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CEL LAUNCHES FIRST INTERACTIVE MAP OF VIETNAM'S PLASTIC RECYCLING VALUE CHAIN
Groundbreaking platform unlocks circular economy potential and improves plastic recycling supply chain management

Ho Chi Minh City, Vietnam – March 25, 2025 – We are proud to announce the launch of "Closing the Loop: Enhancing and Mapping Vietnam's Plastic Recycling Value Chain" – the first public, interactive platform providing detailed insights into Vietnam's complex plastic recycling ecosystem. The platform is now accessible at: https://plasticrecycling.simcel.io

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The research identifies more than 1,150 registered actors within Vietnam's plastic recycling value chain—including waste collectors, buy-back centers, recyclers, upcyclers, suppliers, and support service providers. This represents the formal segment of a larger system, which also includes a dynamic informal sector that has played a long-standing role in waste recovery. Of the registered entities, over 300 are actively performing recycling operations.

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"Our study highlights a vibrant landscape with impressive grassroots contributions and strong industrial potential," said Quyen Nguyen, Industry Research Director. "To accelerate progress, we must enhance coordination across the chain—ensuring plastic waste moves efficiently to the right processors at the right time. These are supply chain challenges that, once addressed, will help Vietnam further advance its circular economy goals."

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KEY FINDINGS

• Strong Collection Backbone: Waste collectors account for 53.7% of the value chain—serving as the foundational link of Vietnam's recycling ecosystem.

• Geographic Hotspots: The South (58.2%) and North (30.7%) dominate Vietnam's recycling activity. Hung Yen, despite lower waste output, ranks second in recycler density—underscoring the importance of industrial clustering over proximity to waste generation.

• Industrial Focus: 70% of recyclers focus on converting plastic into intermediate industrial products such as pellets and flakes; only 17.9% make final consumer products.

• Specialized but Fragmented Operators: Vietnam's recyclers are often highly specialized, with most facilities focusing on processing only one to less than 5 specific plastic types. This technical focus allows for material expertise but also creates fragmentation, making collaboration and material matching across the value chain more complex.

• Import-Export Gap: While 80% of raw plastic inputs are imported under strict controls, 60% of recycled plastic is exported—mostly as pellets to the EU, US, and Asia—highlighting missed value-add opportunities domestically.

• Traditional Strength: over 15 specialized recycling villages, home to more than thousands of households, process around 500,000 tons of plastic waste each year. In operation since the 1980s, these communities have collectively recycled over 23 million tons of plastic using specialized, decentralized methods.

The interactive platform maps the flow of plastic—from collection through aggregation, processing, and export—revealing key bottlenecks and value opportunities.

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SUPPLY CHAIN CHALLENGES: BEYOND WASTE MANAGEMENT

While Vietnam has made important strides in recycling infrastructure, the next challenge lies in optimizing supply chain connections. Enhancing collection, sorting, and logistics will be critical to ensuring that existing recycling capacity is fully utilized—and that more value is retained within the country.

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"It's a logistics problem," said Quyen Nguyen. "A waste picker may earn 4,000 VND/kg for PET, and transporting that plastic 1,500 km across Vietnam costs ~1,000-1,500 VND/kg—eating into margins and limiting flow across regions."

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Value Breakdown (PET Example):

• Aggregation adds 3,000 VND/kg

• Pressing and baling: +2,000 VND/kg

• Sorting and label removal: +2,000 VND/kg

• Grinding and separation: +5,000 VND/kg

• Pelletizing: +4,000 VND/kg

From discarded bottle to recycled pellet, the material's value multiplies by 4–5 times. However, inefficiencies in transportation and supply fragmentation limit that potential. Recyclers frequently report inconsistent procurement, struggling to source sufficient volumes and quality of plastic waste—leading to underused capacity and missed economic opportunities.

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Moreover, most recycled pellets are currently exported, even though domestic production of finished consumer goods—such as tote bags, T-shirts, food containers, or household items—made from recycled plastics can retail for 50,000 to 150,000 VND per unit. This reveals a significant value capture gap and underutilization of domestic manufacturing capacity.

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"If Vietnam can strengthen internal supply chains and invest in downstream manufacturing—from waste to final products," Quyen Nguyen added, "we can transition from being a raw material exporter to becoming a high-value circular manufacturing hub for the region."

