Vietnam Launches Plastic Recycling Plant, Boosting Circular Economy

DPEC has officially inaugurated its plastic recycling plant in the Dong Van I Industrial Park, Ninh Binh province. The facility specializes in producing high-quality recycled plastic pellets and composite materials, aiming to bolster Vietnam's circular economy. The inauguration ceremony, held on July 31, saw corporate leaders and delegates cut the ribbon and tour the entire production line. This event signifies strengthened cooperation between Vietnam's Phu Thai Group, PTC Holdings, and their technology partners, Dowon and Dux Industry from South Korea. The plant, which commenced construction in October 2025, has a total investment of $6.2 million for its first phase. It currently comprises 12 completed structures covering approximately 8,000 square meters. These include an administrative area, warehouses, a production workshop, auxiliary facilities, a changing room for workers, a parking lot, a security house combined with a pump station, a hazardous and non-hazardous industrial waste area, a domestic waste area, an electricity substation, and worker restrooms. Phase two is scheduled for implementation in 2027, with the total investment expected to rise to $13 million, incorporating several other significant components. According to a company representative, DPEC's operation is poised to make a positive contribution to the recycling industry, particularly as Vietnam actively pursues its green growth targets, emission reduction goals, and implements Extended Producer Responsibility (EPR) policies. With aspirations to become one of Vietnam's most modern recycling facilities, DPEC focuses on two main product groups: high-quality recycled plastic pellets, which transform used plastic products into valuable raw materials for the manufacturing sector, and new composite materials, developed to be sustainable and environmentally friendly. The management team stated that the project aims for a production capacity of 20,000 tons per year in phase one and over 50,000 tons per year in phase two. This will lay the foundation for domestic production of recycled plastics to serve both the local market and for export. Speaking at the ceremony, Mr. Kang Jung Hun, General Director of DPEC, highlighted the inauguration as a significant milestone, marking the plant's official entry into the production phase and fulfilling commitments made since groundbreaking, promising continued sustainable value for customers and partners. Mr. Kim Seong Bae, Chairman of Dowon, commented that DPEC exemplifies successful cooperation between Vietnam and South Korea, driving technological advancement, green production, and sustainable growth alongside the community. Echoing this sentiment, Mr. Pham Dinh Doan, Chairman of Phu Thai Group's Board of Directors, emphasized that the plant will operate under a circular economy model, utilizing high technology to create quality recycled products and contribute to Vietnam's sustainable development. Dowon operates in building plastic resource circulation systems and possesses extensive experience in implementing circular economy models to ESG standards in South Korea. Meanwhile, PTC Holdings and Phu Thai Group aim to establish a leading heavy industry and environmental ecosystem in Vietnam.