Vietnam’s plastics industry is a rapidly growing sector, driven by increasing domestic demand, export opportunities, and industrial expansion. The industry covers a wide range of products, including packaging, household goods, construction materials, and technical plastics, catering to sectors like food and beverage, agriculture, healthcare, and manufacturing. Vietnam’s strategic location, cost-effective production, and access to raw materials have made it a key player in the regional plastics market.
Packaging dominates the industry, supported by the booming e-commerce and food processing sectors. Meanwhile, the construction industry fuels demand for plastic pipes, doors, and other building materials. Vietnam also exports significant volumes of plastic products to markets in Asia, Europe, and the Americas, thanks to its competitive pricing and improving quality standards.
However, the industry faces challenges, including heavy reliance on imported raw materials, environmental concerns, and growing regulatory pressures to reduce plastic waste. To address these issues, companies are adopting sustainable practices, such as using biodegradable plastics and recycling technologies. With government support and advancements in production technologies, Vietnam’s plastics industry is poised for further growth while adapting to global sustainability trends.
Vietnam’s plastics industry in numbers
The expansion of Vietnam’s manufacturing sector and its integration into global supply chains has contributed to the rising consumption of plastics. Here are a few key data points.
Vietnam’s plastics market
Vietnam’s plastics market is projected to grow significantly, with an estimated market size of 10.92 million tons in 2024. By 2029, the market is expected to reach 16.36 million tons, reflecting a compound annual growth rate of 8.44 percent during the forecast period, according to a report by Mordor Intelligence.
Vietnam’s plastics imports-exports
Vietnam’s plastics industry has experienced significant growth in both imports and exports in recent years.
Vietnam’s plastics imports, November 2024
| November | October | MoM | YTD | |
| Total | 1,028,067,165 | 1,006,868,064 | 2.11% | 10,603,750,175 |
| Other | 89,097,217 | 96,159,771 | -7.34% | 1,021,904,101 |
| China | 310,967,897 | 264,626,638 | 17.51% | 2,853,017,941 |
| South Korea | 178,307,718 | 196,813,820 | -9.40% | 2,121,207,480 |
| Taiwan | 112,842,350 | 91,908,316 | 22.78% | 1,111,831,861 |
| Saudi Arabia | 94,151,300 | 109,517,312 | -14.03% | 877,875,679 |
| USA | 62,869,557 | 61,224,415 | 2.69% | 710,806,803 |
| Thailand | 54,661,519 | 59,350,385 | -7.90% | 633,035,778 |
| Japan | 48,457,727 | 45,272,644 | 7.04% | 490,024,700 |
| Malaysia | 34,318,695 | 39,619,606 | -13.38% | 342,359,590 |
| Singapore | 23,717,513 | 28,905,960 | -17.95% | 280,560,865 |
| UAE | 18,675,672 | 13,469,197 | 38.65% | 161,125,377 |
Source: Vietnam Imports Tracker
Vietnam’s plastics exports, November 2024
| November | October | MoM | YTD | |
| Total | 183,498,815 | 259,568,418 | -29.31% | 2,453,421,457 |
| Other | 74,469,479 | 94,741,522 | -21.40% | 984,288,037 |
| Indonesia | 27,066,166 | 33,950,207 | -20.28% | 359,344,736 |
| China | 24,414,546 | 60,157,487 | -59.42% | 392,770,331 |
| Japan | 10,356,318 | 16,324,955 | -36.56% | 148,878,088 |
| Italy | 9,952,673 | 11,149,338 | -10.73% | 92,850,265 |
| India | 8,148,433 | 7,683,947 | 6.04% | 130,022,983 |
| Thailand | 7,789,984 | 7,072,469 | 10.15% | 105,039,200 |
| Poland | 7,206,992 | 12,146,066 | -40.66% | 105,645,334 |
| Nigeria | 6,029,679 | 4,740,659 | 27.19% | 37,486,470 |
| Bangladesh | 4,159,665 | 5,729,319 | -27.40% | 54,552,414 |
| Philippines | 3,904,880 | 5,872,449 | -33.51% | 42,543,599 |
Source:Vietnam Exports Tracker
Vietnam plastics production
Plastic product manufacturing in Vietnam increased by 1.23 percent in November 2024 compared to October 2024, according to Vietnam’s General Statistics Office.
