Vietnam’s Green Packaging Sector Poised for a Breakthrough

Vietnam is emerging as a rising powerhouse in the green packaging industry, driven by strong environmental policies, global demand, and growing consumer awareness. As sustainability takes center stage in global trade and production, Vietnam’s packaging industry is positioned for unprecedented growth.

Vietnam’s paper packaging market reached $2.6 billion in 2024, and is projected to climb to $4.14 billion by 2029, reflecting a CAGR of around 9.7%.

1. A Fast-Growing Market Backed by Demand

Vietnam’s paper packaging market reached $2.6 billion in 2024, and is projected to climb to $4.14 billion by 2029, reflecting a CAGR of around 9.7%. Meanwhile, plastic packaging output is forecasted to hit 15.09 million tons by 2028, with a CAGR of 8.4%, according to recent industry reports.

The demand for sustainable packaging is surging, both domestically and internationally. In fact, Vietnam ranks among the top search destinations on Alibaba.com for eco-friendly packaging products such as biodegradable cardboard tubes, bamboo boxes, and compostable paper cups, with interest increasing over 70% year-on-year. Conversion rates from product views to orders are remarkably high—8.94%, outperforming global industry averages.

2. Government Policy Fuels the Shift

Vietnam’s government is playing a pivotal role in steering the industry toward sustainability. Under the 2020 Law on Environmental Protection and Decree 08/2022, single-use plastics are scheduled to be banned in supermarkets, malls, and tourist areas by 2026, and completely phased out nationwide by 2031.

In addition, the Extended Producer Responsibility (EPR) policy—implemented in 2024—requires manufacturers and importers to take financial responsibility for the recycling and disposal of packaging waste. This regulation is prompting large-scale investment in greener materials and technologies.

Cities like Hanoi, Ho Chi Minh City, and Da Nang have begun implementing municipal-level bans on plastic bags and Styrofoam products in retail and hospitality sectors.

Vietnam’s government is playing a pivotal role in steering the industry toward sustainability.

3. Circular Economy in Action

Vietnamese businesses are actively realigning with the global green economy. Leading the charge is Duy Tan Plastic Recycling, now part of the SCGP Group, which has built a Bottle-to-Bottle recycling plant in Long An Province capable of processing 100,000 tons of plastic waste per year. Since its launch in 2020, the facility has recycled over 80,000 tons of plastic—equivalent to 6 billion PET bottles.

Duy Tan supplies post-consumer recycled (PCR) plastic to major clients such as Unilever, Nestlé, and Motul. Many of these brands have committed to using 50% or more recycled plastic by 2030. Their collaboration with Unilever Vietnam aims to collect and recycle 30,000 tons of plastic waste by 2027.

4. SMEs and Startups Embrace Green Innovation

It’s not only the large corporations driving the change. Small and medium-sized enterprises (SMEs) and startups are equally contributing to innovation:

• Magix Company, led by CEO Do Huu Tan, focuses on eco-design, lightweight packaging, and biodegradable adhesives. Their paper-based office supplies and toys are designed to reduce material usage and enhance recyclability.

• Bquarius Co., Ltd., based in Ho Chi Minh City, manufactures plates and bowls made from areca palm leaves. Since exporting began in 2022, the firm ships roughly one container per month. While demand is growing overseas, the domestic market remains price-sensitive. Bquarius’ products cost about twice as much as plastic alternatives.

Despite cost challenges, CEO Le Bach Kim remains optimistic:

“As government regulations tighten and public awareness increases, green packaging will become the new normal. Prices will gradually fall as production scales up.”

Vietnam’s green packaging industry is on track for explosive growth.

5. Technological Advancements Power the Transition

Technology plays a crucial role in Vietnam’s green packaging evolution. At the VPPE 2025 (Vietnam Paper & Packaging Expo), companies showcased:

• Automated paper converting machines

• Water-saving and chemical-free bleaching systems

• Smart packaging solutions with QR codes and NFC tags

• 3D printing for customized packaging

• Honeycomb paper and recyclable inks

According to industry experts, automation and digitalization will help reduce costs and enhance production efficiency, making eco-friendly packaging more accessible for SMEs.

6. Challenges and Opportunities Ahead

6.1 Key opportunities:

• Rising global demand for sustainable packaging

• Strong export momentum and trade advantages within ASEAN

• Government incentives for green production

• Shifting consumer behavior, especially among Gen Z and millennials

6.2. Persistent challenges:

• Green packaging remains 10–100% more expensive than traditional options, depending on material

• Lack of technical expertise and investment capital among smaller businesses

• Domestic consumers are still price-sensitive, limiting widespread adoption

Automation and digitalization will help reduce costs and enhance production efficiency, making eco-friendly packaging more accessible for SMEs.

7. Conclusion: A Future Wrapped in Green

With clear policy direction, a growing base of eco-conscious businesses, and international demand booming, Vietnam’s green packaging industry is on track for explosive growth. From paper to bioplastics to palm leaf plates, innovation is flourishing across the value chain.

If these trends continue, Vietnam could well become a regional—and even global—leader in sustainable packaging by 2030.

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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, 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.

• Address: 10/6C Street 10, Binh Hung Hoa A Ward, Binh Tan District, Ho Chi Minh City
• Mobile: 0908.863.965 (Mr. Le Hong Son)
• Phone: 028.62696129 – 028.22481926
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• E-mail: havupackage@gmail.com
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