Evolution in packaging and recycling sectors marks a fresh era for Vietnam
Vietnam's Packaging and Recycling Industries Embrace Green Shift
The packaging and recycling industries in Vietnam are undergoing a significant transformation, driven by the implementation of the Extended Producer Responsibility (EPR) regulation in early 2024. This law, which shifts the waste management costs onto producers and importers, is promoting circular economy models and sustainability innovation.
Local and foreign businesses are adapting to this change by revising their packaging strategies towards sustainability. For instance, Nestlé Vietnam has pledged to make over 95% of its packaging recyclable by 2025, reducing virgin plastic use by one-third, and investing in collection and recycling systems. Many Vietnamese SMEs are upgrading their recycling facilities to meet environmental standards, enabling them to participate more fully in these green value chains. There is also a marked increase in demand for eco-friendly packaging products like paper boxes and biodegradable straws from international markets.
Compliance with mandatory recycling quotas, strategic innovation to strengthen brands and meet global ESG (Environmental, Social, and Governance) standards, and cross-sector collaboration across the product lifecycle are key aspects of this adaptation. The government supports these transitions through comprehensive policies, including plans to reduce greenhouse gas emissions by at least 15% by 2030 and adopt circular economy principles nationally.
The demand for plastic recycling machines in Vietnam is growing rapidly, but with increasingly strict technical requirements. To meet these demands, companies like Viet Dai Plastic Machine Co Ltd regularly send engineers to mainland China, Taiwan, Japan, and Australia to learn advanced recycling technologies and bring them back to Vietnam. The DUYTAN Plastic Corporation (DUYTAN Recycling) is one such company that 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.
Consumer attitudes towards packaging are shifting, with 92.1% of consumers concerned about the environmental impact of packaging. 57.4% of consumers are willing to pay more for eco-friendly packaging, provided the premium remains reasonable. Sustainable packaging is becoming a commercial imperative, particularly in export-linked sectors.
However, green packaging in Vietnam still costs 10-20% more than conventional options, according to DUYTAN Recycling's sustainability director. Despite this, beverage and dairy brands in Vietnam are working towards incorporating at least 50% recycled plastic by 2030.
Key recycling hubs in Vietnam include Hưng Yên, Hải Phòng, Bắc Ninh, and Tây Ninh, where demand for recycling machines is growing by 10-20% annually. The shift towards a more sustainable future is mobilizing investment, sparking innovation, and fostering cross-sector collaboration in Vietnam. Enterprises that do not adapt to sustainable packaging risk exclusion from global supply chains.
- The extended producer responsibility regulation in Vietnam, implemented in 2024, is driving a shift towards green packaging and recycling across the industries.
- Nestlé Vietnam, along with various local and foreign businesses, is revising its packaging strategies to align with sustainability initiatives.
- The government, striving for a greener future, is supporting businesses through comprehensive policies, such as the reduction of greenhouse gas emissions by at least 15% by 2030.
- To meet the growing demand for advanced recycling technologies, companies in Vietnam send engineers to countries like China, Taiwan, Japan, and Australia for training.
- DUYTAN Recycling, one such company, has invested in a bottle-to-bottle recycling plant and recycled over 80,000 tonnes of plastic waste since 2020, primarily for export.
- Consumers are becoming more environmentally conscious, with 92.1% concerned about packaging's impact and 57.4% willing to pay more for eco-friendly options.
- Businesses that fail to adapt to sustainable packaging may face exclusion from global supply chains, making it a commercial necessity, particularly in export-linked sectors.
