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Vietnam Industrial Sector

AN INTRODUCTION TO VIETNAM PLASTIC INDUSTRY

by Hang Nguyen 11 December, 2024
11 December, 2024 1049 views

Vietnam plastic industry has seen impressive growth, becoming a plastic supplier for both domestic and global markets. From packaging to high-tech components, the country can adapt its plastics products to standard of different foreign markets. Explore this article to learn more about Vietnam plastic production capacity, export, and some common Vietnam plastic products and raw materials in the global plastics landscape.

  • A glance at Vietnam’s plastics production
  • Vietnam’s export of plastics
  • Common Vietnam plastics products and raw materials

A glance at Vietnam’s plastics production

The plastic industry is a relatively young sector in Vietnam, but it has experienced rapid growth. To date, the industry comprises over 4,000 enterprises, with more than 99% being privately owned, according to the Ministry of Industry and Trade. These businesses are primarily concentrated in the southern region due to the region’s numerous industrial processing zones, which serve as key markets for plastic packaging products.

To date, the plastic industry comprises over 4,000 enterprises in Vietnam.

Till now, the country can produce essential raw materials such as PVC, PP, PET, PS, and PE, with a total production capacity of nearly 3 million tons per year.

Plastic products can be made from virgin or recycled materials. Vietnam has a competitive advantage in manufacturing a wide range of plastic products, including packaging, consumer goods, construction materials, and some high-tech plastic products such as oil pipelines, automotive components, and computer equipment.

Product CategoryProportionMaterialProducts
Packaging plastic39%PE, PP, PETThin film packaging, plastic bags, PET bottles
Household plastic32%PP, PS, ABSHousehold items
Construction plastic14%PE, PVCConstruction plastic pipe, building material plastic
Engineering plastic9%PVC, PP, PUTypes of accessories

Main categories of plastic products produced by Vietnam (Source: vioit.moit.gov.vn)

 

Vietnam’s export of plastics

Vietnam primarily exports finished and semi-finished plastic products. The three largest categories, including plastic bags, plastic sheets/films, and construction-related plastic goods, account for 54% of the total export value of Vietnam plastic products.

In addition to plastic products, Vietnam also exports raw plastic materials. Before 2018, plastic raw materials made up less than 20% of the country’s total plastic exports. However, since 2018, this percentage began to rise, reaching 24% in 2018 and 27% in both 2019 and 2020.

In addition to plastic products, Vietnam also exports raw plastic materials.

Vietnam’s plastic exports reach nearly 150 countries, with major markets including the European Union, Japan, and the United States. The U.S. is the largest importer of Vietnam’s plastic products, with imports reaching $1.1 billion. This accounts for nearly 30% of Vietnam’s total export value for plastic goods. Japan ranks second, importing $672.9 million worth of Vietnam’s plastic products in 2020, representing approximately 18.4% of the total export value. 

In 2021, exports to the U.S. saw a significant surge, especially for items that meet the growing demand for home construction anddecoration. These products include plastic flooring, plastic planks, window blinds, home furnishing components, and vehicle parts.

Vietnamese plastic companies have adopted green technologies to produce eco-friendly products like biodegradable plastic bags. These products meet the environmental protection standards of the EU market, where demand for green technology-based plastic bags has led to high export revenue and strong growth.

 

Common Vietnam plastics products and raw materials

Plastic bags

Plastic bags are Vietnam’s largest plastic export product. During the first three months of 2022, Vietnam primarily exported plastic bags to five key markets: Japan, the United States, Germany, the Netherlands, and the United Kingdom.

Vietnam offer plastic packing products which can be used in different industry

Plastic film

Plastic films are widely used across various industries. For example, PVC films are commonly used as partitions or barriers in warehouses and factories, especially in areas with significant dust, dirt, or fine particle pollution.

Agricultural PE films, also known as mulch films, are primarily black and used to cover soil when planting crops like vines and ground vegetables. These films help retain soil moisture, prevent pests, reduce fertilizer loss, and protect crops from rodents that feed on roots or tubers.

