PLASTIC PRODUCTS CONSUMPTION TREND AND PLASTIC WASTE IN ASIA, PRACTICAL INFORMATION AND CONTACT TO VIETNAM

MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY DISSERTATION PLASTIC PRODUCTS CONSUMPTION TREND AND PLASTIC WASTE IN ASIA, PRACTICAL INFORMATION AND CONTACT TO VIETNAM Fu

FOREIGN TRADE UNIVERSITY

MINISTRY OF EDUCATION AND TRAINING

FOREIGN TRADE UNIVERSITY

DISSERTATION

PLASTIC PRODUCTS CONSUMPTION TREND AND PLASTIC WASTE IN ASIA, PRACTICAL INFORMATION AND CONTACT TO

VIETNAM

Full Name: Ngo Thi Dieu Linh

SUPERVISOR: Dr Mai Nguyen Ngoc

Ha Noi - 2020

ACKNOWLEDGEMENT

The dissertation has been completed with the great guidance of Dr Mai Nguyen Ngoc I would like to express my sincere thanks for her patience and massive help with reading the whole of the thesis and making valuable comments for my research

By this occasion, I am much grateful to the Department of Graduate Studies and Foreign Trade University - who have always create most favorable conditions for MORIE 2 students in completing our study Thank you so much for their generosity and I owe a debt of gratitude to all helpers

TABLE OF CONTENTS

DECLARATION 1

ACKNOWLEDGEMENT 2

TABLE OF CONTENTS 3

LIST OF ABBREVIATIONS 6

LIST OF FIGURES 7

INTRODUCTION 8

1 Rationale 8

2 Literature review 9

3 Research questions 12

4 Methodologies 12

5 Structure of the thesis 13

Chapter 1: Overview of plastic products consumption and plastic waste problem 15

1.1 Overview of plastic sector 15

1.2 Plastic production 19

1.2.1 Definition and classification of plastics 19

1.2.2 Plastics product consumption 21

1.3 Plastic waste 22

1.4 Plastic waste problem 24

Chapter 2: Plastic product consumption trend and plastic waste problem in Asia 28

2.1 Plastic product consumption trend in Asia 28

2.1.1 Overview of plastic product consumption trend and main applications in Asia 28 2.1.2 Demand for eco friendly plastic product trend 33

2.2 Plastic waste disposal process in Asia 34

2.3 Plastic waste problem in Asia 36

Chapter 3: Plastic product consumption trend and plastic waste problem in Vietnam 45

3.1 Plastic product consumption trend in Vietnam 45

3.1.1 Overview of Plastic product consumption trend in Vietnam 45

3.1.2 Main application plastic productsin Vietnam 50

3.1.3 Demand for eco friendly plastic product trendin Vietnam 53

3.2 Plastic waste disposal process in Vietnam 53

3.3 Plastic waste problem in Vietnam 56

3.4 Comparison between plastic waste problem of Asia and Vietnam 58

Chapter 4: Recommendations of solutions for plastic waste management in Asia and contact to Vietnam 60

4.1 Experience of government policy on solving plastic waste problem (especially in Asia countries) 60

4.1.1 Join global policies and encourage NGOs and on reducing plastic waste 602

4.1.2 Policies and regulations on plastic and plastic bag management 614

4.1.3 Organize creative awards on environmental protection 63

4.1.4 Organize programs to educate people about the environment problems especially on the importance of reducing plastic waste 646

4.1.5 Apply waste management technology 65

4.1.6 Build waste managemen’s frameworks and hierarchy 65

4.2 Experience of companies in Asia on solving plastic waste problem 678

4.2.1 Issue internal environment policies 678

4.2.2 Classified waste and develop recyclable products 69

4.2.3 Taking advantage of plastic waste to produce other materials 71

4.2.4 Use alternative materials 701

4.3 Proposing to Asia to solve plastic waste problem 72

4.4 Proposing to Vietnam to solve plastic waste problem 723

4.4.1 Solutions have been implemented to reduce plastic waste problem 723

4.4.2 Proposing to the government to solve plastic waste problem 756

4.4.3 Proposing to organizations and companies operating in the plastic industry 79

4.4.4 Proposing to organizations and individuals consuming plastic products 80

4.4.5 Encourage the activities of non-govermental environmental organizations 80

4.4.6 Overall solution 812

Conclusion 824

Reference 845

LIST OF ABBREVIATIONS

1 PVC Polyvinyl Clorua

2 NAP National Action Plan

3 PET Polyethylene terephthalate

4 HDPE High density polyethylene

5 PVC Polyvinylchloride

6 LDPE Low-density polyethylene

8 EPR Principle of Extended Producers Responsibility

9 ICP Polypropylene Impact Copolymer

11 NGOs Non-governmental organizations

12 BBPB Bye Bye Plastic Bags

13

14

LIST OF FIGURES

Figure 1 Plastics life cycle 15

Figure 2 Types of Plastic 20

Figure 3 Annual plastic comsumption per capita (Kg) 29

Figure 4 Plastic consumption (per capita) is positively correlated with GDP growth rates 31

