Piloting a Deposit Return Scheme for plastic packaging

The United Nations Development Programme (UNDP) in Vietnam and the Norwegian Embassy in Hanoi today signed a new specific arrangement for the project titled “Scaling Multi-Stakeholder Partnerships for Circular and Sustainable Waste Management.” 

The project aims to support Vietnam in addressing challenges in municipal solid waste (MSW) management through two main solutions: (i) developing an MSW management model by promoting waste separation at source, establishing a Material Recovery Facility (MRF), and co-processing non-recyclable waste in cement kilns; (ii) piloting a Deposit Return Scheme (DRS) for plastic packaging. 

The signing ceremony was attended by representatives from the Norwegian Embassy in Hanoi, the Department of Environment (under the Ministry of Agriculture and Environment), the People’s Committees of Cam Pha City and Phu Quoc City, as well as businesses such as TOMRA, Duy Tan Recycling, Lam Thach Cement, and project implementation partners. 

Vietnam faces a growing challenge of increasing MSW, particularly low-value waste streams such as plastic bags, styrofoam, and single-use plastic packaging. These types of waste are often not collected for recycling but instead buried in landfills and prone to leaking into the environment.

A 2023 study conducted by UNDP at Long My landfill (Binh Dinh Province) showed that this type of waste accounted for 20.4% of the total daily MSW transported and processed at the city’s landfill. Although Vietnam has set a target to reduce the rate of waste sent to landfills to below 30% by 2025, progress has not met expectations due to inconsistent waste separating, collecting, and recycling practices, as well as a lack of clear guidelines and necessary infrastructure investment. 

Based on the strong partnership since 2019, UNDP and Norway have implemented several initiatives in Quang Ninh, Da Nang, Binh Dinh, Binh Thuan, and Binh Duong provinces to pilot MSW management models, strengthen policy frameworks, improve waste collection and sorting, and promote recycling. In Quy Nhon City (Binh Dinh), a waste separation at source program has been launched. A Material Recovery Facility has been established at Long My landfill to sort plastic waste streams, aiming to promote collection and recycling.

Research conducted by the OPTOCE project on co-processing in cement kilns, implemented by SINTEF, along with a pre-feasibility study on the DRS conducted by the Norwegian Embassy and its commercial section (Innovation Norway), has provided an additional basis for the project to pilot these models. After successfully implementing pilot models, UNDP and Norway will further promote finalizing the legal framework, especially concerning Extended Producer Responsibility (EPR) policy and MSW management regulations. 

Speaking at the event, Ms. Ramla Khalidi, Resident Representative of UNDP Vietnam, emphasized: “Together, we have shown that smart policy, local solutions, and strong partnerships can reduce marine plastic pollution and protect Vietnam’s extraordinary coastal ecosystems. As we sign this project today, we reaffirm our shared commitment—to a cleaner Vietnam, smarter resource use, and an economy that leaves no one behind.” 

Ambassador of Norway to Vietnam, Ms. Hilde Solbakken, affirmed: “Norway places a high priority on combating marine plastic pollution, emphasizing the importance of sustainable waste management. We feel very privileged to be able to work so closely with the UNDP, the Vietnam Environmental Agency, provincial authorities in Quang Ninh and Kien Giang and the private sector to implement this project. Public private partnerships bring together the strengths and resources of both sectors, enabling innovative solutions and scalable impact. Therefore, the participation of Quang Ninh Cement Company and the Norwegian company TOMRA exemplifies the power of such partnership in driving sustainable change and achieving our shared goals.”

This Phase III project will build on the achievements of Phases I and II, aiming to scale up the MSW management model featuring an MRF combined with co-processing in cement kilns, which is planned to be implemented in Cam Pha City. In addition, the project will pilot a DRS, which is expected to be launched in Phu Quoc City. At the national level, the project will contribute to policy development, promote inter-provincial knowledge sharing, and establish a transparent monitoring mechanism toward a circular economy. Gender inclusivity and digital technology will be integrated to ensure comprehensive and inclusive solutions.