Sourcing Biodegradable Packaging in Vietnam: Regulatory and Market Overview

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.

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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

Understanding biodegradable packaging in Vietnam

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.

Common types of biodegradable materials in Vietnam

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.

Demands for biodegradable packaging

The demand for biodegradable packaging in Vietnam is currently concentrated in several key end-use sectors.

Retails

Supermarkets and modern retailers are gradually replacing conventional carrier bags, produce bags, and fresh-food trays with biodegradable alternatives.

E-commerce

The fast-growing e-commerce and parcel delivery market is testing biodegradable mailers and cushioning materials as part of broader sustainability commitments.

Food and beverage

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.

Consumer products

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.

Regulatory and certification framework for biodegradable packaging

The 2020 Environmental Protection Law and supporting decrees

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:

• Decree 08/2022/ND-CP, which defines covered packaging categories, setting recycling targets and reporting requirements, and calculating fees; and
• Decree 05/2025/ND-CP, which further refines the system by adjusting targets, exemptions, and contribution formulas to strengthen compliance oversight.

National roadmap to reduce plastic waste

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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.

Vietnam Ecolabel program

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.

Environmental compliance and recycling initiatives through 2030 and beyond

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

Sourcing pathways for biodegradable packaging in Vietnam

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

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

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 platforms

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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.

Local sourcing agents

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

Key takeaways

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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.

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