Mandatory recycling obligations and recycling rates to undergo major changes

Additional specific cases added

Under Clause 1, Article 4 of Decree No. 110/2026/ND-CP, manufacturers and importers of products and packaging placed on the Vietnamese market, including aluminum, paper, plastic, iron, and glass packaging; batteries and accumulators; oils and lubricants; tires and tubes; electrical and electronic products, excluding components and subassemblies; and road vehicles, are required to fulfill recycling obligations in accordance with prescribed recycling specifications and mandatory recycling rates.

The decree also clarifies several specific cases. For products or packaging bearing the same trademark but manufactured by different producers, the organization or individual responsible for product labeling under laws governing product and goods quality will be responsible for fulfilling recycling obligations.

In cases where a manufacturer acts as a contractor producing goods or packaging for another party, the commissioning party will be responsible for recycling obligations.

For entrusted imports, the organization or individual responsible for product labeling under product quality regulations will also be responsible for recycling obligations. If the entrusted importer is responsible for labeling, the products or packaging placed on the market are defined as those transferred to the entrusting party, while revenue generated from those products includes both total import value and entrustment service fees.

Entities responsible for recycling may also include parent companies or companies authorized under civil law to carry out recycling obligations on behalf of subsidiaries or independently accounted branches.

According to the drafting agency, these are practical situations that have already arisen in reality but were not addressed under Decree No. 08/2022/ND-CP or its amended version, Decree No. 05/2025/ND-CP, creating difficulties for businesses in implementing recycling obligations. The new decree therefore provides timely clarification and guidance.

However, the agency emphasized that the new provisions are intended solely to clarify implementation procedures and make compliance easier for businesses, rather than expanding the scope of regulated entities compared to previous regulations.

Cases exempt from recycling obligations

Decree No. 110/2026/ND-CP also specifies cases in which manufacturers and importers are exempt from recycling obligations.

These include manufacturers and importers producing or importing products and packaging for export, temporary import for re-export, or for research, educational, or testing purposes in accordance with regulations.

Manufacturers and importers with annual revenue below VND30 billion from products subject to mandatory recycling are also exempt.

In addition, manufacturers that place packaging on the market but subsequently recover and reuse that packaging for continued circulation at a recovery and repackaging rate equal to or higher than the mandatory recycling rate are not required to fulfill separate recycling obligations.

Mandatory recycling rates and specifications

The decree also introduces detailed new provisions governing mandatory recycling rates and recycling specifications.

Under the new rules, the mandatory recycling rate refers to the minimum percentage by weight of products or packaging that must be recycled according to prescribed recycling standards during the compliance year, relative to the total weight of products and packaging manufactured or imported and placed on the market during the obligated year.

In cases where products, road vehicles, or electrical and electronic equipment contain components or subassemblies already subject to recycling obligations fulfilled by component manufacturers or importers under the decree, the corresponding component weight may be deducted when calculating the mandatory recycling rate for the final product.

Mandatory recycling rates for specific products and packaging are outlined in the decree’s appendix. Paper packaging is subject to a 20% recycling rate, aluminum packaging 22%, glass packaging 15%, lead-acid batteries 12%, engine lubricating oil excluding two-stroke engine oil 15%, rubber tires and tubes 5%, electrical and electronic products between 3% and 15%, and road vehicles 0.5%.

Mandatory recycling rates will be adjusted every three years, with each increase capped at no more than 10%. The first adjustment is scheduled for 2029.

If manufacturers or importers recycle products or packaging at rates exceeding the mandatory threshold, the excess recycled volume may be carried forward and counted toward compliance in subsequent years.

Mandatory recycling specifications refer to the designated recycling methods applicable to each regulated product and packaging group.

In cases where collected materials, potentially after preliminary processing, are exported abroad for recycling or refurbishment, entities must follow notification procedures under the Basel Convention as stipulated in Clause 5, Article 83 of the Law on Environmental Protection.

The decree also notes that packaging subject to recycling obligations refers to commercial packaging, including both direct and outer packaging, for food products regulated under food safety laws, excluding chewing gum; cosmetics regulated under government rules on cosmetic manufacturing conditions; pharmaceuticals regulated under drug laws; fertilizers, animal feed, and veterinary medicines regulated under relevant sectoral laws; soaps, detergents, polishing agents, and sanitary preparations used in agriculture, healthcare, and household activities; and cement products.