On January 6, 2025, the Government issued Decree 05/2025/ND-CP (“Decree 05”), which amends and supplements Decree 08/2022/ND-CP dated January 10, 2022, providing detailed guidance on the implementation of several provisions of the Law on Environmental Protection. Taking effect immediately upon signing, Decree 05 introduces several significant changes, notably the expanded recycling responsibilities for producers and importers.

Previously, from January 1, 2024, producers and importers of lubricating oils, batteries, accumulators, tires, and commercial packaging were required to either recycle their products or pay a recycling support fee. Under Decree 05, from January 1, 2025, producers and importers of electrical and electronic products must fulfill recycling obligations, and from January 1, 2027, the responsibility will also apply to producers and importers of vehicles (cars, motorbikes).

Decree 05 also strengthens compliance requirements for producers and importers. Businesses are now required to develop recycling plans, submit periodic reports, and adhere to minimum recycling rates based on their product categories. For example, the mandatory recycling rate for engine lubricating oils is set at 15% for the first three years.

In addition to these obligations, the Government offers tax incentives and technological support policies to encourage businesses to adopt circular economy models, maximizing profits from recycled resources. These measures aim to not only enforce compliance but also promote sustainable and profitable practices in waste management, supporting businesses in reducing environmental impacts while optimizing resource use.

Furthermore, Decree 05 provides detailed guidance on the procedures for obtaining environmental licenses. Applicants are required to submit their application dossiers to the competent environmental licensing authority for appraisal. Based on the results of the appraisal or inspection, the licensing authority will either issue the environmental license or provide a written explanation in the event of a rejection. If amendments or additional information are required, the licensing authority may request the project owner or business establishment to revise the application dossier. In such cases, the revised dossier must be completed and resubmitted within 12 months from the date of the request.