FACTORY NETWORK BUSINESS CONFERENCE

FBC ASEAN 2025

17~19/09/2025

VNEC, Dong Hoi, Dong Anh, Ha Noi

The integration of biodegradable packaging materials into Vietnam’s supply chain requires strategic planning, technological understanding, and access to reliable supplier networks. With over 4,000 manufacturing facilities across the country and growing environmental consciousness among consumers, biodegradable packaging represents more than just an eco-friendly alternative—it’s becoming a business imperative that directly impacts supply chain efficiency, regulatory compliance, and market competitiveness.

What Is Biodegradable Packaging?

Biodegradable packaging refers to materials that can be broken down naturally by microorganisms, bacteria, and environmental factors into harmless substances within a specific timeframe, typically ranging from several months to a few years, depending on environmental conditions.

The definition encompasses materials engineered to decompose completely, without leaving toxic residues, contrasting sharply with traditional plastics that persist in the environment for decades or centuries. This characteristic makes biodegradable packaging particularly valuable for food applications, where safety and environmental impact are critical considerations for both manufacturers and consumers.

Biodegradable food packaging, for instance, typically decomposes faster in composting environments with controlled temperature, moisture, and oxygen levels. Understanding these mechanisms enables manufacturers to select appropriate materials for specific applications and communicate decomposition timelines accurately to end consumers.

How Biodegradable Packaging Works

  • Operating principles of biodegradable materials

The operating principles of biodegradable materials center on molecular structures designed to break apart under natural conditions. Unlike petroleum-based plastics with strong carbon-carbon bonds, biodegradable packaging materials utilize weaker molecular connections that microorganisms can readily attack and metabolize.

Enzymatic action represents the primary mechanism driving biodegradation. Microorganisms produce specific enzymes that recognize and break down polymer chains in biodegradable materials, converting complex molecules into simpler compounds like carbon dioxide, water, and biomass. This process occurs naturally in composting facilities, soil environments, and marine ecosystems.

How Biodegradable Packaging Works

How Biodegradable Packaging Works

  • Factors affecting the biodegradation process

Several factors significantly influence the biodegradation process, directly impacting timeline and effectiveness. Temperature plays a crucial role, with higher temperatures generally accelerating decomposition rates. Industrial composting facilities typically maintain temperatures between 50-60°C, enabling complete breakdown of biodegradable plastic packaging within 90-180 days.

Moisture content, oxygen availability, and pH levels create additional variables affecting decomposition speed. Biodegradable packaging materials perform optimally within specific parameter ranges, requiring manufacturers to consider end-of-life disposal infrastructure when selecting materials. Vietnamese manufacturers operating in tropical climates benefit from naturally accelerated biodegradation due to higher temperatures and humidity levels.

Common Types of Biodegradable Packaging Materials

The landscape of biodegradable packaging materials encompasses diverse options, each offering unique properties suited to specific applications.

  • Polylactic acid (PLA)

Polylactic acid (PLA) stands as the most widely adopted biodegradable plastic packaging material, offering excellent clarity, printability, and barrier properties essential for food packaging applications. PLA demonstrates particular strength in rigid packaging formats, making it ideal for containers, bottles, and protective packaging components used throughout Vietnam’s food processing industry.

  • Starch-based materials

Starch-based materials provide cost-effective solutions for single-use applications, particularly relevant for Vietnam’s street food culture and takeaway packaging needs. These materials can be processed using existing manufacturing equipment with minimal modifications, reducing capital investment requirements for manufacturers transitioning from conventional materials.

  • Cellulose-derived packaging materials

Cellulose-derived packaging materials, including modified paper products and cellulose films, offer superior compostability while maintaining necessary barrier properties for food preservation. These biodegradable packaging materials excel in applications requiring breathability, such as fresh produce packaging and bakery products.

Comparing biodegradable plastics with traditional alternatives reveals significant performance trade-offs. While conventional plastics offer superior durability and shelf life, biodegradable packaging for food provides enhanced safety profiles and environmental benefits that increasingly outweigh performance limitations in consumer purchasing decisions.