Year-on-year, production grew significantly by 14.04 percent in November 2024 compared to the same month in 2023. Cumulatively, the sector recorded robust growth of 25.56 percent over the first eleven months of 2024 compared to the same period last year, reflecting consistent expansion.
Domestic plastics firms in Vietnam
Vietnam’s plastics industry is supported by several prominent domestic manufacturers that cater to both local and international markets. Notable companies include:
Duy Tan Plastics Manufacturing Corporation
Established in 1987, Duy Tan specializes in producing high-quality plastic products, including household items, containers, precision molds, and high-tech plastic products. The company supplies major brands such as Unilever and Mobil Oil and exports to markets including the USA, Japan, South Korea, and Canada. In recent years, Duy Tan has also invested in a plastic recycling plant project to support sustainability efforts.
Viet Nhat Plastic Production Company Limited
Founded in 2002, Viet Nhat is renowned for manufacturing a wide range of consumer plastic products, including tables, chairs, dustbins, racks, helmets, hangers, and cabinets. The company imports raw materials from various countries, with products primarily consumed in the domestic market.
Binh Minh Plastic Joint Stock Company
Established in 1977, Binh Minh Plastic is a leading enterprise in Vietnam’s construction material plastic industry. The company produces various products, including PVC-U pipes, PEHD pipes, PP-R pipes, and fittings, serving both domestic and international markets.
Song Long Company Limited
Founded in 1996, Song Long is one of Vietnam’s leading plastic corporations, specializing in manufacturing household appliances, industrial products, and packaging. The company operates multiple large factories with a significant annual production capacity, meeting both domestic and export demands.
Tan Hiep Hung Plastic Company
With over 50 years of experience, Tan Hiep Hung is one of Vietnam’s oldest plastic manufacturers. The company produces plastic bottles and caps for international brands such as Coca-Cola, Pepsi, Nestle, and KFC, playing a significant role in the beverage industry’s supply chain.
These domestic firms have significantly contributed to the growth and development of Vietnam’s plastics industry, enhancing its competitiveness in both regional and global markets.
Foreign plastics firms in Vietnam
Vietnam’s plastics industry has attracted significant foreign investment, with numerous international companies establishing operations to leverage the country’s strategic location, skilled workforce, and growing market demand. Notable foreign plastics firms operating in Vietnam include:
SCG Plastics Co., Ltd.
SCG Plastics, a subsidiary of Thailand’s Siam Cement Group, has a substantial presence in Vietnam’s plastics sector. The company produces a wide range of plastic products, including packaging materials, construction plastics, and household items, serving both domestic and international markets.
Formosa Plastics Group
Formosa Plastics Group, a Taiwanese conglomerate, operates in Vietnam through its subsidiary, Formosa Industries Corporation. The company is involved in the production of various plastic products and materials, contributing significantly to the local plastics industry.
Chevron Phillips Chemical
Chevron Phillips Chemical, a leading American petrochemical company, has established a joint venture in Vietnam to produce high-density polyethylene (HDPE) and other plastic resins. These materials are essential for manufacturing a variety of plastic products, including pipes, containers, and household goods.
BASF Vietnam Co., Ltd.
BASF, a German chemical company, operates in Vietnam, providing a range of plastic materials and solutions. The company’s products cater to various industries, including automotive, construction, and consumer goods, supporting the development of high-quality plastic products in the Vietnamese market.
These foreign investments have introduced advanced technologies, enhanced production capacities, and promoted sustainable practices within Vietnam’s plastics industry, contributing to its growth and integration into the global market.
