Vietnam tightens recycling rules: How companies are staying competitive?

Vietnam’s leading brewer SABECO cuts bottle cap thickness to reduce carbon emissions during transport. (Photo: SABECO)

Vietnam is tightening regulations on product and packaging recycling, requiring companies to either handle waste collection themselves or contribute to a recycling fund to comply with extended producer responsibility (EPR) requirements.

Industries are responding with varied strategies. Leading beer producer SABECO is reducing the thickness of its aluminum can lids to cut material use and carbon emissions, while footwear giant Biti’s is phasing out plastic bags in favor of recycled paper packaging.

Brewer cuts can lid thickness to save material and carbon

Saigon Beer–Alcohol–Beverage Corporation (SABECO), which owns brands such as Bia Saigon and Bia 333, operates 25 breweries and 11 subsidiaries, with 200,000 retail points across Vietnam. Its sustainability journey began with a comprehensive overhaul of packaging.

The company aims to achieve 100% circular packaging by 2040. Beyond using glass bottles, aluminum cans, and paper in a closed-loop system, SABECO has reduced the thickness of its can lids from 0.245 mm to 0.240 mm — saving 15% of material while lowering carbon emissions from transportation.

SABECO’s deputy general director Larry Lee emphasized that all primary and secondary packaging materials are reusable or made from recycled content.

Green packaging is increasingly seen as a tool for Vietnamese companies to boost brand reputation, attract sustainable investment, and strengthen market competitiveness, especially in consumer-heavy sectors like food and beverages. The shift is also driven by rising environmental awareness among consumers.

According to a 2024 Vietnam Report survey, an increasing number of consumers are concerned about packaging’s environmental impact. Another study found that more than half of respondents were willing to pay a modest premium for products with eco-friendly packaging.

In the textile and footwear sectors, the shift is also underway. Biti’s has simplified its packaging designs to reduce single-use plastics, introducing recycled paper and reusable fabric bags at its retail stores and distribution centers. Similarly, Garment 10 (Garco 10) has switched from traditional PE plastics to paper and PET materials with shorter degradation periods.

Green packaging is increasingly seen as a tool for Vietnamese companies to attract sustainable investment. (Photo:  Dai Viet Plastic Group)

Green packaging costs 10–20% more than traditional

Vietnam’s General Statistics Office reports that the country is home to around 6,000 packaging companies, many of which face challenges transitioning to sustainable production.

Le Anh, Sustainability Director at DUY TAN Recycling, said green packaging costs 10–20% more than conventional materials. The company is investing in eco-design, R&D, and modern machinery to reduce costs and highlight product uniqueness, driving a practical green transformation.

Under Vietnam’s EPR policy, manufacturers and importers are responsible for the entire lifecycle of their packaging. Vo Hong Son, Head of the Ministry of Industry and Trade’s Representative Office in the central and southern regions, noted that the printing and packaging sector plays a vital role in strengthening supply chain competitiveness and advancing national sustainability goals.

Source: Vietnam+, Vietnam News

Read more: Vietnam’s green industrial parks rise as global supply chains shift, drawing tech giants and LEGO