Environmental Protection in Vietnam: New Tax & Compliance Obligations for Businesses

Vietnam’s environmental protection framework has now reached full implementation, and producers and importers must meet significant new recycling and waste treatment obligations. These responsibilities are more than simply a regulatory burden, they are central to building sustainable growth, compliance credibility, and long-term brand reputation.

Alitium has prepared a comprehensive guide that explains these obligations clearly, helping businesses avoid penalties and align with Vietnam’s sustainability goals.

Key Business Obligations

Under the Environmental Protection Law (2020, in effect from 2022, with implementing decrees and circulars finalized in 2025), businesses must fulfill two major responsibilities:

1. Packaging & Product Recycling

   • Either self-organize recycling programs (with strict planning and reporting requirements)

   • Or make financial contributions to the Vietnam Environmental Protection Fund (VEPF), calculated on product volume, recycling rates, and approved cost standards.

   Recycling obligations apply to packaging, batteries, lubricants, tires (from 2024), electronics (from 2025), and vehicles (from 2027).

2. Waste Collection & Treatment

   • Mandatory financial contributions to the VEPF to support waste treatment and disposal, with contribution levels varying by product type (e.g., plastics, electronics, disposable products, diapers, cigarettes, etc.).

   • Contributions are reviewed every five years and are designed to incentivize eco-friendly product design.

Compliance Process & Deadlines

• March 31: Annual declaration of recycling plan or financial contributions.

• April 20 / October 20: Payment deadlines (one-time or two installments).

• Penalties: Fines up to VND 1 billion for late or insufficient contributions, or non-compliance with recycling/treatment obligations.

This Impacts Businesses

Compliance with these environmental responsibilities is now a legal requirement. But beyond compliance, these measures also create opportunities:

• Building brand value through visible sustainability practices.

• Lowering long-term costs by considering eco-design.

• Avoiding heavy fines and reputational risks.

Download the Full Guide

Our publication, Environmental Protection: Business Social Responsibility in Vietnam Through Financial Obligations, provides:

• A full overview of obligations under the law.

• Contribution formulas, rates, and cost standards.

• Exemptions and reliefs available to smaller businesses.

• Guidance on declaration, payment, and reporting.

• A detailed appendix covering recycling rates, treatment contribution levels, and cost standards.

At Alitium, we help foreign investors and businesses in Vietnam stay compliant with evolving regulations while focusing on sustainable, long-term growth.

If you would like obtain further advice on anything related to entering, structuring, operating a company and remaining compliant in Vietnam, reach out to us on our contact page: https://www.alitium.com/contact/