The EPR Decree: Business Wants Transparency, Recyclers Want Technology, Local Authorities Await Guidance
The Ministry of Agriculture and Environment is finalising the draft Decree on Extended Producer Responsibility for producers and importers (EPR). It is seen as an important step towards consolidating all EPR-related rules, which until now have been scattered across several decrees. Once issued, the decree will be the central instrument for driving recycling and waste treatment and for helping Viet Nam move faster towards a circular economy.
The regulator: "No ask-and-grant; transparency is the principle"
Mr Nguyen Hung Thinh, Deputy Director of the Environment Department (Ministry of Agriculture and Environment), affirmed that separating EPR into its own decree is necessary to "remove overlaps and make things easier for business". In his view, disbursement will be based on the actual volume recycled, transparently, avoiding any "ask-and-grant" mechanism.
"We will make sure the rules are clear and workable, and we will design a roadmap, rates and recycling specifications that match the reality businesses face," Mr Thinh said.
Manufacturers: hoping for a legal framework that works with them
From the business side, many argue that EPR is not merely an obligation but a driver of sustainable growth. Mr Vo Tan Thanh, Vice Chairman of VCCI, said a transparent legal framework would help businesses save resources and strengthen their competitiveness.
Difficulties remain, nonetheless. Ms Pham Truc Thanh, Sustainability Director of HEINEKEN Viet Nam, said: "Our company wants closed-loop recycling, but in practice the collection infrastructure is not sufficient and domestic technology is still limited. Without coordinated cooperation, businesses will struggle to meet their EPR targets."
A representative of Duy Tan Recycling Plastics also pointed out that waste which is not sorted at source pushes treatment costs up: "We badly need policy support to standardise the waste sorting system so that recycled material is of consistent quality."
The recycling association: "We cannot pick cheap, outdated technology"
Speaking for the associations, Mr Hua Phu Doan, Standing Vice Chairman of the Viet Nam Waste Recycling Association, stressed: "When choosing recycling partners we cannot ignore technology just because the price is low. Choose wrongly and we pay for it with the environment."
Mr Doan also recommended digitalising the entire EPR process, from paperwork and data through to cash flows. "Only when everything is open and transparent will businesses believe that the responsibility they have discharged is fully recognised," he said.
Meanwhile Ms Chu Thi Kim Thanh, Operations Director of the Packaging Recycling Organization Vietnam, raised the question of binding rules: "If an organisation receives support but fails to meet its recycling commitment, there must be specific sanctions to keep the system rigorous."
Local authorities: detailed guidance is needed to avoid confusion
Representatives of the environmental protection agencies of Ho Chi Minh City and Da Nang shared the same view: localities are waiting for detailed guidance from the central level in order to organise waste treatment and manage support funds. "Without clear rules, the risk of waste and overlap is very high," one representative said.
High hopes, no shortage of challenges
The draft decree sets out a roadmap raising recycling rates every three years, along with financial support of up to VND 10–20 billion for certain product groups. Businesses argue, however, that the level of support, the timelines and the risk of missing committed targets all need careful calculation.
Despite the issues still to be resolved, experts and businesses alike see the EPR decree as a turning point for waste management in Viet Nam. It not only tightens the responsibility of producers and importers but also encourages modern recycling technology, green design and green FDI, bringing Viet Nam closer to its sustainable development goals.
GreenU's view: EPR must connect to the circular value chain and the informal sector
As a social enterprise working on the circular economy and responsible supply chains, GreenU sees the drafting of the EPR decree as a step in the right direction. For the decree to work in practice, however, three things matter.
First, EPR does not stop at end-of-life recycling: it has to be seen across the whole value chain — from product design and packaging choices to distribution systems and post-consumer collection. Without that connection, businesses only treat the symptom, while the potential to save resources and cut emissions at the design and consumption stages remains largely untapped.
Second, the role of the informal sector — the waste pickers and scrap collectors — needs to be recognised in the decree. They are today the main collection force and contribute significantly to recycling rates, yet they sit outside the policy framework. GreenU believes there should be mechanisms to encourage, train and integrate them into the formal EPR system, which would serve both social equity and collection efficiency.
Third, partnership between business and local government is the key. Authorities need to provide specific, transparent guidance on the use of support funds, while businesses need to take the initiative in investing in technology and in communication that changes consumer behaviour and improves sorting at source.
With that approach, GreenU believes EPR will be more than a legal requirement: it will become a lever for building sustainable production and consumption, where every stakeholder shares both the responsibility and the benefits of reducing plastic waste and protecting the environment.