The Government of Vietnam is currently pursuing a circular economy, and a DRS would assist in moving towards these ambitions, dovetailing with other initiatives like Extended Producer Responsibility (EPR). There are over 40 jurisdictions around the world that have a DRS for single-use beverage containers. These systems are recognised as a proven mechanism for achieving high return rates of beverage containers for closed-loop recycling, as well as other benefits such as job creation and reduced litter.
Around 98% of single-use beverage containers placed on the market in Vietnam consist of PET bottles (33% of total) and aluminium cans (65% of total). Collection rates for these materials are estimated at 50% and 80% respectively, and currently, most of the material is downcycled into lower-grade applications.
The DRS Scoping Study for Vietnam presents the case for a nationwide DRS for single-use PET bottles and aluminum cans, assessing economic impacts, job creation, and environmental impacts.
Given Vietnam’s social, economic, and infrastructural differences from the jurisdictions where DRS’s have been or are due to be implemented, a DRS must be carefully designed with the specific national context in mind.
We considered which elements of best practice design in existing DRSs, such as container materials and size, beverage types, and deposit level, could apply in Vietnam. This included bespoke elements that incorporate the informal sector, which currently delivers much of the country’s recycling.
Our findings showed that an effective DRS could result in:
- An additional 21 to 77,000 tonnes of used beverage containers being collected for recycling per annum
- Overall, around 300,000 tonnes per annum of containers going to closed-loop (container-to-container) recycling
- Reducing approximately 265,000 tonnes of CO2 emissions annually by capturing high-quality materials for recycling
- A reduction in environmental externalities of 1.4 trillion VND per annum
- A reduction in litter disamenity of approximately 10.1 trillion VND per annum
- A potential additional 6,400 formal jobs and 9,600 waste reclaimer jobs
No other Southeast Asian country has yet implemented a nationwide DRS for single-use beverage containers, meaning the system’s success in Vietnam could serve as a model for neighboring nations, demonstrating leadership in sustainable development and circular economy practices.
The research, analysis, and stakeholder engagements undertaken within this study have served to establish a viable outline design of a DRS for single-use beverage containers in Vietnam. Our findings will provide the MAE with an evidence base to inform future research and policy development for a DRS which would support the Ministry’s move towards a circular economy.
Read the full report on the website of the Norwegian Embassy in Hanoi: https://www.norway.no/en/vietnam/norway-vietnam/news/drs-scoping-study-for-vietnam/
