THE CASE OF VIETNAM’S 3 BILLION YEN AND ITS APPROACH TO PLASTIC RESOURCES

Only about one-third of Vietnam’s plastic waste is recycled, costing the economy $2.2 to $2.9 billion annually.

According to the report “Market Study for Vietnam: Plastics Circularity Opportunities and Barriers ” published by IFC, of the 3.9 million tons of plastic consumed in Vietnam, only 1.28 million tons (about 33%) are collected and recycled (CFR).

Up to 2.62 million tons of plastic are discarded, resulting in the loss of 75% of the material value of plastic (equivalent to $2.2 to $2.9 billion) each year. If all were collected and recycled into the most valuable products, the total material value gained from recycling would theoretically amount to $3.4 billion annually.

Despite the great value of waste plastics, the conditions for practicing waste plastics recycling are still inadequate.

Although Ho Chi Minh City is the most active city in the country in collecting and recycling plastic waste, statistics from Ho Chi Minh City Urban Environment Co., Ltd show that of the approximately 1,600 tons of plastic waste (in 9,500 tons of household waste) generated daily, only 200 tons are collected and recycled.

The remaining plastic waste is disposed of primarily through landfill technology, which consumes a lot of land and poses serious environmental problems.

For years, the city of Hoa Binh has been struggling to dispose of its household waste. The authority even has to find vacant lots everywhere, from deep forests to highways, to use as temporary dumping grounds.

Reasons for Vietnam’s low plastic recycling rate include low sustained demand for local recycled plastics and limited financial resources of recyclers (especially SMEs). Other reasons include fluctuating supply, heavy reliance on imported plastic waste, lack of recycling standards, and a waste management system that does not prioritize recycling.

Therefore, there are not many models for recycling waste plastic in Vietnam, and the only technology available is to reuse waste plastic to produce other materials. For example, recycled plastic beads can be produced and used as raw materials in the construction industry, garment industry, and home appliance manufacturing; or as fuel (e.g., RPF – solid fuel made from plastic and waste paper) to replace other conventional burning fuels such as coal and charcoal…

DECOS’s RPF production technology can be considered a solution to maximize the value of “waste plastic,” improve the economics of operations, and reduce landfill plastic waste.

DECOS is constantly working to build and expand the RPF market, helping Vietnamese companies to be environmentally responsible and pursue a circular economy model and sustainable development.