Recycling fees in Vietnam higher than in Europe
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Fourteen business associations have petitioned nine ministers to complain about Vietnam’s unusually high recycling fees, which are several times higher than that in Europe.
The associations, which include American Chamber of Commerce in Vietnam, Vietnam Association of Seafood Exporters and Producers, and Vietnam Textile and Apparel Association, said that a recent draft bill on recycling required fees higher than in developed countries.
Vietnam’s recycling fee for aluminum packaging is 1.26 times higher than the average of 14 countries in Western Europe, they said.
The fee for recycling glass is 2.12 times.
The ideal cost should be 30-50% of that in European countries as workers’ salary in Vietnam is only 10% of their counterparts in European countries.
The associations estimate that their combined recycling fee for paper, plastic and metal is at VND6.13 trillion ($257.35 million) annually.
This is unusually high as it does not take into account the profit that recycling companies get from the materials they receive.
Recyclers of aluminum cans, for example, post profits between VND700 billion and 1.29 trillion annually.
It is unreasonable that manufacturers and consumers are paying trillions of dong every year to support recyclers, the associations said.Recycling
Questions & Answers
Q.Which specific materials have significantly higher recycling fees in Vietnam compared to Europe?
Which specific materials have significantly higher recycling fees in Vietnam compared to Europe?
The recycling fee for aluminum packaging in Vietnam is 1.26 times higher than the Western European average. For glass, the fee is 2.12 times higher than the average seen in Europe.
Q.What is the total estimated annual recycling fee for paper, plastic, and metal for the businesses in Vietnam?
What is the total estimated annual recycling fee for paper, plastic, and metal for the businesses in Vietnam?
The associations estimate that their combined annual recycling fee for paper, plastic and metal is approximately VND6.13 trillion, which converts to around $257.35 million.
Q.Why do the associations believe the current recycling fees are unreasonable?
Why do the associations believe the current recycling fees are unreasonable?
The associations argue the fees are unreasonably high because they do not account for the profits recycling companies already make from materials. For instance, aluminum can recyclers post significant annual profits.
Q.What percentage of European recycling costs do the associations suggest would be ideal for Vietnam?
What percentage of European recycling costs do the associations suggest would be ideal for Vietnam?
They suggest the ideal recycling cost in Vietnam should be 30-50% of European levels. This is due to Vietnamese workers' salaries being only 10% of their European counterparts'.
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