EPR costs need to be reasonably calculated, with an appropriate recycling roadmap in place

On the afternoon of September 23 in Hanoi, the Vietnam Agriculture and Nature Newspaper, in collaboration with the Department of Environment and the Vietnam Beer, Alcohol, and Beverage Association (VBA), organized this seminar. The event gathered numerous insights from regulatory agencies and businesses, highlighting the key role of Extended Producer Responsibility (EPR) in managing the lifecycle of packaging.

Most companies now understand EPR regulations

Ms. Chu Thi Van Anh, Vice Chairwoman and Secretary General of the Vietnam Beer, Alcohol, and Beverage Association, noted that in 2023, authorities conducted a rapid survey to finalize the legal framework for implementing EPR. The results showed that over 60% of beverage companies first encountered these regulations in 2022, yet most supported the policy.

More than 80% of companies admitted facing difficulties in the initial phase, mainly related to costs, lack of personnel, and challenges in finding suitable recycling partners. Many small businesses still do not have dedicated EPR departments, requiring specific guidance from regulatory agencies.

By 2024-2025, the majority of companies have become familiar with the regulations and participated in training sessions organized by the Ministry of Agriculture and Environment. Regarding compliance methods, about 80% of companies, mostly small and medium-sized, opted to contribute to the EPR fund; 20% combined fund contributions with internal initiatives; and nearly 10% delegated responsibilities to recycling units.

“This shows that businesses are not only complying with EPR but also proactively seeking models suited to their capacities and operational scale,” Ms. Van Anh noted.

Notably, as early as 2019, some pioneering companies established the Vietnam Packaging Recycling Alliance (PRO Vietnam) and launched circular initiatives. By 2024, several factories had piloted the recycling of around 850 tons of aluminum cans, reused glass bottles in beer production, and circulated plastic crates and other packaging, achieving recycling rates exceeding regulatory requirements.

Heineken’s “from can to can” model has been successfully piloted, laying the groundwork for expanding recycling to other consumer packaging.

However, challenges remain. Many types of packaging, such as glass, aluminum, and multilayer cartons, still lack effective recycling systems. Vietnam currently has no facility to recycle aluminum cans into rolled aluminum for reuse in production, resulting in high costs and limiting the comprehensiveness of recycling efforts.

5 Recommendations for effective EPR implementation

According to Ms. Chu Thi Van Anh, beverage companies have achieved significant results but still face challenges in choosing how to fulfill EPR obligations - whether through fund contributions or self-recycling. For fund contributions, some companies are concerned about legal risks due to the lack of direct confirmation from regulatory authorities and question the transparency of fund allocation to recycling units. For self-recycling, small businesses often lack the resources to build facilities, while delegating to professional recycling units carries potential risks.

To address these challenges, the VBA put forward five key recommendations:

First, encourage recycled packaging. Policies should support companies that use recycled packaging in production, creating incentives for sustainable development.

Second, ensure reasonable EPR costs. Fund contributions or recycling expenses should be considered legitimate and deductible costs in tax settlements to protect business interests.

Third, set appropriate recycling rates. Establish realistic timelines and recycling rates aligned with Vietnam’s actual capacity and the capabilities of collection units.

Fourth, invest in infrastructure and technology. A portion of the EPR Fund should be allocated to developing recycling infrastructure and technology to improve collection and processing efficiency.

Fifth, provide incentives for dual-role recyclers. Companies that both collect/recycle and use recycled packaging should receive partial exemptions from independent collection obligations, encouraging integration of recycling activities into the value chain.

According to representatives of the Vietnam Beer, Alcohol, and Beverage Association, for EPR to be implemented effectively, close coordination is needed among the government, producers, importers, collection and recycling forces, consumers, and the media. Completing the legal framework, ensuring transparent procedures, and promoting public-private cooperation will be key for the sustainable development of the beverage industry in particular and packaging recycling in general.

Ms. Van Anh affirmed that with the support of all stakeholders, EPR can become a driving force for promoting a circular economy, reducing pollution, and enhancing the reputation and sustainability of Vietnamese beverage companies.