This was heard at a conference on circular economy held within the framework of the Green Economy Forum and Exhibition (GEFE) 2024 in Ho Chi Minh City on October 22.

The GEFE is being jointly held by the European Chamber of Commerce (EuroCham) and the Ministry of Industry and Trade (MoIT)’s Vietnam Trade Promotion Agency (Vietrade) on October 21-23.

For a long time, Vietnam has followed a linear economic model characterised by a “take, make, dispose” approach. However, this model no longer has much room for resource-based development; and markets, trade partners, and investors are increasingly demanding adherence to more sustainable standards. Therefore, the Vietnamese Government is gradually putting forward policies to promote green economy and circular economy.

One notable regulation is the Extended Producer Responsibility (EPR) under the 2020 Law on Environmental Protection, which came into force on January 1, 2024. Specifically, producers and importers have two additional responsibilities: recycling products and packaging, and collecting and treating waste. Accordingly, businesses carry out their recycling responsibilities according to a specified roadmap, while producers and importers choose to organise recycling themselves or contribute to the Vietnam Environmental Protection Fund to support recycling efforts.

After nearly one year of implementation, the EPR mechanism has generated certain positive impacts. Le Anh, Sustainability Director at Duy Tan Plastic Recycling JSC, shared that the company has invested in building a factory and organising the collection and recycling of plastic bottles for many years, but finding a market for their products has not been an easy task.

With production costs being 20-25% higher than those of primary plastic products, Duy Tan's recycled plastic bottles mainly serve export markets. However, since the EPR mechanism came into effect, the demand for recycled plastic bottles from domestic enterprises has increased significantly. The capacity of the recycling plastic factory has quadrupled, and the share of domestic consumption now accounts for 50% of production, Anh stated.

However, he noted that the collection and recycling activities in Vietnam face several challenges due to poor waste segregation at the source. When collecting 100 tonnes of plastic bottles, domestic factories with similar technology can only recycle 60-65%, while this rate can exceed 80% in European countries. The low recycling rate results in higher costs for recycled products, making it harder to reach customers.

Karin Greve, Trade Counsellor at the Norwegian Embassy in Vietnam, said that Vietnam's implementation of the EPR mechanism is a positive step that helps promote the collection and recycling of packaging and waste. However, to enhance its effectiveness, it is essential to prioritise raising awareness of and educating citizens on proper waste segregation at the source.

As the recycling industry in Vietnam is still relatively new, the Government should implement support policies and incentives to encourage more businesses to participate in this sector.

In the long term, Vietnam needs a roadmap to increase the recycling rates of packaging and waste applicable to enterprises, with a goal of recycling as much as possible. Additionally, it should promote investments aimed at improving the quality of recycled products to enhance economic efficiency and minimise environmental waste, she stated./.VNA