MEGAPLAS JS COMPANY
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According to figures from the Import-Export Department (Ministry of Industry and Trade), plastics export turnover continuously increased sharply from 1.5% in 2015 to 14% in 2017, reaching 2.5 billion USD.
FTAs help create export momentum for domestic plastic enterprises. In addition, the partners are moving orders from China to Vietnam to take advantage of cheap labor, cheap production costs, export plastic products tax to Korea, Japan and Europe and enjoy many incentives.
Exports to Japan reached the highest turnover of $ 565.4 million, up 9.8% from 2016, accounting for 22.4% of total plastic exports. At present, the demand of importing plastic products of Japan annually is over 10 billion USD. Therefore, this will be the most potential export market for plastic products in Vietnam. America ranked second with turnover reached 376.5 million, up 13.2% compared with 2016.
However, despite the strong development in recent years, Vietnam's plastic industry is still largely known only as an economic-engineering field for plastics processing. Meanwhile, the plastics industry has not been fully active in the production of raw materials because the petrochemical industry in the country has not developed.
The current plastic industry produce only about 20-25% of raw materials as well as chemical additives inputs, the rest must be imported. PE and PP are the most imported items and their value has increased over the years. This makes the production of the sector highly dependent on raw materials and the sale of products from abroad. At the same time, the inability to source raw materials will make it difficult for exporters to take advantage of tax incentives due to regulations related to the origin of goods.
Demand for plastic products in the European Union (EU) and Japan is still high. Vietnam plastic products, especially plastic pipes and plastic bags, are becoming increasingly popular. In particular, in the EU market, plastic products from Vietnam are not subject to anti-dumping duties from 8-30% compared to other countries. This is also a traditional market, enterprises have the ability to well penetrate.
However, these two markets still have many obstacles. Accordingly, Japan has strict requirements on the quality of goods that many Vietnamese enterprises are still unable to meet due to lack of information and experience. Many countries in the world including the United States and the EU have also passed a ban on plastic products for food preservation that seriously affect human health and the environment
By Economic and Consumption.
