You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

February 23, 2025

Decree 05 Updates Extended Producer Responsibility Regulations in Vietnam

Subscribe to Updates

On January 6, 2025, the government of Vietnam issued Decree No. 05/2025/ND-CP amending and supplementing Decree No. 08/2022/ND-CP detailing the Law on Environmental Protection (“Decree 05”). Decree 05 came into effect immediately upon issuance and provides several changes to the regulations governing extended producer responsibility (“EPR”) for applicable manufacturers and importers, outlining their obligations concerning the recycling and treatment of discarded products and packages. (See our previous article on Vietnam’s EPR regulations here.)

Outlined below are some critical amendments in Decree 05.

Entities Subject to EPR Regulations

Previously, Decree 08 limited the responsibility for recycling to manufacturers and importers of products and packaging specified in statutory lists. Decree 05 expands this scope by also including entities responsible for the quality and labeling of the regulated products and goods in Vietnam.

Decree 05 inherits the regulations from Decree 08 that manufacturers and importers, if they produce and import products and packaging as stipulated by law, must fulfill their responsibility to recycle or support waste treatment activities. However, Decree 05 amends the lists of products/packaging that must be recycled or undergo waste treatment, and new products/packaging and recycling methods.

Notably, rechargeable batteries (including those used in vehicles or for electrical and electronic devices) have been added to the list of regulated products and self-propelled vehicles and construction machinery have been removed from the list.

Decree 05 also not only streamlines the recycling methods required for each type of product/packaging, but also removes the minimum requirement on the mass of products/packaging that must be recovered when recycling. Manufacturers and importers now have more flexibility in selecting recycling methods that are more suitable for actual recycling conditions in Vietnam.

Decree 05 has revised the cases of exemption from recycling and waste treatment obligations, clarifying that both packaging manufacturers and importers with annual product sales revenue below VND 30 billion are exempt from recycling responsibilities. The threshold for importers has increased compared to the previous provision. Further, Decree 05 introduces an additional exemption for manufacturers who collect and reuse their own packaging. Specifically, manufacturers who self-collect and reuse packaging to put it back on the market are exempted from recycling and waste treatment obligations if the rate of collection and repackaging meets or exceeds the mandatory recycling rate as stipulated by law.

Competent Authorities

Previously, the prime minister was responsible for adjusting and issuing mandatory recycling rates for each type of product and packaging, and issuing the recycling cost standard for a unit of product and packaging volume (referred to as “Fs” – see below) and the required financial contribution for waste treatment. Under the new decree, these responsibilities have been transferred to the Minister of Natural Resources and Environment.

Definition of Fs

Decree 05 specifies two components for the calculation of the recycling cost standard, “Fs”:

  • Recycling cost associated with the sorting, collecting, transporting, and recycling of products and packaging; and
  • Management cost associated with the supervision and support of the implementation of product and packaging recycling responsibilities. Management cost is specified as 2% of the recycling cost.

In particular, the recycling cost is estimated based on an adjustment coefficient reflecting the level of collection and recycling value of products and packaging: Products and packaging with a high collection rate and high recycling value have a low adjustment coefficient, while products and packaging with a low collection rate and low recycling value have a high adjustment coefficient.

Deadline for Financial Contribution

Decree 08 allowed manufacturers and importers to either pay the full financial contribution for waste treatment to the Vietnam Environmental Protection Fund by April 20 of each year or split the payment into two installments. However, Decree 05 mandates a full financial contribution in a single installment by April 20 each year. This is a significant change that manufacturers and importers should take note of, especially once the Fs is officially issued.

Tax Incentives

Decree 05 expands upon Decree 08 by providing specific criteria for eligibility for tax incentives beyond corporate income tax. These incentives now include exemptions from export and import taxes for eligible activities.

Specifically, products made from recycling and waste treatment activities in the list of environmental protection activities eligible for incentives and support will be exempted from export tax if they meet certain legal criteria, such as having production activities consistent with the project’s operational objectives, or using waste as production materials.

Similarly, projects importing machinery and equipment for use in waste treatment and environmental protection activities will be exempted from import tax if they meet certain criteria such as having the results of an environmental impact assessment report appraisal approved, or being granted an environmental license.

