HCMC – Vietnam will provide financial support of up to VND20 billion per project for companies recycling batteries, e-waste and end-of-life vehicles under a new government decree.

Decree 110/2026, issued on April 1, sets out extended producer responsibility (EPR) rules requiring manufacturers and importers to either recycle products and packaging or contribute financially to the Vietnam Environmental Protection Fund based on sales volumes and mandated recycling rates. Funds collected will partly finance collection and recycling activities through a competitive allocation mechanism. The Ministry of Agriculture and Environment will announce annual funding packages by June 1 for each product category. Support levels are capped at VND10 billion for recycling packaging, lubricants, tires, light bulbs and solar panels, and at VND20 billion for batteries, accumulators, electronic waste and vehicles. Authorities will select one recipient per funding package. Each company may apply for multiple categories but is limited to three packages within a group. The decree also allows firms to conduct recycling in-house, use waste as production inputs, or outsource to licensed recyclers. The policy comes as Vietnam faces rising waste volumes driven by rapid consumption growth and urbanization, straining an aging waste management system. The country generates large amounts of waste while manufacturers remain dependent on imported raw materials. Vietnam’s plastics exports reached US$9.38 billion in 2024, but the sector imported more than US$20.6 billion in inputs. Hoang Duc Vuong, chairman of VietCycle and vice chairman of the Vietnam Plastics Association, said improving waste collection and recycling could help reduce import reliance, noting that developed markets rely on source separation systems and automated processing.