| Plastics industry: Strengthening production to increase "resistance" Not yet self-sufficient in raw materials, plastics industry enterprises still have many worries |
Purchasing power and demand for plastic consumption increase
Assessing the current potential of the plastics industry, Mr. Dinh Duc Thang - Vice President of the Vietnam Plastics Association - shared that the Vietnamese plastics industry is growing at a good rate and has the potential to attract many international investors.
In 2023, raw plastic imports reached 6.82 million tons with a value of 9.76 billion USD, down 4.2% in volume and 21.2% in value compared to 2022. Plastic industry revenue in 2023 reached 25 billion USD, down 0.67% over the same period in 2022. It is expected that Vietnam's plastic product exports in the first 6 months of 2024 will increase sharply, reaching over 3.15 billion USD, up over 32% over the same period in 2023.
However, according to Mr. Thang, Vietnamese plastic products are still facing major challenges, specifically the problem of plastic pollution, policies to reduce the use of virgin plastic and increase the use of recycled plastic globally, especially in large markets such as the US, EU, and Japan in the coming time will create challenges for businesses in the industry, but also open up many opportunities if businesses know how to seize them.
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| Vietnam's plastics industry is growing at a good rate and has the potential to attract many international investors. Photo: Hai Quan Online |
"In order for the Vietnamese plastics industry to meet the world's demand for plastic products, plastic businesses and manufacturers need to seek new technologies and new, suitable, environmentally friendly materials to meet the trend of circular economic development, towards sustainable and environmentally friendly plastic products," said Mr. Thang.
Regarding the market potential for this product line, Mr. Ben Wong - General Director of Informa Markets Vietnam - said that global plastic production has nearly doubled since the beginning of the century and is expected to continue to grow rapidly due to increasing population, purchasing power and daily plastic consumption needs, so the industry needs to seek new development opportunities.
According to Mr. Ben Wong, businesses that want to ensure sustainability and increase the economic benefits of the plastics industry need solutions to reduce non-recyclable plastic materials, alternative supply sources, invest in improved recycling technology and develop a circular economy.
According to Ms. Huynh Thi My, General Secretary of the Vietnam Plastics Association, plastic and rubber products are widely used in daily life, as well as serving production in many industries and fields.
"Currently, the size of Vietnam's plastic market reached 10.92 million tons in 2024 and is expected to reach 16.36 million tons in 2029, growing at a CAGR of 8.44% in the period 2024-2029 (Mordor Intelligence, 2023). Although affected by the global economic situation, stimulus policies and business support activities have contributed to maintaining the growth of Vietnam's plastic industry," said Ms. My.
However, besides the potential, the Vietnamese plastics industry is still facing major challenges from the implementation of the Producer and Importer Responsibility (EPR) policy, to the lack of positive changes in the market. However, experts say that challenges also open up opportunities if Vietnamese businesses can grasp them in time.
In addition, experts say that currently, recycled plastic and rubber exported to the market are being favored in many countries around the world. Therefore, Vietnamese enterprises need to focus on changing technology to meet the increasing demands of the market.
Opportunity to connect and promote consumption of plastic products
In order to find markets and connect supply and demand of plastic products domestically and internationally, recently, ministries, branches and related units have organized many events not only domestically but also internationally.
Notably, a series of exhibitions have been held, such as the 2024 International Exhibition on Plastics and Rubber Industry (VietnamPlas 2024), which was recently held in Ho Chi Minh City. This is the 22nd international exhibition on industrial machinery and equipment for the plastics and rubber industry.
VietnamPlas 2024 Exhibition brings together 700 units and enterprises to exhibit, on an area of 23,000m2, with more than 1,100 booths, from 20 countries and territories such as: Saudi Arabia, India, Belgium, Taiwan (China), Germany, Korea, Indonesia, Iran, Malaysia, USA, Japan, Singapore, Thailand, China, Australia, Vietnam, Italy...
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| Duc Hieu Company staff shares about packaging products produced with new technology with customers. Photo: Do Nga |
VietnamPlas 2024 showcases a wide range of sustainable recycling solutions and products such as: advanced injection molding machines, modern extrusion lines to innovative film blowing machines, precision mechanical bag making machines, high-performance mixers, industrial cutters, compressors, quality raw materials and specialty additives. These technologies are in line with Vietnam's need to enhance advanced manufacturing capabilities and sustainable practices in the plastics and rubber industry.
Mr. Nguyen Quoc Anh - Chairman of the Ho Chi Minh City Rubber and Plastic Association - emphasized that VietnamPlas 2024 is a forum for exchanging and accessing modern technology in the plastic and rubber industry, an opportunity for businesses to innovate and change to new technology, develop production towards automation, digitalization and sustainable green transformation.
The exhibition also brought opportunities not only for businesses, but also for management agencies, associations, buyers... to contribute solutions for the development of the industry in the coming time, as well as update information on market trends.
Previously, the Hanoi International Plastics and Rubber Industry Exhibition (HanoiPlas 2024) was also held in Hanoi. The exhibition is an opportunity for suppliers of new raw materials and new machinery and equipment to participate in the exhibition to take the lead in this potential market in the coming time.
HanoiPlas 2024 attracted more than 200 exhibitors from 13 countries and regions, including: China, Germany, India, Indonesia, Japan, Pakistan, Singapore, Korea, Thailand, the United States and Vietnam, introducing advanced technology and new products to promote the development of this field.
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| VietnamPlas 2024 event attracts more than 1,100 booths from 20 countries and territories. Photo: HP |
At HanoiPlas this year, leading enterprises in different fields of the machinery market will be introduced. For example, in the field of injection molding machines, major companies include: Multitech, Shini, Honzen Union, Chuan Lih Fa, Fu Chun Shin and Yizumi. In the field of rubber manufacturing, INEM and Pan Stone are present, while in the field of plastic bag manufacturing, famous companies such as Chao Wei, Cosmo and Dipo are present.
Ms. Judy Wang, President of Yorkers Exhibition Service Vietnam, added that HanoiPlas 2024 marks an important moment for the Vietnamese plastics and rubber industry. Accordingly, the exhibition not only showcases significant advances and innovations in the industry but also promotes international cooperation and business growth.
“HanoiPlas provides a platform for domestic manufacturers to apply the latest innovations, make informed investment decisions, and improve production efficiency while saving costs. In addition, the event also brings together leaders and experts in the industry to exchange and promote the development potential of this dynamic industry," emphasized Ms. Judy Wang.
Source: https://congthuong.vn/cai-tien-tu-cong-nghe-dua-nganh-nhua-viet-don-dau-thi-truong-tiem-nang-352896.html
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