Tetra Pak cooperates with PRO Vietnam and Circular Action to pilot a model of purchasing used beverage carton in the community

The program of purchasing and recycling used beverage cartons in the community will be piloted in Ho Chi Minh City from August 2022 to March 2023. Specifically, during this period, the program aims to purchase and completely recycle 3,000 tons of used beverage cartons into useful products such as paperboard materials and ecological roofing.

Developed from the model of collecting used beverage carton through scrap collectors, started in 2010 by Tetra Pak, a food processing and packaging solution provider from Sweden. This pilot program in Ho Chi Minh City will be implemented by Vietnam Packaging Recycling JSC (PRO Vietnam) in collaboration with Tetra Pak and Circular Action.

“Promoting the collection of used beverage carton for recycling has always been one of the core activities of Tetra Pak's sustainable development. We do this to realize the commitment to protect good, including protecting food, people and the earth that Tetra Pak has pursued for decades.” Mr. Eliseo Barcas, Managing Director of Tetra Pak in Vietnam shared. “This program is also an affirmation of Tetra Pak’s commitment to helping our customers fulfill their manufacturer’s responsibility to collect packaging after sale.”

The difference of this pilot program compared to previous activities is the cooperation with PRO Vietnam, and the application of digital solutions to manage the amount of used beverage carton from Circular Action.

Mr. Pham Phu Ngoc Trai, President of PRO Vietnam said: “We highly appreciate the initiative, operating model and efficiency of Tetra Pak's projects of purchasing used beverage cartons – one of the founding members of PRO Vietnam. Therefore, we decided to jointly implement this project with the expectation that it will open a new direction of collection to recycle packaging which is considered to be challenging in collection, contributing to support help improve a part of the lives of scrap collectors, while helping to promote the circular economy model in Vietnam.

We believe that the pilot program will be successful and serve as a basis to increase the amount of used beverage cartons collected for recycling many times in the coming years. Besides, we will also consider expanding the collection to recycle many other packaging materials according to this model. This is one of the pioneering projects, demonstrating PRO Vietnam's strong commitment in implementing Extended producer responsibility (EPR) – which will come into effect in 2024, and at the same time demonstrating our partnership will build a green - clean - beautiful Vietnam together."

The remarkable point of this pilot program is to build awareness and encourage scrap collectors - with strengths that can penetrate deep in the community - to participate in collecting used beverage carton at source. In addition to used beverage cartons having commercial value when sold to recyclers, scrap collectors will also receive support from the program according to the volume they collect.

Through this model, the program hopes to build an ecosystem that collects and recycles used beverage carton immediately from the very first chains of the collection chain - scrap collectors will help increase the collection and recycling rate, and at the same time reduce the amount of used beverage carton discharged into the environment, towards building a circular economy. Besides, it also improves the livelihoods of scrap collectors participating in the program.

Up to now, three collectors, namely Lagom, Tien Thanh Paper and VECA have confirmed to participate in the program. These units will buy used beverage cartons from waste pickers and sell them to Dong Tien Paper Company in Binh Duong. Here, used beverage cartons will be recycled into useful products such as industrial wrapping paper, roofing sheets, ecological flat sheets. The project aims to approach and receive the participation of many similar collectors, thereby increasing the coverage and collection output of used beverage cartons in the near future.

With rrole of a consultant and project manager, Mr. Thierry Sanders, Chairman of Circular Action, said: “This pilot project brings three benefits to Vietnam. First, the project helps reduce waste that is released into the wild or transported to landfills. Secondly, the project helps to increase the income of scrap collectors, and thirdly, it is efficient because we pay on delivery. At a later stage of the project, we will continue to introduce a mobile application to be able to pay directly to collectors participating in the supply chain, including those with the lowest economic conditions.".

Moving towards a low-carbon circular economy model, Tetra Pak is working to use renewable materials and reduce emissions throughout its value chain. The goal that the company aims to achieve is to achieve the rate of using recycled materials up to 100% for its beverage carton products and bring the emission level to zero in the entire production and business activities.

Carrying on its brand promise: PROTECTS WHAT’S GOOD, which includes the protection of food, people and the planet, Tetra Pak has promoted many sustainable activities in Vietnam over the past 12 years, focusing with many local partners to collect and recycle used beverage cartons.

At the beginning of 2022, Tetra Pak announced an investment of 1.2 million euros to upgrade and expand the recycling capacity of used beverage cartons at the Dong Tien paper factory from 9,000 tons/year. to 17,000 tons/year. The project is expected to complete the installation of equipment and machinery in early 2023 and put into use in the second quarter of the same year.

The company also cooperates with milk manufacturers to collect used beverage cartons at schools within the framework of the school milk program, and retailers such as MM Mega Market and AEONMALL implement the collection at shopping malls in Ho Chi Minh City and Hanoi.

To gather the strength of the business sector, Tetra Pak together with leading companies in the fields of consumer goods, packaging production, retail and import founded the PRO Vietnam with the goal of is that all packaging provided by the Alliance members to the Vietnamese market will be collected and recycled by 2030.