Figure 5 Compare traditional and modern plastic waste processing methods 34

Figure 6 Common Plastic waste Processing: Recycling 35

Figure 7 Share of plastic waste that is inadequately managed 37

Figure 8 Global Mismanaged plastic by region 38

Figure 9 The River of Plastics in Cambodia (NIkkei, 2018) 41

Figure 10 The man with massive piles of plastic in Munbai, India 43

Figure 11 Plastic consumption per capita (kg/person/Year) 48

Figure 12 Comsumption of Vietnam plastic market (Billion Ton) 50

Figure 13 Chain of plastic waste in Vietnam 56

INTRODUCTION

1 Rationale

In 2018, according to United Nations report, the current global production of plastics is over 300 million tons and in which 90% are not recycled Used plastic material that cumulates in the environment—particularly in rivers, lakes, and the oceans—seems like a problem that is at once too complicated and not important enough to fix Plastic waste harms the environment and poses threat to human health

Firstly, plastic bags, straws, disposable plastic cups, foam boxes and bottled water are mainly recycled from plastic products which contain toxic chemicals and affect to human health seriously: plasticizers, pigments, lead, cadmium etc will stop infecting food then be absorbed into the human body through use These materials cumulated for a long time resulting cancer, adversely affect brain development in children, tissue changes, chromosome changes, miscarriage, birth defects, hormonal changes and many other consequences for human health

Secondly, burning plastic and nylon wastes causes a threat to public health The more consumption demand increases sharply, the more quantity of plastic bags

as well as others plastic one are discharged into the environment Hence, waste management, refuse collection and disposal are not timely, this means that problem

is still very popular When we burn plastic material, a lot of harmful gases and toxic substances are discharged into environment including dioxins, furans that causes breathing difficulty, affects the endocrine glands, reduce immunity and dysfunction etc

In addition, plastic wastes causes negative impact on ecological environment: Although plastic bags and other plastic products are used in a short time and only then, thrown away, they have long decomposition that cause harmful effects for humane health, environment, and ecosystem on the earth According to the researchers, it takes from 500 to 1000 years for plastic bags to decompose in the natural environment Meanwhile, the amount of plastic waste discharged into the environment is very huge with nearly one third of plastic bags daily is not collected

and treated As a result, plastic waste and plastic bags are everywhere, causing heavy environmental pollution and creating conditions for diseases to multiply and develop

In the context of economic development and people’s changing patterns of consumption and production have led to a drastic increase in plastic wastes all over the world, the research aims to analysis the plastic products consumption trend to point out the plastic waste problem in Asia especially in Vietnam in recent years and give some solutions to resolves this matter

2 Literature review

In her doctoral dissertation, Thu (2018) explores the factors that influence customers' purchasing green products The thesis studies customers' intention to buy green products, especially related to food products with environmentally friendly packaging Our research focuses on packaged foods, especially packaged instant noodles, in the developing market The author said that it would be useful to focus on understanding the special relationship between the intention to buy the product and the willingness of customers to open their bags to buy environmentally friendly packaging Thu (2018) believes that people are more likely to buy green products if they consider themselves an environmentalist or an activist in environmental issues

Mui (2018) surveyed the current status of plastic waste and proposed limited solutions in Can Tho in her research

Loan (2013) researches the topic "Management of domestic solid waste in Quoc Oai district, Hanoi city" to limit the level of environmental pollution caused by waste and reduce the cost of domestic solid waste management Accordingly, the majority of domestic waste in this locality is plastic waste and has not yet been treated The author proposes measures to improve waste pollution, including increasing resources and budget for waste management in general and plastic waste

in particular At the same time, the ministries from the city to the commune need to develop specific action plans according to the goals set by the state and the city government

Thuy et el (2015) delves into Polyethylene terephthalate (PET), one of the

most popular materials that is widely used in many fields with a very fast growth rate Research shows that the level of PET plastic consumption is increasing The annual amount of PET waste discharged into the environment is very large Thuy et el (2015) explored PET recycling methods as well as the possibilities and scope of the recycled PET application and proposed the application of recycling technology or reuse of waste PET plastic to contribute to prevent prevent environmental pollution, and limit the ability to exploit resources

The rapid urbanization and economic growth in different countries have led to

a drastic increase in plastic production and consumption around the globe Owing to the low recycling value of plastic and the lack of technological support, the recovery rate of plastic waste remains very low Most of it is washed into the ocean, disposed

of in landfills, or burned in incinerators These enormous amounts of plastic waste bring disastrous consequences, such as pollution, food chain con-tamination, biodiversity breakdowns, energy waste, and economic loss

There have been a lot of studies on plastic waste, the serious problems that plastic waste causes to the living environment and solutions to solve the above problem Chow (2017) studied Plastic Waste Problem and Education for Plastic Waste Management This research points to a dramatic increase in worldwide plastic waste and the disposal of plastic waste that is harmful to the environment and threatening human health Chow (2017) emphasizes that in order to reduce plastic waste, education is extremely important because education can change people: Knowledge, attitude and behavior towards plastic waste management Fobil (2006) studies plastic wastes in a developing economy and offers an approach for Ghana Accordingly, this study shows that the packaging revolution in Ghana has not been adequately supported by the appropriate plastic waste management policy, causing cities to be flooded with plastic waste; thus, creating visual disturbances and other public health problems The paper discusses the experiences, challenges and prospects of plastic waste management programs in Ghana and proposes a new tax model that addresses this environmental problem The author promotes a long-term remedy such as a polluted tax system that is handled carefully

Research by Purwoko (2016) suggests that the current development of plastic technology has found that environmentally friendly plastics, in particular, biodegradable plastics can decompose in a shorter period of time Technological improvements are still ongoing, but biodegradable plastics are more expensive than non-biodegradable plastics People tend to choose inexpensive, non-biodegradable plastics and avoid expensive biodegradable plastics Purwoko's study (2016) provides

a fiscal policy alternative to reduce the amount of plastic waste This study concludes that a combination of incentive and disrespectful fiscal policies can be applied to reduce the amount of plastic waste Financial incentives (subsidies) may be applied

to increase the use of biodegradable plastics and policies that are not financially appropriate can be applied to reduce the use of non-biodegradable plastics without causing burden for the government

