VIETNAM PLASTIC RECYCLING MARKET

Vietnam Plastic Recycling Market Size & Insights 

Vietnam plastic recycling market size is forecast to grow at a robust 7.1% CAGR from 2025 to 2032 primarily owing to rising concerns over plastic waste coupled with favorable government regulations and rising investment in the industry.

Vietnam Plastic Recycling Market Drivers

Growing Environmental Concerns over Plastic Waste

Vietnam plastic recycling market size growth is primarily fueled by the rising consciousness among consumers about the environmental effects caused by plastics waste. The growing preference for items produced using recycled resources is contributing to the surge in market demand. Public campaigns and educational efforts have been key in increasing awareness while encouraging ethical consumption.

The plastic recycling sector involves the waste collection along with reprocessing into materials that can be reused. This process is important to mitigate the environmental harm that can result in significant pollution problems if not properly managed. Plastic recycling preserves valuable resources and reduces carbon emissions which promotes sustainable practices in the long run.

Market growth is further driven by the increasing need for plastic recycling within the packaging sector. Owing to its durability plastic has long been favored for packaging because it offers unmatched versatility. But the growing reliance on it has caused severe environmental damage which contributes to pollution and complicates waste management. Recognizing these problems the packaging sector has been exploring greener alternatives with recycled plastic emerging as a potential solution. The shift towards sustainable packaging materials is also growing rapidly which significantly influences the Vietnam plastic recycling market.

The market has a promising future with sustained efforts from the government and support from international partners. Overcoming these challenges while creating a sustainable recycling system relies on the collective action between the government and industry players along with civil society.

Favourable Government Regulations & Focus on Circular Economy

As per the Ministry of Natural Resources and Environment statistics every year around 1.8 million tons plastic waste discharged into the environment in Vietnam. The Vietnam plastic recycling market share is further supported by government regulations. The government has taken a proactive effort in introducing initiatives to tackle plastic waste by launching a national strategy with goals to cut ocean pollution by 75 percent and eliminate marine waste disposal in 2030. The government has further promoted foreign investment within the market which helps set up recycling facilities and advance technologies in the country.

Since China prohibited the import of untreated plastic materials, many countries in Southeast Asia have taken over as major recipients with Vietnam ranked fourth globally. UN statistics reveal that imports of plastic waste in Vietnam grew by 11% in 2023 with a total of 420,000 tons.

Increase in investment

Plastic recycling industry is attracting significant attention from the corporates which has led to a growing investment in the plastic recycling in the country. Stavian Group established Stavian Recycling in Vietnam which is expected to start operation in the third quarter of 2025 with an estimated 17,000 tons/year production capacity.

Challenges Faced by Vietnam Plastic Recycling Market Companies

The restricted recycling capacity limits the recycled plastic availability which in turn affects industries relying on this material for their operations. The growing demand in industries like packaging or automotive may lead to supply shortages if the infrastructure is not improved. This situation not only disrupts their sustainability efforts but also restricts their ability to accommodate the increasing consumer demand for sustainable options.

Vietnam Plastic Recycling Market Segment Analysis 

Material Type Insights: PET dominates the recycling market in Vietnam

Based on material type the PET segment is estimated to lead the market. PET is among the most recyclable plastic waste types. Its exceptional recyclability makes it a popular choice among consumers and manufacturers which further solidifies its leading status in the recycling market. Its high recyclability further makes it essential for minimizing environmental pollution while supporting sustainability efforts.

Application Insights: Packaging hold the largest market share

Based on application the packaging segment is estimated to grow rapidly in the coming years. The ongoing urbanization and growing middle class have led to a rising plastics demand in areas like consumer packaging or household products. The packaging segment is the largest sector within the plastics industry in Vietnam with flexible packaging showing particularly strong dominance. The automotive segment is also embracing sustainability with recycled plastic gaining more importance in manufacturing processes. Industry demand is fueled by the understanding that recycled materials offer significant environmental benefits. Plastics are widespread in modern vehicles because they offer a great opportunity for substantial plastic reuse. Recycled plastics are increasingly used in automotive interiors where consumers encounter these materials on every drive.

Vietnam Plastic Recycling Market Major Players & Competitive Landscape

Several leading companies operating in the market are Duy Tan, Blue Sky Recycling, IAV Global, VietCycle among others.

The recycling market is fairly competitive with growth opportunities fueled by policy support and growing focus on the environment. Companies that embrace sustainable practices are ready to succeed in the market.

Vietnam Plastic Recycling Market News

• • In 2024, Ajinomoto Vietnam and Duy Tan Recycling signed an agreement to collaborate on the plastic packaging collection or recycling under the EPR program. This project is designed to improve packaging recycling and reduce environmental plastic waste while encouraging a circular economy.
  • In 2023, ALBA Group through its Asian branch collaborated with VietCycle to set up a modern plastic recycling plant in Vietnam. The collaboration aims to combat the increasing plastic waste problem by utilizing advanced technology and specialized knowledge.

Vietnam Plastic Recycling Market Scope of the Report

Vietnam Plastic Recycling Market Research Report Segmentation

The Vietnam Plastic Recycling Market has been segmented on the basis of material type and application. Based on the material type, the market is segmented into PET, PP, PS, PVC, polyethylene, and others. Based on the application, the market is segmented into packaging, building & construction, textile, automotive, and others.

Vietnam Plastic Recycling Market by Material Type

• • PET
  • PP
  • PS
  • PVC
  • Polyethylene
  • Others

Vietnam Plastic Recycling Market by Application

• • Packaging
  • Building & Construction
  • Textile
  • Automotive
  • Others

Vietnam Plastic Recycling Market Leading players

• • IAV Global
  • Formosa Plastics
  • Blue Sky Recycling
  • Tin Thanh
  • Duy Tan