The challenge of Vietnam's plastic industry

With an average growth rate of 15% - 20% per year, the plastic packaging sector in Vietnam is considered as an attractive industry.

However, from the beginning of 2017 to now, the plastic packaging manufacturers are facing a great concern about raw materials. PP is subject to a new import tax of up to 3%. PP resin is the main material of thousands of plastic packaging enterprises today. This item has to be imported up to 80%, so the application of the new import tariff has a direct impact on the cost of production, and indirectly on the competitiveness of Vietnamese enterprises in relation to the foreign enterprises.

In terms of all aspects, from business conditions to competitiveness, foreign enterprises are showing superiority, overlapping; Domestic enterprises, especially small and medium enterprises, are showing a lot of pressure when they face the double pressure: to compete with foreign enterprises who are dependent on raw materials, machinery and equipment. ...

According to analysts, in order to maintain market share as well as to improve exports to new markets, manufacturing enterprises need to constantly expand their scale in both breadth and depth by improving technology. , machinery innovation.

The advantage of this trend is that the euro is trading at par with the US dollar, creating a great opportunity for companies to invest heavily in new technology. Some companies are planning to import machinery from European countries such as Germany and France this year to take advantage of the cost of gold to invest in production equipment.

In addition, the ingredient that partially substitutes PP beads is the one that businesses are looking for. In the plastics industry, some companies, such as European Plastics (EuP), are manufacturing and supplying filler masterbatches (taical granules), which can help companies produce plastic products especially Replacement part for imported PP material. This will help reduce the concerns of manufacturers of plastic packaging and films against the pressure from imported raw materials.

The domestic packaging industry is expected to face a number of major technological challenges as customers' demand for the manufacturer becomes increasingly demanding, requiring thin, lightweight, and friendly packaging. environment, must design and print beautifully, press

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