Shift Towards Green Brings a Fresh Start to Vietnam's Packaging and Recycling Sectors
Vietnam is taking significant strides in addressing plastic pollution and promoting sustainability in the packaging and recycling sectors. Recent initiatives and developments, driven by government regulations, private sector investments, and industry actions, are aimed at reducing plastic waste, increasing the use of recycled materials, and supporting circular economy goals.
Policy and Regulatory Initiatives
Hanoi city has launched an ambitious plan to phase out single-use plastics and non-biodegradable packaging, with legal requirements for manufacturers to use at least 20% recycled plastics in packaging from 2028, increasing to 30% by 2030. From 2031, the production and import of non-certified plastic products will be banned. Vietnam’s Extended Producer Responsibility (EPR) law, effective from 2025, mandates that businesses must recover, recycle, or pay for the treatment of post-consumer packaging waste, aiming to shift responsibilities to producers and incentivize sustainable packaging design and waste management systems.
Industrial Developments and Investments
The Stavian Recycling Complex in Thanh Hoa Province, equipped with advanced, environmentally friendly technology, is set to start operation in Q1 2027, recycling post-consumer PET bottles into food-grade recycled PET (rPET) resins with a capacity of 17,000 tons/year. Tetra Pak has expanded its production capacity at its aseptic carton packaging factory in Binh Duong, focusing on renewable materials and reducing CO2 emissions. Millennium Group has launched a new manufacturing facility in Hung Yen Province, reflecting a commitment to sustainability in packaging production.
Recycling Facilities
DUYTAN Recycling, a key player in Vietnam's recycling industry, has invested in a bottle-to-bottle recycling plant in Tây Ninh Province, converting used PET bottles into food-grade plastic pellets. Since 2020, the company has recycled over 80,000 tonnes of plastic waste, primarily for export.
Growing Demand for Recycled Plastics
Domestic demand for recycled plastic is growing, with beverage and dairy brands aiming to incorporate at least 50% recycled plastic by 2030. Viet Dai Plastic Machine Co Ltd provides equipment capable of processing various plastics, helping remove impurities and dust to produce high-quality pellets.
Consumer Attitudes
57.4% of respondents in a report were willing to pay more for eco-friendly packaging, provided the premium remains reasonable. The surge in e-commerce has magnified the plastic waste issue, as plastic styrofoam and single-use bags dominate last-mile delivery.
The Way Forward
Both local and foreign businesses are required to comply with environmental mandates and rethink their business models to align with circular economy goals. Nestlé is investing in better systems for collection, sorting, and recycling, and aims to enhance the value and recyclability of packaging types currently recycled at scale. Sustainable packaging is becoming a commercial imperative, particularly in export-linked sectors.
Summary
| Area | Recent Developments | Timeline | |-----------------------|------------------------------------------------------------------------------------------------------------|--------------------------------| | Policy & Regulation | Hanoi’s plastic ban plan; EPR law requiring packaging recycling/responsibility | 2025–2031 | | Recycling Facilities | Stavian Recycling Complex for rPET production with advanced tech | Operation start: Q1 2027 | | Packaging Industry | Tetra Pak capacity expansion for renewable material packaging; Millennium Group’s sustainable facility launch | 2025–2027 |
These initiatives position Vietnam as proactively addressing plastic pollution and sustainability in the packaging and recycling sectors. The country's green growth agenda offers a promising opportunity for the packaging and recycling industries. However, sustainable packaging still costs 10-20% more than conventional options, underscoring the need for continued investment and innovation.
- The Vietnamese government's policy includes a plan to phase out single-use plastics in Hanoi, mandating the use of recycled plastics, and banning non-certified plastic products.
- The Extended Producer Responsibility (EPR) law, effective from 2025, imposes recycling and waste treatment responsibilities on businesses, promoting sustainable packaging design.
- The Stavian Recycling Complex in Thanh Hoa Province will start operation in Q1 2027, recycling PET bottles into food-grade rPET resins.
- Tetra Pak has increased its production capacity for renewable materials, while Millennium Group has launched a new sustainable packaging manufacturing facility.
- DUYTAN Recycling, a key player in Vietnam's recycling industry, has invested in a bottle-to-bottle recycling plant, recycling over 80,000 tonnes of plastic waste since 2020.
- Domestic demand for recycled plastic is growing, with beverage and dairy brands aiming to use at least 50% recycled plastic by 2030.
- 57.4% of consumers are willing to pay more for eco-friendly packaging, as long as the premium remains reasonable.
- To further combat plastic pollution and align with circular economy goals, businesses, both local and foreign, need to invest in better recycling systems and rethink their business models. Nestlé, for example, is investing in collection, sorting, and recycling systems, aiming to improve the value and recyclability of packaging types. Sustainable packaging is becoming a commercial imperative, particularly in export-linked sectors.
