Predicting the development trend of Vietnam’s plastic industry in 2023

Plastic is an industry with strong growth and diversification of products to meet the increasing demands of the market. In 2023, this industry is expected to gain more foothold in the market and open up many new trends, thereby contributing positively to the development of Vietnam’s plastic industry .

Development trend of Vietnam plastic industry 2023 (Source: martinsplastics.net)

1. Overview of plastic industry in 2022

1.1 Industry like the world

Plastic industry is one of the industries with stable growth globally, widely used in different fields. According to  the plastic industry report  of the World Trade Organization (WTO), world plastic consumption reached about 322 million tons in 2015, an increase of more than 367 million tons in 2019, equivalent to an average growth rate of 2.8% per year.

The countries of Asia, Europe and North America are the largest consumption markets of the global plastic industry, with total consumption accounting for about 80% of world production. In the US market, the demand for the plastic industry has reached 85.99 billion USD in 2021, there is no official data in 2022 but it is estimated to increase sharply compared to 2021.

The most common plastics in the world are numerous and are used respectively according to the requirements of many different industries. In particular, polyethylene is the most produced and consumed plastic in the world, with consumption accounting for about 35% of total plastic production.

1.2 Vietnam’s plastic industry

In recent years,  the market share of Vietnam’s plastic industry  has also grown positively. According to the Vietnam Socio-Economic Overview Report 2021 of the Government of Vietnam, in 2020, Vietnam’s production of plastic products will reach about 7.9 million tons, up 6.8% year-on-year. before. In which, the production of processed plastic reached 3.2 million tons, up 7.9% compared to 2019, while the production of loaded asphalt reached 4.7 million tons, up 6.1%.

However, in 2022, the growth rate is not strong. According to the Vietnam Plastics Association (VPA) summarizing its activities in 2022, the output of the plastic industry will reach 9.54 million tons, up 1.9%. Vietnam’s export turnover of plastic products continues to increase, but is less than half (10.5%) compared to 2021, reaching 5.44 billion USD. Total revenue was about $25.18 billion, up 5.68% over the same period.

According to experts, this is because  Vietnam’s plastic industry  is still developing unevenly and is facing certain challenges. In which, the main input materials of this industry are petroleum products imported from abroad. Therefore, the cost of plastic products in Vietnam is still higher than in many other countries in the region.

1.3 Highlights of plastic industry in 2022

The plastic industry globally as well as in Vietnam is undergoing significant changes, especially due to the influence of environmental protection policies and increasing market demand. Plastic manufacturers are shifting to using plasticizers, bioplastics or environmentally friendly plastics, and at the same time focusing on research and development of high-grade plastic products.

At the same time, the price of plastic industry in the world and in Vietnam also fluctuated due to inflation and the Russia-Ukraine war. However, in  general, Vietnam’s plastic industry  is still developing and attracting many big investors in the world.

2. Plastic industry trends in 2023

2.1 Chances

Vietnam’s economic growth is creating demand for growth in many sectors, including the plastics industry. Demand for plastic products is increasing in industries, especially in the fields of packaging, packaging, and building materials.

The export market is also expanding for Vietnamese plastic products. The supply shortage in the US has recovered and the world supply has increased sharply from the expansion plan of large enterprises.

Vietnam’s plastic industry  has a better price advantage because it has cheap and abundant human resources. The Vietnamese government is supporting investment in the plastic industry through tax policies and encouraging investment in industrial zones.

2.2 Challenges

In addition to the opportunities, Vietnam is also facing many challenges in this industry. Due to the low tax rate, plastic products must meet many strict rules of the Agreement.

Moreover,  Vietnam’s plastic industry  is also facing strong competition from competitors around the world, especially countries with low production costs such as China and India. Another limitation is that the science and technology and production technology of this industry in Vietnam have not been fully developed, raw materials are mainly imported from foreign countries, increasing production costs.

If you are interested in machinery in the plastic industry, an address you can refer to is Carno company – a reliable partner in the field of manufacturing machinery and equipment for the plastic industry in Vietnam. With extensive experience and expertise in this field, Carno will provide you with the best and highest quality solution for your production needs.

Over the years of development,  Vietnam’s plastic industry  has made great strides, especially in recent years. Along with the economic development and the increasing demand for plastic products, this industry is becoming one of the most potential industries in the Vietnamese economy.

Source: https://carnovn.com/xu-huong-phat-trien-cua-nganh-nhua-viet-nam/