PET recycling boost in Vietnam with Norwegian cash

Norway’s investment fund for developing countries, Norfund, is pumping US$ 4 million (EUR 3.3 million) into a PET recycling plant outside Ho Chi Minh City, Vietnam.

The project aims to create jobs, contribute to lower emissions, reduce plastic pollution, and supply high‑quality recycled materials to international and domestic markets.

Circular Plastics Company (CPC) is a PET recycling company producing recycled PET (rPET) flakes and food‑grade pellets for both the domestic Vietnamese market and export to European markets. Demand for rPET is rising rapidly as manufacturers seek to cut emissions and increase the share of recycled content in their products.

‘In a volatile global recycling market, we continue to invest counter-cyclically, backing commercially viable recycling platforms with long-term growth potential,’ says Norfund.  ‘For Vietnam, where estimates indicate that only about half of PET bottles are collected, strengthening the recycling market is essential to tackling plastic pollution at scale.’

Southeast Asia presence

CPC launched its first recycling operations in SE Asia in 2019. Since 2023, the group has been establishing a presence in Vietnam. Its first recycling plant in the south has the capacity to process 31 000 tonnes rPET flakes and 14 000 tonnes of food‑grade rPET pellets.

‘CPC has already demonstrated its ability to deliver large‑scale recycling facilities on time and on budget and we are looking forward to partner with them on their journey to expand food grade plastic recycling in Vietnam,’ comments Norfund director Vegard Benterud.

Long-term vision

According to CPC Vietnam ceo Ruby La, her country is at ‘a pivotal moment’ in building a stronger circular economy. ‘Norfund’s investment reflects trust in our long-term vision and our ability to execute and enables us to expand production capacity and scale industrial, food-grade PET recycling. Through this partnership, we are well positioned to support Vietnam’s next phase of circular economy development while delivering lasting environmental and economic impact.’