Aluminum recycling in Vietnam: opportunities and challenges

Aluminum is a lightweight metal that is easy to recycle and has high economic value. Recycling aluminum saves up to 95% of the energy needed to produce it from bauxite ore. With growing demand in construction, automotive, electronics, and packaging, aluminum recycling is becoming a key solution for securing raw materials and reducing production costs.

Primary Applications of Recycled Aluminum

• Construction: Aluminum doors, frames, and profiles.
• Automotive – Electronics: Car body parts and device casings.
• Packaging: Food and pharmaceutical cans, with a preference for recycled aluminum to meet green standards.

Policies and Incentives

• The 2020 Law on Environmental Protection requires recycling companies to have a license and standard technology for treating air, water, and waste.
• Green recycling projects receive a 2% annual interest rate subsidy on loans and corporate income tax incentives.
• Some products made from recycled aluminum are subject to a 5% VAT or are exempt from export taxes under current regulations.
• Extended Producer Responsibility (EPR) policies are being implemented, with aluminum packaging—including beverage cans—identified as a high-potential product group that will soon be subject to mandatory collection and recycling mechanisms.

Current Challenges

• Lack of investment in modern technology, particularly among small and medium-sized enterprises.
• The management of discharge quality and environmental licensing is not yet consistent.
• A public-private partnership mechanism is needed to develop modern and sustainable recycling infrastructure.

Source: Compiled from the Internet.