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Vietnam Plastic Standard Report Q2/2019

Vietnam Plastic Standard Report Q2/2019

  • August 2019
  • 83 pages
  • ID: 5804558
  • Format: PDF
  • Vietnam Industry Research and Consultant

Summary

Table of Contents

VIETNAM PLASTIC INDUSTRY

Plastics are popular materials used in production with many advantages such as durability, lightness, hardness to break, variety of colors ... Plastic industry is one of the stable growth sectors of the world in the past 50 years, in which Plastic packaging industry is the largest segment accounting for 26% of total plastic production.
Vietnam plastic industry is a sector with a large number of businesses, with nearly 4,000 businesses in the country and employing 200,000 workers, most of businesses concentrate in the South. More than 80% of domestic enterprises are small and medium-sized enterprises (SMEs) with relatively limited technological level, about 85% of equipment in the industry have to be imported.
Currently, Vietnam plastic industry is in the state of trade deficit when the import turnover of plastic products is much larger than exports. The export turnover of plastic products in Vietnam in the first 3 months of 2019 increased by 19.6% over the same period in 2018.
The consumption of plastic industry in Q1/2019 was estimated to increase by 5.5% compared to 2018, thanks to the rapid increase in plastic demand, especially in the plastic packaging and construction segment. In addition, the capital contribution and holding the dominance of foreign investors also help businesses have more capital and professional sale strategies, thereby boosting domestic consumption.
According to VPA forecast, plastic export turnover will continue to increase in 2019, Japan and the US will be Vietnam’s main plastic import market. For the domestic market, plastic packaging manufacturers can also take advantage of the opportunity when spending on food and non-alcoholic drinks is expected to grow by 11% in 2019.

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