The Vietnamese government announced rules that will mandate the collection and disposal of used lubricants beginning July 1, 2016.
An order released by the Prime Minsters office last week will put the onus on producers and importers of lubricants and greases, requiring them to retrieve and dispose of products that they have supplied.
Lubricants are just one of numerous types of products covered by the order, which includes batteries, electronic goods, civil and industrial electric equipment, inner tubes, tires, cars and motorcycles.
The new regulation replaces a previous bill, and extends the deadline for compulsory retrieval, which would have been Jan. 1, 2015.
According to one analyst, Vietnam consumes approximately 326,000 metric tons of lubricants per year with international oil majors supplying 40 percent of that total. Phong Quach, head of consulting in Vietnam for Paris-based Ipsos Business Consulting, speculated that the used lubricant mandate may lead suppliers to collaborate to collect and recycle used engine oils.
He added, though, that the Ministry of Natural Resources and Environment, responsible for enforcement of the regulation, has discussed the possibility of establishing a recycling facility and a network of collection points at repair shops and retail outlets.
Under either scenario, Phong said, a recycling facility may take time to establish, resulting in the need to store and isolate used product… and the cost to do so will be borne by manufacturers and importers as instructed by the government. As such, we can expect the retail price of lubricants will rise due to this new environment tax.