Recent update to the EPR Framework in Vietnam
Vietnam is among the first countries in the region to design a framework for Extended Producer Responsibility (“EPR“).
The concept of EPR was first introduced under the Law on Environmental Protection 2005. The 2020 Law on Environmental Protection then made fundamental adjustments to EPR policy, which were elaborated under Chapter IV and Annex XXII of Decree 08/2022/ND-CP (“Decree 08“).
Following recent developments in the legal landscape, on 1 April 2026, the Government issued a separate Decree 110/2026/ND-CP on EPR (“Decree 110“). On the foundation of Decree 08 (as amended), Decree 110 provides greater clarity and more detailed guidance to facilitate compliance.
Subject to EPR
In general, the manufacturer and the importer of regulated products and packaging shall comply with EPR.
However, Decree 110 clarifies that, in manufacturing arrangement, the ordering party, not the manufacturer, is responsible. Subsidiaries or independent branches may also authorise their parent company to implement EPR-related obligations on their behalf.
Manufacturers and importers whose annual revenue from products with regulated packaging falls below VND 30 billion (approx. USD 1.15 million) are exempt from the recycling obligation.
Obligations under Decree 110
Decree 110 imposes two core obligations on manufacturers and importers of regulated products and packaging:
- Recycling: The subject must either self-organise recycling (by self-collecting, contracting a licensed recycle, or working through a Producer Responsibility Organization) or contribute financially to the Vietnam Environment Protection Fund.
- Waste treatment: The subject makes a financial contribution to the Fund.
EPR applies to the products and packaging specifically listed under Decree 110 and its annexes, with mandatory rates prescribed for each item. Overall, the rates remain the same as provided under Decree 08, with some adjustments in categories related to road vehicles, furniture and construction materials.
Of note, Decree 110 tightens the mandatory recycling process for plastic packaging by excluding plastic flakes as a final acceptable product of the recyclying process. This is relevant for self-organise recycling, as the subject must ensure higher output standard.
Where a subject recycles above the mandatory rate, the excess volume, rather than the excess percentage as set out in previous regulations, may be carried forward and credited against the recycling volume in subsequent years.
As a reminder, the waste treatment obligation applies only to direct packaging, depending on the material. The recycling obligation, however, covers both direct and outer packaging – but only for packaging of specific product categories, such as food, cosmetics, pharmaceuticals, fertilizers, soap, cement, etc. These categories make up a significant share of retail inventory in Vietnam.
The Minister of Ministry of Agriculture and Environment shall review the applicable rates for recycling every 3 years and the rates for the waste treatment every 5 years. A notable change under Decree 110 is that it caps the maximum adjusted rate at 10% and 15% respectively, enhancing predictability and compliance planning for the regulatory subjects.
Compliance deadlines
Companies that opt to self-organize recycling must register their recycling plan and report results for the prior-year by 1 April each year.
Companies that opt to financial contributions must declare their obligation by 1 April and remit payment by 20 April each year.
Implications for producers and importers
To ensure compliance, operators should first identify whether their activities fall within EPR scope.
Where obligations apply, tracking the exact volume and/or revenue of regulated products and packaging placed on the market is necessary to calculate the correct obligations.
Further, operators are advised to assess which compliance method best suits their business – for instance, leveraging store locations to establish collection points, or opting for financial contribution to the Fund.
For transitional purposes, Decree 110 governs EPR compliance from 2026 onwards, while the previous framework under Decree 08 (as amended) continues to apply to obligations arising in 2025 and prior years.
Decree 110 takes effect on 25 May 2026.
// Tran Long / Van Thanh Nguyen
Disclaimer: This newsletter and its content are for informational purposes only and do not constitute legal advice. Readers should seek legal or professional advice before taking or refraining from any action.
