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recycling in Vietnam faces an inadequate collection infrastructure, as well as low quality of output materials due to outdated technology, leading to the low commercial value of recycled products.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.