<div id="readability-page-1">Vietnam’s packaging industry is undergoing a structural shift as tighter environmental regulations and corporate sustainability commitments accelerate demand for biodegradable alternatives. For foreign buyers, understanding the regulatory framework, material standards, and sourcing landscape is increasingly critical to managing compliance risks and securing reliable supply.  Vietnam has developed into a major export manufacturing base, and its packaging industry is upgrading in response to both rising domestic demand and increasingly stringent sustainability requirements from international buyers.  Market assessments point to steady growth in the country’s packaging industry as manufacturers adapt to regulations on plastic reduction and corporate commitments to recyclable and biodegradable materials. Combined with competitive production costs and expanding manufacturing capacity, these regulatory and market drivers are positioning Vietnam as an emerging regional hub for sustainable packaging.  Vietnam’s regulations mandate producers and importers to collect, recycle, or fund the treatment of packaging waste. This pushes companies toward recyclable or biodegradable solutions. With tighter regulations, rising environmental awareness, and new green materials capacity, Vietnam is becoming a competitive source of biodegradable packaging in Southeast Asia.  This article reviews the regulatory framework, maps the main producer segments, and outlines practical sourcing strategies for foreign buyers.  See also: Green Incentives in Vietnam: An Overview for Investors  In Vietnam, the assessment of biodegradable plastic packaging is primarily guided by the national Vietnam’s Ecolabel criteria (Decision 3257/QD-BTNMT). These criteria mandate that at least 90 percent of the packaging must be biodegradable within two years  Additionally, the criteria stipulate compliance with substance limits and allow testing to be conducted in accordance with Vietnamese national standards (TCVN) or explicitly recognized international standards.  Test method for determining the ultimate aerobic biodegradability of plastic materials in an aqueous medium by measuring oxygen demand in a closed respirometer.  Test method for determining the ultimate aerobic biodegradability of plastic materials in an aqueous medium by analysis of evolved carbon dioxide.  Test method for determining the ultimate aerobic biodegradability of plastics under controlled composting conditions by measuring evolved carbon dioxide (general method).  International specification for plastics designed for organic recycling (compostable plastics), including requirements and test methods.  Specification for plastics designed to be aerobically composted in municipal or industrial composting facilities, including requirements for biodegradation, disintegration, and compost quality.  European standard for packaging recoverable through composting and biodegradation, setting criteria for biodegradation, disintegration, heavy metals, and impact on compost quality.  Australian standard for biodegradable plastics suitable for industrial composting and other microbial treatment, aligned with ISO/EN compostability principles.  Vietnamese suppliers commonly offer starch-based blends using cassava or corn starch combined with PLA (polylactic acid) or PBAT (polybutylene adipate terephthalate) for shopping bags and packaging films. PLA is a popular choice for compostable bags, films, and rigid containers due to its rigidity and clarity, while PBAT is blended to enhance flexibility and durability.  Emerging PHA (polyhydroxyalkanoate) resins are also entering the market as new bioplastics investments expand production.  Additionally, paper, cardboard, and other fiber-based packaging with biodegradable coatings remain readily available, particularly for food service and export packaging applications.  p  EXPLORE IN-DEPTH INVESTMENT AND BUSINESS GUIDES.  Explore vital economic, geographic, and regulatory insights for business investors, managers, or expats to navigate Vietnam’s business landscape. Our Online Business Guides offer explainer articles, news, useful tools, and videos from on-the-ground advisors who contribute to the Doing Business in Vietnam knowledge.  Start exploring  The demand for biodegradable packaging in Vietnam is currently concentrated in several key end-use sectors.  Supermarkets and modern retailers are gradually replacing conventional carrier bags, produce bags, and fresh-food trays with biodegradable alternatives.  The fast-growing e-commerce and parcel delivery market is testing biodegradable mailers and cushioning materials as part of broader sustainability commitments.  The food and beverage sector, including restaurants, cafes, and delivery platforms, is adopting compostable takeout containers, cutlery, cups, and straws to align with local initiatives to reduce plastic waste.  Meanwhile, garment, footwear, and consumer electronics export manufacturers face mounting pressure from international brands to switch to certified biodegradable or recycled-content bags, films, and protective packaging. These sectors are the main source of demand for suppliers targeting both domestic and overseas buyers.  