PLAN FOR OLD VEHICLES SCRAPPAGE FROM 2027

Viet Nam has nearly one motorbike for every two inhabitants. This places Viet Nam at the top for the most motorbikes per capita in the world. Additionally, over the past few years, the country is witnessing a considerable growing middle class car driver. In 2020, Vietnam has about 69.19 million registered vehicles including 65.27 million scooters (increased 6.9% in comparison with 2010), 2.25 million cars (increased 13.6%) and 1.36 million trucks (increased 8.5%). With the aim to become a developing country with modern industry and upper middle income by 2030, the demand of vehicles will continue to surge rapidly and has caused a high number of expired vehicles. In Viet Nam, air pollution emitted from the outdated transports has negative impacts on the health and welfare of the population. 

In this context, the project on the Research and Proposals of solutions and mechanism of vehicle disposal is being conducting by the Institute of Strategy and Policy on Natural Resources and Environment (ISPONRE) and the Viet Nam Association of Motorcycle Manufacturers (VAMM) in accordance with the Law on Environmental Protection 2020. The 2 main objectives of this project are: (i) to develop the regulations on the disposal and retrieval of vehicles in accordance with the actual situation in Vietnam and (ii) to respond to the requirements of the circular economy.  

Three main approaches of this project include: the international experience on Extended Producer Responsibility (EPR) policy and supporting policies for EPR implementation for means of transport; the current situation of disposal, recovery, and recycling of expired vehicles; the policy solutions for the recovery of discarded vehicles.  

According to the 2020 Law on Environment Protection, from 2027, automobiles and vehicles manufacturers will need to fulfill their discarded vehicles recycling responsibilities. However, according to experts, while only the public transport system in Viet Nam has a regulation of expiration date, it is important for the future sustainability of the country to ensure the expired personal transports are recycled adequately. Besides, to encourage vehicle-owners to scrap their old and polluting vehicles, financial resources are a key problem to solve.