In Vietnam, there was a study by Linh et al (2019) on factors affecting consumer behavior This study analyzed factors affecting consumers, behavioral intent to reduce plastic waste The results have been confirmed that an attitude of acceptance of a change in an individual's ability to reduce plastic waste Based on these findings, the author has made a number of recommendations that have been proposed to enhance individual consumer behavioral intent to reduce plastic waste

These plastic waste problems and adverse effects are especially serious and omnipresent in renowned countries/mega cites such as Japan (PWMI,2014), Taiwan (Walther,2015), the UK (GHK,2006; Howarth,2013), and Hong Kong (Environmental Protection Department,2013), where economic activities are flourishing and the plastic consumption level is high Plastic waste not only causes air pollution (Li, Lee, Mi, & Su,1995), land pollution (Barnes, Galgani, Thompson,

& Barlaz,2009;Steelys Drinkware,2013), and harms human health (Crinnion,2010; Elliott et al.,1996; Maffini, Rubin, Sonnenschein, & Soto,2006; Yamamoto & Yasuhara,1999),but it also causes water pollution (Howarth,2013; Laist,1987; Perkins,2014;Schwartz,2014; Zielinski,2014) and contaminates the food chain (Rochman et al.,2014; Swan,2008; Thompson, Moore, Saal, & Swan,2009), endangers biodiversity (Derraik, 002; Grant & Ryder, 2009; Gregory, 2009;

McNamee,2008), and causes enormous energy waste (Cho,2012; European Commission,2013; HongKong Cleanup,2012; StudyMode,2015; Themelis & Mussche,2014)

In general, studies have addressed the problem of plastic waste in many countries around the world and Asia, many solutions have been implemented and many experiences have been drawn However, a full study of solutions that countries and businesses have applied and specific lessons for Vietnam to reduce the problem

of plastic waste has not been fully studied, especially one overall solution for plastic waste reduction planning and effective implementation of recycling industry

3 Researchquestions

The thesis will address the following research questions:

(1) What are the current consumption trends of plastic products?

(2) What are the basic issues facing Asia and Vietnam regarding plastic waste and What experiences are drawn?

(3) What is the solution to the problems of plastic waste in Asia in general and

in Vietnam in particular?

4 Methodologies

This study was conducted by the following method Firstly, I conduct the research by giving an overview of the plastic industry in the world and Vietnam from raw materials, production technology, applications of plastic and actual consumption

of products On that basis, the study reviews the research done on plastic pollution in Asia as well as in Vietnam The thesis is mainly based on secondary statistics data from the WorldBank, the statements of the governments of the countries, the annual reports of the major plastic companies in the world and Vietnam and the research works, reputable articles and newspaper in the plastic industry and related Secondly, with a qualitative approach, the research shows that the solutions have been applied

in the world and countries around the region with similar conditions to Vietnam, identifying the main factors affecting the waste plastic waste problem, identify the

main problems of plastic waste in Asia and Vietnam, and also based on trends, demand for plastic products in the present and future

In addition, statistical and selective methods are also applied when this study provides a set of experiences and solutions that countries and businesses have applied

in solving plastic waste problems and implementationsuitable solutions to effectively apply in Vietnam

5 Structure of the thesis

The thesis will focus on analyzing the main characteristics of the plastic industry, the main problem related to plastic waste that Asia and Vietnam are facing and overcoming shortcomings in waste reduction solutions in other countries, and businesses in the world, to apply reasonably in Vietnam In addition to the introduction focused on reviewing development history and theoretical studies on plastic waste, the thesis will be divided into four chapters

Chapter 1 will be dedicated to give a general overview of the plastic industry

as well as in Asia and Vietnam Chapter 1 shows that the plastics industry is a standing industry with many important life benefits and is still growing strongly in Asia, especially in developing countries We can only reduce plastic waste and not completely eliminate it from life Chapter 1 also focuses on the plastic comsumption trend and plastic waste problems in general

long-Chapter 2 presents the plastic comsumption trend and the most serious problems related to plastic waste in Asia The problems with plastic waste are essentially the same and every country must go through the same stages when faced with the problem of plastic waste The thesis also mentions the trend of plastic consumption in recent years and plastic waste disposal process in Asia

Chapter 3 presents the plastic comsumption trend and the most serious problems related to plastic waste in Vietnam Chapter 3 also mentions the trend of plastic consumption, main application demand for eco friendly plastic products in recent years and plastic waste disposal process in Vietnam

Chapter 4 focuses on the situation and experience on solving plastic waste problems in Asia and Vietnam - the region where the proportion of plastic use per capita is still low, but it is the hottest point about plastic waste This chapter also details solutions that have been implemented ineffectively, inadequacies in waste treatment and plastic waste recycling.Chapter 4 also is suitable to real conditions and conditions to solve the problem of plastic waste in Vietnam, including a total solution with the participation of all stakeholders in the plastic value chain.

