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Vietnam: Extended producer responsibility ̶ latest legislative development

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In brief

In the period between 2020 and 2022, the new Law on Environmental Protection (LEP) and its guiding Decree No. 08/2022/ND-CP (“Decree 08“) were promulgated, providing a fundamental legal framework for extended producer responsibility (EPR). EPR-related regulations impose a number of obligations on manufacturers and importers of certain types of products and packaging in Vietnam. Nonetheless, the EPR legal framework is not yet complete.

Summarized below are the latest developments of the EPR regime in Vietnam.

In depth

  • EPR, an extension of the responsibility of the producer and importer of a product to the disposal stage in the product’s life cycle, comprises two primary responsibilities: (i) responsibility for recycling products and packaging; and (ii) responsibility for waste collection and treatment. While the obligations in (ii) took effect on 10 January 2022, the recycling obligations in (i) will be effective soon (see effective dates of relevant products in the table below).
  • Subjects of EPR must comply with various recycling requirements and obligations once such requirements become effective.
  • Notwithstanding the forthcoming deadlines, there remain a number of major concerns around the draft regulations above, including but not limited to their justification, reasonableness, and enforceability (e.g., the reasonableness of the norm proposed for each type of packaging and product, or the narrow scope of entities eligible to receive financial support from the VEPF).
  • Close attention should be paid to the two draft EPR regulations that are expected to be promulgated in 2023, given that they are prerequisites for the implementation of EPR in practice.

Baker McKenzie has been closely following up with MONRE and relevant authorities with regard to the development of the EPR legal framework in Vietnam, and we will keep you posted accordingly. Please let us know if you have any inquiries regarding EPR or the draft regulations. Meanwhile, keep an eye out for our upcoming article, which will provide a detailed analysis of major issues in the EPR regime and their effect on businesses.

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Author

Hung Tran is the practice group leader of the Intellectual Property (IP) and Technology Practice Groups of Vietnam offices. For years, he has been constantly ranked as a leading IP lawyer by numerous researchers such as Chambers Global and Chambers Asia.
He regularly writes articles concerning pressing legal issues in both English and Vietnamese, and his works have been published regularly in various reputable publications. He has assisted the government in reviewing and revising the IP Law, the IP provisions under the country’s criminal code, the draft e-Transaction Law, and the first draft Personal Data Protection Decree, etc.
He is also a respected presenter in the area of IP, Franchising, Data Privacy, and Entertainment Laws. In addition to authoring many publications, Mr. Tran has lectured at Waseda University School of Law (Japan), Vietnam-German University, Hanoi Law University, Diplomatic Academy of Vietnam, Foreign Trade University, an international MBA Program (CFVG) and IP laws for the Professional Training School of the Ministry of Industry and Trade. He used to serve as the Chairman of the Legal Committee of Hanoi American Chamber of Commerce.

Author

Van Trung Khuat joined Baker McKenzie in Ho Chi Minh City in April 2012, and is experienced in areas of employment, dispute resolution, and corporate compliance and investigation. He is an accredited mediator at the Center for Effective Dispute Resolution (CEDR) in London and at the Vietnam International Commercial Mediation Center, and frequently publishes articles and leads seminars on both advisory and contentious labor and employment law issues in Vietnam. During his time with Baker McKenzie, Trung has also worked in the Firm's Hanoi and Chicago offices. He also acts as Co-chair of the Human Resources and Training Committee of the European Chamber of Commerce in Vietnam.

Author

Tuan Linh Nguyen is a Government Affairs Manager in in BMVN International LLC, Hanoi office.

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