Viet Nam's plastics industry will need VND175.53 trillion (US$8.52 billion) for its development until 2020 under a plan approved by the Ministry of Industry and Trade.
Producing household plastic products at Song Long co-operative. Viet Nam's plastics industry will need US$8.52 billion for its development until 2020. — VNA/VNS Photo Huy Hung
HA NOI —
The plan aims to raise the sector's industrial production value to VND78.5 trillion ($3.81 billion) by 2015 and VND181.57 trillion ($8.81 billion) by 2020.
Its planned plastics will make up 5 per cent of the country's overall industry by 2015 and 5.5 per cent by 2020. Currently it is 4.48 per cent.
It targets an annual export growth rate of 15 per cent to reach $2.15 billion and $4.3 billion by 2015 and 2020, respectively.
Priority will be given to high quality, competitive products with diversification of product design to meet domestic and export markets.
Investors will be encouraged to recycle and introduce technologies to produce degradable plastic products.
The nation now has 1,064 plastics producers, 80 per cent of which are in the south, including provinces of Binh Duong, Dong Nai, Long An and HCM City.
The industry exports products to 55 foreign markets, with last year's exports valued at $1 billion, a year-on-year increase of 20 per cent. Packaging products made up half the export revenue, followed by household plastic items, 15 per cent, and technical plastic goods, 10 per cent.
The biggest obstacle for the industry was its heavy reliance on imported materials, the ministry's Industry Policy and Strategy Institute said. Of 2.2 million tonnes used a year, about 85 per cent was imported. This also exposed producers to foreign exchange risk and world oil price volatility which affected competitiveness, the institute said. — VNS