VIETNAM PLASTIC RECYCLING MARKET

Vietnam plastic recycling market is estimated to witness 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.

Major Drivers and Trends

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.

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.

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.

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.

Despite the progress challenges remain including ineffective waste management along with inefficient sorting systems and limited infrastructure. Recycling facilities are fundamental in dealing with plastic waste because they repurpose it into valuable materials. These facilities in Vietnam are struggling to keep up with the rising demand for superior recycled pellets driven by several challenges. The recycling sector faces a critical challenge owing to the limited financial support which restricts the capacity and innovations in the recycling facilities.

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.

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.

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.

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.

Top Market Players

Several leading companies in the market include IAV Global, Formosa Plastics, Blue Sky Recycling, Tin Thanh, Duy Tan, 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.

Key Developments

• • 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.

Segments covered in the Report:

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.

Report Coverage	Details
Market Revenues (2024)	USD Million
Market Base Year	2024
Market Forecast Period	2025-2032
Base Year & Forecast Units	Revenues (USD Million)
Market Segment	By Material Type, By Application
Regional Coverage	Vietnam
Companies Profiled	IAV Global, Formosa Plastics, Blue Sky Recycling, Tin Thanh, Duy Tan among others; a total of 5 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

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