Development opportunities abound for plastic, rubber industries

09:00 | 18/12/2019 Industry

(VEN) - Growing 12-15 percent per year and contributing 6.7 percent to the country’s gross domestic product (GDP), the plastics and rubber industries have significant development potential.

development opportunities abound for plastic rubber industries
Plastics is a Vietnamese spearhead industry

Opportunities

Over the past decade, the plastics industry has become an important part of the northern industrial sector. According to the Vietnam Plastics Association (VPA), it has become a spearhead industry with an annual growth of 12-15 percent. Vietnam has exported plastic products to 150 countries and territories worldwide. In the first eight months of 2019, Vietnamese businesses exported plastic products worth almost US$2.53 billion, up 13.9 percent from the same period in 2018. Plastics exports reached US$280 million in September alone, up 15.9 percent from September 2018.

Economists say Vietnam’s signing of free trade agreements (FTAs) has brought about opportunities for Vietnamese businesses to export plastic packaging products. Partners are gradually shifting orders from China to Vietnam to take advantage of low production costs, while plastics exports to the Republic of Korea (RoK), Japan and Europe are subject to many tariff incentives.

The domestic rubber industry has been growing on a sustainable basis. In 2018, natural rubber was Vietnam’s fifth largest agricultural export, with sales of rubber tires, components, shoe soles, gloves, sports tools and medical products to the US, Malaysia, Belgium, Germany, Brazil, Japan, and Thailand.

International exhibition

Vietnam is encountering “white pollution” and has become the third largest plastic consumer in ASEAN (the Association of Southeast Asian Nations) and one of the biggest plastics consumers in the world. An international exhibition on manufacturing processes, technologies and services essential to the plastics and rubber sectors in Vietnam and Indochina will take place for the first time in Hanoi, from November 27-29, 2019 with the participation of 200 plastic and rubber enterprises from 14 countries and territories worldwide. The event will provide an opportunity for rubber and plastic manufacturers and processors to promote their products and expand markets, develop branding and partnerships, and seek new business opportunities in Vietnam and foreign markets. It will also enable the growing number of foreign machinery, equipment and material suppliers to approach domestic and foreign manufacturers and find distributors in Vietnam.

Huynh Huu Hai Binh, CEO of Revival Waste, a potential participant of the exhibition said the plastics and rubber industries need to improve technology and production methods, and ensure plastic products have the highest recycling potential.

Many plastics and rubber production orders are expected to be shifted from China to Vietnam, and domestic enterprises need to prepare if they are to take advantage of these opportunities.

Thanh Tam