Unilever Vietnam and Duy Tan Recycling, a local firm based in the Mekong Delta province of Long An, are planning to recycle 30,000 tons of plastic waste by 2027.
According to a memorandum of understanding signed by the two sides on Tuesday, they will also collaborate to improve working conditions, health, and capacities of garbage collectors at over 100 dumps run by Duy Tan Recycling.
The cooperation is expected to boost Unilever’s development of the circular economic model.
Duy Tan Recycling is investing $60 million in a plastic recycling factory. The $20-million first phase, with a recycling capacity of 20,000 tons a year, entered operation in April 2021. The factory is set to raise its capacity to 100,000 tons a year in the third phase from 2024.
Unilever Vietnam has reduced 82% of its plastic usage in the packaging phase by reducing virgin plastic, using post-consumer recycled plastic (PCR), and enhancing its ratio of recyclable packaging to 73%. The giant also collects and processes 20,000 tons of plastic waste annually.
In 2023, Unilever Vietnam aims to push recyclable packaging to 75% and reduce the use of virgin plastic by 87%.
According to a 2021 market study for Vietnam conducted by the World Bank and the International Finance Corporation (IFC), 2.62 million tons of plastic waste were not recycled yearly, resulting in a 75% loss in the value of plastic materials, or $2.2-2.9 billion.
Entering Vietnam in 1995, Unilever quickly became a giant in the consumer goods industry, providing a series of brands like Lifebuoy soap, Omo detergent, and Sunsilk shampoo. It is estimated about 35 million Unilever products are currently used in Vietnam every day.
Unilever CEO Alan Jope said more than 90% of Unilever products sold in the Vietnamese market are made at the global multinational’s two factories located in the northern province of Bac Ninh and Ho Chi Minh City’s Cu Chi district.
Jope detailed that Unilever Vietnam would double its current size over the next 5-10 years, instead of spending 27 years like the previous period. The three factors for the plan are strong brands, good business operations, and contributions to the community.