Plastic film can be used for agricultural applications.

Plastic flooring

Vietnam can produce high-quality WPC (Wood Plastic Composite) and SPC (Stone Plastic Composite) flooring. WPC flooring is commonly used for outdoor decoration, while SPC flooring is widely utilized for indoor applications.

Find out morre about Vietnam flooring market here: https://viegoglobal.com/category/vietnams-flooring-market/

Vietnam can produce high-quality WPC and SPC floorings. Source: Viego Global JSC

Tarpaulin

The primary materials used for tarpaulin are PE, PP, and PVC. PE tarpaulins are highly effective at providing ventilation and protection for goods, preventing them from getting wet. They are widely used for truck covers, ship covers, and for storing or transporting goods in factories and mineral ports. Additionally, they can be used as tents for outdoor travel or in disaster situations.

Plastic Packaging

Plastic packaging is a big segment in Vietnam plastic industry. The country can produce different types of plastic bottles, conainers for different purposes, such as Cosmetics PP bottles,…

Plastic packaging is a big segment in Vietnam plastic industry

Plastic households applicances

With benefits that plastics bring into life, this raw material is also used in producing household items. In Vietnam, about 32% of plastics production is for household applicances, according to Research of Industry and Trade Ministry.

Plastics raw material

Vietnam is also a supplier of plastics raw materials to the world market. Both recycled plastic and virgin plastic raw material can be found in the country, such as PE Recycled Pellets, Polypropylene granules, PE PCR 100% – Natural 2, etc.

Recycled Plastic

Recycled plastic is produced from collected plastic materials. Plastic waste is sorted and recycled following different processes. The plastic is shredded, cleaned, dried, and melted. The melted plastic mixture is then passed through an extrusion machine to form into filament or plastic pellets. The main types of recycled plastic include HDPE, PP, PE, ABS, PVC, and more.

Applications of Recycled Plastic
Recycled plastic is used as a raw material in various industries, including manufacturing, construction, and environmental applications.

Virgin Plastic

Virgin plastic is a type of plastic derived from the fractional distillation of petroleum. Virgin plastic pellets, which have not been previously used, typically have a natural white color. Depending on usage needs, color additives can be mixed in to achieve the desired shade.

Common types of virgin plastic include PP, PC, ABS, PS-GPPS, HIPS, POM, PA, PMMA, and others. These are pure plastics, free from impurities or additives.

Applications of Virgin Plastic
Virgin plastic is characterized by its softness, flexibility, high elasticity, and ability to withstand warping and pressure. Products made from virgin plastic are often aesthetically superior due to their smooth, glossy surfaces and vibrant colors.

Virgin plastic pellets are commonly used to produce high-value items or products requiring safety and advanced technical standards, such as medical devices, aircraft components, and automotive parts.

Vietnam is also a supplier of plastic raw materials, including virgin plastics and recycled plastics

 

Viego Global – Your trusted sourcing partner in Vietnam 

Given that Vietnam has a big capacity for plastic products, and plastic raw materials, it is not easy to find trustworthy plastic products, and plastic raw materials suppliers to work with, however. Let’s answer the questions below before conducting your sourcing:

  • Are you going to import plastic products and plastic raw materials from Vietnam?
  • Are you looking for a Vietnamese trusted supplier for different plastic products and plastic raw material?
  • Are you finding Vietnamese plastic products and plastic raw materials source of supply with high quality and competitive price?

If your answer is yes all, please feel free to contact us at:

  1. WhatsApp: +84 56 264 6315 
  2. Email: hello@viegoglobal.com

Being present at the economic center of Vietnam, Viego Global can greatly help you professionally source and execute orders, providing maximum benefits to our clients in terms of delivering a wide range of products at the best competitive pricing. Please contact us HERE for further support about Vietnam plastic products and plastic raw Industry!

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