Vietnam’s main plastics products
Vietnam’s plastics industry produces a wide range of products that cater to domestic and international markets. The main plastics products include:
Packaging Plastics
Packaging plastics, such as films, bags, and containers, dominate Vietnam’s plastics production. These products are widely used in the food and beverage, agriculture, and e-commerce industries, driven by rising consumer demand and export opportunities.
Construction Plastics
Vietnam produces various construction-related plastic products, including pipes, fittings, sheets, and insulation materials. These products are essential for the country’s booming infrastructure and real estate sectors.
Household Plastics
The industry manufactures a broad range of household plastic goods, such as storage containers, kitchenware, furniture, and cleaning tools. These items are in high demand domestically and are also exported to regional markets.
Automotive and Technical Plastics
Technical plastics are used in the automotive and electronics industries, including components like dashboards, panels, and wiring. Vietnam is increasingly supplying these products to meet growing industrial needs.
Agricultural Plastics
Agricultural plastics, such as greenhouse films, irrigation pipes, and planting trays, are widely used in Vietnam’s farming sector. These products support the country’s agricultural development and food production.
Biodegradable and Recycled Plastics
In response to global sustainability trends, Vietnam’s plastics industry is increasingly producing biodegradable and recycled plastic products. These include eco-friendly packaging and reusable plastic goods aimed at reducing environmental impact.
These main plastics products reflect Vietnam’s ability to serve diverse industries while adapting to global demands for sustainable and high-quality solutions.
Plastics regulations in Vietnam
Vietnam’s plastics industry operates under a regulatory framework designed to ensure environmental protection, sustainable production, and compliance with international trade standards. Key regulations include:
Environmental Protection Laws
Plastics manufacturers must comply with Vietnam’s Law on Environmental Protection, which mandates measures to control pollution from production activities. Companies are required to manage waste, reduce emissions, and adopt eco-friendly practices, such as recycling and using biodegradable materials. Environmental Impact Assessments (EIAs) are mandatory for large-scale production facilities.
Licensing and Standards
Manufacturers must obtain licenses to operate in the plastics sector and meet national technical standards (QCVN) for product quality and safety. These standards cover various types of plastics, ensuring compliance with domestic and export market requirements.
Circular Economy Initiatives
Vietnam promotes the circular economy model in the plastics industry, encouraging recycling and the reuse of plastic materials. Companies are incentivised to establish recycling facilities and implement sustainable production methods.
Import and Export Regulations
Plastics manufacturers and traders must comply with strict regulations governing the import of raw materials and the export of plastic products. Imported scrap plastics are subject to quality checks to prevent environmental harm, and only licensed facilities are permitted to process these materials.
Taxation and Incentives
The government imposes taxes on non-biodegradable plastics to discourage their production and use. On the other hand, incentives such as tax breaks are offered to companies investing in recycling technologies and eco-friendly plastic production.
These regulations aim to balance the growth of Vietnam’s plastics industry with environmental sustainability, aligning with the country’s commitments to reduce plastic waste and transition toward greener production practices.
What’s next?
Vietnam’s plastics industry operates under regulations aimed at promoting sustainability, reducing environmental impact, and ensuring compliance with quality standards. Environmental laws require manufacturers to adopt waste management systems, reduce emissions, and use eco-friendly materials.
Manufacturers must meet national technical standards for product quality and secure licenses to operate. Import and export activities are regulated, with strict controls on the use of scrap plastics. To support sustainable practices, the government offers tax incentives for recycling technologies and imposes taxes on non-biodegradable plastics. These measures aim to balance the industry’s growth with environmental protection, aligning Vietnam with global efforts to reduce plastic waste and foster green production practices.
That said, Vietnam’s plastics industry is dynamic and can change rapidly. With this in mind, foreign firms operating in the plastics space should make sure to keep up with the latest developments in the industry by subscribing to the-shiv.