WHAT IS NEW IN THE DECREE ON EPR OBLIGATIONS
Decree 110/2026/ND-CP (issued on 1 April 2026) marks an important turning point: it separates the rules on Extended Producer Responsibility (EPR) into a dedicated legal instrument. To do so, Decree 110 repeals the whole of Chapter VI and Appendices XXII and XXIII of Decree 08/2022/ND-CP (as amended by Decree 05/2025/ND-CP), creating a single, more detailed legal framework.
Below are the main changes and new points in Decree 110/2026/ND-CP compared with Decrees 08 and 05, as regards the recycling obligations of producers and importers:
1. Clearer exemptions from the recycling obligation Decree 110 sets out in greater detail the cases in which the recycling obligation does not apply:
- Revenue threshold: producers and importers whose total revenue from the sale of goods and services in the immediately preceding year is below VND 30 billion a year are not subject to the recycling obligation. (Previously Decree 05 mainly applied this VND 30 billion threshold to the contribution supporting waste treatment; the decree now applies it clearly to the recycling obligation as well.)
- Purpose of production or import: products and packaging that are exported, temporarily imported for re-export, or produced or imported for research, study or testing are exempt.
- Specific packaging: packaging for products such as medicines, cosmetics, fertilisers, animal feed, veterinary drugs, plant protection products, agricultural cleaning chemicals and cement is exempt from the recycling obligation.
2. Changes to financial contributions to the Viet Nam Environment Protection Fund Where a producer or importer chooses to pay into the Fund rather than recycle itself, Decree 110 makes several changes to the roadmap and deadlines:
- The formula is unchanged: the contribution is still calculated as F = R x V x Fs (where R is the mandatory recycling rate, V is the volume of product or packaging, and Fs is the reasonable recycling cost norm), as under Decree 05.
- Roadmap for applying Fs: Decree 110 states clearly that the Ministry of Natural Resources and Environment will issue Fs on a three-year cycle, and emphasises that the Fs norm for each product and packaging type applies from 2029.
- More flexible payment deadlines: producers and importers have two options — pay 100% before 1 April each year, or pay in instalments (50% before 20 April and the remaining 50% before 20 October).
3. Tighter recycling specifications and recognised volumes
- No carry-over from the previous year: Decree 110 sets the mandatory recycling rate for each type of product and packaging, as listed in Appendix I.
- Conditions on the volume counted: the volume of products and packaging counted towards fulfilment of the recycling obligation must meet the prescribed specifications. In particular, producers and importers must certify that this volume does not include imported scrap, packaging that is waste arising from the production process, or defective products discarded during production.
- Where the obligation is delegated to a third party (a recycler), that party may not sub-delegate to a fourth party, so that recycled volumes remain transparent.
4. Stricter reporting and supervision To prevent inflated recycling figures, the new EPR forms require close monitoring and oversight:
- Monthly progress updates: the new decree introduces Form 02c, requiring producers that recycle themselves, or their authorised recyclers, to keep a monthly progress table stating total volume collected, volume already recycled, and details of the collection units.
- Explanation of recycling operations: with the annual recycling results report (Form 02b), businesses must submit a diagram and a detailed explanation of their internal process from collection through to recycling, together with photographs, invoices, supporting documents and contract acceptance records as evidence.
Article 23 on transitional provisions of Decree 110/2026/ND-CP sets out two main points: the dates of application and the treatment of funds already received.
1. Dates for producer and importer obligations:
- For 2025 and earlier: recycling obligations for products and packaging and obligations for waste collection and treatment continue to be governed by Decree 08/2022/ND-CP (as amended and supplemented by Decree 08/2026/ND-CP of 29 January 2026).
- For 2026 onwards: those obligations are governed entirely by the new rules in Decree 110/2026/ND-CP.
2. Treatment of waste-treatment support funds already received: for sums received by the Viet Nam Environment Protection Fund before Decree 110 takes effect, support will be delivered under Article 18 of the decree, but on the following adjusted timeline:
- Within 30 days (from the effective date): provincial People's Committees must submit a written request for financial support.
- Within 45 days (from the effective date): the Ministry of Agriculture and Environment must approve and publish the allocation plan.
- Within 30 days (from the date the plan is approved and published): the Viet Nam Environment Protection Fund transfers the support to the account of the provincial environment protection fund (or an equivalent financial institution) as requested by the provincial People's Committee.
In short, compared with Decrees 08 and 05, Decree 110/2026/ND-CP does not change the nature of the EPR mechanism. It mainly specifies who is exempt, clarifies the financial roadmap (Fs applying from 2029) and, above all, tightens management and reporting (monthly and annual) to counter fraudulent reporting of collected and recycled volumes.
WHAT IS NEW IN THE DECREE ON EPR OBLIGATIONS
The new decree makes important adjustments that spell out the process, the timing and the financial support mechanism for recycling products and packaging and for treating waste in Viet Nam.
1. Declaration and payment
The decree sets clear dates and methods for both types of obligation:
- Recycling payments:
- Declaration: before 1 April each year on the EPR information system.
- Payment: before 20 April, producers and importers must pay the full declared amount into the account of the Viet Nam Environment Protection Fund.
- Waste treatment payments:
- Declaration: before 1 April each year on the EPR information system.
- Payment: before 20 April, the full amount is paid into the Fund's account.
2. Management and use of deposit interest on EPR contributions
A notable new point concerns the allocation of bank interest earned on the contributions:
- Management costs: taken from the interest but no more than 2% of the amount disbursed (for recycling) or allocated/disbursed (for waste treatment) during the year.
- The remaining interest: added to the funds supporting recycling or waste treatment, as directed by the Minister of Natural Resources and Environment.
3. Support mechanism for recycling products and packaging
The decree establishes a more competitive and transparent support mechanism:
- Form of support: support by product and packaging group through competitive proposals. The amount is calculated on the volume actually recycled (F = Kd × M).
- Who receives support: units that carry out recycling directly, or units that organise the recycling obligation (collecting, transferring and certifying recycled volumes).
- Allocation of support packages: packages are divided by group — tyres and inner tubes, lubricating oil, packaging, electronic products, batteries and accumulators, vehicles and so on — worth VND 10 billion to VND 20 billion each.
- Assessment criteria: applications for support are scored on:
- Volume recycled (maximum 100 points).
- Time of implementation (maximum 50 points).
- Technology coefficient (k): from 0.6 to 1 depending on how advanced the recycling solution is.
4. Support mechanism for waste treatment
Unlike recycling support, waste treatment support centres on the role of local government:
- Recipients: provincial People's Committees.
- Activities supported: collection, transport and treatment of municipal solid waste from households; research into waste treatment technology; and treatment of plant protection product packaging.
- Allocation method: not based on local requests but on weightings — agricultural land area, population size and the area of districts facing difficult conditions.
5. Process and timeline (2026)
The decree sets a tight schedule for support:
- Recycling support: the ministry announces the support packages before 1 June; units submit applications before 1 July; disbursement follows once the recycling results report has been confirmed by an independent audit.
- Waste treatment support (transitional schedule for 2026):
- Provincial People's Committees submit requests for support within 30 days of the decree being issued.
- The ministry approves the allocation plan within 45 days of the decree taking effect.
- The Fund transfers the money to provincial funds within 30 days of approval.
6. Responsibilities of the Viet Nam Environment Protection Fund
The Fund plays the central role in receiving, managing and using EPR contributions openly and transparently. Before 1 April each year, it must report to the Ministry of Natural Resources and Environment and to the National EPR Council on the previous year's receipts and use of funds, and publish this on its website.
Compiled from the decree on the recycling and waste treatment obligations of producers and importers.