The production and consumption of virgin plastics is a pillar of Vietnam's industry in the context of globalization, but the challenge is to develop the plastics industry while ensuring economic benefits, protecting the environment and keeping the Net Zero commitment.
Virgin plastic is a strategic material in the global supply chain.
Vietnam is currently one of the five countries with the fastest growing plastic consumption in the world. According to statistics from the Vietnam Plastics Association (VPA): Per capita plastic consumption increased from 3,8 kg in 1990 to more than 50 kg/year today. About 80% of virgin plastic raw materials still have to be imported, mainly from the Middle East, Korea, China and Singapore. Domestic factories (such as Dung Quat, Nghi Son, Long Son Petrochemicals) only meet 20-25% of demand.
Although the Vietnamese plastics industry still grows at an average of 10-12% per year, contributing about 3,5% of GDP. However, the dependence on imported raw materials causes the price of domestic plastic products to fluctuate strongly according to crude oil prices and foreign exchange rates. Therefore, virgin plastic is considered a strategic material, playing the role of "backbone" for the global supply chain.
Virgin plastic has a special role in industrial development and life.
Virgin plastic plays a special role in industrial development and life. In manufacturing industry: Virgin plastic helps maintain stable quality of electronic components, medical equipment, machine housings, wires, packaging... products that cannot be replaced by other materials in the short term.
In infrastructure and export: Many supporting industries, especially automobiles, electronics, and food packaging, still depend on virgin plastic materials to ensure international technical standards. Mastering domestic virgin plastic production helps increase localization value, reduce imports, and create a foundation for the development of new material value chains.
In consumption: Virgin plastic offers reasonable price, light weight, easy to shape and convenient. With the average income of Vietnamese people, plastic is still the most popular material in daily life, from packaging, water bottles, bags to household products.
Environmental experts assess that, compared to recycled plastic, virgin plastic has high purity, durability and stability, helping to create products with consistent quality, especially in the following industries: Food packaging, medical, electrical - electronic, automotive, fast moving consumer goods (FMCG), where the requirements for safety, durability and aesthetics are very high. In export, many markets such as the US, Japan, and EU still require virgin plastic packaging in products that come into direct contact with food or pharmaceuticals.
Ensuring harmony between economic benefits and environmental responsibility
According to Dr. Can Van Luc, the change in consumer trends also requires the plastics industry to change rapidly to meet the demand for environmentally friendly products.Enterprises in the industry need to have a long-term development strategy to not only meet market demands but also maximize opportunities from the Government's industrial development policy."Mr. Luc emphasized.
Faced with green transition pressure, many large plastic manufacturing enterprises such as Duy Tan, An Phat Holdings… have invested in production lines for recycled plastic pellets, biodegradable materials (PLA, PHA) or applied ESG certification in the supply chain.
In the context of the global shift towards a green economy, the Vietnam Plastics Association (VPA) has also played a bridging role between businesses and management agencies, promoting the transition to a circular economic model, reducing carbon emissions, expanding international cooperation and providing technical support to members.
Production of virgin plastic is a trend and suitable for the demand for environmentally friendly products.
Mr. Dinh Duc Thang, Chairman of Vietnam Plastics Association, Chairman of the Board of Directors of Stavian Group emphasized: “In the development journey, besides creating environmentally friendly products, the Association and its members always pursue the goal of sustainable development.".
At the same time, the State is promoting the application of the extended producer responsibility (EPR) mechanism to force businesses to collect and recycle packaging. Tax incentives and green credits are provided to businesses that produce environmentally friendly materials.
Environmental experts believe that the production and consumption of virgin plastic is a pillar of Vietnam's industry, but it cannot continue to develop according to the "growth - consumption - disposal" model. In order not to lose the role of the plastic industry as a pillar, but still meet the Net Zero target, Vietnam needs to shift from the "production - consumption - recycling" model, with the following solutions:
First, increase the life cycle of plastic products: Design packaging, components, and materials that can be reused, recycled, or biodegradable. Businesses can follow the “Design for Recycling” model - design from the beginning for easy collection and recycling.
Second, invest in advanced recycling technology: Aim for deep recycling (chemical) to create raw materials equivalent to virgin plastic, both reducing imports and cutting emissions.
Third, apply the extended producer responsibility (EPR) mechanism: Force businesses to collect and recycle post-consumer products, forming a closed circular value chain.
Fourth, mobilizing green finance and preferential credit for the clean plastic industry: Emission reduction projects and recycling technology innovation need to be prioritized to access climate capital and global environmental funds, creating green market momentum.
Fifth, change consumer behavior and classify waste at source: Each citizen is a “cell” of the circular economy. Sorting, reusing and reducing single-use plastic must become a new consumer culture.
It can be affirmed that the production and consumption of virgin plastic cannot be eliminated, because it is the core material of modern industry. However, to develop sustainably, the Vietnamese plastic industry must shift to a circular, smart, low-emission model. This is not only a requirement of the green economy, but also a vital condition to maintain this industrial pillar in the future.
Khoi Nguyen