VIETNAM PLASTICS INDUSTRY

OVERVIEW

Vietnam Plastics Association

Vietnam Economy:
2,500

8.00%

7.00%
2,000
6.00%

5.00%

1,500

4.00%

1,000

3.00%

2.00%
500
1.00%

2010

2011

2012

2013

2014e

GDP per capita (USD)

1,273

1,573

1,749

1,843

1,947

GDP Growth

6.78%

6.1%

5.7%

5.3%

5.4%

0.00%

INFLATION
20.00%

18.00%

16.00%

14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%

Inflation

2010
12.75%

2011
18.6%

2012
13.5%

2013
6.4%

2914e
7.2%

VIETNAM PLASTIC INDUSTRY

+ More than 1.800 plastic enterprises
+ Growth rate: 15-20%/year
+ Consumption: 48 kg per capita. Target to 2015: 55 kg per capita
+ Most of materials imported (9 months of 2014: more 6.1 billion USD)
+ Export in 9 months of 2014: 1.8 billion USD.
Plan in 2014: over 2.1 billion USD
+ Technology:
Injection technology
Blowing injection technology
Profile technology

System of Plastics Businesses in Vietnam

(Geographical distributions & by Industry)

By Geographic
Central
64
3%

By Industry

North
13%
(267)

Construction

11%
(232)

South
84%
(1.669)

Consumer
40%
(794)

Technical
14%
(272)

Packaging
35%
(702)

More Information
only 2% state owned enterprises & 90% output volume attained by private sectors (100% FDI, limited, private)
Technical products: High quality pressure-resistant pipes, TV covers

PROSPECT OF PLASTIC INDUSTRY IN VIETNAM

+ Oil & Chemical Industry will develop

+ Domestic consumption demand is very potential

+ Export: participated One billion USD Club

VIETNAM PLASTIC: PLANNED INVESTMENTS FOR POLYMER

BOPP: 12,000 (2005) / 20,000 tons (2010)

Nghi Sn

PP: 300,000 tons (2010)

PS: 60,000 (2010)

Dung Quat

PP: 150,000 tons (2010)

Dong Nai

PVC: 120,000 (2005)

BOPP: 30,000 (2005) / 20,000 tons (2010)

Ba Ria Vung Tau

PS: 60,000 (2010)

PE: 450,000 (2010)
PVC: 100,000 (2005)/ 200,000 (2010)

Consumption Index (kg per Capita)

2010 2014e
133

140

126
120
105
100
80
60
40

48
28

32

35

39

37

20
0
2010

2011

2012

2013

'2014e

Vietnam Plastics Association

World

USA

EU

Japan

Total Vietnam Plastic Import 2010 - 2014e

(Source: National Statistic/VPA)

3,000

15

2,900

10

2,800
5

2,700
2,600

2,500

-5

2,400
-10

2,300
2,200
Total Import Plastic: KT
Growth rate: %

2010
2,610
9.3

2011
2,804
6.9

2012
2,464
-13.7

2013
2,739
10.2

2014e
2,929
6.7

-15

List of products imported by Viet Nam in 2009 - 2014e

6,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

US
Thousand
2010
Raw Materials & Chemical
2,390,162 3,784,117
Products/ Semi-finished products 219,944
1,646,036
Tons

US
Thousand
2011
2,555,998 4,763,144
248,730
1,958,230
Tons

US
Thousand
2012
2,234,010 4,000,701
230,636
2,067,137
Tons

US
Thousand
2013
2,491,251 4,746,619
248,884
2,209,259
Tons

US
Thousand
204e
2,657,591 5,066,652
332,004
2,357,279
Tons

List of main raw material imported by Viet Nam in 2009 - 2013

2009

2010

2011

2012

2013

Product label
Quantity
(Tons)

Value
(US thousand)

Quantity
(Tons)

Value
(US thousand)

Quantity
(Tons)

Value
(US thousand)

Quantity
(Tons)

Value
(US thousand)

Quantity
(Tons)

Value
(US thousand)

