80TH Anniversary August Revolution and National Day
Log in
Econ

Sweden-based Tetra Pak partners with local firm to promote recycling of used cartons

The investment is considered significant, as it is the first time a foreign packaging solutions company has invested in promoting the capacity of Vietnam’s nascent recycling industry.

Sweden-based food processing and packaging solutions company Tetra Pak and Vietnam’s Dong Tien Packaging and Paper announced a joint investment of EUR3.5 million ($4 million) to upgrade and expand the recycling of used Tetra Pak beverage cartons in Vietnam.

 Vietnam is promoting the development of recycling industry. Photo: The Hanoi Times

Under the plan, Tetra Pak will invest EUR1.2 million ($1.4 million) in the installation of a modern production line at Dong Tien's recycling factory that separates paper from used cartons in line with European technology standards, set to be completed in the fourth quarter of this year.

This is considered a significant investment, as it is the first time a foreign packaging solutions company has invested in promoting the capacity of Vietnam’s nascent recycling industry.

“Supporting the development of local carton recycling capacity is part of Tetra Pak’s roadmap towards a low-carbon, circular economy worldwide," said Eliseo Barcas, managing director of Tetra Pak Vietnam.

“The initiative also demonstrates our strong commitment to supporting food and beverage manufacturers in fulfilling their responsibility for collecting used cartons,” he added.

The modern technology line for separating paper from milk cartons is expected to nearly double the factory's capacity to reach 17,000 tons per year. The new line also enables the production of premium recycled pulp that can be used to make products of high commercial value, such as napkins, toilet paper, and office paper, thereby helping to raise the commercial value of used cartons and income for collectors.

 “We expect that once the production line is at full capacity, it will encourage the habit of collecting used cartons among local people and collectors, thereby motivating the whole society to generate an abundant supply of used cartons, which will sustainably aid our business," said Hoang Trung Son, general director of Dong Tien Packaging and Paper.

The food and beverage market's strong growth and consumers' growing awareness of waste sorting and recycling are expected to drive the demand for the recycling of used beverage cartons. However, recycling in Vietnam faces an inadequate collection infrastructure, as well as low quality of output materials due to outdated technology, leading to the low commercial value of recycled products.

In addition, as extended producer responsibility regulations related to product waste, including used packages, have been put into practice since January 1, developing an end-to-end recycling eco-system is of great significance in assisting food and beverage manufacturers in meeting government regulations.

According to Tran Quang Trung, president of the Vietnam Dairy Association, the Government has recently introduced new environmental regulations placing responsibilities on manufacturers for recovering and recycling their sold packages to protect the environment and head towards building a circular economy.

“This regulation will certainly bring many challenges to dairy manufacturers as it involves sorting, collection, and recycling infrastructure, which is still very poor in Vietnam,” he said.

On the contrary, Trung expects the promotion of recycling will also enable manufacturers to build products that are considered environmentally friendly in the eyes of partners and consumers, thus increasing their competitive edge in the market.

Dong Tien is considered the first and only company in Vietnam to have an infrastructure in place to fully recycle cartons.

Dong Tien and Tetra Pak have cooperated for more than 10 years to achieve the common goal of developing a carton recycling eco-system for Tetra Pak's customers in Vietnam, contributing to the expansion of used carton collection activities and promoting the domestic recycled paper industry.

Reactions:
Share:
Trending
Most Viewed
Related news
Real estate firms sell bonds worth $402 million in May

Real estate firms sell bonds worth $402 million in May

Real estate companies have raised $862 million from bond issuance in April and May, thanks to an improved business environment and better access to funding.

Vietnam unveils new strategies to boost domestic market, aid businesses

Vietnam unveils new strategies to boost domestic market, aid businesses

As global trade uncertainties grow, Vietnam sees the domestic market not only as a key consumption driver but also a “lifeline” for businesses hit by protectionist export barriers.

Vietnam eyes US tilapia export boost as global supply falls

Vietnam eyes US tilapia export boost as global supply falls

Vietnam aims to increase tilapia output to 400,000 tons by 2030, making it the second-largest freshwater export species after pangasius.

Vietnam’s enterprises must act fast to weather US tariff shock: Experts 

Vietnam’s enterprises must act fast to weather US tariff shock: Experts 

Many of the key Vietnamese exports, such as wood products, electronics, and textiles, that are not on the US exclusion list could face steep tariffs.

Vietnam's mobile money pilot program extended to end of 2025

Vietnam's mobile money pilot program extended to end of 2025

Mobile Money, launched by the Ministry of Science and Technology, differs from e-wallets by linking users’ payment accounts directly to mobile phone numbers.

Vietnam taps innovation, global ties to elevate national brand

Vietnam taps innovation, global ties to elevate national brand

Vietnam is intensifying efforts to enhance its national brand, leveraging innovation, global partnerships, and strategic policies to bolster its global competitiveness and market presence.

Vietnam extends US$3.9 billion loan package for agro-forestry-fisheries

Vietnam extends US$3.9 billion loan package for agro-forestry-fisheries

The government has expanded the scope and scale of the credit program for the sectors which brought about US$62.4 billion worth of exports in 2024.

Vietnamese public shows rising satisfaction in 2024 PAPI survey

Vietnamese public shows rising satisfaction in 2024 PAPI survey

The 2024 PAPI survey found increasing citizen satisfaction with governance, but highlighted persistent administrative challenges, climate vulnerability, and gaps in access to public services.