Vietnam plastic industry aims for 20pct growth by 2020

Vietnam should work out a long-term development strategy to help the plastic industry gain a remarkable growth at 20 percent by 2020, local experts said at a conference in Hanoi January 2.

Currently, Vietnam has more than 1,000 plastic companies which are mainly in HCM City and the southern provinces of Dong Nai, Binh Duong and Long An, generating nearly 118,000 jobs.

In 2010, the industry posted $1 billion export revenues, rising 21 percent from a year earlier. The industry’s products have been shipped to 41 countries including the US, the EU, Japan and the Philippines.

In fact, the industry has not yet efficiently tapped its potential, Le Quang Doanh, chair of the Vietnam Plastics Association (VPA) said, adding that the country needs to restructure the sector to raise the proportion of value-added products such as packing and construction materials by 2015.

Ho Thi Kim Thoa, deputy minister of Industry and Trade (MOIT), said that local firms should pay attention to domestic market which is very potential, recommending the government to develop plastic recycling in a bid to reduce the import of raw materials amid the global price hikes.

Vietnam currently needs about 2.2 million tonnes of raw materials such as polyethylene (PE), polypropylene (PP) and polyvinyl chloride (PVC) and hundreds of other chemical accessories, whereas local sources can only provide 450,000 tonnes.

To boost the industry, experts urged companies to apply modern technologies to improve product quality and cut costs.

Truong Thi Huyen Nga from the MOIT said that the government should offer preferential interest rate in 10 to 15-year loans to encourage local firms’ production.

Corporate income tax should be reduced to 10 percent from current 25 percent in the first five years of operation after making profits, Nga suggested. – VCCI

Tags: Vietnam plastic industry

Posted by VBN on Jan 14 2011. Filed under Rubber & Plastic. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry