As circular economy practices gain momentum, extended producer responsibility (EPR) has become an important environmental policy. It requires producers and importers to take responsibility for their products and packaging after use. What does EPR mean, is it mandatory, and why does it matter? Lam Tran explains.
What is EPR?
Extended Producer Responsibility (EPR) is an environmental policy approach in which the manufacturer's responsibility for the product is extended to the period after use, that is, to the end of the product's life cycle. Based on the “Polluter Pays” principle, EPR policies shift the burden of managing certain end-of-life products from local governments and consumers to manufacturers, creating incentives for manufacturers to redesign products and packaging to facilitate end-of-life management and avoid the use of materials that may pose risks to human health or the environment.
Why does Vietnam apply EPR?
EPR has been used around the world for decades. It places responsibility on producers and importers to collect, recycle, or treat the products and packaging they place on the market. In Vietnam, mandatory EPR aims to improve waste management, reduce pollution and pressure on public budgets, and support the transition to a circular economy.
EPR is an environmental tool that has been widely applied in the world for several decades. EPR implementation in Vietnam aims to:
- Require businesses to take responsibility for collecting, recycling, or treating products and packaging after use.
- Reduce the burden on the state budget in waste management.
- Increase recycling rates and support a circular economy.
- Towards sustainable development, reducing pollution and protecting the living environment.
EPR is both a legal obligation and a way for businesses to demonstrate their commitment to more sustainable production. In Vietnam, it is intended to improve waste management, reduce pollution and pressure on public budgets, and support circular economy goals.
Is implementing EPR mandatory?
Articles 54 and 55 of the Law on Environmental Protection, Decrees 08/2022/ND-CP and 05/2025/ND-CP, and Circular 07/2025/TT-BTNMT provide the legal framework for extended producer and importer responsibility in Vietnam.
For businesses covered by these rules, EPR is an annual legal obligation rather than a voluntary initiative.
Vietnam's system of legal documents on EPR
- Pursuant to Article 54 & Article 55 of Law No. 72/2020/QH14 Law on Environmental Protection 2020.
- Pursuant to Articles 77 to 88 of Decree No. 08/2022/ND-CP Detailing a number of articles of the Law on Environmental Protection.
- Decree No. 05/2025/ND-CP Amending and supplementing a number of articles of Decree No. 08/2022/ND-CP of the Government detailing a number of articles of the Law on Environmental Protection.
- Pursuant to Circular No. 07/2025/TT-BTNMT Amending and supplementing a number of articles of Circular No. 02/2022/TT-BTNMT of the Minister of Natural Resources and Environment detailing the implementation of a number of articles of the Law on Environmental Protection.
- Pursuant to Article 32 of Decree No. 45/2022/ND-CP of the Government: Regulations on sanctioning of administrative violations in the field of environmental protection.
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