Plastic Recycling Company esa Selected for Vietnam Government Acceleration Program 'NIC Scale X'

esa Inc. (meaning: Environmental Solutions Architect; Headquarters: Chiyoda-ku, Tokyo; CEO: Shuko Kurokawa), which develops environmental businesses focusing on plastic recycling, announced that it has been selected for the government-backed acceleration program 'NIC Scale X' led by the Vietnam National Innovation Center (NIC).

In recent years, the growing concentration of manufacturing in the ASEAN region has increased the need for the resource circulation of industrial plastic waste generated from factories and supply chains.
In Vietnam particularly, the institutional and market frameworks for resource circulation—such as Extended Producer Responsibility (EPR), circular economy, ESG, traceability, and plastic credits—are beginning to take shape.

For esa, Vietnam is not merely a market to enter, but a crucial region to examine the feasibility of implementing 'Industrial Circularity'—a system to circulate plastic resources originating from the manufacturing industry back into materials.

Being selected for NIC Scale X marks a significant milestone for esa to deploy its material recycling technologies for mixed plastics and business development expertise cultivated in Japan to the ASEAN region.

## Background of Selection

- The Concentration of Manufacturing in ASEAN and the Need for Resource Circulation of Industrial Plastic Waste
Recently, Vietnam has increased its presence as a primary manufacturing hub under the 'China+1' strategy, seeing a concentration of diverse manufacturing industries such as packaging, electronic components, semiconductors, FMCG, and plastic processing.
Conversely, as manufacturing expands, the proper resource circulation of industrial plastic waste—such as plastic offcuts, mixed plastics, and packaging materials from factories and supply chains—will become an increasingly vital issue.

- Recycled Plastics: From ESG Materials to the Era of 'Resource Security'
Driven by situations in the Middle East, fluctuations in international energy prices, and instability in petrochemical supply chains, securing a stable supply of plastic raw materials has become a critical theme in corporate operations.
Recycled plastics are shifting their position from traditional 'eco-friendly materials' to 'strategic materials' that address resource procurement risks.
Their importance is growing from the perspectives of 'Resource Security' and 'Supply Chain Resilience,' which aim to mitigate raw material procurement risks by circulating resources within the supply chain.

Based on its mixed-plastic recycling technology, esa is working to improve the quality of recycled materials, develop new applications, and expand their adoption through partnerships with companies, local governments, research institutions, and overseas partners.
Through this program, the company will promote the construction of a new circular infrastructure connecting manufacturing and resource circulation in the ASEAN region, starting from Vietnam.

## Future Initiatives

Through participation in NIC Scale X, esa will accelerate its overseas strategy in the ASEAN region by driving the following initiatives:

1. Grasping Resource Circulation Needs in the ASEAN Region
By establishing touchpoints with manufacturing industries, industrial parks, packaging and molding companies, and material manufacturers in Vietnam, esa will identify the types, volumes, processing methods of locally generated plastic waste, and the demand for recycled materials.

2. Exploring Business Collaboration with Local Partners
Leveraging networks with NIC, MRI, UNDP-related initiatives, etc., esa will promote collaboration with local companies, government agencies, research institutions, and investors.

3. Studying the Construction of Industrial Resource Circulation Infrastructure
To build a circular model that connects manufacturing-derived plastic waste to recycled materials, products, and environmental value, the company will proceed with demonstration studies covering traceability, recycled material quality, and application development.

4. Strengthening Overseas Strategy for ASEAN Expansion
Starting from Vietnam, esa will capture the resource circulation and recycled material needs in the ASEAN region to verify the feasibility of overseas expansion for the 'esa method' and 'Repla®'.

## Comment from Shuko Kurokawa, CEO of esa Inc.

Bringing Recycling as an 'Industry that Creates Resources' to ASEAN

'We are deeply honored to have been selected for the Vietnamese government-backed acceleration program 'NIC Scale X.'
Until now, plastic recycling has often been discussed in the context of 'how to reduce environmental impact.' However, that role is now undergoing a significant transformation.'
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