'Lifecycle responsibility' drives sustainability in the plastics industry.

Industry Development Overview

According to Ms. Huynh Thi My, Vice Chairwoman and Secretary General of VPA, the Vietnamese plastics industry evolved from a nascent, domestically oriented sector during the 1990–2000 period into a high-growth industrial sector.

• The 2005–2009 period marked the strongest breakthrough, with an average growth rate of 23.4%, double that of the previous stage, driven by technological investment and export expansion.

• From 2009–2014, growth slowed to 9.7%, before rebounding to 11.3% during 2014–2023.

• Notably, in 2024, the industry recorded a growth rate of 23.9%, the highest level in nearly 15 years, reflecting strong recovery momentum and significant potential for expanded production and exports.

Production and Export Performance

• Total plastic output increased from 380,000 tons in 1995 to 7.86 million tons in 2020, and is projected to reach 9.215 million tons by the end of 2025.

• In terms of exports, Vietnamese plastic products are now shipped to more than 190 countries, with export turnover rising from USD 336 million in 2010 to USD 3.2 billion in 2020, and expected to reach USD 7 billion by 2025.

Green Trade Requirements and EPR Implementation

Rapid growth has been accompanied by increasing environmental and sustainability requirements in international trade. From 2025 onward, enterprises across the plastics value chain—particularly plastic packaging manufacturers—will be required to comply with EPR standards in both export markets and the domestic market. This marks the phase when Vietnam’s EPR regulations under Decree No. 08/2022/ND-CP are effectively enforced, requiring companies to report and fulfill mandatory recycling obligations.

Ms. Mai Ha Thanh Uyen, Sustainability Director of Dow Southeast Asia, explained that EPR policies require manufacturers to take responsibility for the entire product life cycle, from production to post-consumer waste management. This means companies must participate in the collection, recycling, or treatment of products after consumer use.

Global EPR Trends

Globally, EPR was first implemented in the European Union in the early 1990s under the Packaging and Packaging Waste Directive (94/62/EC). Since then, many countries have expanded EPR frameworks to other sectors such as electronics, batteries, end-of-life vehicles, and household appliances.
According to Ms. Uyen, by 2030, most countries will have established EPR roadmaps. The EU has set a target of 30% recycled content in plastic packaging by 2030, while global trends are shifting toward recycling technologies based on renewable feedstocks, rather than reliance solely on fossil-based raw materials.

EPR as a Strategic Opportunity

Although EPR is no longer a new concept, it is rapidly becoming a mandatory standard within global supply chains. Effective implementation not only helps address plastic waste pollution—particularly severe in Southeast Asia due to underdeveloped recycling infrastructure—but also enables enterprises to maintain export access, expand markets, and secure material supply.

In Vietnam, plastic packaging is classified as a mandatory EPR product category under the Law on Environmental Protection 2020. When properly implemented, EPR allows companies to utilize recycled plastic waste as production feedstock, reducing dependence on imported raw materials, as more than 70% of virgin plastic resins are currently imported.

“EPR is not a challenge, but an opportunity for nearly 5,000 plastics enterprises in Vietnam,” Ms. Uyen emphasized.

Strategic Direction for the Industry

Mr. Dinh Duc Thang, Chairman of the Vietnam Plastics Association, stated that the industry is entering a new phase characterized by stringent environmental requirements, green standards, and international trade regulations.
“These requirements are not merely challenges, but opportunities for the industry to restructure, upgrade technology, and standardize governance in line with ESG principles,” he noted.

Looking ahead, the industry should focus on five strategic pillars:

1. Sustainable, quality-driven growth

2. Promotion of ecodesign and circular economy models

3. Enhanced certification capacity and traceability systems

4. Multi-stakeholder collaboration among government, enterprises, and international partners

5. Transforming regulatory pressure into competitive advantage

“The plastics industry serves as a critical input for key sectors such as textiles, electronics, fisheries, agriculture, and footwear. Our goal is to secure raw material supply, reduce import dependence, promote domestic petrochemical development, and advance a more sustainable, circular, and responsible industry,” Mr. Thang added.

Policy Support and Outlook

Aligned with this direction, Ho Chi Minh City has identified industry—including plastics—as one of its four key growth pillars. The city has committed to facilitating technological innovation, digital transformation, and deeper integration into global value chains for plastics enterprises. Policies are also being developed to strengthen linkages between plastics and supporting industries, as well as collaboration among businesses, research institutes, and universities to enhance technological capability and develop high-quality human resources, toward green manufacturing and circular economy development.

With rapid growth and mounting green compliance pressures, EPR is emerging as a critical test for the Vietnamese plastics industry’s ability to transition from volume-driven growth to sustainable, environmentally and socially responsible development.

Thai Anh