PE

692,251

795,528

750,775

1,016,752

819,182

1,218,962

544,936

775,030

676,795

1,078,023

PP

628,457

670,299

607,493

817,569

629,057

1,021,762

472,011

701,170

613,594

947,251

PVC

139,636

131,736

131,597

152,849

134,847

181,639

133,327

155,871

162,651

230,463

PET

133,893

144,915

187,149

244,073

212,361

353,105

146,706

212,321

147,650

215,517

ABS

63,527

100,415

69,154

144,359

78,358

186,994

87,041

189,670

95,482

208,096

Polyester

67,357

96,786

72,476

123,834

65,155

129,338

202,324

361,704

95,136

166,342

EVA

48,746

73,576

56,703

112,489

57,097

140,889

66,338

131,816

75,144

144,372

Polyether

42,998

86,312

52,068

126,506

61,332

193,912

58,580

174,342

70,179

199,459

Acrylic

40,369

71,343

55,673

113,730

53,263

128,792

60,260

138,397

66,057

160,721

PC

19,875

44,364

30,050

84,833

35,440

111,249

40,088

111,493

47,558

128,946

PU

38,748

108,608

49,233

147,146

47,694

159,441

34,275

116,066

45,116

152,978

PS

77,040

103,688

90,948

150,810

102,526

202,060

108,027

195,987

44,259

96,358

PA

15,930

40,661

20,603

69,544

42,796

161,783

39,789

130,691

39,140

197,960

Alkyd

30,294

45,376

32,643

52,448

32,277

61,166

33,918

66,614

37,209

73,698

EPS

36,467

44,256

46,863

69,838

40,656

67,698

30,516

48,064

34,675

62,686

Spilt of Main Raw Material for Import 2013

(% by Quantity)

Polyester
3%

Others
18%
PE
32%

ABS
4%

Spilt of Main Raw Material for Import 2013

(% by Value)

PS
5%

PVC
5%

PET
10%

PP
23%
Others
25%

PE
27%

Polyete
4%
ABS
5%
PS
5%

PP
21%
PVC
4%

PET
9%

List of main supplying markets for a product imported by Viet Nam in 2013
(% by Quantity)

Republic of
Korea
19%

Arab Saudi
21%
List of main supplying markets for a product imported by Viet Nam in 2013
(% by Value)

China
7%

Others market
27%

Thailand
10%
Malaysia
6%

Republic of
Korea
19%

Arab Saudi
16%
Taipei
15%

Taipei
14%

Thailand
11%

Malaysia
6%
China
7%
Others market
23%

Vietnam plastics export revenues in 2009 - 2013

(in US thousand)

600,000

500,000

400,000

300,000

200,000

100,000

Quarterly 1
Quarterly 2
Quarterly 3
Quarterly 4

2009
210,618
255,556
248,109
253,891

2010
254,170
295,641
318,025
400,541

2011
351,750
388,420
410,900
447,798

2012
475,450
480,235
508,680
530,907

2013
490,472
498,219
557,333
592,432

List of main importing markets for a product exported by Viet Nam

Unit : US Dollar thousand

Importers

2009

2010

2011

2012

2013

Japan

143,535

194,684

250,397

321,429

403,112

China

34,670

55,584

97,514

247,502

300,274

160,203

127,726

143,211

161,734

172,632

Germany

66,701

86,149

125,151

140,073

161,301

Indonesia

19,259

44,525

84,710

140,836

144,092

United Kingdom

47,563

58,582

87,371

98,942

102,024

Thailand

30,061

46,139

79,457

137,903

96,666

Netherlands

56,637

66,304

80,748

76,991

84,505

France

42,415

49,982

63,748

70,002

69,307

Malaysia

23,997

34,144

48,139

58,535

64,808

Korea, Republic of

15,011

25,306

38,476

44,987

56,186

India

15,794

23,599

29,421

39,597

44,853

Australia

16,359

19,675

30,460

36,053

42,231

Taipei, Chinese

17,943

28,977

46,975

33,887

34,429

Canada

21,162

23,936

22,904

29,754

34,297

6,348

13,827

18,861

19,355

34,251

Belgium

19,938

16,865

18,662

19,900

28,190

Italy

37,381

27,257

31,298

22,752

27,385

Singapore

14,564

32,705

26,791

23,688

26,420

Sweden

13,520

14,793

15,888

22,355

24,000

United States of America

Philippines

Spilt of Plastics Products for Export in 2013

(% by Value)

