Vietnam’s Packaging and Recycling Industries Enter New Growth Phase Under Green Transition

September 2025

Vietnam’s packaging and recycling industries are undergoing a major transformation as new environmental regulations and global market demands push sustainability to the forefront. The Extended Producer Responsibility regulation, effective since early 2024, requires businesses to align operations with circular economy principles, making eco-designed and recyclable packaging a commercial necessity rather than an option.

With Vietnam generating around 1.8 million tonnes of plastic waste annually, the urgency to act is growing. Shifts in consumer behavior reinforce this trend, with surveys showing over 92% of Vietnamese consumers concerned about packaging waste and more than half willing to pay extra for eco-friendly alternatives. This change has accelerated demand for sustainable packaging, particularly in export-linked industries where compliance with international green standards is critical.

The industry is responding with innovation and investment. DUYTAN Recycling, for instance, has established a bottle-to-bottle plant in Tây Ninh with a 100,000-tonne annual capacity, while equipment makers such as Viet Dai Plastic Machine Co. are upgrading technology to meet stricter environmental standards. International platforms like Alibaba.com report rising global interest in Vietnamese green packaging, with product searches up 70% year-on-year.

Multinational brands are also driving change: Nestlé Vietnam has pledged to make over 95% of its packaging recyclable by 2025 while cutting virgin plastic use by a third. This combined pressure from regulation, consumers, and global buyers is positioning Vietnam as a regional leader in sustainable packaging and recycling, with opportunities for SMEs and major corporations alike to expand capacity, attract investment, and strengthen competitiveness.

(Source: Vietnam Investment Review)

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