世界发展银行-Market-Study-for-Vietnam---Plastics-Circularity-Opportunities-and-Barriers_116页_13mb

Market Study for Vietnam: Plastics Circularity Opportunities and Barriers

Core Content

This market study, conducted by the World Bank Group in 2021, evaluates the current state of plastics circularity in Vietnam. It highlights the economic, environmental, and social consequences of mismanaged plastic waste, identifies key structural challenges in the plastics recycling market, and recommends interventions to improve recycling rates and unlock material value.

Main Objectives

• Assess the current status of plastics circularity in Vietnam.
• Identify opportunities and barriers for enhancing plastics recycling.
• Provide actionable policy and investment recommendations to support a circular economy for plastics.

Key Resins Analyzed

The study focuses on four key plastic resins:

• PET (Polyethylene Terephthalate)
• PP (Polypropylene)
• PE (High Density Polyethylene and Low Density Polyethylene/Linear Low Density Polyethylene)
• HDPE (High Density Polyethylene)
• LDPE/LLDPE (Low Density Polyethylene/Linear Low Density Polyethylene)

Material Value Loss

In 2019, Vietnam lost 75% of the material value of plastics consumed, equivalent to US$2.2–2.9 billion annually. Out of 3.9 million tonnes of plastics consumed per year, only 1.28 million tonnes (33%) were collected and recycled, with a 77% value yield from recycling. This means that only 25% of the total material value is currently unlocked, leaving a significant opportunity for improvement.

Main Challenges

1. Market Pressures

• Fall in virgin resin prices has led to a shift back to virgin resins, creating price pressures on recycled resins.
• Lack of sustained local demand for recycled plastics across all key resins.
• Small and inaccessible financing options for the plastic recycling industry.
• Gap in recycling capacities, requiring investment in advanced recycling facilities.
• Inconsistent and at-risk supply from the informal sector.
• MSW system prioritizing collection and landfill over recycling.
• Lack of market data on plastic packaging and recycling value chains.

2. Recycling Quality and Standards

• Low quality of recyclables due to the absence of design-for-recycling standards.
• Persistent challenges in source segregation, which hinders effective recycling.
• Recyclers lack EHS certifications, affecting their credibility and operational standards.

3. Impact of External Factors

• Negative effects of the global economic slowdown and low oil prices on the recycling industry.
• Fear of upcoming import restrictions on plastic scrap.
• Correlation between global oil prices and virgin resin prices in Vietnam, which affects the economics of recycling.

4. Barriers to Reuse/Refill Models

• Higher costs and logistical challenges associated with reuse and refill models.
• Local consumer preferences that do not favor these models currently.

5. Regulatory and Policy Challenges

• Tightening regulations on transboundary movement and trading of scrap and recycled plastics.
• Need for policy development to enable a circular plastics economy, particularly under the Law on Environmental Protection (LEP).

Key Findings

• CFR rates (Collected for Recycling) for key resins in 2019 were low, with PET having the highest CFR rate at 50%.
• Material value loss is a major issue, with 75% of the material value of plastics not being recovered.
• Private sector engagement is growing, with initiatives like PRO Vietnam and PPC Vietnam playing a role in addressing plastic waste.
• Green financing is emerging, with VP Bank launching a $212.5 million green financing program in 2020.

Recommended Interventions

1. Enable Plastics Circularity

• Develop timely policy instruments for the Law on Environmental Protection (LEP).
• Create design-for-recycling standards for all plastics, especially packaging.
• Implement extended producer responsibility (EPR) and green public procurement (GPP).

2. Improve Waste Collection and Sorting

• Enhance collection efficiency and sorting technologies.
• Encourage source segregation to improve the quality of recyclables.

3. Strengthen Financing and Capacity Building

• Improve access to finance for recycling projects.
• Support capacity building for recyclers and waste management infrastructure.

4. Promote Use of Recycled Content

• Encourage recycled content in all major end-use applications.
• Leverage global brand commitments to increase demand for recycled materials.

5. Address Market Failures

• Increase recycling capacities (mechanical and chemical).
• Create data transparency in the plastics market.
• Develop industry-specific requirements to boost collection and recycling rates.

Summary of Interventions

Next Steps

• Priority actions include improving policy frameworks, enhancing data transparency, and increasing recycling capacities.
• Private sector investment opportunities are identified, with a focus on green financing, advanced recycling technologies, and sustainable product development.

Conclusion

The study underscores the urgent need for systemic changes to improve plastics circularity in Vietnam. By addressing structural challenges and implementing targeted interventions, Vietnam can significantly reduce material value loss and enhance the economic and environmental benefits of a circular plastics economy.