Vietnam Plastics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Vietnam Plastics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Vietnam plastics market is valued at 7,048.71 kilotons in 2020 and is projected to register a CAGR of over 10% during the forecast period (2021-2026).

Owing to the COVID-19 impact in the first half of 2020, various production facilities and manufacturing activities have been halted in industries such as automotive and transportation, building and construction, and electronics. The global production of vehicles took a huge toll during COVID-19. The automotive sector of Vietnam was no exception. According to OICA (Organisation Internationale des Constructeurs d'Automobiles), motor vehicle production in Vietnam dropped by 6% in 2020, compared to 2019. This, in turn, has negatively affected the consumption of plastics in these end-user industries in Vietnam.

  • In the short term, the increasing demand from the construction industry is expected to drive market growth.
  • Over-reliance on imports of raw materials and finished plastics is expected to hinder the growth of the market.
  • An increase in foreign investments is expected to offer various opportunities for the growth of the market.
Key Market TrendsExtrusion Technology to Dominate the Market
  • In Vietnam, extrusion molding technology is used to make products, such as PVC, PE pipe, aluminum and plastic pipe, fiber, PVC doors, frames, roofing, and wall coverings. An extrusion molding process involves lower production costs and faster setup time. However, it provides mediocre precision and is mostly suitable for uniform cross-section parts and not complex parts.
  • This technology is used mainly in construction activity, and the main products include PVC, HDPE, PPR pipes, profile bars, plastic doors and windows, panels, and furniture.
  • There are more than 1000 extruders in Vietnam that produce construction and technical plastics in the country.
  • According to the plastic industry development plan of 2020, the plastics industry will be restructured toward reducing the proportion of packaging and consumer plastics and increasing the percentage of the construction and technical plastics segment.
  • Vietnam’s construction plastics segment accounts for around one-fourth of the total plastics industry. The development of the construction and real estate sector is boosting the demand for plastic construction products.
  • In addition, the government of the country aims to build a million affordable houses in more than 350 industrials zones in the country. These infrastructural development projects, along with the increasing number of factories being installed, are robustly increasing the demand for construction and technical plastics in the country.
  • The two of the largest firms in the construction plastics segment are Tien Phong Plastic JSC (NTP), which leads the northern market with having around 60% of the regional market share, and Binh Minh Plastic JSC (BMP), dominating the southern market with occupying rest of the total market share.
  • The competition in the construction plastics sector has become increasingly intense. Even though the local plastics enterprises remain dominant due to their huge sizes, shares, and strong brand value, their respective market shares are subjected to fall if they fail to adapt to a more competitive market.
Growing Demand from the Packaging Industry
  • Packaging accounts for the largest application segment in the Vietnamese plastics market. The prime reasons for the growing application of engineering plastics in the packaging segment are better to wear and chemical resistance, ease of molding, recyclability, puncture resistance, and high mechanical strength.
  • Some major applications of engineering plastics in the packaging segment are as follows: packaging of bottled water, flexible packaging, such as sausage skin, flexible foils, such as shopping bags.
  • Polyethylene terephthalate (PET) is one of the plastics majorly used for packaging purposes, mostly in the food and beverage industry. Portability, design flexibility, ease of cleaning, lightweight, and protection against moisture are few properties of PET, which make it suitable for packaging purposes. In addition, low handling hazards, low toxicity, and the absence of bisphenol A (BPA) and heavy metals are some other factors that allow PET to be used in food packaging.
  • PETs are used for making clamshells, bakery and take-out containers, microwaveable food trays, carbonated soft drink bottles, and other packages. Other applications include packaging materials for cooking oils, shampoo, hand wash, and more products.
  • Polyamide is another major engineering plastic that finds major application in the packaging sector. Bi-axially oriented and non-oriented polyamide films are used in medical and food packaging, owing to the former’s high impact strength and good heat resistance.
  • Increasing household and commercial applications for containers, plastic bags, canisters, and tableware, among others, are expected to drive the consumption demand for plastics in the packaging sector, during the forecast period.
  • The usage of plastics for packaging products is expected to experience a fairly steady demand during the forecast period. Requirements for rubber gloves in the healthcare sector, stretch films, garbage bags, and other medical devices, are anticipated to witness greater demand in the coming years.
Competitive Landscape

In terms of production capacity, the Vietnamese plastics market is a consolidated market with a limited number of players engaged in the production of plastic resins. Some major companies in the Vietnamese plastics market include Far Eastern New Century, Nghi Son Refinery and Petrochemical (NSRP), Hyosung Chemicals, Billion Industrial Holdings Co. Ltd, and SCG Chemicals Co. Ltd, among others.

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1.1 Study Assumptions
1.2 Scope of the Study
4.1 Drivers
4.1.1 Growing Demand from the Construction Sector
4.1.2 Other Drivers
4.2 Restraints
4.2.1 Over-reliance on Imports of Raw Materials and Finished Plastics
4.2.2 Environmental Concerns of Plastics and the Availability of New Substitutes
4.2.3 Impact of COVID-19 on the Automotive Market
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
4.5 Raw Material Analysis
5.1 Type
5.1.1 Traditional Plastics Polyethylene Polypropylene Polystyrene Polyvinyl Chloride
5.1.2 Engineering Plastics Polyurethanes Fluoropolymers Polyamides Polycarbonates Styrene Copolymers (ABS and SAN) Thermoplastic Polyesters Other Engineering Plastics
5.1.3 Bioplastics
5.2 Technology
5.2.1 Blow Molding
5.2.2 Extrusion
5.2.3 Injection Molding
5.2.4 Other Technologies
5.3 Application
5.3.1 Packaging
5.3.2 Electrical and Electronics
5.3.3 Building and Construction
5.3.4 Automotive and Transportation
5.3.5 Housewares
5.3.6 Furniture and Bedding
5.3.7 Other Applications
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%) Analysis**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 AGC Chemicals Vietnam Co. Ltd
6.4.2 DuPont
6.4.3 LyondellBasell Industries Holdings BV
6.4.4 Nan Ya Plastics Corporation (Formosa)
6.4.5 Toray Industries Inc.
6.4.6 SCG Chemicals Co. Ltd
6.4.7 Vietnam Oil & Gas Group
6.4.8 Vinaplast
6.4.9 Polystyrene Vietnam
6.4.10 Hyosung Chemicals
6.4.11 Far Eastern New Century
6.4.12 Nghi Son Refinery and Petrochemical (NSRP)
6.4.13 Billion Industrial Holdings Limited 
7.1 Increase in Foreign Investments
7.2 Other Opportunities

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