Norfund invests to expand plastic recycling in Vietnam

Norfund is investing USD 4 million to support CPC’s scaling of industrial PET recycling in Vietnam. The investment aims to create jobs, contribute to lower emissions, reduce plastic pollution, and supply high‑quality recycled materials to international and domestic markets.

Circular Plastics Company (CPC) is a PET recycling company producing recycled PET flakes and food‑grade rPET pellets for both the domestic Vietnamese market and export to European markets. Demand for recycled PET is rising rapidly as manufacturers seek to cut emissions and increase the share of recycled content in their products.

Norfund, the Norwegian investment fund for developing countries, has concluded an equity investment of USD 4 million which will finance capex and working capital for CPC Vietnam’s plant outside Ho Chi Minh City.

In a volatile global recycling market, Norfund continues to invest counter-cyclically, backing commercially viable recycling platforms with long-term growth potential. For Vietnam — where estimates indicate that only about half of PET bottles are collected — strengthening the recycling market is essential to tackling plastic pollution at scale.

“By scaling industrial PET food grade recycling in Vietnam, Norfund’s investment is contributing to job creation and reduction of plastic pollution. The investment shows how early-stage capital can help crowd in private financing for scalable, sustainable solutions,” says Åsmund Aukrust, the Norwegian Minister of International Development, who is visiting Vietnam this week.

Scaling circular solutions across Southeast Asia

CPC launched its first recycling operations in SE Asia in 2019. Since 2023, the Group has been establishing presence in Vietnam. Its first recycling plant in southern Vietnam has an annual capacity of 31,000 metric tons of recycled PET flakes and 14,000 metric tons of food‑grade rPET pellets.

“CPC has already demonstrated its ability to deliver large‑scale recycling facilities on time and on budget, and we are looking forward to partner with them on their journey to expand food grade plastic recycling in Vietnam,” says Vegard Benterud, Investment Director at Norfund.

Supporting industrial development and environmental impact

By investing in CPC, Norfund aims to help scale circular economy solutions in emerging markets, reducing plastic pollution while supporting local industrial development and job creation. Increased recycling of PET reduces CO₂ emissions compared to producing virgin plastics and strengthens the infrastructure needed for sustainable value chains.

“Vietnam is at a pivotal moment in building a stronger circular economy. Norfund’s investment reflects trust in CPC’s long-term vision and our ability to execute, and enables us to expand production capacity and scale industrial, food-grade PET recycling. Through this partnership, we are well positioned to support Vietnam’s next phase of circular economy development while delivering lasting environmental and economic impact” says Ruby La, CEO of CPC Vietnam.

The investment is made through a Singapore holding company (Circular Plastics International).

“We are pleased to partner with Norfund in advancing Vietnam’s circular economy. This investment enables us to scale plastic recycling, reduce emissions, and support Vietnam’s net-zero ambitions, while contributing to sustainable economic growth, industrial development, and job creation”, says Nicholas Powell, Chairman of CPC Singapore.