Others, 7.8%
Pipe & fittings, 2.1%
Stationery, 3.6%
Furniture, 4,7%
Tarpaulin, 6.3%
Engineering plastic, 8.2%
Household, 10.6%
Films/Sheets, 19.5%
Packaging, 37.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

39%

2010 - 2025's Plastic Products Structure Targets

(Source: National Statistic / VPA) -- Unit: %

Packaging

36%

40%

34%

Household

31%

Construction

17%

20%

15%

10%

5%

0%

Year 2010

Year 2015

Year 2020

Year 2025

25%

23%

25%

18%

21%

23%

21%

19%

21%

25%

21%

30%

Engineering

27%

35%

Plastics Manufacturing equipment import forecast

Source: National Statistic / VPA - Unit: million USD

2000
1800
1600
1400
1200

Import Turnover

1000
800
600

2000

400

1100

200
0

500
Year 2005

Year 2010

Year 2015

Information on Environment Tax

Source: VPA

Decree No. 69/2012/N-CP recently issued on 14/09/2012 by PM. Nguyn Tn

Dng effective from 15/11/2012 opened a way to manufacturers of commodity premade packaging, multi-layer packaging, as well as products related to PE film will
not be levied of Tax for Environment Protection 40.000 ng/kg such as they were
since early this year to now.
VPA executive board jointly participated with ministries and governmental
organs to raise a campaign and draft policies to propose the state to solve
inadequate issues that businesses are bearing .
VPA chairman is one of the official seven members of the Board of
Evaluation of registered dossiers for environmental friendly plastic bags
Recognition.

Recycling and present situation of recycling in HCM city

Source: Waste Recycling Fund /VPA

Number of recyclers:
274 small recyclers located in residential area (RA) and small,
craft industries (SCI) and
11 recycling businesses located in Industrial Zone (IZ)
Small recyclers in residential area

Plastics
Paper
Metals
Glass
Others

Recycling and present situation in HCM city (continued)

Source: Waste Recycling Fund /VPA

Legal status

Recyclers in Industrial Zone

Paper

Metals

Holding
business
license
Vietnam Plastics Association

No business
license
21

State control on recycling operations

Source: Waste Recycling Fund /VPA

Law on Environmental Protection approved by the

N.A. session XI, 8th meeting 29/11/2005 and effective
as of 1/7/2006. Specifically:
Policy: Appropriate and economical use of natural resources,
development of clean energy, recyclable energy; promoting of
recycling, reuse, and reducing waste (Item 3, Article 5, Chapter
I)
Encouraged activities: waste reducing, collection, recycling and
reuse (Item 3, Article 6, Chapter I).
Organizations, individuals, who have activities that generate
waste are responsible to reduce, recycle, reuse it to the minimal
quantity that is to be destroyed and discarded (Item 1, Article 66,
Chapter VIII).
Vietnam Plastics Association

22

State control on recycling operations (continued)

Source: Waste Recycling Fund /VPA

Legal documents issued by HCM city Peoples

Committee (HCMPC):
Decision No.364 /Q-UBND dated 24/01/2008 of
HCMPC on regulations on the organization and
operation of the Waste Recycling Fund for the
assistance and preferential loaning to recycling
operations in HCM City;
Decision No. 200/2004/Q-UB dated 18/8/2004 of
HCMPC on the list of professions not allowed to be
granted new license or to adjust their investment
license located in gathered residential areas,
including recycling and trade of waste materials.
Vietnam Plastics Association

23

Solutions for improving waste collection and classification efficiency

Source: Waste Recycling Fund /VPA

Policies supporting recycling operations in HCM city:

o Support in operational space: at C Chi North West Solid
Waste Treating Area, Solid Waste Treating Planned Area and
a Phc Cemetery and Long An HCM city Waste Treating
Industrial Zone
o Financing assistance : capital financing (larger borrowers
scope), tax preferences
o Technical and information support: making approaches to
modern technologies
o Recycled products market support: certification of quality
and origins

Foundation of Recycling Association

Vietnam Plastics Association

24

Solutions for improving waste collection and classification efficiency

(continued) Source: Waste Recycling Fund /VPA

Refunding deposit for PET bottles module

5. Recycling Plant

Managing Center
100 % Deposit

Raw materials
sales revenue

1. Manufacturer

100% empty
bottle

Transportation fees

4. Collection station

Collection fees

2. Retailer
Deposit

Empty
bottles

3. Customer

Waste
Empty bottles
Materials flow

Cash flow

Vietnam Plastics Association

25

Public activities on environment (continued)