Polylactic acid (PLA)

Polylactic acid (PLA)

The Role of Biodegradable Packaging in Vietnam’s Supply Chain

Vietnam’s packaging industry currently processes approximately 2.8 million tons of materials annually, with food packaging representing the largest segment at nearly 40% of total volume. Current utilization of biodegradable packaging materials remains below 10%, indicating substantial growth potential as awareness and infrastructure develop.

The development potential of Vietnam’s biodegradable packaging market appears exceptionally promising, driven by several converging factors. Government initiatives promoting plastic reduction, increasing foreign direct investment in sustainable manufacturing, and growing export market requirements for eco-friendly packaging create favorable conditions for market expansion.

Manufacturing executives report increasing pressure from international buyers to demonstrate sustainable packaging practices. Companies exporting to European and North American markets face particularly stringent requirements, with some retailers mandating biodegradable packaging for certain product categories by 2025. 

The trend toward environmentally friendly packaging extends beyond regulatory compliance to encompass competitive advantage. Vietnamese manufacturers adopting biodegradable packaging materials early report enhanced brand differentiation, improved customer loyalty, and access to premium market segments previously unavailable with conventional packaging.

Supply chain integration challenges include establishing reliable supplier relationships, managing inventory complexity, and training staff on handling requirements specific to biodegradable materials. However, manufacturers successfully navigating these challenges position themselves advantageously for long-term market leadership.

Advantages and Challenges of Biodegradable Packaging

Although it brings many benefits to environmental sustainability, biodegradable packaging still has some challenges to overcome to develop more strongly in the future.

Advantages

  • Sustainability and natural decomposition ability

Sustainability represents the primary advantage driving biodegradable packaging adoption across Vietnam’s manufacturing sector. Natural decomposition capabilities eliminate long-term environmental liability while supporting circular economy principles increasingly valued by consumers and regulatory bodies.

  • Reducing environmental impact

Environmental impact reduction extends beyond waste management to encompass reduced carbon footprint throughout the product lifecycle. Biodegradable packaging suppliers utilizing renewable feedstocks demonstrate significantly lower greenhouse gas emissions compared to petroleum-based alternatives, supporting manufacturers’ sustainability goals and ESG reporting requirements.

  • Contribute to improving brand image and ESG 

ESG (Environmental, Social, and Governance) considerations increasingly influence investment decisions and business partnerships. Manufacturers demonstrating commitment to sustainable packaging practices access favorable financing terms, attract sustainability-focused investors, and qualify for green procurement programs offered by major corporations.

Challenges

  • Higher costs and product lifespan

Higher costs represent the most significant obstacle to widespread biodegradable packaging adoption. Material costs typically range from 20-40% above conventional alternatives, though this premium continues declining as production volumes increase and manufacturing efficiency improves.

  • Requirements for usage conditions and processing

Usage conditions and processing requirements demand specialized knowledge and equipment modifications. Temperature sensitivity, moisture absorption, and mechanical properties of biodegradable packaging materials differ from conventional alternatives, requiring staff training and process optimization.

  • Product sustainability in some applications remains limited

Product sustainability limitations in specific applications remain problematic for certain use cases. High-barrier applications requiring extended shelf life, such as processed foods with lengthy distribution chains, may not yet have viable biodegradable alternatives matching conventional material performance.

Advantages and Challenges of Biodegradable Packaging

Advantages and Challenges of Biodegradable Packaging

Biodegradable Packaging Suppliers in Vietnam

Vietnam’s biodegradable packaging supplier landscape includes both domestic manufacturers and international companies establishing local operations. Below are some of the iconic suppliers: 

  • Domestic Manufacturers:
    • Binh Minh Plastics Joint Stock Company: Major investor in PLA production.
    • An Phat Bioplastics: Focus on starch-based packaging solutions.
    • Tan Quang Minh Plastic: Produces biodegradable bags and films from PLA and PBAT.
    • Phuoc Hoa Joint Stock Company: Offers biodegradable packaging using natural polymers.
    • Green Packaging Vietnam: Specializes in compostable packaging made from cornstarch and other biopolymers.