Plastic Bags and Alternatives in Vietnam  Units sold per year (Estimate)  Avg. wholesale cost per unit  Units sold per year (Estimate)  Avg. wholesale cost per unit  VND 30,000–40,000 (US$ 1.20–1.60) per kg  Compostable plastic bag (various sizes)  VND 160,000 (US$6.4) per kg  VND 19,000–25,000 (US$0.76–1) per piece  VND 8,000–15,000–30,000 (US$0.32–0.6–1.2) per piece  VND 61,000–125,000 (US$2.44–5) per piece  VND 2,000–20,000 (US$0.08–0.8) per piece  HDPE plastic bag (various sizes)  VND 36,000–48,000 (US$ 1.44–1.92) per kg  Flat non-woven fabric bag  VND 6,000–6,500 (US$0.24–0.26) per piece  (use for at least 5–10 times)  VND 1,000–9,000 (US$0.04–0.36) per piece  VND 42,000–60,000 (US$ 1.68–2.4) per kg  VND 6,000–10,000 (US$0.24–0.4) per piece  (use for at least 1 year)  T-shaped kraft paper bag for cup  VND 700–1,000 (US$0.03–0.04) per piece  Milktea cup-bag (various sizes)  VND 30,000–48,000 (US$1.2–1.92) per kg  Compostable plastic cup-bag  VND 160,000 (US$6.4) per kg  Waste plastic bag (5 kg carrying capacity)  VND 17,000–23,000 (US$0.68–0.92) per kg  Compostable waste plastic bag (various sizes)  VND 95,000–118,000 (US$3.8–4.72) per kg  Food bags (various sizes)  VND 76,000–96,000 (US$3.04–3.84) per kg  VND 145,000 (US$ 5.80) per kg  Source: World Bank, 2022  Vietnam’s regulatory framework for environmentally friendly packaging is anchored in the 2020 Law on Environmental Protection, which introduced extended producer responsibility (EPR). This requires packaging producers and importers to organize recycling activities or contribute financially to approved waste treatment programs. The law is supported by two key guiding decrees, including:  The policy is reinforced by Decision 1316/QD-TTg, which establishes a national roadmap to reduce plastic waste.  This initiative involves banning small non-biodegradable plastic bags in 2026 and progressively phasing out most traditional single-use plastics by the early 2030s. The move boosts the demand for biodegradable options.  The Vietnam Ecolabel program, administered by the Ministry of Natural Resources and Environment (MONRE), certifies biodegradable packaging that achieves 90 percent biodegradation within two years, meets substance-restriction limits, and undergoes testing using Vietnamese standards or accredited international methodologies.  On December 10, 2025, Vietnam’s National Assembly approved Resolution 247/2025/QH15 to strengthen the effectiveness of environmental protection laws. The resolution mandates stricter enforcement of EPR regulations for the collection and recycling of discarded products and packaging. New policies will also be introduced to encourage the establishment of intermediary organizations to support waste collection and recycling activities.  Under Resolution 247, deposit-refund schemes for products and packaging will be developed and expanded, with a particular focus on hazardous waste streams such as used batteries and accumulators, as well as discarded packaging for plant protection chemicals and veterinary medicines. Vietnam aims to accelerate the growth of its recycling industry and promote the use and consumption of products derived from solid waste treatment.  See also: Greenwashing in Vietnam: Assessing Legal Consequences  Law on Environmental Protection  Establishes national framework for plastic waste management; introduces EPR for packaging producers and importers.  Creates mandatory recycling obligations or fee payments, increasing compliance costs and encouraging shifts toward biodegradable and recyclable packaging materials.  Implements EPR rules, specifying covered packaging types, recycling targets, reporting procedures, and contribution mechanisms.  Requires packaging firms to formally register, report volumes, and meet recycling targets or pay EPR contributions. Applies from 2024 onward.  Amends Decree 08 by refining recycling targets, contribution formulas, exemption thresholds, and enforcement guidance.  Increases regulatory clarity and strengthens enforcement consistency for EPR compliance.  National roadmap for reducing plastic waste, including a ban on small non-biodegradable plastic bags from 2026 and gradual phase-out of most single-use plastics by the early 2030s.  Accelerates market demand for biodegradable packaging across retail, food service, and export manufacturing sectors.  Vietnam Ecolabel program  Sets certification criteria for environmentally friendly plastic packaging, requiring minimum 90 percent biodegradation within two years and compliance with substance limits; testing must follow TCVN or recognized international standards.  Provides buyers with a recognized verification tool to confirm environmental claims and regulatory compliance of biodegradable packaging suppliers.  Resolution 247/2025/QH15  Tighter EPR enforcement, expanded deposit-refund schemes, and stronger support for recycling activities  Imposes higher compliance requirements, while providing more opportunities in recycling and circular-economy investments  Several established sourcing pathways for biodegradable packaging exist in Vietnam, each serving a different stage of supplier identification and verification.  Trade fairs and industry exhibitions are one of the primary entry points for buyers. These events support early-stage product discovery and supplier shortlisting, and allow for on-site sample review and preliminary quality checks. They facilitate direct interaction with manufacturers and offer an initial evaluation of product offerings and certifications.  Official directories and trade agencies are another screening channel. Resources from VIETRADE, local chambers of commerce, and packaging industry associations can help buyers identify registered manufacturers and validate business credentials through government or semi-official platforms.  Digital business-to-business (B2B) platforms, including Alibaba, Global Sources, and Vietnam-focused B2B portals, are playing an increasingly important role in the initial mapping of suppliers. These platforms allow buyers to compare pricing, minimum order quantities, certifications, and export experience across multiple producers before shortlisting potential partners.  