Related Professionals

Industries

Automotive

Consumer Products

Practices

Corporate/M&A

Location

RELATED INSIGHTS​ 

July 27, 2026
Vietnam’s new E-Commerce Law, which took effect on 1 July 2026 along with its implementing Decree No. 248/2026/ND-CP (Decree 248), marks a significant development in the country’s approach to online intellectual property (IP) enforcement, reflecting a clear shift from a reactive model of intermediary liability to one that expects platforms to play a more active role in preventing infringement. From notice-and-takedown to platform responsibility The most significant change introduced by the E-Commerce Law is the transformation of the legal role of e-commerce platforms. The existing safe harbor provisions under the IP Law and the copyright notice-and-takedown regime established by Decree 17/2023/ND-CP (Decree 17) largely required intermediaries to act only after receiving notice of infringement. Once infringing content had been removed, the platform’s legal obligation was generally considered fulfilled. The new legislation adopts a fundamentally different approach. Article 17 of the E-Commerce Law requires intermediary platforms to screen information relating to goods and services before publication in order to prevent listings involving counterfeit or IP-infringing goods, and goods of unknown origin. Rather than relying exclusively on complaints from rights holders, platforms are now expected to implement preventive measures before infringing listings become publicly available. Decree 248 further requires platforms to update keyword filters based on recommendations issued by competent authorities. These filtering mechanisms are intended to prevent prohibited listings from appearing on the platform and represent a further move away from a purely complaint-driven enforcement model. The legislation also introduces Vietnam’s first statutory stay-down obligation. Under the E-Commerce Law and Decree 248, major digital platforms must maintain automated systems capable of reviewing, warning against, and removing unlawful listings while also implementing measures to prevent repeat violations, defined under Decree 248 as conduct that has previously been identified and handled by the platform, but continues to recur. This obligation addresses one
Read More
July 21, 2026
On July 6, 2026, Myanmar’s Ministry of Finance and Revenue introduced revised procedures governing the importation and exportation of goods and vehicles, replacing the framework that had been in place since 2017. The revised procedures were introduced in Notification No. 115/2026, which establishes updated compliance requirements and penalties for importers and exporters, covering licensing, declarations, product specifications, prior arrival of goods, and imports or exports made without the required licenses or permits. Scope Unlike its predecessor (Notification No. 6/2017), which focused primarily on import-related noncompliance, the new notification regulates both import and export activities and introduces a separate penalty schedule for export violations. Exporters are now required to ensure that their exports comply with the approvals stated in export licenses and permits, match the information declared in export declarations, and are supported by the required licenses, permits, and accompanying documents. Import Compliance and Penalties The new notification imposes several compliance requirements on importers. Importers must ensure that the country of origin, branding, labeling, and other product information are consistent with the relevant import license or permit, import declaration, and the imported goods. For vehicles and machinery, the model year must match the year approved by the Ministry of Commerce. Importers must also ensure that goods are not imported before the issuance or after the expiry of the import license or permit, and that the imported quantity does not exceed the approved amount. Failure to comply with these requirements may result in regulatory action. As for the notification’s revised penalties for noncompliance with import licensing requirements, imports made without the required import license, permit, or import declaration may be subject to fines ranging from one to three times the assessable value (AV) of the goods, depending on the category of goods involved. Certain vehicles and machinery, as well as specific
Read More
July 8, 2026
On July 7, 2026, the Trade Competition Commission of Thailand (TCCT) issued a press release announcing the establishment of two new subcommittees designed to intensify oversight of digital platforms and modern trade businesses. The formation of the digital platform subcommittee marks a significant escalation in competition enforcement following the TCCT’s Guidelines on Multi-Sided Platforms and E-Commerce Businesses, which took effect on March 25, 2026. Platform operators, sellers, and related service providers should expect heightened regulatory scrutiny and potential investigations into practices already flagged under the March guidelines. Two Dedicated Enforcement Bodies The first new body is the digital platform subcommittee—formally the Subcommittee on Supervision, Monitoring, and Prevention of Trade Conduct in Digital Platform Business. It is tasked with driving intensive oversight of digital platform businesses. It will coordinate with government agencies, the private sector, business operators, and other relevant stakeholders to supervise and prevent trade conduct that may affect competition, and to promote free and fair competition in the digital platform sector. The subcommittee will be composed of TCCT members and representatives from the Department of Internal Trade. The second body—the Subcommittee on Determining Guidelines and Action Plans Concerning Competition Conditions in Modern Wholesale and Retail Business—will study, analyze, and monitor market structure in modern wholesale and retail businesses, compile databases to analyze retail business concentration, assess impacts on small-scale operators, and propose supervisory measures for the retail sector. TCCT members will serve on the subcommittee alongside experts from government and private organizations, including the Office of Industrial Economics, the Office of Small and Medium Enterprises Promotion, the Thai SME Federation, and the Thai SME Council. Operational Impact for Industry Participants These subcommittees provide the TCCT with a focused mechanism to investigate various trade practices deemed unfair, and the TCCT has authority under the Trade Competition Act to issue cease-and-desist
Read More
June 29, 2026
Thailand’s cabinet has approved the draft Act on Liability for Defective Goods, commonly called Thailand’s “Lemon Law.” The Draft Act is currently pending consideration by Parliament. The draft law aims to strengthen buyers’ position in pursuing cases against sellers. While the Civil and Commercial Code offers provisions governing liability for defective goods, it is difficult in practice for buyers to successfully make a claim against sellers, particularly where defects are latent and not discoverable at the time of sale or delivery. By introducing product-specific rules and clearer remedies, the new law is intended to modernize Thailand’s consumer protection framework and align it more closely with international standards, and to help relieve the buyer’s burden of proof against the seller in product liability cases. If enacted, the draft act will take effect 180 days after publication in the Government Gazette, giving businesses a transition period to assess their compliance obligations. This article provides an overview of the key provisions of the draft act and highlights some practical considerations for businesses operating in Thailand. Scope and Key Definitions The draft act applies to sellers—defined as persons who sell goods in the ordinary course of business—and protects buyers, a term defined broadly to include not just the original purchaser but also transferees and successors in title. This expands the class of people who can bring claims. The law does not apply to used goods, live animals, or goods exempted by future ministerial regulation. It also leaves intact any separate warranties, promises, advertisements, or other guarantees a seller has given; those remain enforceable alongside the new statutory rights. General Liability for Defective Goods Sellers are liable for defects that exist at the time of delivery, regardless of whether the seller knew about them. Liability arises where a defect reduces: The benefit intended under
Read More