Designing a Value-Added Tax-integrated recovery scheme for Abandoned, Lost or Discarded Fishing Gear: Science–policy integration and decision-support for Vietnam’s fisheries

Abandoned, lost, or otherwise discarded fishing gear (ALDFG) is a critical source of marine plastic pollution in Vietnam, yet formal recovery participation remains low due to weakly aligned incentives and logistical frictions. We design and evaluate a VAT-linked circular economy instrument that refunds the 5% VAT on new gear for each kilogram of ALDFG returned and verified at ports, while allowing fishers to retain on-site resale proceeds to informal buyers. Drawing on a face-to-face survey of 1,525 fishers across three coastal provinces, behavioural evidence on tax salience, and regulatory analysis of Vietnam’s VAT framework, we quantify the combined incentive at 14,500–16,500 VND/kg (≈ 8–10% of new gear price). The scheme integrates port mass verification and receipts with VAT documentation, achieves low estimated administrative cost (≤ 0.5% of incentive value), and aligns with informal market practices already used by more than 89% of fishers. Modelling indicates that, under clear communication, participation can rise substantially from current formal return rates, delivering a several-fold increase in verified returns without requiring new bureaucracy. The approach is administratively feasible (requiring a modest legal amendment to extend VAT refund eligibility to ALDFG returns), politically practical, and transferable to comparable fisheries and plastic-intensive sectors. We present an implementation roadmap and governance safeguards (receipt reconciliation, price-variation monitoring, recycling-market stability) to support near-term adoption.