Unclear regulatory framework in recycling and circulation of used lubricants

Currently, Vietnam is classified as one of the major lubricant consuming markets in the region when consumption is estimated at 307 million liters by 2024 and is expected to increase to 420 million liters by 2030[1]. However, this is also accompanied by the fact that there are more and more recycling facilities and trading in used lubricants illegally or of poor quality because the cost of producing recycled oil is significantly lower than that of new oil while earning very high profits. Although our country's laws have strong sanctions for this behavior, there are still legal gaps that make this oil still creeping into the market and management activities cannot be really strict.

Legal bottlenecks on recycled lubricants

Problems with the system of applied technical regulations

Currently, the national technical regulation specifically applicable to recycled lubricants is only QCVN 56:2024/BTNMT ("QCVN 56") which takes effect from June 24, 2025 and replaces the previous QCVN 56:2013/BTNMT. Although amended and promulgated in the context of increasing requirements for the quality of recycled products, the core content of this regulation has hardly changed compared to the previous one while focusing mainly on environmental protection and hazardous component control.  specifically, it only mentions the parameters of organic compounds, inorganic hazards and some indicators related to environmental safety.

In other words, QCVN 56 does not cover important commercial-technical criteria to assess the quality of lubricants before trading and circulating in the market, such as viscosity index, total alkalinity (TBN), oxidation resistance or flash point,... These are essential factors to determine the usability of a product, especially when recycled oil is used as fuel for engines or raw materials for other production purposes.

In the group of technical indicators to ensure quality and efficiency, currently only QCVN 14:2018/BKHCN ("QCVN 14") stipulates general and complete parameters for lubricants used in internal combustion engines. However, this regulation does not specify whether it applies to recycled oil or not. If it is not applied, there is no commercial-technical standard specifically for recycled lubricants, and if it is applied, there are still inadequacies due to the difference between recycled oil and new crude oil in terms of production process, technical characteristics and additives. Applying the same set of standards to both oils can result in requirements that are difficult to meet or not feasible. In addition, the parallel application of QCVN 14 and QCVN 56 also has potential overlapping risks. Some specifications are specified in both, but the permissible criteria and limits may be inconsistent, causing confusion in determining which standard has the priority value to apply.

In general, the above inadequacies lead to the lack of a clear legal basis for evaluating recycled lubricant products of production and business establishments and management agencies also face difficulties in inspecting and handling violations which becomes complicated due to the lack of specialized grounds for comparison. For consumers, the lack of assurance of the quality, safety and performance of recycled oil has the potential to cause engine damage or negatively affect the environment.

Lack of labeling regulations for recycled lubricants

According to Decree No. 43/2017/ND-CP regulating goods labels and QCVN 14, in general, lubricants circulating on the market must have mandatory labeling contents such as the name of the goods, the name and address of the organization or individual responsible, quantitative, place of production, technical characteristics, etc  use and storage instructions, safety warnings, date of manufacture, expiration date, etc. These requirements are to ensure that consumers have enough information necessary to identify, select and use products safely and for the right purpose.

However, these legal documents do not have regulations on labeling or showing identification symbols for products that are recycled lubricants, or lubricants produced from used oil sources. This legal gap leads to the situation that even if recycled lubricants are produced from legal waste oil sources and meet the regulatory quality requirements, consumers can still be confused with recycled oil and new crude oil.

Moreover, this lack of transparency also has the potential to be taken advantage of by some production and business establishments to bring low-quality or substandard recycled lubricants to the market in the name of new crude oil. This not only causes serious consequences for equipment and vehicles using this oil but also directly affects the rights and safety of product consumers.

What solutions to overcome inadequacies

In the face of the above-mentioned obstacles and legal gaps, it is necessary to study, amend or promulgate new regulations, technical regulations and relevant guidelines to ensure the synchronization and feasibility in quality management and labeling of recycled lubricants. Concrete:

Firstly, regarding the system of technical regulations, it is necessary to supplement the main commercial-technical indicators to comprehensively assess the quality and performance of recycled lubricants before putting them on the market. The development of these indicators should be based on reference to international standards, combined with actual test results for domestic recycled oil products. At the same time, it is necessary to ensure the compatibility and consistency between QCVN 56 and QCVN 14, avoiding overlap, contradiction or causing difficulties for both management agencies and enterprises in the application process.

Secondly, regarding the labeling of goods, it is recommended to consider adding mandatory regulations to clearly show recycled lubricants or uniform identification symbols on product labels, according to the model that some countries have applied to increase transparency and identification for consumers. This should be accompanied by detailed instructions on location, size, color, language and other requirements to ensure that the information is clearly expressed, not blurred or hidden.

Thirdly, in parallel with improving the law, it is necessary to promote propaganda and raise awareness for consumers as well as production and business establishments about regulations, standards and requirements for recycled lubricants. This not only helps consumers have the ability to distinguish and choose safe and appropriate products, but also creates positive pressure on production and business establishments to strictly comply with the issued regulations and standards, thereby contributing to environmental protection and community benefits.

Fourthly, the strict management and serious "post-inspection" of the process of purchasing and recycling lubricants in the market with strict sanctions not only creates a healthy and fair business environment but also helps protect consumers in the "wave" of counterfeit goods that is flooding the Vietnamese consumer market.

It is easy to see that the management of waste lubricants and recycled oil products is not only an issue related to the environment, but also directly impacts traffic safety and consumer rights. In the context that counterfeit and low-quality lubricants from illegal recycling sources are still rampant, the legal "gray zones" need to be completed soon from technical standards, transparent labeling, and appropriate sanctions to make the market healthy. This is a prerequisite for the recycling industry to develop sustainably, making a substantial contribution to the goal of green growth and Vietnam's international commitment to the environment.

Lawyer Nguyen Van Phuc - Chu Le Quynh Ngan

HM&P Law Firm

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