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Plastics industry aims for US$7 billion in exports by 2020

2013-08-05 11:44:51

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The Vietnamese plastics industry hopes to grow to US$7 billion in export turnover by 2020, with corresponding improvements in quality and environmental friendliness.

 

The Viet Nam Plastics Association (VPA) expects 2013′s plastics exports will increase by 11-13.5 per cent, hitting US$2.2 billion in total turnover. The industry is redoubling its efforts to compete internationally with diverse designs incorporating advanced green technologies.

 

Vietnam earned more than US$1 billion from plastics exports over the first half of the year, up 9.3 per cent from the same period in 2012. Japan, the US, Cambodia, and the EU are the industry’s four major foreign markets. Japan, the largest, accounts for more than 22 per cent of the country’s total exports, followed by the US, Cambodia and the EU. India is an emerging market boasting enticing potential thanks to Indian industries burgeoning demand.

 

The association also forecasts the perpetuation of positive plastics export trends to Japan, the US, China, India, Thailand, and Malaysia.

 

Experts note the higher quality of the latest locally made products has attracted additional interest on world markets.

 

The Vietnamese plastics industry is still hampered by raw material deficiencies and outdated processing equipment.

 

VPA General Secretary Huynh Thi My says the industry requires an annual 2.2 million tonnes of raw materials, only 450,000 tonnes of which is sourced domestically.

 

It spent US$2.7 billion on imported raw materials in the first half of 2013, a year-on-year rise of 19.2 percent in volume and 20.3 percent in value. Sufficiently qualified human resources are another problem facing the industry, the VPA has warned.

 

The industry is looking to shift its current packaging and household product plastics manufacturing to a new emphasis on technical and construction plastics products.

 

The VPA will strengthen links with foreign trade offices and selected international equipment suppliers to access additional raw material resources and upgrade its technology.

 

Vietnam’s position as the world’s largest rubber exporter could be exploited if the VPA and the Vietnam Rubber Association are willing to collaborate on developing technology that processes rubber into plastics.