Recently, the Government issued the Decision No. 1316/QD-TTg approving the scheme for strengthening management of plastic waste in Vietnam which shows the Government’s stronger determination in reducing and replacing plastic bags with environmentally friendly products. In this situation, many Vietnamese enterprises have taken strategic steps with intending to accompany the Government to implement the set goals.
The Decision No. 1316/QĐ-TTg of the Government emphasizes the target of using 100% environmentally friendly plastic bags and packaging at shopping centers and supermarkets for domestic purposes as replacement for non-biodegradable plastic bags from 2025 onwards. It is necessary to guarantee to collect, reuse, recycle and process 85% of generated plastic wastes as well as reduce 50% marine plastic wastes. 100% of tourist attraction and tourist accommodation establishment and hotels strive not to use non-biodegradable plastic bags and single-use plastic products.
This is also a drastic action to follow the Directive No. 33/CT-TTg issued by the Government on strengthening management, reuse, recycling, treatment, and reduction of plastic wastes; require thoroughly to reduce the use of single-use plastic products.
Accordingly, one of the urgent missions and solutions at this moment to implement the scheme is to strengthen research and production of environmentally friendly products. The Government also requires enterprises and organizations to strengthen researches, investments and development of technology to produce eco-friendly products to replace plastic items. They have to investigate, design and manufacture plastic packaging and products which minimize the norm of plastic materials/products. Simultaneously, enterprises enhance the capacity of key laboratories to satisfy the requirements of research, testing, evaluation and quality certification of packaging products meeting Vietnam’s regulations and replace plastic products and biodegradable bags.
Vietnamese businesses took the initiative before the Government scheme
Recently, a large number of Vietnamese businesses have shifted to research and produce environmentally friendly products to replace disposable plastic products. However, most of the manufacturers in this field face difficulties in raw materials when they have to import materials from abroad, produce in Vietnam and then distribute them back to the market. This increases the production cost and force them to depend on the supplier and transport partners.
Therefore, the problem of the self-contained supply chain of raw materials is a huge challenge and obstacle for many Vietnamese enterprises in this field.
While many businesses are perplexed about this issue, An Phat Holdings has been preparing to build a green material factory called An Phat PBAT Manufacturing Plant worth US$100 million with the largest scale in Southeast Asia, proactively supplying raw materials and producing green products to replace disposable products.
An Phat Holdings also determines the immediate objective, which is also a sustainable development goal, is to be proactive in manufacturing of raw materials, thereby reducing production costs and at the same time implement the plan to bring Vietnam’s green materials to the world.
PBAT An Phat Manufacturing Plant construction project has been officially granted the investment registration certificate by Hai Phong Department of Planning and Investment.
An Phat Holdings currently owns the proprietary core technology for producing raw materials in South Korea, has mobilized capital, human resources and cooperated with leading partners from Germany to implement the project. This is expected to be an important step for Vietnamese enterprises in creating their own supply chains, thoroughly solving the issue of raw materials.
With this plant, An Phat Holdings will use the most modern production line system to manufacture the best quality products. The plant is designed with advanced automation percentage. Experts can operate from a remote control room, ensure the accuracy and safety.
When the plant puts into operation, 70% of products would be used to serve the production needs of this Group, 30% will be used for trade in target markets such as the U.S., Europe, Canada, South Korea, and Australia, etc.
The completion of the PBAT project will help An Phat Holdings complete its ecosystem, officially bringing this corporation directly into the global green supply chain. Moreover, having the source of raw materials will help this group reduce the cost of environmentally friendly products, which is always a barrier in accessing the majority of customers.