Problems relating to Trade and Investment on Vietnam

22. Environmental pollution and waste disposal
Issue	Issue details	Requests	Reference

(1) Difficulty in Collecting Electric and Electronic Products Waste	- In regard to retrieval of Waste Electrical/Electronic Equipment (WEEE), it is difficult for manufacturer/importer to obtain consumers' undertaking for wastes' retrieval. While Ministry of Natural Resources and Environment (MONRE) intends to hold manufacturers and importers responsible for "establishment of retrieval point", "retrieval" and "disposal", it has not published implementing regulation in detail (targeted promulgation in January 2015). In the first place, in Vietnam, scrap dealers repurchase and resell after refurbishment used WEEE.	- It is requested that GOV takes steps to hold manufacturers/importers responsible for the retrieval rates from the retrieval points of WEEE.	- Decision Providing Regulations on Retrieval, Treatment of Discarded Products dated 28 September 2012
	(Action) - On 22 May 2015, GOV promulgated Decision No. 16/2015/QD-TTg (amending Decision No. 50/2013/QD-TTg) prescribing liabilities, rights and benefits, retrieval and disposal of discarded products (DISCARDED electric/electronic products, cars, motor-cycles) on Vietnam's territory (enforced from 15 July 2015). This amendment has removed certain chemical goods and products for industrial, agricultural, human medication, and fishery, and deferred the execution deadline for collection and disposal of the subject goods and products against manufacturers and importers.

(2) The Unique Energy Efficiency Regulation is Burdensome	- The energy efficiency legislation requires for each shipment either certification on 1) factory inspection or 2) product inspection. This is a requirement unique to GOV, as no similar legislative requirements are found in other countries. This is an excessively heavy demand upon the concerned parties, not found elsewhere.	- It is requested that GOV takes steps to amend the legislation so that Acquisition of certification for each product model or each representative model suffices (plus sampling inspection without advance notice as necessary) as it is done in other countries.	- Circular No. 07/2012/TT-BCT dated April 04, 2012 of the Ministry of Industry and Trade defining the energy labeling for means and equipment using energy
	(Action) - Circular No. 43/2014/TTLT-BGTVT-BCT, promulgated on 1 January 2015, compels energy saving (fuel consumption) labeling on passenger cars seating 7-persons or less. - On 1 February, Ministry of Transport promulgated new car emission standard under QCVN 86:2015/BGTVT corresponding to EURO-4 addressed to domestic finished car, domestically assembled car, and imported finished car, due for enforcement from 1 February 2016. [Reference] Ministry of Transport Circular No.33/2015 at the following URL in Vietnamese: http://www.mt.gov.vn/vn/tin-tuc/37569/ban-hanh-quy-chuan-ky-thuat-quoc-gia-ve-khi-thai-muc-4-doi-voi-xe-o-to-san-xuat--lap-rap-va-nhap-khau-moi.aspx

(3) Issues on WEEE Draft

- Despite the fact that no legislation on WEEE has been promulgated to this date (probably in effect in early part of 2015), it is under review at the prime minister's office (PMO). The latest draft permits importers/manufacturers' determination of the number of collection points, etc.
On the other hand, requires submission of sales results report, which is a pending issue.
On the other hand, the price negotiation by and among the consumers-importers/ manufacturers of waste products should be left to the consumers-importers/ manufacturers to decide.

- It is requested that GOV:
-- repeals the requirement for sales results information on the markets outside the scope of the sales results report, and
-- refrains from including "price negotiation" in the legislative provisions

- Draft Decision and guiding Circular on WEEE (latest versions)

(4) Arbitrary Application of Environmental Control

- Out of the blue, an environmental authority visits factories for inspection of waste materials control, environment related documents, etc. Moreover, should inadequacies be found, the inspector decides fines on the spot, simultaneously providing guidance for improvement.

- While nothing can be stated about immediate cash payment of fines, should factory wastes/pollution give direct impact on the environment. However, should the inadequacy relate to documenting records, etc. without negative effect on environment actuary, fines should be payable only when the party disobeys instructions for improvement.

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