Vietnam Plastic Standard Report Q1.2018

Total plastic manufacture yield in 2017 achieved 6,7 million of tons, rose slightly 1.05% compared to 2016, so producing plastic products continuously grew in the period of 2009-2017 with CAGR of 9.6%. Meanwhile, plastic for family uses group, construction plastic and technology plastic had relatively good growth compared to 2016 thanks to increased consumption demand , wrapping plastic must face to big risk in input materials when PP import tax level rose to 3%.

PP plastic is being imported to 80%, so new tariff implementation impacted directly to product price, and indirectly impact to competitive capacity of Vietnamese enterprises in the relationship to foreign enterprises. Profit margin of Vietnam plastic enterprises is anticipated to decline 1% when import tax for PP plastic rises 3%. Plastic industry has relatively low profit margin, only 5% whereas loss rate comes up to 7%.

It is predicted that main export markets of Vietnam plastic industry in 2018 will be Japan and US. Besides, other markets such as China, Laos, Cambodia, Myanmar, etc will be new export markets for plastic market. In addition, importing plastic product demand in EU market still be appreciated, especially demand in plastic pipes, Vietnam enterprises have good penetrate ability. It is outstanding that in this market, Vietnam plastic product is not imposed dumping prevention tax like other Asian countries (average tax from 8-30%). Therefore, this will be a advantageous condition for enterprise to increase import turn-over in the upcoming time.