MANY LARGE ORDERS COME TO VIETNAMESE PLASTIC ENTERPRISES

In 2021, the export of plastic products will reach approximately 5 billion USD, up 34.9% compared to 2020. The plastic industry is forecasted to continue to grow by over 20% in 2022 thanks to the expansion of the industry scale, receiving many large orders.

The production scale of the plastic industry is increasing thanks to the strong investment activities of FDI enterprises and domestic enterprises, along with the trend of shifting production of green and environmentally friendly product lines. Vietnam has become a production base, receiving many orders from major import markets.

Many large orders came to enterprises in the plastic industry in Vietnam.

Data from the Import-Export Department (Ministry of Industry and Trade) shows that, despite the negative impact of Covid-19, in 2021, Vietnam's export turnover of plastic products will still reach US$4.93 billion, up 34.9% compared to 2020. With a growth rate of nearly 35% (corresponding to an increase of nearly 1.3 billion USD), this is a very large number compared to the growth of many other export industries.

If the export of plastic materials is included, reaching 2.26 billion USD, an increase of 68% compared to 2020, in 2021, the plastic industry will contribute 7.19 billion USD to the total export turnover of the country.

Major markets such as the US, EU, and Japan all increased import orders from Vietnamese suppliers. Which, the US imported plastic products from Vietnam worth nearly 1.85 billion USD, up 68.6%, accounting for 37.47% of the total export turnover of plastic products. Japan ranked second with US$696.9 million, up 3.55% and accounting for 14.13%, followed by ASEAN with US$575.8 million, up 23.3%, EU market reached US$575.8 million, up 23.3%. 557.7 million USD, up 21.7%.

An enterprise in Vietnam, specializing in the supply of industrial plastic products, consumer goods, and biodegradable products, confirmed that, despite being affected by the pandemic, the business still has had positive output. According to the leader of this business, the company has a continuous export order, which will be filled by the end of October 2022, notably an order of about 4,000 tons to the European market, with a value of more than 8 million USD. In addition, orders from the US market in 2022 also increased a lot.

Exports to the US increased sharply. A number of items met the needs of the people of this country in construction, home renovation, and decoration such as plastic floor panels, plastic floor boards, curtains, and accessories for home furnishings, vehicles, etc.

Exporting green technology plastic bags to the EU market also achieved a high turnover and grew strongly thanks to businesses that have been ahead of the trend of producing green products, with products of bio-degradable plastic bags, meeting the environmental protection needs of the people of these countries.

Entering 2022, the outlook for the plastic industry is very favorable thanks to 15 implemented free trade agreements (FTAs) such as CPTPP, EVFTA, and RCEP, helping to open up opportunities to attract investment not only in FTA partner countries but also in other countries.

Currently, Thai, Korean and Japanese investors have bought shares in many plastic enterprises in Vietnam. In 2021, SCG Group (Thailand) completed the acquisition of 70% of shares in two packaging and household plastic businesses of Duy Tan Plastic Company (revenue of nearly 5,000 billion VND), with a value of 280 million USD.

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