The plastic industry in Vietnam requires approximately 3.5 million tons of raw materials annually, predominantly petroleum-based substances, as reported by the Vietnam Plastic Association. Plastic waste has therefore resulted in considerable environmental harm, resource exhaustion, and economic loss in the last decade. Bioplastics, derived from natural organic materials such as polysaccharides, proteins, and lipids, have emerged worldwide as a preferred alternative to petroleum-based plastics as it is more environmentally friendly. In particular, starch-based bioplastics hold immense promise in Vietnam due to the large scale of local cassava starch planting and manufacturing. This chapter delves into the case of a leading Vietnamese bioplastic company, Galaxy Biotech, known for its flagship product—the “breathable bioplastic bag” manufactured from cassava starch. These breathable bags offer the advantage of prolonging the freshness of produce, such as fruits and vegetables, for over twice as long as conventional plastic bags while entirely degrading into biomass and water within 6 to 24 months. We investigate Galaxy Biotech’s innovation pathway and provide insights to help shape future sustainable business model innovation for bioplastic companies not only in Vietnam, but also globally.