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Development trends of the world plastic industry in the next 5 years

Advantages and challenges are intertwined

On October 25, the Vietnam Plastics Association held a Congress for term VII (2023-2028) to summarize the 5 years of operation of term VI and elect an Executive Committee for term VII, as well as set out directions. active in the new term.

Information at the Congress of the Vietnam Plastics Association – Term VII, Mr. Ho Duc Lam, Chairman of the Vietnam Plastics Association – said: In the next 5 years, the world and Vietnam plastics industry will face many challenges. But there are also many opportunities for development.

Development trends of the world plastic industry in the next 5 years

Pointing out these opportunities and challenges, Mr. Ho Duc Lam said: Production and consumption growth of the world and Vietnam’s plastic industry is expected to continue to grow in plastic production and consumption in the future, due to The demand for plastic in many fields such as packaging, automobiles, electronics, healthcare, and agriculture is still increasing. Besides, there is a trend of switching to environmentally friendly products such as recycled plastic, bioplastic, and reused plastic. In addition, the world and Vietnamese plastic industries will increase investment in research and development of new plastic technology, to create high quality products, save raw materials and  energy  and minimize negative impacts. to the environment. In particular, due to increasingly fierce competition in the industry, plastic manufacturing enterprises will have to make efforts to increase productivity, improve product quality, reduce power consumption and reduce production costs to compete in the market. international markets.

According to Mr. Ho Duc Lam, the biggest expectation of the Vietnamese plastic industry today is the free trade agreements that Vietnam has signed, especially the  EVFTA Agreement . “After EVFTA came into effect, tariffs on most plastic products exported to the EU market were removed. This is a great advantage to increase the output of export plastic products of Vietnam’s plastic industry with an important market, the EU” – Mr. Lam commented.

In addition, the supply and demand of plastic materials in the world has begun to enter a balance period and the prices of fossil materials are forecast to be more stable. In addition to growth prospects, Vietnam’s plastic industry is expected to become less dependent on imported raw materials in the coming years thanks to improvements in domestic plastic raw material production capacity.

“Long Son Petrochemical Factory, Dung Quat Petrochemical Factory, SCG Petrochemical Factory and Hyosung Plastic Factory are raw material supply factories that meet more than 30% of current domestic raw material demand, billion Vietnam’s import rate of plastic materials will decrease to about 65 – 70%” – Mr. Lam added.

Development trends of the world plastic industry in the next 5 years

How to take advantage of the opportunity?

Faced with the above advantages and challenges, the Government will introduce support policies for the plastic industry to promote production, investment and export; At the same time, guide plastic manufacturing businesses to implement environmental regulations and protect consumer health, and develop plastic industry product standards to protect Vietnamese manufacturers and consumers.

On the Association’s side, we always monitor and have closer access to EPR (extended producer responsibility fee) policies to access developments and changes in policies and fees to help member businesses. be more proactive in production and business activities. “We will build a development strategy for the plastic industry in the period 2023 – 2030 to help businesses have orientations to develop the industry and invest methodically; Build an industry data warehouse to serve members, the entire industry and domestic and foreign partners; Build and implement domestic and foreign trade promotion programs so that businesses have the opportunity to exchange and promote products to countries around the world” –  Mr. Lam shared.

Along with policy support, according to Mr. Ho Duc Lam, in the context of the current global economic integration and circular economy orientation, businesses operating in the plastic industry need serious investment in technology. technology, machinery and equipment, promoting products with high added value and future development. In addition, it is necessary to prepare carefully to welcome opportunities, diversify designs, and improve product quality.

The plastic industry currently has nearly 4,000 businesses across the country, of which 90% are small and medium-sized enterprises, concentrated mainly in the southern region. In the past 5 years, the growth rate of the plastic industry has always reached double digits. , from 12-15%/year. Up to now, Vietnam can produce materials such as: PVC, PP, PET, PS, PE, with a total capacity of nearly 3 million tons/year. Total revenue of the plastic industry has reached over 25 billion USD, in Of which exports account for 22%. Vietnamese plastic businesses can produce a full range of plastic products for domestic consumption and export. Notably, the export turnover of plastic products has grown steadily over the years from 3 billion USD in 2018 to 5.5 billion USD in 2022, with an average growth rate of 12-20%. Up to now, Vietnamese plastic products have been exported to more than 160 countries around the world and are present in demanding markets such as the US, Germany, France, UK, Italy, the Netherlands, Spain, and the community of European countries. Europe, Japan, Australia…

Thuy DuongPosted in Blog