SKC Limited, a part of South Korea’s SK Group, has broken ground on a bioplastics plant in northern Vietnam’s Hai Phong province in line with increasing plastics production among foreign firms in Vietnam. The plant will produce an estimated 70,000 tons of biodegradable plastics a year starting from the second half of 2025.
Similarly, it was announced back in October, that the Vietnamese arm of Chinese plastics manufacturer Kingfa Science & Technology is also set to open a new US$80 million factory in southern Vietnam’s Dong Nai province.
That said, local media noted last year that plastics exports from Vietnam reached only US3.7 billion from January to September in 2023, a 12.2 percent drop year-on-year. The Vietnam Plastics Association attributed this to the broader global economic slowdown.
With this in mind, plastics producers have looked to the government for support.
Last year Long Son Petrochemicals Complex, a subsidiary of Thailand’s Siam Cement Group, petitioned the Ministry of Finance to increase taxes on imported plastics, however, this request was knocked back.
Challenges for Long Son aside, the aforementioned investments from China and South Korea would suggest there is still an appetite for manufacturing plastics in Vietnam.
Opening a factory in Vietnam for foreign firms or individuals, however, is not always easy. Not only are there several technical requirements that need to be met, but there are also a broad number of considerations that need to be made.
For more information see: How to Open a Factory in Vietnam: Ultimate Guide 2024