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Norfund, the Norwegian investment fund for developing countries, announced on February 10 that it has completed a $4 million equity investment in Circular Plastics Company (CPC) to support the scaling of industrial polyethylene terephthalate (PET) recycling in Vietnam. The funding will finance capital expenditure and working capital for CPC Vietnam’s recycling plant outside Ho Chi Minh City.
CPC produces recycled PET flakes and food-grade rPET pellets for the domestic Vietnamese market and export to European markets. Demand for recycled PET is rising as manufacturers seek to reduce emissions and increase recycled content in their products.
In the 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,” said Åsmund Aukrust, the Norwegian Minister of International Development.
CPC launched its first recycling operations in Southeast 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 tonnes of recycled PET flakes and 14,000 MT of food‑grade rPET pellets.
Vegard Benterud, investment director at Norfund, said, “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,”
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 carbon 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,” Ruby La, CEO of CPC Vietnam said.
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 economic growth, industrial development, and job creation”, says Nicholas Powell, chairman of CPC Singapore.
