EV makers in Vietnam likely to be exempted from battery collection, recycling requirements

Manufacturers of electric vehicle batteries in Vietnam are likely to be exempted from collection and recycling responsibilities, as producers currently do not have battery waste to recycle.

Although some automakers are preparing recycling infrastructure, the latest draft decree compiled by the Ministry of Agriculture and Environment on extended producer responsibility (EPR) proposes setting their required battery collection and recycling rate at zero.

This means motorcycle and automobile manufacturers would not yet be obligated to recycle EV batteries, instead of meeting the mandatory recycling rate of 8% starting 2024 as previously regulated.

Nguyen Thanh Yen, deputy head of the legal division at the Department of Environment under the Ministry of Agriculture and Environment, was quoted by local media as saying that the old regulations had significant shortcomings. "Vietnam’s EV market has only grown rapidly in recent years, while EV batteries have a lifespan of at least 10 years."

Setting mandatory recycling quotas now would create an obstacle for automakers because “there simply aren’t any discarded batteries to recycle, he told the Green Economy Forum 2025 last Thursday.

Yen noted that another product category proposed for exemption from EPR obligations is personal vehicles, including motorbikes and passenger cars, both gasoline and electric.

Under Decree 05, which took effect early this year, motorbikes and passenger or cargo cars are supposed to meet recycling rates of 0.5-0.7% from 2027. Regulations on end-of-life vehicle collection are expected next year. However, cars are high-value assets and difficult to collect at end of life.

Under the latest draft decree, only vehicles with more than nine seats and trucks would face mandatory recycling (based on age limits), with a required rate of 0.7%. Recycling methods are also more flexible. For example, a bus operator may hire a third party to collect any type of bus to fulfill its recycling obligation.

Yen stressed that these adjustments are not intended to benefit any specific company, but are based on proposals from two major industry associations representing the automotive and motorcycle sectors.

VinFast has studied EV waste streams and opportunities for reuse. For instance, used EV batteries could potentially be repurposed for battery energy storage systems (BESS). The EV startup is working with Japan’s Marubeni on such initiatives and partnering with India-based startup BatX Energies to recycle batteries and recover lithium, cobalt, and nickel.

Regarding manufacturers’ recycling responsibilities, Yen noted that most producers and importers currently prefer to make financial contributions rather than organizing or hiring third-party recyclers.

In the long term, the Department of Environment aims to encourage companies to take a more active role in recycling - either directly or through contracted partners - instead of relying solely on financial payments, he added.

At the Green Economy Forum 2025, Yen refuted claims that Vietnam dumps millions of tons of plastic into the ocean, noting that the country’s vast network of informal waste pickers ensures that high-value plastics are rarely discarded, since such materials are essentially ‘money’ to them.

Vietnam still lacks official statistics or nationwide surveys on the issue. Data on the country's plastic waste, including the volume released into the environment and the ocean, has so far been published only by foreign organizations. Ocean plastic estimates for Vietnam have ranged widely, from just over 200,000 tons to more than one million tons.