Great potential of plastic industry

In recent years, plastics has been considered one of the fastest growing industries, after telecommunications and textiles, with an average growth rate of 10-12% per year.

Currently, Vietnamese plastic products have been exported to more than 160 countries and territories around the world, especially popular in large and demanding markets such as the US, the European Union (EU), Japan, etc. It is expected that plastic product exports in the first 6 months of 2024 will increase sharply, reaching over 3.15 billion USD, an increase of over 32% over the same period in 2023.

The potential and bright prospects of the plastics industry cannot be denied, but according to experts, this industry is also facing many difficulties, the biggest of which is the source of raw materials. Statistics show that in 2023, the Vietnamese plastics industry will import more than 6 million tons of raw materials. Domestic raw materials currently only meet 30% of domestic demand, the remaining 70% is imported from countries such as Saudi Arabia, South Korea, China, etc. This dependence will increase input costs, increase exchange rate risks, reduce competitiveness and make it difficult to take advantage of tariff incentives.

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Bright prospects for Vietnam's plastics industry

Meanwhile, Vietnam is known as a country with advantages in the production of plastic additives due to its large limestone resources in the North and Central regions. Compared to the two major production markets of China and India, Vietnam has advantages in the area of ​​good and stable quality stone materials; and low labor costs.

In parallel with the production of conventional additives, Vietnam can also take advantage of stone powder to produce higher-grade additives, in line with the increasing demand for green materials in the world.

Therefore, analysts believe that if they know how to seize the opportunity, plastic additive manufacturing enterprises in Vietnam still have a lot of room to supply both domestic and foreign markets.

Improve production capacity, capture the market

Realizing the potential and room for development, in recent years, many plastic enterprises have proactively invested in machinery and equipment and technology to increase production output, meeting the increasing demand of the market.

“In the past 5 years, witnessing the great demand for raw materials in both domestic and foreign markets, we have proactively restructured our investments, equipping modern production lines worth tens of billions of VND. In particular, we have just invested in a new grinding machine system to optimize production and increase output, while improving product quality and diversifying high-end product lines,” said Mr. Ngo Van Thu - General Director of An Tien Industries Joint Stock Company (HII).

An Tien Industries is a well-known enterprise in the plastic additive manufacturing market in Vietnam and the region. The company currently owns 2 factories with a production capacity of 96,000 tons of plastic additives and 150,000 tons of stone powder per year. HII's raw materials are supplied from 2 main quarries, Mong Son and Luc Yen (Yen Bai), with large reserves and quality that is considered to be among the best in Southeast Asia with CaCo3 content of over 98%, high whiteness, brightness and uniformity.

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An Tien Industries has a production capacity of 96,000 tons of plastic additives and 150,000 tons of stone powder per year.

In addition to the advantage of high-quality raw materials, HII also owns a nearly closed production and supply chain, helping to shorten transaction and transportation time, optimize operations, increase management efficiency and minimize costs.

“We have two subsidiaries: Lien Van An Tin Joint Stock Company, which mainly operates in the field of freight transport and transportation support, and An Thanh Bicsol Joint Stock Company, which specializes in distributing plastic pellet products. Through these two companies, we can easily transport and distribute products to customers in a short time with competitive prices,” added the HII representative.

Not only promptly grasping the great demand from the market, HII is currently actively transforming production to catch up with the current strong green growth trend. According to Mr. Thu, in 2024 and the coming years, HII will promote the development of high-quality engineering plastic compounds and self-destructing compounds for the production of environmentally friendly plastic products.

“We are promoting the development of biodegradable additive products (AnCal Bio). This is a high-end product used for biodegradable packaging with high profit margins. In addition, the company is also researching and developing more “green” product lines that are both high in added value and environmentally friendly,” Mr. Thu shared.

With a methodical business strategy, HII is currently among the leading manufacturers and exporters of plastic additives in Vietnam. The company is currently aiming to become the leading manufacturer of plastic additives in Southeast Asia.

Thu Loan