Specifically, Tetra Pak will invest 1.2 million euros in the installation of a modern pulp separation line with European technology at Dong Tien's factory, which is expected to be completed in the fourth quarter of this year.

This investment is significant because it is the first time that a foreign packaging supply company has directly invested in capacity building for the nascent recycling industry in Vietnam.

“Supporting the building of local used beverage carton recycling capacity is part of Tetra Pak’s strategy to create a low-carbon, circular economy globally,” said Eliseo Barcas, Managing Director of Tetra Pak Vietnam said. “It also demonstrates our strong commitment to working with food and beverage manufacturers in their responsibility to collect packaging after use.”

This modern technology for separating pulp from used beverage cartons is expected to nearly double the recycling capacity in Dong Tien to 17,000 tons/year. It also enables the production of high quality recycled pulp, which is qualified for the production of commercially valuable paper products such as tissue paper, toilet paper, writing paper. Thereby helping to increase the value of used beverage carton and income for collectors.

With the improved quality of recycled pulp, Dong Tien company will invest 2.3 million euros in the factory system and kraft paper production line - which is very popular in the world.

“We always aim to modernize the paper recycling line to create quality recycled paper products according to world standards, contributing to improving the industry's overall recycling capacity as well as creating higher value for collectors. We expect that once it is put into operation at full capacity, the new line will encourage the habit of collecting used beverage carton at waste pickers and consumers, thereby spreading to the whole society, creating an abundant supply of used beverage carton, helping us to do business more efficiently and sustainably.” Mr. Hoang Trung Son, Director of Dong Tien Paper Co., Ltd. shared.

The strong growth of the F&B market coupled with increasing consumer awareness of waste sorting and recycling is driving the demand for recycling used beverage cartons. However, the biggest obstacle to recycling in Vietnam is the lack of collection infrastructure, as well as the low quality of output materials due to old technology, leading to commercial recycled products that have no high value.

In addition, in the context that the Regulation on Extended Producer Responsibility (EPR) for waste from its products, including packaging, has been applied since January 1, 2022, the development of a complete used beverage carton recycling ecosystem is of great significance in supporting food and beverage manufacturers to meet the requirements set forth by state management agencies.

Mr. Tran Quang Trung - Chairman of Vietnam Dairy Association shared: “The government has recently introduced new regulations on the environment, in which manufacturers will be responsible for recovering and recycling the packaging that they use. they sell to the market to protect the environment and work towards building a circular economy. This regulation will certainly bring many challenges for dairy producers as it involves a lot of sorting, collection and recycling infrastructure, which is still very weak in Vietnam. Therefore, we appreciate that a passionate and experienced partner like Tetra Pak supports the construction of recycling infrastructure and shares the responsibility of building a sustainable environment with manufacturers. . The promotion of recycling will also help manufacturers build an environmentally friendly product image in the eyes of partners and consumers, thereby increasing the competitiveness of products in the market.”

Dong Tien is considered to be the first and only organsation in Vietnam that has the infrastructure to fully recycle used beverage carton. With its enthusiasm, Dong Tien is gradually realizing the goal of building a sustainable recycled paper market. Dong Tien and Tetra Pak have been working together for more than 10 years to achieve the common goal of building a used beverage carton recycling ecosystem for Tetra Pak's customers in Vietnam, contributing to the expansion of used beverage carton collection activity and develop the domestic recycled paper industry.

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 of the company is to increase the rate of using recycled materials up to 100%. In particular, for large-scale and widespread collection and recycling of paper boxes, Tetra Pak is working with large retailers such as MM Mega Market to expand collection points of used beverage carton in the community in big cities. In addition to the 63 public collection points that Tetra Pak and collection partners have been implementing in Vietnam, the company also cooperates to put used beverage carton in the collection list of the VECA application on smartphones. Along with that, 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 all packaging provided by Alliance members to the Vietnamese market will be collected and recycled by 2030.