A recent report by the International Finance Corporation (IFC) and the World Bank estimates that Vietnam wastes nearly $3 billion annually due to non-recycling of plastic waste from households. Moreover, the country is estimated to waste over $30 billion annually due to organic waste, with nearly 70% of it not being recycled. Hence, the Extended Producer Responsibility (EPR), as mandated in the 2020 Environmental Protection Law, presents a financially viable solution to tackle the waste issue while promoting the growth of the recycling industry.
BEYOND JUST RESPONSIBILITY
Extended Producer Responsibility (EPR) is stipulated in Article 54 of the 2020 Environmental Protection Law and Decree No. 08 of the Government. Accordingly, from January 1, 2024, producers and importers of electronic products, lubricants, and packaging must either recycle or pay a fee to support recycling activities. Enterprises producing and importing electrical and electronic products will implement recycling responsibilities from January 1, 2025, and enterprises producing and importing means of transport (automobiles and motorcycles) will do so from January 1, 2027.
According to experts, EPR is not just a responsibility but also an opportunity for businesses to become more sustainable, especially as Vietnam is heavily impacted by climate change and environmental pollution. Mr. Le Anh, Director of Sustainable Development of Duy Tan Recycling Plastic Joint Stock Company, emphasized that EPR is a competitive advantage and a “green certificate” for businesses to export to large and high-standard markets. Currently, Duy Tan collects about 180 tons of plastic waste for recycling daily. The enterprise has exported 60% of its recycled plastic pellet output to the US and Europe.
Unilever Vietnam International Company Limited is also actively collaborating with collectors such as VietCycle Joint Stock Company and recyclers like Duytan Recycling to promote plastic circularity, which is a mechanism in preparation for the implementation of EPR regulations. Along with this, the company is researching and improving package design to increase the recyclability rate from the current 63%. Unilever Vietnam representatives informed that the company has reduced 52% of virgin plastic and used PCR plastic in production, with more than 25,000 tons of plastic collected and recycled.
Last August, MM Mega Market Vietnam joined hands with O-I BJC Vietnam Glass Factory to deploy glass waste collection stations at MM An Phu (District 2), MM Hiep Phu (District 12), and MM Binh Phu (District 6) centers in Ho Chi Minh City. MM Mega expects this project to be a significant step forward, contributing positively to the plan of the Institute of Strategy and Policy on Natural Resources and Environment (MONRE). Through this initiative, the supermarket system also aims to encourage customers to join hands with the enterprise in maintaining the habit of properly and safely sorting glass waste during daily shopping and consumption activities.
However, Mr. Bui Khanh Nguyen, Vice President of External Affairs, Communication, and Sustainable Development of Coca-Cola Vietnam, shared that to collect materials as per requirements, the company must support the informal waste pickers. Additionally, clear processes are needed for recycling every plastic bottle and package sold without increasing the product’s price. A challenging task for businesses is ensuring that recycling does not harm the environment while not creating pressure on consumers. This is a complex issue.
The Institute of Strategy and Policy for Natural Resources and Environment (MONRE) surveyed small and medium-sized enterprises on their readiness to implement the EPR policy. The survey results showed that 93.55% of enterprises have an initial and comprehensive understanding of the responsibility to collect, recycle, and treat waste. Most surveyed enterprises believed that environmental protection responsibility in production helps businesses become more sustainable and create a friendlier image for customers…
The article was published in the Vietnam Economic Magazine, Issue 40-2024, released on September 30, 2024. Please find the full article here: https://postenp.phaha.vn/chi-tiet-toa-soan/tap-chi-kinh-te-viet-nam
