Vietnam’s plastics and rubber sector looks to sustainability amid strong growth potential

Vietnam’s plastics market is expected to continue strong growth in the coming years; however, local companies need to take measures for sustainable development to meet demand from sophisticated markets, according to industry insiders.

Stricter environmental regulations and rising global demand for recycled plastics, especially from the U.S. and EU, push the industry toward sustainable practices, posing challenges but also creating new opportunities, experts and executives said at a recent industry exhibition in Ho Chi Minh City.

The 22nd Vietnam International Plastics and Rubber Exhibition took place at the Saigon Exhibition and Convention Center in HCMC from October 16-19, featuring nearly 600 exhibitors from 15 countries and regions, with notable pavilions from India, South Korea, mainland China, and Taiwan.

The exhibition served as a comprehensive platform for industry professionals to showcase their innovations, strengthen partnerships, and explore emerging trends.

A significant feature of the exhibition was an executive seminar on driving sustainability in the plastics and rubber industries via next-gen materials, co-organized by CCX Partners and ChanChao International.

Held on the exhibition floor, the seminar attracted over 50 executives and industry leaders from prominent companies such as Mondelez Vietnam, Stavian, Melchers, Accredo Asia Packaging, Tan Tien Packaging, Rang Dong Long An, and many more.

The seminar opened with a keynote from Le Anh, sustainability director at DuyTan Plastic Recycling, highlighting Vietnam's sustainability journey and industry structural shifts from 2019-2023, driven by increased investment and government incentives toward Net-Zero. "I take pride in sharing the transformative journey of Vietnam's plastics industry on every global platform I can.", he remarked.

Following up the session, Jonathan Sourintha, owner of TURN GREEN, shared insights on the crucial role of Extended Producer Responsibility (EPR) policies in shaping business practices within Vietnam’s plastics and rubber industries and how leading brands are setting the standard for compliance.

A panel discussion was hosted by Trang Dao, business development director of Evonik Vietnam, with the participation of three industry experts: Le Anh, DuyTan Plastic Recycling; To Thanh Son, ESG manager, SGS Vietnam; and Daniel Chan, founder & CEO, Intereras. The panel explored how digitalization and sustainability complement each other to drive transformation in plastics and rubber circularity.

To Thanh Son, ESG manager, SGS Vietnam, provided a holistic overview and in-depth analysis of Traceability Regulations from the EU, an important export market of Vietnam. He highlighted the challenges these policies pose for Vietnamese exporters and outlined four strategic pathways to reduce plastic waste, meet climate targets, and foster a circular economy.

Vinay Bhardwaj, country head & vice chairman of Indorama Ventures Vietnam, shared the latest innovations in green composite materials of Bio-PET, RPET, NFCS, and recyclable multilayer composites. He emphasized the performance advantages of these sustainable alternatives over traditional materials and provided strategies for scaling up production to meet rising global demand.

The second panel discussion was moderated by Phuong Le, director of Thinh Vuong Plastics, and joined by three other industry leaders including Jonathan Sourintha, Vinay Bhardwaj, and Thong Le, CEO of Lagom Vietnam.

The panel explored the growing demand for bio-based and biodegradable materials, comparing them with recycled plastics. The discussion focused on how Vietnamese manufacturers can align with sustainability trends to access key markets in the EU, U.S., and Asia.

Vietnam’s plastics market is set to grow from 10.92 million tons in 2024 to 16.36 million tons by 2029 with a CAGR of 8.44%, according to Mordor Intelligence.

Plastic exports in the first half of 2024 surged over 32% year-on-year, reaching $3.15 billion, according to customs data.