Page 28 - Plastics News August 2020
P. 28
EU FTA to boost Vietnam's polymer imports Startup ZeLoop leverages cryptocurrency to
push plastics recovery
he EU-Vietnam free trade agreement (EVFTA) took
Teffect from 1 August, which is expected to remove ubai-based ZeLoop has developed an app that
Dinforms users of recycling options and rewards
nearly 99pc of customs duties for goods traded
them for bringing recyclables to those sites. The app is
between the two regions and increase Vietnam's
beginning with a focus on plastic bottles and plans to
polymers imports. Vietnam is a key importer of
roll out its platform to cover more materials in the
polymers, with estimated imports of 5.59mn t/yr of
future. Beyond the app, ZeLoop has developed a
polyethylene (PE), polypropylene (PP), polyethylene cryptocurrency system to support the rewards
terephthalate and polyvinyl chloride in 2018, program. Users will receive cryptocurrency for bringing
according to the Vietnam plastics association. materials to recycling collection sites, and ZeLoop aims
to bring in large consumer-facing businesses that will
allow consumers to use the currency for various goods
or services. Alberto Saavedra, U.S. manager for
ZeLoop, said the concept is built off the idea of
supporting a circular economy. But he takes that
concept further than the common buzzword – he looks
at it in economic terms. ZeLoop has several core
functions, beginning with informing users where to
recycle. Users can access a map detailing nearby
recycling locations, and they can also edit that map and
Vietnam's total exports to the EU are projected to
increase by 42.7pc in 2025, while EU-origin imports
into Vietnam are expected to rise rapidly with the
EVFTA, according to Vietnam's planning and
investment ministry. It is expected to boost Vietnam's
GDP this year, which is projected to reach just 2.7-
4.9pc as the Covid-19 crisis disrupts the global
economy. Vietnam's national assembly ratified the
EVFTA and an investment protection agreement on 8
June after nearly 10 years of negotiations. Vietnam will
remove 65pc of duties on EU-origin imports, while the
EU will remove 71pc of duties on Vietnam-origin
imports instantly. The remaining duties will be contribute to the location database, a service that will
gradually removed over a period of 10 and seven years also reward them with the cryptocurrency points.
respectively. Vietnam does not have any domestic PE Under the app rewards platform, a user would take a
production, making it fully dependent on imports. It load of plastic bottles to a drop-off recycling site and
has attracted new investment from Chinese use the app to take a photo while dropping the
converters, which have chosen Vietnam as their new recyclables off. ZeLoop then has a way of validating
that it is a legitimate recycling claim, using a
conversion hub to circumvent restrictive tariffs on US-
proprietary feature of the software, Saavedra said.
origin PE. The country also imports around 70pc of its Then, the user will receive compensation through a
domestic PP requirements. Its existing PP producers cryptocurrency similar to Bitcoin. Cryptocurrency
are Nghi Son Refinery and Petrochemicals that draws its value from its limited quantity. The Zeloop
produces 370,000 t/yr and Binh Son Refining and wants to work with packaging firms, recycling
Petrochemical that operates a 150,000 t/yr plant. companies, retailers and other industry stakeholders.
August 2020 26 Plastics News