Chapter 1: Overview of plastic products consumption and plastic waste

problem 1.1 Overview of plastic sector

The value chain of the plastic industry from fossil raw materials to the final plastic products consists of two segments: upstream and downstream Crude oil is the raw material for the most diverse output structure while natural gas is the advantageous material when producing PE Each type of input material will produce

a different output composition structure The product from natural gas is about 80%, Ethylene is a direct derivative of PolyEthylene, so PE production areas from natural gas often have advantages in production costs (Plastics Europe, 2018)

Source: Plastics Europe

According to Figure 1, more than 90% of raw plastic is produced from fossil fuels (oil or natural gas) The polymers are synthesized by large petrochemical companies such as ExxonMobil, Sinopec and Total The plastic is then sold to plastic manufacturers for making objects, primarily by spraying, blow molding or thermoforming, and assembled or sold directly by the brand owners

The price of plastic material output will depend on supply and demand of the world market and production costs In the global plastic raw material market, there are many suppliers and the consumer market is also the world market, so the price of plastic raw materials output will depend on the supply and demand of the market In addition, because the cost of raw materials accounts for 70% of the cost of producing plastic materials, the fluctuations of fossil raw materials such as crude oil, natural gas

or coal will also affect the prices of plastic material type

The downstream segment of the plastic industry is the process of plastic materials used by manufacturers to form plastic products.The downstream segment

of the plastic industry uses plastic granules as input, through physical transformation and shaping of materials to create plastic products The downstream segment of the plastic industry is divided into 4 main segments corresponding to 4 output products: packaging plastic, construction plastic, civil plastic and engineering plastic Each small segment of the downstream segment has different input and output characteristics

Asia countries

China is the region with the largest production of plastic materials in the world Advantage of input materials such as natural gas for West Asia or coal with China, make the petrochemical industry in these areas extremely developed and plays a very important role in the value chain of the Asia plastic industry In the period of 2012 -

2017, the production of plastic materials in Asia increased continuously while production in developed regions entered the saturation stage

Asia demand for plastic materials is expected to grow slowly from 2017 According to Nexant's prediction, demand for plastic materials only grows an average

of 3.8% per year in the period of 2017-2025 Plastic manufacturing has only grown

at an average rate of 4% over the past 20 years.So China and Asia are the main growth drivers of the global plastic industry The growth rate of demand for plastic materials from China and the rest of Asia are forecasted to be 4.95% and 4.57%, respectively, higher than the world average The reason is, Asia is the region with high economic growth and plastic consumption per capita is still low compared to the world average

In addition, the Middle East is also a region with high growth in demand for plastic materials with a growth rate of 4.46% for the period of 2017 – 2025 (Plastics Europe, 2018)

China is also the world's largest producer of plastic materials but also leads the world in importing plastic materials The reason for this is that China is the region with the largest amount of plastic material consumed in the world According to EuroMap estimates, the amount of plastic materials produced in China meets 80% of domestic raw material demand while the remaining 20% depends on imports.Saudi Arabia is other major exporters of plastic materials due to their cost advantage Saudi Arabia is one of the world's two largest countries with annual reserves and reserves

of natural gas According to statistics from BP, natural gas reserves in the Saudi Arabia are 8.6 trillion cubic meters, accounting for about 4% of global natural gas reserves Saudi Arabia production in 2017 was 734.5 billion cubic meters, accounting for 20% of global natural gas production and Saudi Arabia was 111.4 billion cubic meters, accounting for about 3% of the world's output The advantage of natural gas makes Saudi Arabia became one of regions with advantages in manufacturing and exporting plastic materials, especially PE, in Asia and the world market (Plastics Europe, 2018)

Plastic sector in Vietnam

In Vietnam, According to Virac (2018), plastic industry is one of the industries with relatively fast growth compared to the economy in general In the period from

2012 to 2017, Vietnam's plastic industry grew on average 11.6% a year faster than the world plastic industry's 3.9% growth and faster than the average GDP growth of

about 6.2% of Vietnam in the same period The output of Vietnam's plastic industry

is applied in many different fields from consumer, trade to construction, assembly and is divided into four main areas: plastic packaging products, civil plastic, construction plastic and engineering plastic

The scale of the plastic industry in 2017 is estimated at US $ 15 billion, equivalent to about 6.7% of Vietnam's GDP in 2017 Of which, the largest proportion

is the packaging and construction plastic segment In addition to serving domestic demand, Vietnam's plastic industry is currently available in more than 160 countries around the world with an estimated export turnover of US $ 2.5 billion in 2017, up 14.3% Compared to 2016 and accounting for 1.2% of Vietnam's total export turnover

in 2017 Within the scope of this report, we will focus on the two largest segments in the output structure of the plastic industry, the plastic packaging segment and construction plastic

In 2017, Vietnam's plastic industry consumed about 5.9 million tons of plastic raw materials, equivalent to the average plastic consumption per capita at 63 kg / person / year This rate of Vietnam in 1990 was only 3.8 kg / person / year; Thus, between 1990 and 2017, Vietnam's plastic consumption per capita grew by an average

of 10.6% per year

Vietnam's primary plastic materials still depend heavily on imported raw materials In the period of 2018-2021, petrochemical projects that have been put into operation will significantly improve Vietnam's primary plastic raw material production capacity However, with the current size and growth rate of the downstream of the plastic industry, the supply of plastic materials is still insufficient

to meet domestic demand

Growth in plastics industry is expected to maintain at an average rate of 6.5%

in the period of 2019 - 2023 The two largest segments of Vietnam's plastic industry value structure are plastic packaging and construction plastic Construction is expected to be the main growth engine of the industry (Virac, 2018)

Plastic material prices maintained a downward trend in the short term and were

more stable in the medium term In the short term, prices of raw materials such as PE,

PP and PVC are tending to decrease in the same period In the medium term, prices

of plastic raw materials are expected to be more stable due to the global supply and demand of plastic raw materials

