Recycling obligations enacted by business

A new phase of extended producer responsibility implementation is creating fresh opportunities for Vietnam’s recycling industry, as businesses ramp up efforts to meet mandatory recycling targets and waste management obligations.

- By Oanh Do

Two weeks after Decree No.110/2026/ND-CP came into effect, businesses began implementing their recycling responsibilities with more specific requirements on collection, recycling, and the fulfilment of financial obligations.

The legislation provides guidance for the implementation of the Law on Environmental Protection regarding product and packaging recycling responsibilities and waste treatment obligations.

According to the decree, six categories of products are subject to mandatory recycling requirements. Businesses can choose to carry out recycling themselves, hire licensed recycling service providers, authorise an organisation to fulfil their recycling obligations, or adopt a combination of several methods.

If they do not recycle, businesses are required to make a financial contribution to the Vietnam Environmental Protection Fund.

Besides the recycling requirement, the decree provides exemptions in certain cases. For example, manufacturers or importers with total revenue from the specified products of approximately $1.15 million per year are exempt from recycling obligation.

After a year of implementation, recycling responsibilities will be extended to road transport vehicles, creating additional pressure for technological transformation and production models, according to the decree.

Le Trung Thong, founder of environmental company Lagom Vietnam, noted that perfecting the legal framework for extended producer responsibility (EPR) helps businesses translate green requirements into concrete actions.