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Plastics industry development till 2020 requires US$8 billion
By Van Nam - The Saigon Times Daily
Tuesday,  Mar 8, 2011,00:26 (GMT+7)

Plastics industry development till 2020 requires US$8 billion

By Van Nam - The Saigon Times Daily

HCMC – Vietnam’s plastics industry will need a total of VND175 trillion, or about US$8 billion, for a development plan between 2011 and 2020, according to the Industry Policy and Strategy Institute.

This amount will be used for factory construction, production expansion, technology renovation and human resource development for the industry, says a draft master plan prepared by the institute, an arm of the Ministry of Industry and Trade.

The master plan, which is expected to go before the Government in the middle of this year, will enable the plastics industry to achieve higher growth than the current level of around 20%.

The country now has 1,064 plastics producers, some 80% of them in the country’s south including Binh Duong, Dong Nai, Long An and HCMC. Some of the leading plastics firms in the southern region are Binh Minh, Tan Tien, Rang Dong, Tan Phu, Van Don, Minh Hung and Cong Nghia.

The industry exports its products to 55 foreign markets, with last year’s export revenue amounting to US$1 billion, a year-on-year increase of 20%. Packaging products made up half of the total export revenue, followed by household plastic items with 15% and technical plastic goods with some 10%.          

The institute said the biggest obstacle for the development of the plastics industry was the heavy reliance on imported materials.

Plastics producers use 2.2 million tons of input materials for their production a year, such as PE, PP and PS, but about 85% of the volume is sourced from other countries, thus cutting into the industry’s export earnings.

The dependence on material imports exposes domestic plastic producers to foreign exchange risk and world oil price volatility, and thereby affects their competitiveness.

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