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VIETNAM'S POSITION IN THE GLOBAL RECYCLING LANDSCAPE

When comparing the number of formal plastic recycling facilities, Vietnam's count is modest compared to some regional peers, but this doesn't reflect the full picture—with approximately 300 active recyclers among 1,150 registered entities in the value chain. This figure is lower than Thailand (~800), the Philippines (~600), Indonesia (~1,300), and far behind India's estimated 7,500–8,000 recycling units.

However, this comparison only tells part of the story.

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"What makes Vietnam's recycling system distinctive is not just the number of formal recyclers, but our deeply rooted dual system," explained Quyen Nguyen. "Vietnam's specialized recycling villages—home to more than 3,000 households—operate as a dense network of micro-recycling units. Though often informal and undocumented, they process plastic waste at volumes comparable to formal facilities."

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If these traditional village-based operations were counted, Vietnam's total number of active recycling units could more than double, positioning the country much closer to regional leaders in terms of real processing capacity.

This uniquely decentralized ecosystem—combining formal recyclers with community-based, highly specialized recycling villages—gives Vietnam a competitive advantage that standard international metrics often fail to recognize. While the United States (~1,700–2,000 facilities) and the European Union (~1,800 companies) rely almost exclusively on formalized systems, Vietnam's hybrid model has proven surprisingly effective, especially in capturing and processing hard-to-reach waste streams.

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"Vietnam's recycling ecosystem is both efficient and unconventional," said Quyen Nguyen. "The challenge now is to bridge the informal and formal sectors—so that this strength becomes a platform for scalability, quality, and traceability. We must integrate and support the informal sector through improved training, safety standards, and infrastructure—ensuring the environmental and social benefits of recycling are maximized for all participants."

STRATEGIC RECOMMENDATIONS

We propose 05 key strategic interventions:

1. Optimize Collection Networks: Establish aggregation hubs near waste generation points to reduce transport burdens.

2. Digitize Last-Mile Collection: Use mobile platforms to connect informal pickers with buy-back centers and track flows.

3. Leverage Cross-Regional Logistics: Utilize return-trip transport for lower-cost inter-regional material flows.

4. Improve Supply Reliability: Introduce inventory and forecasting systems to balance fluctuations in waste supply.

5. Bridge Informal–Formal Divide: Build intermediary networks linking informal pickers and traditional villages with modern facilities via traceability systems, safety training, pricing incentives, and digital marketplaces.

Our research cites successful global models from Colombia, Brazil, South Africa, and India that have boosted collection rates, formalized informal workers, and increased incomes through inclusive supply chain designs.

"The opportunity is massive," said Quyen Nguyen. "According to the World Bank, Vietnam has the potential to unlock up to $2.9 billion in plastic material value through more effective recycling and supply chain coordination. With smart supply chain interventions—such as better collection logistics, digital traceability, and integration of informal recyclers—we can recover more plastic, retain more value domestically, and position Vietnam as a leader in circular economy innovation."

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ABOUT THE PROJECT

The project began as a support initiative for the Vietnam Land Expedition of Plastic Odyssey in September–October 2024. We expanded the scope voluntarily, applying semi-quantitative research methods and fieldwork—including interviews and site visits—across the country. While the current release focuses on plastic recycling, we aim to broaden its coverage in the future. Collaboration partners and supporters interested in Vietnam's circular economy transition are encouraged to reach out. We are actively seeking collaboration partners and funding resources to expand this research. Organizations interested in supporting this initiative or utilizing the database for plastic circularity projects are encouraged to contact us. Our team will continue to collect and update the Vietnam Plastic Recycling Map dataset on a monthly basis.

Explore the map: https://plasticrecycling.simcel.io​

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Media contact:
Quyen Nguyen
Industry Research Director
quyen.nguyen@cel-consulting.com

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CEL vừa ra mắt Bản đồ Tương tác Chuỗi Giá trị Tái chế Nhựa Việt Nam đầu tiên, xác định hơn 1.150 đơn vị trong ngành với 300 cơ sở tái chế đang hoạt động. Nghiên cứu cho thấy một hệ sinh thái độc đáo gồm cả khu vực chính thức và hơn 15 làng nghề tái chế truyền thống xử lý 500.000 tấn nhựa mỗi năm. Thách thức chính hiện nay là tối ưu hóa chuỗi cung ứng, kết nối hiệu quả các mắt xích từ thu gom đến sản xuất, giúp Việt Nam chuyển từ xuất khẩu nguyên liệu thô sang sản xuất sản phẩm cuối tuần hoàn có giá trị cao. Khám phá bản đồ tại: plasticrecycling.simcel.io