Vietnam’s production of rubber and plastic products increased by 54.7 percent in January compared to the 2019 baseline, according to Vietnam’s Industrial Production Index. However, this was lower than December 2024, when output stood at 83.6 percent above 2019 levels.
Month-on-month, production declined in January compared to December by 13.2 points. Year-on-year, the sector recorded a 2.2 percent decline from January 2024.
Of note, Vietnam’s rubber and plastic products production industry plays a crucial role in the country’s manufacturing sector, supplying materials for various industries such as automotive, construction, electronics, and packaging. The industry has grown steadily due to strong domestic demand, increasing exports, and foreign investment.
Rubber production is a key part of Vietnam’s economy, with the country being one of the world’s largest natural rubber producers. The industry supports the manufacturing of tires, industrial rubber components, medical gloves, and footwear soles. Major tire manufacturers, including both local and foreign companies, have established production facilities in Vietnam to take advantage of the abundant rubber supply and competitive labour costs.
Plastic product manufacturing has also expanded, producing a wide range of items such as packaging materials, household goods, construction materials, and components for the electronics and automotive sectors. The growing demand for plastic packaging, particularly for food and beverage products, has driven the expansion of local plastic manufacturers.
Despite its growth, the industry faces challenges such as environmental concerns related to plastic waste, the need for more sustainable production methods, and competition from other low-cost manufacturing countries. The government has encouraged investment in biodegradable plastics and recycling initiatives to reduce the environmental impact of plastic production.
See also: Rubber in Vietnam: Industry Overview