observes the informal sector should become part of the EPR system. ‘We have proposed integrating this informal collection system into the EPR mechanism.’
The aim would be to strengthen collection while allowing informal workers to benefit from EPR policies.
Source: Vietnam News
Don't hesitate to contact us to share your input and ideas. Subscribe to the magazine or (free) newsletter.
