ALIA urges industry alignment on EPR in Southeast Asia

A major focus of the Asian Lubricants Industry Association (ALIA) Annual Meeting, held in Bali, Indonesia, on March 11-12, 2025, was the evolving landscape of Extended Producer Responsibility (EPR) in Southeast Asia, particularly in Vietnam. During a Vietnam EPR Task Force discussion, Keith Schulz, chief sustainability officer at Motul Asia Pacific, emphasised the importance of aligning industry efforts to address the challenges posed by the EPR regulations. He is also the chair of ALIA’s Vietnam EPR Task Force.

Vietnam’s new EPR regulation, which took effect on January 1, 2024, introduced mandatory recycling targets and financial contributions, marking a significant shift in the country’s environmental policy. Under the new rules, businesses must either recycle a certain percentage of their products or contribute financially to the Vietnam Environmental Protection Fund (VEPF).

ALIA has been actively developing a position on EPR in Vietnam, collaborating with external experts to better understand the implications of these new programs. Samuel Pursch, director at Vriens & Partners, a government relations and advocacy consultancy with offices across Southeast Asia, shared valuable insights on the legislation during the task force meeting. 

Pursch highlighted that the rollout of the new regulations has been complex and confusing, leaving companies uncertain about how to navigate the new requirements. The situation has been further complicated by a major government restructuring, adding to the overall uncertainty.

Businesses are still waiting for the full development of the policy ecosystem, despite looming deadlines—declarations are due by March 31 for the previous year, and payments must be made by April 20 (if paying to the VEPF). The Fixed Recycling Cost Rate (FS) was only finalised in recent weeks, further adding to the confusion. 

Companies are scrambling to define their recycling plans or determine how much they will contribute to the VEPF. One of the key challenges remains Vietnam’s fragmented recycling infrastructure, with ad hoc collections, disjointed networks, and limited traceability between garages, workshops and recycling operations.

In response to these challenges, Pursch reiterated the need for a unified industry approach to EPR. “An aligned industry can engage to drive a better approach,” he said. Pursch suggested the development of a unified set of best practices, providing a strong foundation for engaging with policymakers. Several other ASEAN countries are developing their own EPR frameworks, and a cohesive industry stance would help guide these efforts toward more effective policy outcomes, says Pursch.

To support this, ALIA is creating a whitepaper on EPR. Vriens & Partners have recommended a regional perspective—looking not only at Southeast Asia but potentially the entire APAC region. This would define a unified industry position, using Vietnam as a case study and reference point. Pursch noted the opportunity to define a model that works in Vietnam and then expand it to other countries, showcasing it to governments as part of policy advocacy.

The meeting concluded with a call to action for ALIA members to join the EPR Task Force to collaborate on best practices and develop industry-led models.