Trade4go Summary
On June 16, the Ministry of Agriculture and Environment, in collaboration with the United Nations Development Programme (UNDP), the Vietnam National Plastic Action Partnership (NPAP), and the Embassy of Norway, held the second and final session of the Plastic Talk series, themed “Closing the post-consumer plastic loop,” and officially launched a study on a Deposit Return Scheme (DRS) tailored to Vietnam.
Original content
The Ministry of Agriculture and Environment, in collaboration with the UNDP, NPAP, and the Embassy of Norway, held the second session of the Plastic Talk series, launching a study on a Deposit Return Scheme (DRS) for Vietnam. The series, part of 2025 World Environment Day celebrations, focuses on solutions for a circular plastic economy, including recycling low-value plastics and using post-consumer recycled (PCR) materials. Businesses like PepsiCo, using a 3R (Reduce, Recycle, Renew) strategy, are leading the transition to PCR materials, with PepsiCo Vietnam being the first in Vietnam and Asia-Pacific to use 100% recycled plastic bottles. Unilever Vietnam also aims for 100% PCR content in packaging, while Indorama Ventures Vietnam is developing a closed-loop recycling system for PET bottles. A study funded by the Embassy of Norway and conducted by Eunomia Research & Consulting highlights the DRS mechanism as key to Vietnam's circular economy. The DRS involves consumers paying a deposit on beverages, refunded upon returning the containers. The study found Vietnam generates 25 million tons of municipal solid waste annually, with only 10-15% recycled, mostly downcycled. Experts recommend a mandatory DRS for single-use PET bottles and aluminum cans, with a 1,000–2,000 VND deposit, potentially reducing over 77,000 tons of packaging waste and creating jobs. The DRS is recommended to align with Vietnam's Extended Producer Responsibility (EPR) policy.