Vietnam packaging industry: A Pathway to a Greener Future
Greening the packaging industry has become an inevitable trend as global environmental protection pressures continue to rise. In Vietnam, the shift toward eco-friendly packaging is not only driven by legal requirements and consumer demands but also stems from the business community’s awareness of sustainable development and the need to minimize negative environmental impacts.
One of the top priorities is minimizing waste generation and carbon emissions throughout the production and distribution process. To achieve this goal, packaging businesses are striving to optimize production processes, reduce waste, and utilize renewable energy. This not only helps protect the environment but also enhances brand image in the eyes of consumers, who are increasingly concerned about eco-friendly products.
Top 5 ways to embrace sustainability in Packaging (Source: Vietnam Report, Packaging Business Survey, September 2024)
Top 5 Ways to Embrace Sustainability in Packaging
- 01: Minimizing Carbon Emissions and Waste in Production and Distribution
- 02: Sourcing Eco-Friendly Materials, Prioritizing Recycled Resources
- 03: Applying New Technologies to Enhance Productivity and Resource Efficiency
- 04: Creating a Fair and Safe Workplace, Enhancing Employee Training and Development Programs
- 05: Innovating Packaging Design for Reusability and Multi-Functionality
In addition, finding sources of environmentally friendly materials, especially sources of recycled materials, is also an important priority. Using recycled materials not only reduces the demand for natural resource extraction but also helps reduce solid waste, contributing to environmental protection. Moreover, integrating new technology into production enhances productivity and optimizes resource efficiency while reducing environmental impact. Packaging companies are adopting cleaner production methods, consuming less energy, and cutting emissions.
Additionally, fostering a fair and safe work environment while promoting employee training and development programs is also a key part of a sustainable development strategy. This approach enhances employee capabilities, ensures efficient and safe production, and contributes to the long-term growth of the business.
The Status of ESG Commitments in Packaging Companies (Source: Vietnam Report, Packaging Business Survey, September 2024)
The status of ESG commitments in packaging companies
- 22,4: No ESG commitments set / No specific plan yet
- 40,1: In the planning stage
- 37,5: Plan developed and partially executed ESG commitments
With these priorities on the journey to green the packaging industry, the business community is increasingly committed to implementing Environmental – Social – Governance (ESG) commitments. Based on the same research sample surveyed by Vietnam Report in 2023, the proportion of businesses that have established a plan and partially implemented ESG commitments has slightly increased to 37.5%, while the percentage of businesses still in the planning stage has decreased to 40.1%. Meanwhile, the percentage of businesses not setting ESG commitments or not having specific plans remains unchanged at 22.4% compared to the previous year. Most businesses that have not set ESG commitments have faced financial issues during the previous difficult period, and the allocation of financial resources for ESG planning has not yet been implemented. On the other hand, the percentage of 3.7% of businesses has moved from planning to implementing ESG commitments, which is also a bright spot in the packaging market.
Top 5 topics appearing most frequently in the media (Source: Vietnam Report, Media Coding data of the Packaging industry, August 2023-July 2024)
The top 5 most frequently appearing topics in the social media
- 29,9: Pictures/ PR/Scandal
- 18,5: Productions
- 14,8: stock
- 11,1: Customers/ Customer relationship/ sales
- 11,1: Finance/KQKD
The brand image of the business will be enhanced in consumer choice. When a business’s brand is firmly positioned and strongly linked with sustainable values, social responsibility, and product quality, customers tend to prioritize choosing that business’s products and services.
Additionally, according to the consumer survey results by Vietnam Report in the F&B sector, up to 92.1% of consumers are particularly concerned about the environmental friendliness of product packaging, an increase of 12.5% compared to 2023. This is both a pressure and a motivation for packaging companies to continuously improve, reduce cost prices so that more eco-friendly packaging products reach consumers.
Regulations on recycling packaging on the journey towards greening
The journey towards greening the packaging industry in Vietnam is being strongly promoted through specific policies on recycling responsibility. According to Decree 08/2022/ND-CP on waste management and environmental protection, Vietnam has introduced important regulations on packaging recycling to minimize negative environmental impacts, which will be mandatory from January 1, 2024.
