Norfund, the Norwegian government’s fund for developing countries, has concluded a $4 million equity investment in Circular Plastics Company (CPC), a PET recycling company, according to an announcement.
The investment, which is made through the firm’s Singapore holding company (Circular Plastics International), will finance capex and working capital for CPC Vietnam’s plant outside Ho Chi Minh City.
CPC produces recycled PET flakes and food‑grade rPET pellets for both the domestic market and export to European markets. The company launched its recycling operations in SE Asia in 2019.
Since 2023, the group has been building a presence in Vietnam. Its first recycling plant in southern Vietnam has an annual capacity of 31,000 metric tonne recycled PET flakes and 14,000 metric tonne food‑grade rPET pellets.
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 the 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.
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.
Last year, Norfund invested $30 million in Vietnam-based Southeast Asia Commercial Bank (SeABank) through a convertible loan. The loan can be converted into common shares of SeABank within a four-year term, the Vietnamese lender said in a statement.
In Southeast Asia, Norway’s development financial institution is planning to allocate close to $500 million to Southeast Asia from its climate fund, a top executive told DealStreetAsia in July last year.