1.2 Plastic production

1.2.1 Definition and classification of plastics

Firstly, flexible materials are organic compounds that are able to change shape under the influence of heat or pressure and retain that deformation at the end of the process Flexible materials are durable, lightweight and hard, come in a variety of colors Plastic materials are divided into 2 large groups: Plastic and Elastomers (such

as rubber, silicon) and within the scope of this report we will focus on plastic materials

Secondly, plastic material is not only a homogeneous material but also includes many types of ceramic with different properties and specific applicability Plastic materials are organic compounds derived from fossil fuels such as petroleum, natural gas and coal or derived from biological materials, typically corn starch, potatoes, cassava

Finally, plastic materials derived from fossil fuels or from biological materials are both recyclable to complete a plastic product's circulation Currently, mainly plastic materials used in the world are derived from fossil raw materials

Classification of plastic materials:

Thermoplastic is a plastic material when heated to melting point, will change its physical shape and retain its shape when temperature decreases This process can

be applied repeatedly, making thermoplastics a highly renewable material Some common thermoplastics (Figure 2) are PolyEthylene (PE) and derivatives (HDPE, LDPE and LLDPE), PolyPropylene (PP), PolyStyren (PS), PolyVinyl Chloride (PVC), etc

F IGURE 2T YPES OF P LASTIC

Thermoset resins: A type of plastic material that, when heated to a certain temperature, will change both its physical shape and its chemical properties to create

a three-dimensional structure that cannot be melted again Therefore thermoset plastics are not able to regenerate Some popular thermoset resins are Epoxy, Vinyl Este, Melamine, PolyUrethane,

Thermoplastics have flexible properties, good regenerability and relatively cheaper production costs than thermosets and other types of flexible materials Thermoplastics account for about 75% of the global plastic consumption structure

The most commonly used thermoplastics are PE, PP, PVC and PET In global consumption structure of plastic materials in 2017, PE (with derivatives of HDPE, LDPE, LLDPE) and PP accounted for the highest proportion with 28% and 20%, respectively Ranked third in the consumption structure is PVC with 12%

Plastic production technologies include Extrusion Blow Molding Technology, Injection Molding Technology and Extrusion Molding Technology

Blowing technology is a common technology used to produce plastic bags, complex film packaging and plastic bottles serving the packaging of food, beverage

or food processing industries Used directly in the system of retailers and supermarkets

Injection molding technology is a technology commonly used to produce most plastic products in molds in large quantities The injection molding technology is mainly applied to the production of household plastic products such as pots, plastic containers, etc and technical plastic components for manufacturing and assembly industries

Other than the above 2 methods, extrusion technology is used to produce building plastic products such as plastics pipes, plastic door profile bars or plastic films used in agriculture In addition to the common technologies and widely used in the plastic industry mentioned above, currently 3D printing technology is also a technology that produces plastic products and components with extremely high accuracy but not yet widely applied in mass production

1.2.2 Plastics product consumption

The plastic industry has now entered a saturated phase with the growth rate of production output and consumption gradually decreasing to around 4% from 2013 -

2017 Plastic consumption index per capita of regions such as NAFTA or Japan are all higher than the average of 200-300% compared to the world average of 45kg / person / year with an average growth rate of about 3% / year Plastic production and demand in Asia have been steadily increasing since 1950 and there has been no sign

of decline due to the benefits of plastic (Meidl, 2018)

However, the plastic and packaging industry is booming in other countries in Asia - including China - because of rising incomes and consumption, which boosts demand across the region In addition, population growth, urbanization and lifestyle changes will boost demand for plastic packaging even further

China has led the region in increasing plastic production over the past six decades and accounts for more than 20% of global plastic production Southeast Asia accounts for 20% of global production Thus China and Southeast Asia alone account for 40% of global plastic production

Of the 10 members of the Association of Southeast Asian Nations (ASEAN), plastic and plastic products brought the region nearly $ 40 billion in export revenue

in 2013

Plastic material production structure is trending to shift to Asia and especially China The reason is that the plastic industry in two regions, Europe and North America, has entered the saturation phase with a high rate of plastic consumption per capita Meanwhile, Asia is a region with low plastic consumption per capita and a high growth rate of plastic demand

Asia and China are expected to be areas with fast growth in demand for plastic products in the future The growth potential of demand for plastic products in Asia is huge when the economic growth rate of countries in the region is high and the economic structure is also shifting to industries Many industries use plastic products such as automotive and electrical - electronics industries

Environmentally friendly factors are gradually becoming an essential criterion

in the consumption trend of developed markets' products Therefore, converting production into good biodegradable plastic products is an inevitable trend of the global plastic industry

1.3 Plastic waste

According to Waste Management Series (2004), plastic waste is ground, washed and stirred giving it an aqueous suspension, which is separated by three consecutive centrifuges Plastic pollution is the accumulation of plastic products in the environment including soil and oceans, adversely affecting wildlife, wildlife habitats and humans Plastic waste includes disposable plastic products such as plastic bags, plastic bottles, plastic straws, and other plastic products

There are many ways to classify plastic waste such as relying on polluting plastic waste including soil and oceans Plastic waste can also be sorted by recyclable and non-recyclable In addition, plastic waste can be sorted based on the source generated such as from households, from manufacturing enterprises or from public places The most common classifications may be based on the different resins we use

including:

PET or Polyethylene terephthalate

This plastic beverage and perishable beverage packaging is plastic and is said

to be a safe and recyclable plastic by shredding and then reusing into other products such as bottles, rugs or furniture furniture and garments