This regulation requires manufacturers and importers of packaging to be responsible for organizing or financially contributing to the collection and recycling of their products after use. This applies to various types of packaging, including plastic, paper, metal, and other materials. Specifically, businesses must register and implement a recycling plan according to the prescribed rate for each type of packaging or contribute to the Environmental Protection Fund to support recycling efforts. This decree’s enforcement marks an important step forward in transitioning from a linear economy model (produce, use, dispose) to a circular economy model, where packaging is collected and reused.
Compared to some countries around the world, Vietnam is gradually learning and applying advanced experiences in packaging recycling. One of the prominent models is the Directive on Packaging and Packaging Waste of the European Union (EU). This directive requires member states to ensure that at least 65% by weight of all packaging is collected for recycling. The EU also encourages the use of environmentally friendly packaging and businesses have to pay fees based on the environmental impact of the packaging they use, a system known as “Extended Producer Responsibility” (EPR).
The EPR model has successfully promoted collaboration between the government, businesses, and consumers in sustainably managing packaging waste.
Outside the EU, Japan also has a very strict packaging recycling management system. According to the Packaging Recycling Law enacted in 1995, Japan requires businesses to classify and collect plastic, glass, metal, and paper packaging after use. The government of this country supports the development of advanced recycling technologies while conducting community education campaigns to raise awareness about recycling. This has helped Japan achieve a high recycling rate while minimizing the amount of packaging waste being landfilled.
South Korea also stands out with strict control measures on recycling packaging through the EPR system and the requirement for waste sorting at the source. The South Korean government has implemented heavy penalties for businesses not complying with recycling regulations, while encouraging consumer participation through environmental campaigns and a packaging return system.
The learning and application of these models by Vietnam will help improve the efficiency of recycling, minimize the environmental impact of packaging, and move towards the goal of sustainable development. However, a major challenge for Vietnam is the underdeveloped waste collection and sorting system at the source, which requires strong cooperation from all stakeholders, from the government to businesses and citizens. Through Decree 08/2022/ND-CP, Vietnam is gradually completing the legal framework and moving towards a more effective packaging recycling model in the future.
The standards on packaging like FSC should be popularized
FSC (Forest Stewardship Council) is a voluntary standard developed with the purpose of promoting responsible forest management globally. This certification ensures that wood products are produced from controlled sources and comply with environmental, social, and economic standards. Although not mandatory under current law, achieving FSC certification for packaging products can help businesses increase market competitiveness, improve product quality, and build brand image with consumers. Especially, in the context of globalization and increasingly stringent regulations on sustainable development, packaging manufacturers in Vietnam are encouraged to voluntarily apply international standards to meet market demands, particularly in export sectors.
Popularizing FSC as a solution to protect forests and mitigate the impact of extreme weather. Forests have the ability to absorb and retain rainwater, reducing surface runoff and slowing the
flow of water into rivers and lakes, thereby preventing the risk of flooding. However, indiscriminate logging, converting natural forests into agricultural land or industrial zones has reduced forest areas and increased the risk of flash floods and landslides in many hilly regions, especially as climate change makes the effects of natural disasters increasingly severe. FSC certification, with strict standards for sustainable forest management, requires restrictions on over-exploitation and the protection of tree systems that have the ability to retain water and soil. This helps stabilize the terrain, prevent landslides, and reduce the intensity of floods. Forests that are increasingly lush not only maintain the ecosystem but also serve as a “shield,” minimizing the impacts of climate change and extreme weather events.
Thus, the topic of greening and sustainable development always attracts the attention of businesses in the packaging industry, especially in the context of globalization and increasing social responsibility demands. Packaging companies are aiming to become a part of the green value chain, and it will always be a long-term strategy for businesses to ensure regulatory compliance, enhance product quality, build brand image, and further capitalize on opportunities from the robustly recovering economy, aiming towards future prosperity.
source: https://vietnamreport.net.vn/Top-10-Cong-ty-Bao-bi-uy-tin-nam-2024-10969-1067.html
Operating under the motto of “Pioneering Quality,” Hoang Vuong consistently aims for sustainable and environmentally friendly packaging solutions. We proudly hold the following certifications:
- FSC Certification: FSC-C187470
- GMI Certification
- G7 Certification
- ISO 9001:2015
With over 15 years of experience in the paper packaging industry and a solid brand reputation, Hoang Vuong is a leading private paper packaging enterprise in Vietnam, partnering with numerous major brands locally and internationally. We accompany your company on the journey of innovation, seeking differentiation through continuous improvement. Your success is both an achievement and motivation for us to continue innovating and maintaining professionalism.
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