Vietnam Plastic Standard Report Q1/2020

VIETNAM PLASTIC INDUSTRY

Plastic is a popular material used in manufacturing with many advantages such as durable, light, hard to break, colorful. The plastic industry has been one of the world's stable growth industries over the past 50 years with Plastic packaging is the largest segment accounting for 26% of total plastic production.

Vietnam's plastic industry is the industry with a large number of businesses, with nearly 4,000 enterprises nationwide and employing up to 200,000 employees, most of which are concentrated in the South. More than 80% of domestic enterprises are small and medium-sized enterprises (SMEs) with fairly limited technological level, about 85% of machinery and equipment in the industry are imported.

Currently, Vietnam's plastic industry is in a state of trade deficit when the import turnover of plastic products is much larger than exports. Plastic products export turnover of Vietnam in the first 9 months increased by xx.x% compared to the same period in 2018.

Sales volume of plastic industry in Q4/2019 is estimated to increase by 5.5% compared to 2018, thanks to rapidly increasing demand for plastics, especially in the field of plastic packaging and construction, in addition, with capital contribution and The domination of foreign investors also helps businesses gain more capital and a professional sales strategy, thereby boosting domestic consumption.

According to VPA's forecast, plastic export turnover will continue to increase in 2019, Japan and the US will be Vietnam's main plastic import markets. For the domestic market, plastic packaging manufacturers can also take advantage of the opportunity when spending on food and non-alcoholic beverages is expected to grow by 11% in 2019.