The Vietnam Beer – Alcohol - Beverage Association (VBA), Vietnam Plastics Association (VPA) and the HCM City Food and Foodstuff Association (FFA) have expressed their concern about the draft decision on the recycling cost per unit of products and packages (Fs).

The Fs will serve as a basis to define the levels of contributions to recycling and implementing of extended producer responsibility (EPR).

This will be part of the content of a legal document being compiled by the Ministry of Natural Resources and the Environment (MONRE), which is expected to take effect on January 1, 2024.

On July 28, the Vietnam Confederation of Commerce and Industry (VCCI) and related parties organized a workshop to collect opinions about the draft for the second time.

According to the deputy chair of VBA, under the draft, the Fs of aluminum is 1.26 times higher than the average Fs in Western European countries, while the Fs of glass is 2.12 times higher. If the proposed Fs get approved, this will seriously affect the business environment and health of enterprises.

Analysts estimate that for paper, plastics and metals packaging, enterprises would have to pay the recycling fees of VND6.127 trillion per annum. 

This doesn’t include fees for other types of packages and waste. This is a big expense, which would affect their financial situation and push product prices up.

With the Fs proposed for PET bottles, the production cost of one 500ml bottle would increase by 61 dong, or 1.62 percent. Also, enterprises would have to pay fees for carton boxes, barrels and transport.

Huynh Thi My, secretary general of VPA, said in 2022 Vietnam consumed 9.2 million tons of plastic materials, 38 percent of which, or 3.5 million tons, were packaged. 

With the Fs proposed by MONRE, the money to be paid for recycling alone would account for 40 percent of enterprises’ profits. She said she hopes that state agencies reconsider the Fs.

Nguyen Hong Uy from EuroCham said that the British Prime Minister on June 17 had to stop the packaging tax, which imposes the burden of 1,035 pounds on every household per annum.

“Recycling paper, plastics and metal alone costs VND6 trillion a year, so the total EPR would be trillions of VND, thus putting a heavy burden on businesses and making product selling prices higher. MONRE should set reasonable fees which can both protect the environment and ensure sustainable growth for enterprises,” Uy said.

Tran Chung