In an era where the global economy is increasingly focused on sustainability, Vietnam’s packaging industry is at a critical juncture for transformation and upgrading. To maintain and enhance its international competitiveness, the industry must proactively adopt green production practices and principles of sustainable development. This response not only addresses global market trends but is also a necessary choice in light of domestic environmental pressures and policy directions. The green transition of the packaging industry is a strategic adjustment driven by both market demand and environmental responsibility.

The Vietnam Beer-Alcohol-Beverage Association (VBA) emphasizes that packaging plays a crucial role in the modern economy. It safeguards products throughout the complex chain from production to consumption, serves as an important medium for brand communication, and is vital to the efficiency of the entire production and consumption system. Particularly for an economy like Vietnam, which is active in exports and has strong domestic demand, the healthy development of the packaging industry holds strategic significance.

The Vietnamese packaging industry is experiencing strong growth, driven mainly by an active domestic consumer market (especially in the food and beverage, fast-moving consumer goods, and e-commerce sectors), the demand for high-quality packaging from an export-oriented economy, and the enhancement of technology, management, and market requirements brought by foreign direct investment (FDI).

However, high growth comes with severe challenges, particularly regarding issues related to sustainable development. Firstly, the market's demands for the functionality, aesthetics, and environmental friendliness of packaging are continuously increasing, driving the industry to innovate towards greener, smarter, lighter, and recyclable/degradable solutions.

At the same time, traditional production methods are energy-intensive and produce high emissions, requiring businesses to invest in upgrades to achieve energy conservation and emission reduction, thereby lowering environmental impact. The plastic waste crisis is one of the most pressing issues. Vietnam's plastic consumption surged from about 200,000 tons in 1990 to over 9 million tons in 2022, and it is expected to double again by 2029. If not managed properly, this will lead to severe "white pollution" and waste disposal crises. Nguyen Thi Thanh, from the Ministry of Natural Resources and Environment (now the Ministry of Agriculture and Environment), emphasized the need for urgent measures to curb plastic waste.

In addition, the increase in environmental awareness has led consumers to prefer sustainable packaging. Packaging companies need to incorporate this into their products and brand values. Both domestic and international markets have increasingly stringent requirements for packaging quality, safety, and compliance, and companies need to continuously improve.

Nguyen Thanh Giang, General Manager of Tetra Pak Vietnam, confirmed the huge potential of the industry: Vietnam's food and beverage industry is expected to achieve a compound annual growth rate of 10.3% by 2027, with a market size reaching 872.9 trillion Vietnamese dong. This powerful market force not only demands an expansion in production capacity from the packaging industry but also sets higher requirements for innovation, functionality (such as aseptic preservation), design, and sustainability.

Facing opportunities and challenges, Vietnamese packaging companies are actively exploring sustainable development paths. Nguyen Thanh Giang believes that the industry needs to focus on three key areas to adapt to market demands. First, optimize production costs by improving energy efficiency, reducing waste, optimizing the supply chain, and automating processes while promoting green practices. Second, apply green technologies by investing in clean energy, water-saving technologies, environmentally friendly inks/adhesives, and efficient waste disposal technologies. Third, strengthen recycling efforts by establishing a comprehensive packaging waste recycling system, which requires collaborative efforts from enterprises, the industrial chain, and society as a whole.

Turning to sustainable materials is at the core of industry transformation. Companies are increasing the proportion of recycled plastics (such as rPET), promoting highly recyclable paper-based packaging, and exploring bio-based/degradable plastics (such as PLA) and new materials made from agricultural waste. At the same time, the concept of "designing for recyclability" has gained widespread acceptance, encouraging packaging to adopt single materials and simplify structures to improve recycling efficiency.

Embracing digitalization and automation, technology is an important driver of sustainable development. The introduction of the Internet of Things, big data, artificial intelligence, and automated production lines can significantly improve production efficiency, reduce energy consumption and waste rates, optimize supply chain management, decrease carbon emissions, and enhance product traceability. Tetra Pak is a pioneer in this regard, not only optimizing its own operations but also investing heavily in recycling technology, collaborating with various parties to reintroduce recycled materials (such as paper, plastic, and aluminum separated from composite packaging) into the market, supporting its "net zero emissions" strategy.

Strengthening industry collaboration and social participation, sustainable development requires the combined efforts of the ecosystem. Since its establishment in 2019, the Packaging Recycling Organization Vietnam (PRO Vietnam), has united many leading enterprises to jointly promote responsible packaging waste management. Its Chief Operating Officer, Chu Kim Thanh, emphasized that effective recycling requires the participation of all sectors of society. Through member collaboration, the alliance funds projects that raise recycling awareness, improve collection facilities, and promote sorting and reuse, laying the foundation for the implementation of the extended producer responsibility system.

Achieving a circular economy requires cooperation across the entire supply chain, from suppliers, manufacturers, and brand owners to retailers and consumers. Brand owners should choose recycled materials, retailers should set up recycling points, and consumers should participate in sorting, collectively reducing reliance on virgin resources, promoting the application of sustainable materials, and ensuring the smooth operation of the recycling system. The Vietnamese government guides and regulates the industry towards sustainable development through legislation (such as EPR regulations), setting standards, financial incentives (tax breaks, subsidies), and supporting research, development, and infrastructure.

The Vietnamese packaging industry is at a transformative juncture, characterized by both dynamism and challenges. Market demand serves as a strong driving force, while environmental pressures and sustainability requirements present hurdles that must be overcome. The future of the industry hinges on effectively balancing growth with environmental protection, and cost with innovation.

Embracing sustainable materials, investing in green technologies, advancing digital automation, improving recycling systems, and deepening cross-sector collaboration will be the key pathways for the industry to move toward a more resilient, responsible, and globally competitive future. Despite the formidable challenges, through the joint efforts of the government, businesses, industry organizations, research institutions, and the public, Vietnam's packaging industry is poised to seize the opportunities of green transformation. By achieving its own high-quality development, it can contribute to the overall sustainable growth of Vietnam's economy, ultimately realizing the harmonious unity of economic, social, and environmental benefits.