HDPE or High-Density Polyethylene

This is another type of plastic that can be classified as safe We can find this plastic in baby shower bottles and baby toys HDPE does not lose shape or deteriorate under sunlight, so it is used for outdoor furniture and trash

PVC or Polyvinyl Chloride

It is a form of plastic that can be used for pipes, windows and various types of medical devices and is used in applications that require plastic to bend, including plastic wrap and cables This type of plastic, called toxic plastic, should not be used for food or drinks because it contains toxic chemicals There is a link between these chemicals and liver disease and developmental problems in children

LDPE or low-density polyethylene

This safe and clean plastic is popular in a number of items including plastic shopping bags and squeezable bottles After recycling, we can reuse it in items like bubble wrap and even furniture

PP or Polypropylene

This type of plastic is known for its durability and safety for use in items such

as Tupperware plastic containers and even medicine bottles

PS or Polystyrene

Polystyrene is a familiar plastic used to protect around packaged items, it is also used as insulation and in cups Because this is a weak plastic, it is very fragile and spreads easily through the environment, making it very difficult to recycle

Other plastic

Other types of items that can be difficult to recycle include sunglasses, bottles and even CDs They contain BPA, a toxic chemical and can cause hormonal disruptions as well as a range of health problems

1.4 Plastic waste problem

Plastics are a petrochemical-based synthetic material used as a raw material in

a range of industries including textiles, packaging, household appliances, electricity and water, as well as automotive and aircraft manufacturing With only one-third of plastic materials recovered for recycling or reuse, most of them have been dumped into the sea and oceans causing serious problems Most marine debris is plastic and

it takes more than 400 years for them to decompose or biodegrade to harm over 200 different marine species and human health Many animals have accidentally ingested plastic debris, resulting in suffocation, malnutrition and even death Originally manufactured products found in textiles or cosmetics and personal care products, etc., are difficult to find and recover because they are the result of larger pieces of plastic being broken into smaller pieces Plastic debris often contains toxic chemicals including unburnt compounds that cause tens of billions of dollars in annual damage

to coastal cleanup, fisheries, maritime transport and tourism (UNEP, 2014)

With 242 million tons of plastic waste generated by the world in 2016 (World Bank 2018), the World Bank believes that the accumulation of plastic waste in recent decades has actually had a negative impact on the surrounding environment and human health In addition to taking hundreds to thousands of years to disintegrate in nature, plastic waste can cause floods due to sewage clogging, shortening the life span

of animals when consumed, causing respiratory illness when burning, and polluting the bodies of water when they fall into canals and oceans By 2050, there will be more plastic in the ocean than fish (by weight) if there is no effective solution When plastic waste is poorly managed by a country / business, they enter the environment through dumping, landfill and disposal by water According to statistics, more than 25% of plastic waste is dumped openly and plastic waste is also increasing due to improperly

managed official disposal sites Even when garbage is collected collectively, many countries lack waste treatment capabilities and technologies Many developed countries have policies to export plastic waste to less developed countries such as Europe exported 1/6 of the quality of plastic waste to Asia in 2017 (World Bank, 2018)

Plastic waste has become a major global concern Plastic production and consumption worldwide have increased by 10% per year from 5 million tons in 1950

to 245 million tons in 2006 A study by Howarth (2013) suggests that consumers are still not easily to recycle their plastic waste It is also unclear for many types of plastic accepted for recycling Some of these plastics must be taken to recycling centers, but PVC is completely non-recyclable

There is also a large amount of plastic that is ultimately not recycled or sent to landfills, but ultimately pollutes the natural environment For example, in the Pacific, due to the current, a large amount of plastic and other waste materials have formed gradually, not even easily seen because the plastic has decomposed into small and attractive polymers Chlorinated dioxins are eaten by marine organisms Accordingly, these substances can penetrate the human food chain and cause serious health problems (Howarth, 2013) Michael (2015) also argues that plastic waste escaping disposal in a recycling, incineration or landfill facility is likely to reach oceans Most

of the dominant plastics, such as polyethylene and polypropylene, float to the ocean Michael (2015) also argues that the results of studies so far show that different types

of plastic materials differ in their tendency to carry pollutants The most widely used polymer: polyethylene is particularly susceptible to organic molecules from seawater and acts as carriers to feed them into the food web, although theoretically, the particles are buried in sediment thus can remove pollutants from circulation Therefore, the problem of plastic waste affects not only the environment but also human health So, many companies are trying to replace oil-based chemicals currently used in production with a lignin-derived chemical Lignin is a complex hydrocarbon found in the cell walls of plants and is widely available because it is a waste product from the pulp and paper industry This research makes plastics not only

more environmentally friendly, but also reduces production costs (Howarth, 2013)

Steelys (2013) in the study referred to the global landfill crisis, which is mainly caused by plastic waste The environmental issues caused by landfills are numerous with the scope of our global garbage crisis that may exceed the challenges we are currently facing Billions of tons of waste sent to landfills are creating serious problems for future generations with most of this landfill being plastic or polystyrene oil These substances are used to produce bottles, mugs and containers, contain toxins and decompose at a very slow rate (1,000 years or more) and contain many toxins Research shows that plastic containers account for nearly 50% of recyclable landfill waste and currently only recycle about 27% of plastic bottles and the rest mostly goes

to landfills or is discharged into the environment

In a recent simulation, Marcus Eriksen from the Five Gyres Institute in Los Angeles, USA estimated that there are 5.25 trillion plastic items weighing more than 268,000 tons floating in the ocean Researchers have put these data sets into computer models and the specific results of this model research have surprised and motivated further research Although the sources of plastic waste are thought to, including densely populated lands and transport routes, are more concentrated in the north than

in the southern hemisphere, data show that plastic accumulates in the north and south hemisphere are the same The authors speculate that removal mechanisms, such as leaching on beaches, help limit the density of floating plastic debris in the north However, the comprehensive model of global plastic distribution in the oceans still has many unanswered questions, especially about the interaction of plastics with living organisms (Michael, 2015)

