Plastics exports to reach 1 billion USD in 2010

The Ministry of Industry and Trade (MoIT) forecasts that the turnover of
the country’s plastics exports may reach 1 billion USD this year as
Vietnam ’s plastic products have a firm foothold in the world.

According to the MoIT’s Industry and Trade Information Centre, the
export of plastic products in the first seven months of the year earnt
554 million USD. Amongst the 70 importers of Vietnamese plastic
products, Japan is the largest.

In the second
half of July only, Vietnam ’s exports of plastic products to Japan
reached over 11 billion USD, accounting for 26.5 percent of the
country’s total.

It was followed by the US
with an estimated turnover of 5.7 million USD. The US was the
largest importer of Vietnamese plastic products in 2009.

Besides their traditional markets, Vietnamese businesses have also
penetrated markets in new EU member countries like Lithuania , the
Czech Republic , Estonia , Hungary and Poland as well as
African and Middle Eastern countries, to maintain their export growth
and avoid risks when traditional markets fluctuate.

According to the MoIT, plastics is one of the fastest-growing
production sectors in Vietnam over the past ten years, with an
average growth rate of 15-20 percent per year. Plastic packaging earns
the most, accounting for 80 percent of the total value of plastic
exports.

However, the plastics sector still
relies heavily on imported materials and production is usually on a
small scale with no long-term investment strategies. At present, the
sector needs around 1.5 million tonnes of raw materials each year and
the domestic supply can only meet one fifth of this. Up to 90 percent of
the 2,000 domestic plastic producers are small and medium sized
businesses.

The Vietnam Plastics Association (VPA)
recommends that businesses should focus investment on groups of export
staples that have a competitive edge, develop hi-tech plastic products
and self-degrading wrappings and boost the production of domestic raw
materials. There should also be more emphasis on re-cycling.

At present, the plastics sector is focusing on building several
factories to produce polypropylene and polyethylene, which are due to
become operational later this year./.

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Plastic exports set to hit $1 bln

Vietnam’s 2010 plastic exports are expected to reach US$1 billion for the first time ever, following a dramatic increase in shipments from the previous year.

The country has shipped more than $554 million worth of plastic products a month so far this year, according to a report published by the Vietnam Economic Times Monday. In July alone, exports were reported to total $86.4 million, up 24.2 percent from the same month last year.

Vietnamese plastic products are now available in nearly 70 countries. Some of the largest markets are the US, Japan, Cambodia, Germany and the UK.

Plastic is one of the fastest growing industries in Vietnam and local products have great potential to secure their presence in the global market, the Ministry of Trade and Industry said.

According to the Vietnam Plastics Association, the biggest challenge for the sector now is its dependence on imported materials. The country has to import 1.6-1.7 million tons of plastic materials every year as domestic supplies add up to around 300,000 tons.

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Plastic exports set to hit $1 bln

Vietnam’s 2010 plastic exports are expected to reach US$1 billion for the first time ever, following a dramatic increase in shipments from the previous year.

The country has shipped more than $554 million worth of plastic products a month so far this year, according to a report published by the Vietnam Economic Times Monday. In July alone, exports were reported to total $86.4 million, up 24.2 percent from the same month last year.

Vietnamese plastic products are now available in nearly 70 countries. Some of the largest markets are the US, Japan, Cambodia, Germany and the UK.

Plastic is one of the fastest growing industries in Vietnam and local products have great potential to secure their presence in the global market, the Ministry of Trade and Industry said.

According to the Vietnam Plastics Association, the biggest challenge for the sector now is its dependence on imported materials. The country has to import 1.6-1.7 million tons of plastic materials every year as domestic supplies add up to around 300,000 tons.

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Plastics industry eyes $1b club

HA NOI — The plastics industry is capable of achieving an export turnover of US$1 billion this year, affirmed the Viet Nam Plastics Association (VPA).

"This goal is possible because in the first seven months of this year, the industry earned more than US$550 million from exporting plastic products," said Huynh Thi My, head of the VPA's Administrative Affairs Division.

My affirmed that if the target is met, total plastic export turnover would have increased by between 15 per cent and 20 per cent while export volume would have grown by about 20 per cent.

The Industry and Trade Information Centre (VITIC) under the Ministry of Industry and Trade announced that in July alone, the plastics industry earned a turnover of $86.4 million, a year-on-year increase of 24.2 per cent.

From the beginning of this year, VITIC said, monthly plastics export turnover had averaged $80 million per month.

Vietnamese plastic products are exported to over 70 countries and territories. Seven of which have recorded import turnovers of more than $1 million, VITIC said.

Japan is now the largest importer of Vietnamese plastic products, accounting for 26.5 per cent of Viet Nam's total plastic export volume. The country is followed by the US with 13.2 per cent.

"In the past, the US was the biggest market for us. However, after the US Government imposed anti-dumping taxes on Vietnamese plastic packing products in 2009, exports rapidly declined," said My.

Other major markets include Germany and Cambodia which account for 8.1 per cent and 6.8 per cent of the country's total exports, respectively.

According to the VPA, about 50 per cent of Vietnamese export plastic products are packing products, while 15 per cent are household appliances and 35 per cent includes products such as technological products or office supplies.

Viet Nam has more than 2,000 plastic products manufacturers, of which 90 per cent are small- and medium-sized companies. About 80 per cent of them are based in HCM City and its neighbouring provinces such as Dong Nai, Long An and Binh Duong.

Only 15 per cent of manufacturers are based in the north and 5 per cent are in the central region.

The industry's revenue in 2009 totalled $4.5 billion, a $500 million decrease compared with 2008 due to lower prices. — VNS

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