Quality and compliance standards among suppliers can vary significantly across the market, especially among smaller producers who rely on imported resins or lack in-house testing capabilities. Minimum order quantity (MOQ), production flexibility, and lead time vary widely between export-oriented factories and smaller domestic suppliers. Such differences affect buyer sourcing strategies based on volume requirements.  To further reduce supply risks, many buyers rely on local sourcing agents and procurement consultancies. These partners provide operational support on the ground, including coordinating factory audits, quality-assurance inspections, certification verification, contract negotiations, and ongoing order management. Their involvement is particularly valuable for new market entrants or buyers who are unable to conduct in-person checks.  Beyond brokered inspections, robust procurement strategies incorporate direct factory due diligence and pilot sampling. This involves site visits to verify production capacity and management systems, placing small-batch test orders, conducting on-site quality audits, and performing laboratory testing to confirm biodegradation performance and adherence to relevant standards. These steps are essential for distinguishing compliant products from those making unverified “green” claims.  See also: Vietnam’s Environmental Protection Tax in 2025  Vietnam’s accelerating regulatory momentum is supporting the expansion of the biodegradable packaging market, driven by tighter controls on single-use plastics and the rollout of EPR requirements.  At the same time, regulatory definitions remain critical. Not all bio-based or environmentally marketed materials meet Vietnam’s biodegradability standards, and inappropriate material selection may expose buyers to compliance risks. Supplier quality also varies widely, with notable differences in technical capacity and certification readiness, making documentation reviews and product testing essential components of the sourcing process.  Upstream investment is gradually strengthening the supply chain, as new bioplastics projects improve resin availability, product consistency, and long-term production capacity. In practice, effective sourcing outcomes tend to rely on a structured, multi-channel strategy that combines trade fairs, official trade referrals, verified B2B platforms, and support from local sourcing agents.  Overall, Vietnam presents a viable sourcing destination for biodegradable packaging, provided buyers apply robust supplier screening and maintain thorough regulatory due diligence throughout procurement.  FAQ - Biodegradable Packaging in Vietnam  What qualifies as biodegradable packaging in Vietnam?  Packaging must meet Vietnam Ecolabel criteria, requiring at least 90 percent biodegradation within two years and compliance with substance limits under Vietnamese or recognized international standards.  Which regulations govern biodegradable packaging?  Key regulations include the 2020 Law on Environmental Protection, Decree 08/2022/ND-CP, Decree 05/2025/ND-CP, and Decision 1316/QD-TTg on plastic waste reduction.  Is certification mandatory for biodegradable packaging?  While not always mandatory, Vietnam Ecolabel certification is widely used as a credible benchmark to demonstrate compliance and verify environmental claims.  Which sectors are driving demand?  Retail, e-commerce, food and beverage, and export-oriented manufacturing are the main demand drivers.  What are the main compliance risks for foreign buyers?  Risks include sourcing materials that do not meet biodegradability thresholds, inconsistent supplier certification, and inadequate testing documentation.  Is Vietnam a competitive sourcing destination for biodegradable packaging?  Yes, supported by competitive production costs, expanding bioplastics capacity, and tightening plastic regulations across Southeast Asia.  About Us  Vietnam Briefing is one of five regional publications under the Asia Briefing brand. It is supported by Dezan Shira &amp; Associates , a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Hanoi , Ho Chi Minh City , and Da Nang in Vietnam. Dezan Shira &amp; Associates also maintains offices or has alliance partners assisting foreign investors in China , Hong Kong SAR , Indonesia , Singapore , Malaysia , Mongolia , Dubai (UAE) , Japan , South Korea , Nepal , The Philippines , Sri Lanka , Thailand , Italy , Germany , Bangladesh , Australia , United States , and United Kingdom and Ireland .  For a complimentary subscription to Vietnam Briefing’s content products, please click here . For support with establishing a business in Vietnam or for assistance in analyzing and entering markets, please contact the firm at vietnam@dezshira.com or visit us at www.dezshira.com</div>

<p>Vietnam's packaging industry is shifting towards biodegradable solutions due to stricter environmental regulations and corporate sustainability commitments. The country is becoming a regional hub for sustainable packaging, driven by competitive production costs and expanding manufacturing capacity. Key sectors like supermarkets, e-commerce, and food services are adopting biodegradable alternatives. Vietnam's regulations mandate recycling or treatment of packaging waste, pushing companies towards sustainable solutions. The article reviews the regulatory framework and sourcing strategies for foreign buyers.</p>

Sourcing Biodegradable Packaging in Vietnam: Regulatory and Market Overview