The development of biodegradable plastics or microorganisms suitable for plastic decomposition will be the best strategy for plastic waste In Manoj et al (2016), six different types of starch resins (low density polyethylene [LDPE], 10%, 20% 30%, 40% and 50% LDPE starch) to be evaluated price of biodegradation of various types of encapsulated resins in soil environments containing microbial collections to enhance biodegradation Accordingly, soil degradation increases with increasing

starch content in LDPE and the best results are obtained in starch containing samples

by more than 30% At the same time degradation in soil is better than compost Thus, with an appropriate environment, plastic materials have better decomposition capacity and contribute to solving the problem of plastic waste (Michael, 2015)

Chapter 2: Plastic product consumption trend and plastic waste problem in

Asia 2.1 Plastic product consumption trend in Asia

2.1.1 Overview of plastic product consumption trend and main applications in

Asia

Overview of plastic product consumption trend

According APME (2019) Asia and China are expected to be areas with fast growth in demand for plastic products in the future Asia has a low plastic consumption per capita compared to other regions and the world average Therefore, the growth potential of demand for plastic products in Asia is huge when the economic growth rate of countries in Asia is high and the economic structure is changing and transit into industries that use a lot of plastic products such as the automotive and electrical - electronics industries

Figure 3 shows that plastic consumption per capita of typical Asian countries such as Korea and China is much lower than that of Europe or the US despite having

a strong growth in the years from 2009 to 2019 , even China's plastic consumption per capita is only 1/4 of Belgium and 1/3 of the US

F IGURE 3A NNUALPLASTIC COMSUMPTION PER CAPITA (K G )

Source: Association of Plastics Manufacturers in Europe (APME)

Economics Review

By 2030, Asia may account for more than half of world consumption Population growth, increasing demand and overall economic progress have led to the abuse and abuse of resources and the explosion of solid waste, especially disposable plastic According to a 2015 study, although ASEAN member states have low per capita plastic consumption, they account for six of the top 20 countries ranked by the size of the mis-treated plastic waste (Pat, 2020)

Packaging is the main product accounting for most of the demand for plastic, accounting for 40% of the world's demand Consumer and household products (such

as appliances, toys, plastic cutlery and furniture) occupy the next most important segment, closely followed by the construction and construction sectors Accordingly, plastic production is shifting to Asia In 2013, the region produced 45.6% of global plastics product, China alone has produced nearly a quarter of the world's plastic and surpassed Europe’s in plastics since 2010 With population and growth of manufacturing industries, Asia has recently witnessed a strong growth in plastic production and consumption (Gaelle, 2015)

The booming packaging and plastic industry in Asia is being fueled by rising incomes and increased consumption, which will increase the demand for plastics across the region In fact, Asia's consumption is still lower than the world average in

2015 and far below the developed regions in the world such as the US or Europe China has led the region in increasing plastic production over the past six decades to account for over 20% of global plastic production Southeast Asia accounts for 20%

of global production, of which Vietnam has achieved an average growth of 18% in the plastics industry, with a large share of exports

A growth rate in plastic production also leads to increasing plastic consumption in Asia Thailand is the regional leader in plastic consumption per capita

at 40 kg, Malaysia reports 35 kg per person and Indonesia is 17 kg per year This level of consumption is still very low compared to the world average (Engoo, 2017)

F IGURE 4 P LASTIC CONSUMPTION ( PER CAPITA ) IS POSITIVELY CORRELATED

Source: UNCRD 2019

In Figure 4, plastic consumption (per capita) is positively correlated with regional and regional GDP growth rates (Choudhury et al, 2019) In which, south and southeast of Asia play a leading role in growth and determine the plastic consumption trend of the whole Asia Based on the picture above, Korea Repubic, Japan, China, Thailand and Maylaysia have a clear correlation between plastic consumption and GDP, and these are also countries with high per capita demand Thus, along with the high GDP growth rate of the region, especially Southeast Asia, the actual plastic consumption trend will continue to grow in the coming years

In addition, the main trend of plastic consumption is the increasing trend of plastic consumption in the packaging field, which accounts for 40-50% of total plastic consumption This trend is also consistent with the region's rapid economic development

Consumption of plastic by value grows slightly faster than total plastics when ICP (Polypropylene Impact Copolymer) triples Although conductive plastic is a small market, ICP is an emerging market, but it is very promising and tends to grow strongly in the near future ICP is one of several new solutions for mass-produced or specific devices such as transparent electronics, transparent conductive films and PV (Michel, 2013)