Source: Waste Recycling Fund /VPA

HCM CITY RECYCLING FESTIVAL SCHEDULE

Public activities on Environment (continued)

Source: Waste Recycling Fund /VPA

HCM CITY RECYCLING

FESTIVAL SCHEDULE
is an important communicating event
on 3T to be hold every year in HCM
City since 2008.
Targets: Improving the public concern
and enhancing public awareness on
reducing, recycling and reuse of waste
activities (3T).
The concept of 3R (Reduce-ReuseRecycle) has been Vietnamesed into
3T: Tit gim (Reduce)
Ti s dng (Reuse)
Ti ch (Recycle)
Vietnam Plastics Association

27

Public activities on Environment (continued)

Source: Waste Recycling Fund /VPA

HCM City recycling Festival outcomes from 2010 - 2014

Received common approval and support from leaders of the city, the Ministry
and the Dept. of Resources and Environment, other Departments and
governmental offices, the media, and the citizens;
Attracted the attention and full participation of city organs and citizens

Vietnam Plastics Association

28

Public activities on environment (continued)

Source: Waste Recycling Fund /VPA

HCM City Recycling Festival outcomes from 2008 2011

Increasing number of units participating in products exhibitions,

waste recycling technologies, recyclable waste collection at the
Festivals (16 units), attracting the public concern

Vietnam Plastics Association

29

Public activities on environment (continued)

Source: Waste Recycling Fund /VPA

Competitions in response to the Festival

New vitality from waste: for primary, basic secondary and
general secondary school students;
Fashion from waste materials: for junior college,
university, and vocational secondary school students;
Instant design of Green Bags for Green Environment: for
junior college, university and vocational school students;
Short comedy Green Life 3T life for staffs and
members of Women Association;
Establishing a Green life The 3T life for staffs and
workers
Vietnam Plastics Association

30

Public activities for Environment (continued)

Source: Waste Recycling Fund /VPA

Fashion from waste

materials competition

Supporting 3T poster
design competition for
students

New vitality from waste

competition for students
Vietnam Plastics Association

31

Public activities for Environment (continued)

Source: Waste Recycling Fund /VPA

New vitality from waste, Green bags for environment

products exhibitions.

Vietnam Plastics Association

32

Public activities for Environment (continued)

Source: Waste Recycling Fund /VPA

Hazardous
waste
and
recyclable waste collecting
counter
Gifts in exchange for hazardous
waste: booth
PET
empty
bottles,
plastic
packaging, plastic bags collecting
booth joined by manufacturers,
plastic recyclers.
Waste paper, milk empty boxes
booth joined by paper recyclers,
packaging manufacturers.
People bring hazardous waste
(battery cells, broken light bulbs/
tubes ) , PET empty bottles,
waste paper to booths in
exchange for respective gifts.
Vietnam Plastics Association

33

Public activities for Environment (continued)

Source: (Waste Recycling Fund) /VPA

Paper
bags
folding
decoration counter

&

Guidance to school children for paper bags

folding and decorating made from used
/ recycled paper thus encouraging them
to reuse used / recycled paper and use
eco-friendly bags.

3T games area
Features games counters with various
activities for every people dedicated to
3T theme in general and 3T in
packaging use in particular to educate
and improve people awareness through
pleasant games.

Vietnam Plastics Association

34

Public activities for Environment (continued)

Source: Waste Recycling Fund /VPA

On 28/9/2014, the HCM city Environment and Resources Dept.

joined with the Peoples committee of District 5 to hold the
Green Bag Festival Day, attracting nearly 1.000 visitors. This is
one of activities related to the 2014 Reducing Plastic Bags Use
in HCM City Program.

Vietnam Plastics Association

35

Thank you very much.

Vietnam Plastics Association

36

For further information, please contact:

VIETNAM PLASTICS ASSOCIATION - VPA
156 Nam Ky Khoi Nghia St., Ben Thanh Ward, Dist 1, Tp.HCM
Tel: 848 3521 8552/53
Fax: 848 3521 8554
E-mail: info@vpas.vn
Website: www.vpas.vn

Vietnam Plastics Association

37