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Plastic industry enterprises receive many large orders

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Plastic product exports in 2021 have reached approximately 5 billion USD and are expected to continue to grow over 20% in 2022 thanks to the expanding industry scale and receiving many large orders.

Orders poured into Vietnam

The production scale of the plastic industry is increasingly large thanks to strong investment activities of FDI and domestic enterprises, along with the trend of shifting production to green and environmentally friendly product lines. Vietnam has become a production base, receiving many orders from major import markets.
Data from the Import-Export Department (Ministry of Industry and Trade) shows that, despite the negative impact of Covid-19, in 2021, Vietnam’s export turnover of plastic products still reached 4.93 billion USD, an increase of 34%. .9% compared to 2020. With a growth rate of nearly 35% (equivalent to an increase of nearly 1.3 billion USD), this is a very large number compared to the growth of many other export industries.
If including the export of plastic materials reaching 2.26 billion USD, an increase of 68% compared to 2020, then in 2021, the plastic industry contributes 7.19 billion USD to the total export turnover of the country.
Major markets such as the US, EU, Japan… all increased import orders from Vietnamese suppliers. Of which, the US imported plastic products from Vietnam worth nearly 1.85 billion USD, an increase of 68.6%, accounting for 37.47% of the total export turnover of plastic products. Japan ranked second with 696.9 million USD, an increase of 3.55% and a proportion of 14.13%, followed by the ASEAN region with 575.8 million USD, an increase of 23.3%, and the EU market reached 557.7 million USD, an increase of 21.7%.
Nam Thai Son Import-Export Joint Stock Company, specializing in supplying industrial plastic products, consumer goods, and biodegradable goods, confirmed that, despite being affected by the pandemic, the business has positive output. According to this business leader, the Company currently has continuous export orders, filled until the end of October 2022, notably an order of about 4,000 tons to the European market, with a value of more than 8 million USD. In addition, orders from the US market in 2022 will also increase greatly.
Nam Thai Son is just one of many large enterprises in the plastic industry receiving positive signals about export orders. An Phat Holdings Group specializes in exporting plastic industry products such as packaging, raw materials, biodegradable plastic products, and high-tech plastic flooring, which also has a bumper crop of orders.
The total export value of An Phat Holdings reached over 4,000 billion VND, accounting for 98% of total revenue. Mr. Pham Anh Duong, Chairman of An Phat Holdings, said that from 2019 until now is considered a breakthrough period for the Group when export packaging output has reached over 10,000 tons/year, of which the US is a market. large, accounting for more than 10% of the Group’s packaging production revenue.
Exports to the US increased sharply, with a number of products meeting the needs of people in this country in construction, home repair and decoration such as plastic floor panels, plastic flooring, door curtains, and home furnishing components. , vehicle…
Export of green technology plastic bag products to the EU market also achieved high turnover and strong growth thanks to businesses that have embraced the trend of green product production, with biodegradable, biodegradable plastic bag products. meet the environmental protection needs of the people of these countries.

Positive outlook

Vietnam’s plastic industry is benefiting from the investment and business shifting needs of multinational corporations.
Strong investment in production from FDI and domestic enterprises has recently promoted the growth of production and export of plastic products. In early 2022, An Phat Holdings broke ground on the PBAT biodegradable plastics factory construction project in Hai Phong. This is the first green material factory in Southeast Asia, in the list of high-tech projects prioritized for investment, with a capacity of 30,000 tons/year, expected to be completed in 24 months.
With a total investment capital of up to 120 million USD, when put into operation, the factory will meet 100% of An Phat Holdings’ raw material needs, closing a green circular ecosystem from input to product output. , becoming the first Vietnamese enterprise to successfully produce 100% biodegradable plastic materials and products, and officially participating in the world green materials network.
According to calculations, the cost of green products will decrease by 20-30% when the PBAT factory comes into operation.
An Phat Holdings also cooperates with Nexeo Plastics, the world’s leading distributor of plastic resins, to bring biodegradable plastic materials to the US, Canada, and Mexico markets.
With an overall revenue growth of 16-18% in the period 2016-2021, the plastic industry is forecast to continue to maintain a double-digit growth rate in the coming years.
Entering 2022, the outlook for the plastic industry is very favorable thanks to 15 implemented free trade agreements (FTAs) such as CPTPP, EVFTA, and RCEP, helping to open up opportunities to attract investment not only in partner countries. FTA, but also other countries.
Currently, Thai, Korean, and Japanese investors have bought shares in many Vietnamese plastic enterprises. In 2021, SCG Group (Thailand) completed the acquisition of 70% of the shares in two packaging and household plastic businesses of Duy Tan Plastic Company (revenue of nearly 5,000 billion VND), with a value of 280 million USD.
Previously, SCG Group also spent nearly 2,100 billion VND (89 million USD) to buy 94% of the shares of Bien Hoa Packaging Company (SOVI), an enterprise established in 1968 with annual revenue of nearly 2,000 billion VND. SCG also acquired many Vietnamese businesses in the field of packaging and plastics such as Tin Thanh and Binh Minh Plastics.
With the strong increase in investment from domestic enterprises as well as FDI enterprises, it is forecast that the export of plastic products and plastic materials will soon reach 10 billion USD in the near future.