In short, the Asia plastic industry and especially ASEAN is expected to expand greatly both domestically and internationally in the coming years and potentially bring important opportunities for foreign investors In addition, twelve countries including the United States, Australia, Vietnam, Malaysia, Japan and Canada have adopted the Trans-Pacific Trade Agreement (TPP) Under TPP, trade rules between member countries will be liberalized to enhance economic relations With the development of ASEAN countries, consumer base, expanding import and export plastic market and expanding foreign trade power, ASEAN ASEAN plastic industry offers foreign investors an important opportunity to penetrate the Asian plastic market In particular, Thailand focused on developing the bioplastics industry that promises to offer foreign investors greater opportunities in the ASEAN plastic market In recent years, the Thai government of Thailand has continued to promote environmentally friendly plastic manufacturing companies and paid great attention to reducing plastic waste in the region and the Thailand bioplastics market is relatively new and open to foreign investors, providing more access to foreign investors while the remaining countries mainly focus on manufacturing domestically produced plastics (Dezan, 2015)

Main application plastic products in Asia

According to a report by Grand View Research (2019), Asian markets will

continue to consume more strongly in products in the construction industry and auto mobiles with the most global growth In which China and India are leading countries

in the consumption of plastic products, especially with plastic products using materials that are easy to design and flexible Construction plastic is popular with pipe products and door designs

In addition, in Asia, the use of plastic bags has become more and more widespread, including food and beverage products, personal care products, family care products, and electronic devices

2.1.2 Increasing demand for eco friendly plastic product trend

Facing the problem overload of plastic waste, countries around the world are gradually pushing to limit the use of plastic packaging and especially disposable packaging to minimize the amount of plastic waste released into the environment The main measures are to ban part or all of the use of packaging, and economic measures related to taxes or fines The consumption of many plastic packaging products such as the EU, US, and China in order to limit the use of disposable plastic packaging will greatly affect the global plastic packaging segment In the trend of consuming eco-friendly products, biodegradable plastic products are preferred products to replace traditional plastic products Total production capacity of global biodegradable plastic materials in 2018 reached 2.1 million tons / year, of which biodegradable plastic accounted for 1.2 million tons and bioplastics accounted for 0.9 tons According to the European Bioplastics forecast, total production capacity of biodegradable plastic materials in 2023 is estimated at 2.6 million tons / year, equivalent to an average growth of 4.4% a year in the period of 2018-2023

The downward trend in the consumption of disposable plastic products because many countries issued a ban on use, the world gradually shifted to consumption of green, environmentally friendly packaging products

The trend of shifting to eco friendly plastic products is gradually becoming an essential criterion in the consumption trends of developed markets Therefore, converting production into products with good biodegradability is an inevitable trend

of the global plastic industry Along with above trend, global plastic material production structure is trending to shift to Asia and especially China (Grand View Research, 2019)

2.2 Plastic waste disposal process in Asia

The system for recycling plastic waste can help local industries grow and recover value from recycled materials In the absence of recycling, restoring energy from plastic waste is the only revenue generating possibility However, plastic waste recycling systems are more complex than traditional waste treatment systems with separate machinery and processes (Figure 5), resulting in higher waste management costs Plastic manufacturers and consumers often have to pay this additional cost through EPR (Woldemar, 2019)

METHODS

Source: Woldemar 2019

F IGURE 6 C OMMON P LASTIC WASTE P ROCESSING : R ECYCLING

Source: FOST Plus 2015

In Figure 6, a closed cycle of the process of civil plastic waste begins with the consumption of products made from plastic These products generate plastic waste and are collected by the plastic waste collection system In developed countries such

as Japan, South Korea, Taiwan, the system of waste bins and transport is well arranged so the proportion of plastic waste collected is often high but in less developed countries, garbage Plastic waste is usually collected at landfills or cannot

be recovered because plastic waste is not included in the treatment cycle The classification of plastic waste is done manually or automatically depending on the conditions in each country in Asia, but the manual implementation still accounts for

a large proportion After being sorted, the plastic waste is closed in packages and transported to the crushing and washing plant to remove impurities before being transferred to recycling systems to create suitable materials These semi-finite products will be shipped to factories to produce end products and market them

2.3 Plastic waste problem in Asia

The majority of plastic waste in Asia has not been processed (in the figure 7 below on ¾ of Asia's regions, over 60% of plastic waste is inadequately managed) Aside from the least developed country in Africa, Asia is the worst plastic waste management region in the world Countries with high rates of inadequately managed plastic waste include China and most of Southeast Asia, which are also the region with the highest economic growth rate in the world (Jambeck et al, 2018)

F IGURE 7 S HARE OF PLASTIC WASTE THAT IS INADEQUATELY MANAGED

Source: Jambeck et al 2018

Asia has achieved the fastest economic growth rate in the world and plastic production has exploded accordingly However, the waste management capacity has not kept up with the consumption rate and caused serious problems while the application of plastic is still needed due to the convenience factor.In fact, the

Americas and Europe use more plastic per capita than people in Asia but their ability

to recycle and treat waste is often more efficient so they don't have serious environmental and public health problems (Dominic, 2018) As for plastic waste, Asia is the region with the most serious problems According to Figure 7 and 8, the source of unmanaged plastic waste comes mainly from Asia with China, Indonesia, the Philippines, Vietnam and Sri Lanka (where the amount of mishandled plastic waste is measured by the amount of uncontrolled or incomplete disposal of plastics Asian countries, especially Southeast Asia, have become landfills for richer countries, the amount of plastic waste imported into countries such as the Philippines, Malaysia and Indonesia more than doubled, following the waste plastics ban of China in 2017 Figure 8 below shows that Asia accounts for 70% of unmanaged/ mismanaged plastic waste worldwide

Source:Jambeck et al 2018

Why Asia has not achieved better results in reducing plastic waste?

Firstly, efforts to reduce the amount of plastic consumed seem to be ineffective because the disposable plastic has been used too much in everyday life In addition