IFC to finance SK leaveo’s biodegradable materials expansion in Vietnam

IFC to finance SK leaveo’s biodegradable materials expansion in Vietnam

The World Bank Group's International Finance Corporation (IFC) is considering a $70 million financing package to help South Korea’s SK leaveo expand the production of biodegradable materials in Vietnam.

Proceeds from the proposed IFC investment will be used to support SK leaveo in constructing biodegradable material production facilities worth $500 million in Haiphong.

The Vietnam-based facility is part of SK leaveo's strategy to tap into the rising demand for eco-friendly packaging solutions. The venture will increase value addition and manufacturing complexity in the plastic packaging sector, as well as creating direct and indirect jobs in the region.

The proposed investment will contribute to reducing landfill waste and greenhouse gas emissions, in line with the sustainable development goals. At the market level, the venture will contribute to enhancing Vietnam’s competitiveness in the global bioplastics market through increased export of biodegradable materials.

SK leaveo Co., Ltd. is a subsidiary of SKC Co., Ltd. Headquartered in Suwon-si, Gyeonggi-do, South Korea, SKC is a holding company, and its subsidiaries are engaged in the businesses of semiconductors, chemicals, and materials. Other shareholders of SK leaveo include Daesang Corporation and TBM Co., Ltd.

According to FiinGroup, over 85 per cent of Vietnam's 500 fastest-growing companies have made or plan to make environmental, social, and governance commitments. Leading players in consumer goods, packaging, retail, and import industries have joined forces to promote a road map for a sustainable recycling process by 2030, creating strong demand for eco-friendly packaging.

Government initiatives, including extended producer responsibility regulations and eco-label criteria, along with brand-owner commitments, are driving shifts in packaging solutions and are expected to further accelerate demand for sustainable materials in the coming years.

VIR