Business

Key factors promote effective EPR tool

By Kieu Mai December 29, 2022 | 08:00 AM GMT+7

Developing a modern, standard waste collection, recycling and treatment system is key requirement to effectively implementing the EPR tool, helping businesses save on the cost.

Taking effect in January 2022, Law on Environmental Protection (LEP) 2020 highlights the responsibilities of ministries and localities to integrate circular economy in planning strategies, development plans, waste management, and waste recycling.

It introduces the concept of circular economy through fostering extended producer responsibility (EPR) policy, highlighting the responsibility of producers and importers to recycle products and packaging.

Specifically, the law requires that domestic solid wastes must be sorted into reusable or recyclable solid wastes, food wastes, and other solid domestic wastes.

In fact, in Vietnam, the informal sector is the largest contributor towards recycling and reuse of waste in the entire country, leading to the result of poor quality recycled products, or pollution problem.

According to Hoang Duc Vuong, head of the Recycled Plastics Unit at the Vietnam Plastics Association, although being under great pressure from the public, the recycling industry has received little support over the years. Therefore, it places a lot of expectations on the EPR tool, and requirements on mandatory waste classification.

In other sides, businesses which must apply EPR tool meet some difficulties because of poor infrastructure, and limited capacity for collection and recycling in Vietnam.

That requires the country to develop a modern, standard waste collection, recycling and treatment system to effectively implementing the EPR tool, helping businesses save on the cost.

In private sector, in early 2022, Tetra Pak – the Swedish food processing and packaging solutions company, and Dong Tien Packaging and Paper Co., Ltd. announced a co-investment of $3.97 million to upgrade and expand the recycling capacity of used beverage cartons in Vietnam.

Tetra Pak will invest $1.36 million in the installation of a modern production line at Dong Tien's recycling factory that separates paper from used cartons in line with European technology standards, expected to be completed in the fourth quarter of this year.

This is a very significant investment, as it is the first time a foreign packaging solutions company has invested in promoting the capacity of Vietnam’s nascent recycling industry.

With higher-quality recycled pulp at hand, Dong Tien will invest $2.6 million in facilities and production lines for craft paper, which is widely favoured worldwide.

Tetra Pak is a founding member of the Vietnam Packaging Recycling Organization (PRO Vietnam), an alliance of leading businesses in consuming goods, retailing and packaging which share the common mission by promoting the circular economic model through transforming the processes of collecting and recycling product packages into more accessible and sustainable manner.

Dong Tien and Tetra Pak have cooperated for more than ten years to achieve the common goal of developing a carton recycling eco-system for Tetra Pak's customers in Vietnam, contributing to the expansion of used carton collection activities and promoting the domestic recycled paper industry. It is a strategic partner of PRO Vietnam.

This year, Duy Tan Plastics Recycling Corporation, a member of PRO Vietnam, announced its $60 million-investment, the first green credit from HSBC to a Vietnamese company, to build a plastics recycling factory in Long An. It is a huge amount of capital compared to the scale of Vietnam's old and low-tech recycling industry.

However, the above investment activities can only be implemented effectively if combined with the efficiently collection and classification of waste, which is regulated in LEP 2020 and is one of collaborations between PRO Vietnam and lots of environmental sanitation companies.

EPR and carbon credits giving financial momentum to environmental protection

EPR and carbon credits giving financial momentum to environmental protection

National Focus -  2 year
Extended producer responsibility (EPR) and carbon credits are market-based environmental protection tools that put financial returns as the engine for sustainable change.
EPR and carbon credits giving financial momentum to environmental protection

EPR and carbon credits giving financial momentum to environmental protection

National Focus -  2 year
Extended producer responsibility (EPR) and carbon credits are market-based environmental protection tools that put financial returns as the engine for sustainable change.
PVI Asset Management and SonKim Capital partner to revolutionize real estate investments

PVI Asset Management and SonKim Capital partner to revolutionize real estate investments

Business -  1 week

PVI Asset Management (PVI AM) and SonKim Capital (SK Capital), a business unit of SonKim Group has announced a strategic collaboration to develop innovative real estate investment products tailored for institutional investors and high-net-worth individuals.

Filum AI secures $1 million amidst funding winter

Filum AI secures $1 million amidst funding winter

Business -  1 week

Filum AI has successfully raised $1 million in funding despite a challenging venture capital market, underscoring the potential of AI and shifting investment strategies.

New decree eliminates barriers and enhances access to financing for enterprises

New decree eliminates barriers and enhances access to financing for enterprises

Business -  3 week

Enterprises are advised to promptly assess and evaluate the impact of the changes in the newly-issued to ensure timely compliance in the upcoming tax finalization period.

Lux Travel DMC earns global recognition for sustainability

Lux Travel DMC earns global recognition for sustainability

Business -  3 week

Lux Travel DMC has solidified its position as one of the global leaders in sustainable tourism with the prestigious Travelife Certified Sustainability Award 2025.

Promoting technology leadership training in the AI ​​era

Promoting technology leadership training in the AI ​​era

Business -  3 week

As AI becomes more prevalent, business leaders must evolve - blending management expertise with a deep understanding of technology and its applications.

Tokyo AA and Rakusei form strategic partnership

Tokyo AA and Rakusei form strategic partnership

Business -  3 week

The collaboration between Tokyo AA and Rakusei aims to develop high-potential real estate projects, bringing Japanese expertise to Vietnam.