Biodegradable Packaging Suppliers in Vietnam

Biodegradable Packaging Suppliers in Vietnam

  • International Suppliers with Vietnam Presence:
    • NatureWorks LLC: Supplies PLA resins to local converters, enabling access to advanced biopolymer technology.
    • Novamont: Offers biodegradable plastic packaging materials through authorized distributors, supporting local production with sustainable materials.
    • BASF: Provides biodegradable polymer solutions and technical support for local manufacturers.
    • Corbion: Supplies bio-based polymers such as PLA and lactide monomers, collaborating with Vietnamese producers.
    • TotalEnergies Corbion PLA: Partners with local firms to deliver sustainable packaging resins and innovation support.

Policies and consumption trends in Vietnam

State policies supporting plastic reduction and green packaging adoption create a favorable regulatory environment for biodegradable packaging materials. The National Action Plan on Marine Plastic Waste Management targets a 50% reduction in single-use plastics by 2025, directly benefiting biodegradable alternatives. Tax incentives and import duty reductions for biodegradable packaging materials and manufacturing equipment encourage investment in sustainable technologies. 

Consumer behavior transformation reflects growing environmental awareness among Vietnamese consumers. Market research indicates 68% of urban consumers actively seek products utilizing biodegradable packaging for food, with premium payment willingness averaging 15-25% above conventional alternatives.

E-commerce growth accelerates biodegradable packaging adoption as online retailers respond to customer preferences and shipping sustainability concerns. Major platforms increasingly promote sellers utilizing eco-friendly packaging while implementing packaging waste reduction initiatives.

Connection Opportunities in the Biodegradable Packaging Industry Through FBC ASEAN

  • Introduction 

FBC ASEAN exhibition provides unparalleled access to biodegradable packaging suppliers, technology providers, and manufacturing partners essential for successful supply chain integration. The 2024 exhibition featured over 500 booths, with approximately 15% specializing in sustainable packaging solutions and materials.

  • Opportunities 

Material suppliers and packaging technology providers utilize FBC ASEAN as the primary platform for introducing innovative biodegradable packaging materials to Vietnam’s manufacturing community. Exhibition attendance enables direct evaluation of material properties, processing requirements, and supplier capabilities essential for informed decision-making.

Business satisfaction is the measure of the event’s success. According to the Organizing Committee’s statistics, up to 98% of businesses rated the cost at FBC ASEAN and 95% of businesses intend to continue participating in the next stages. This is clear evidence of the quality of organization, economic efficiency, and practical value that FBC ASEAN brings. 

FBC ASEAN 2025 is not just an event but a strategic launch pad to help manufacturing enterprises reach out on the global industrial map.

  • Sustainable development trends in manufacturing through FBC ASEAN

Sustainable development trends in manufacturing converge at FBC ASEAN through dedicated exhibition areas focusing on environmental technologies, waste reduction solutions, and circular economy principles. These specialized zones facilitate targeted networking opportunities between biodegradable packaging suppliers and potential manufacturing customers.

Business matching services provided by exhibition organizers specifically connect biodegradable packaging suppliers with manufacturers expressing sustainability objectives. Pre-scheduled meetings, technical seminars, and product demonstrations create efficient pathways for establishing supplier relationships and evaluating technology options.

Sustainable development trends in manufacturing through FBC ASEAN

Sustainable development trends in manufacturing through FBC ASEAN

Ready to explore biodegradable packaging solutions for your supply chain? Join industry leaders at FBC ASEAN 2025 in Dong Anh, Hanoi (September 17-19) to connect with leading biodegradable packaging suppliers, evaluate cutting-edge materials, and develop strategic partnerships driving sustainable growth. Register now at FBC to secure your participation in Vietnam’s premier manufacturing exhibition and accelerate your transition to sustainable packaging solutions.

Read more: Rubber Industry in Vietnam’s Supply Chain

Facebook
Twitter
LinkedIn

Organizer:

NC NETWORK VIETNAM JSC

  TEL: +84-24-3247-4577

Email: [email protected]

Address: Room 702, 7th Floor, V.E.T Building, 98 Hoang Quoc Viet, Cau Giay, Hanoi

HP: https://nc-net.vn/