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Vietnam has a wide range of industry development advantages:
Free trade agreements (FTA) offer many opportunities: opportunities to export plastic products to worldwide markets, besides the shift of production orders from China to Vietnam to take advantages of tax incentives. Increasing demand: the rising standard of living and income of people makes more use of convenient plastic products, especially raising plastic packaging needs.
The plastics industry has a large number of enterprises, with 5,562 enterprises in the country. The number of domestic enterprises is still dominant with 85%, but foreign enterprises account for 40% of the total investment in the whole industry with machinery and technology in the most modern form.
* Industry planning
According to Decision No. 2992/QD-BCT issued by the Ministry of Industry and Trade of Vietnam on June 17, 2011 on the approval of the development plan of Vietnamese plastic industry to 2020, with vision to 2025, the specific objectives of the planning include:
INVESTMENT OPPORTUNITIES IN VIETNAM PART VI. PLASTICS AND PLASTIC PRODUCTS
INVESTMENT OPPORTUNITIES IN VIETNAM
PART VI. PLASTICS AND PLASTIC PRODUCTS
The growth rate of plastics and plastic products from 2010 through 2020 in Vietnam is quite high, estimated at 17.5% and widely applied in all industries such as consumption, food, telecommunications, and construction.PART VI. PLASTICS AND PLASTIC PRODUCTS
Vietnam has a wide range of industry development advantages:
- Low labor costs are an advantage for Vietnam compared to Thailand and China when exporting to Japan, USA, and EU;
- Not imposing anti-dumping duties in some major markets: Vietnamese plastic products have not been imposed anti-dumping duties when exporting to markets such as EU, Japan,… (average tax from 8 – 30%) thereby creating advantages for Vietnamese plastic products compared to those from China, Thailand,…
Free trade agreements (FTA) offer many opportunities: opportunities to export plastic products to worldwide markets, besides the shift of production orders from China to Vietnam to take advantages of tax incentives. Increasing demand: the rising standard of living and income of people makes more use of convenient plastic products, especially raising plastic packaging needs.
The plastics industry has a large number of enterprises, with 5,562 enterprises in the country. The number of domestic enterprises is still dominant with 85%, but foreign enterprises account for 40% of the total investment in the whole industry with machinery and technology in the most modern form.
* Industry planning
According to Decision No. 2992/QD-BCT issued by the Ministry of Industry and Trade of Vietnam on June 17, 2011 on the approval of the development plan of Vietnamese plastic industry to 2020, with vision to 2025, the specific objectives of the planning include:
- The value of plastic industry production at comparable prices from 1994 to 2020 reached VND 181,577 billion and by 2025 reached VND 390,000 billion, the growth rate of industrial production value in the period of 2021-2025 reached 16.52%.
- The value of plastics increased by comparable prices from 1994 to 2020 to VND 19,319 billion and VND 32,274 billion by 2025. The growth rate in the period of 2021-2025 reached 10.81%.
- Striving for the proportion of plastic industry compared to the whole industry to 2015 reached 5%, by 2020 reached 5.5%, and by 2025 reached 6%.
- Restructuring plastic product groups toward reducing the proportion of plastic packaging and household plastic product groups, gradually increasing the proportion of the group of construction materials and engineering plastics. The target of 2025 by the proportion of corresponding product groups is 31.0%; 17.0%; 27.0%; and 25.0%.
Source: Vietnam Investment Promotion Guidebook
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