Vietnam plastics industry urged to go local

The Ministry of Industry and Trade and the Vietnam Plastics Association have called on the country’s plastics industry to focus on producing raw materials and additives in order to reduce imports.
The industry imports 70-85 percent of resins and additives, and imports have increased an average of 15-20 percent per year over the past 10 years, according to the association.

However, this goal, part of the development plan for the plastics industry through 2020, may not coincide with the targets of enterprises in the industry.

An Phat Plastics and Green Environment Joint Stock Co in the northern province of Hai Duong has had high growth in exports and planned to build one or more manufacturing facilities to produce products for export. Yet the company had to stop using locally-sourced recycled plastics as raw materials since the recycled material proved of unstable quality for production, said a representative of the company.

Tien Phong Plastics Joint Stock Co had invested millions of US dollars to produce plastics pipe with a diametre of 1,000mm to serve major construction projects in Vietnam, but would pay more attention in the future to finding new markets and new sources of raw materials, the company said.

The naton’s plastics industry exports products to 55 foreign markets, with last year’s exports valued at US$1 billion, an increase of 20 per cent over the previous year. Packaging products accounted for half of the export revenue, followed by household items (15 percent) and plastic parts (10 percent). The industry expectes to reach a total output of 4.1 million tonnes of plastics products this year.

According to the ministry, the plan for the industry aims to raise its industrial production value to 78.5 trillion dong ($3.81 billion) by 2015 and 181.57 trillion dong ($8.81 billion) by 2020. It targets an annual export growth rate of 15 percent to reach $2.15 billion by 2015 and $4.3 billion by 2020.

Vietnam News

Tags: Vietnam plastics industry

Posted by VBN on Nov 8 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