The prospects of Vietnam's Plastic industry: The Growth and Export potential

An Overview of Plastic Manufacturing In Vietnam.

During the period from 2010 to 2020, the plastic industry is one of the fastest-growing industries in Vietnam, with an annual growth rate of around 16% - 18%. The market for plastic products is large and highly prospective as they are used in numerous aspects of life.  In general, Vietnam's plastic goods come in a wide range of kinds and styles. Household plastic products (account for 32% of plastic products), and plastics for food and drinks, are among the products for which Vietnam has the greatest advantages to manufacture. 

In Vietnam, there are currently more than 3,000 enterprises with over 250,000 employees working in the plastic industry, of which more than 99% are in the private sector and are primarily located in the south of Vietnam, representing more than 80% of the country's plastic enterprises. Vietnamese plastic companies mainly use Chinese technology, with 40% of the machinery, equipment, and production lines imported from China. However, in recent years, there has been a growing trend of many plastic companies investing in cutting-edge technologies from Japan, South Korea and Germany to enhance productivity. 

Over the past few years, the plastic industry in Vietnam has attracted huge foreign investment. This industry has opportunities to attract more overseas investors due to a large wave of investment shifting from China to Vietnam. Moreover, Vietnam has joined numerous free trade agreements with many major trading partners, hence promoting investment and export and drawing more foreign investors to the country's plastics industry. According to a recent report, the number of enterprises with foreign capital accounts for about 15% of the total plastic enterprises. Foreign investment has greatly contributed to making the plastic industry of Vietnam more dynamic, attracting more capital and technology from advanced industries in the world to modernize production lines and improve product quality.  

Vietnam Exports of Plastic Products

According to a report from the General Department of Vietnam Customs, in the first eight months of 2022, exports of plastic products reached $3.84 billion, up 20.6% compared to the same period in the previous year. 

Vietnam's plastic products are exported to nearly 160 markets around the world, including the United States, the European Union, and Japan, which require high-quality goods with strict technological criteria. The US is the largest market for Vietnam's exported plastic products, reaching 1,562 billion USD, accounting for 40% of the total export turnover of plastic products in the first eight months of 2022. Japan and South Korea are the second and third largest plastic export markets of Vietnam respectively. In 2023, it is highly expected that the export of Vietnam’s plastic products will continue to grow significantly.