Vietnam's plastics industry: Will the thirst of material

The formation of plastic scrap recycling plant will be the first step in efforts to reduce the burden of difficult material to the business.

Maintaining an annual growth rate of 15-20% over the past 10 years, Vietnam plastic industry to boost exports, create jobs for workers.

But before the market situation more volatile and unpredictable as today, many businesses and managers are tottering with the problem of input materials.


Nearly 90% of the materials to be imported

The plastics industry, there are about 2,200 enterprises, of which more than 80% concentrated in Ho Chi Minh City and mainly small private businesses, family size with weak competitiveness.
According to the survey results of the functional departments, available to more than 90% of enterprises mainly do not actively processed and raw materials.

Mung Xuan Vu, Deputy Director of the Ministry of Industry and Trade missions in Ho Chi Minh City said material costs account for 70-80% of the product cost to the exchange rate fluctuations are directly affected business activities of enterprises.

The biggest challenge for the industry is now the source of 80-90% of raw materials from abroad, the equivalent of about $ 2.1 billion / year.


From 2008 until now, standing in the plastics industry to suffer material price increases have a significant impact to the business of manufacturing enterprises. Over the May 11, 2009, the plastics industry has entered more than 2 million tons of plastic material, with a total value of nearly $ 2.5 billion.

Due process should depend on the price of raw materials now Vietnam is always higher than that of China, India, 10-15%. At present, only about 3 manufacturing materials for the plastics industry with a total capacity of approximately 250,000 tons and 150,000 tons of material PVC DOP.

Due to material produced in the country can only meet about 10% of the demand, so every year the industry has to import 1.6 to 2 million tons of other materials.

"However, because the majority of plastic materials are produced from oil and gas prices are affected directly from the aftershocks of the commodity price. Not the passive input, now also subject to the constantly fluctuate in price, "he explained Gospel.

Exit - scrap plastic water source

Early understanding of sustainable elements, the overall planning plastics 2000-2010 period, the Ministry of Industry and Trade has launched the development of the industrial production of raw materials for the plastics industry is one of three key programs.
Accordingly, the formation of plastic scrap recycling plant will be the first step in efforts to reduce the burden of difficult material to the business.

"Sources of plastic waste in the water is plentiful, but we have yet to take advantage of. The reason is that small collection system, not concentrated scrap hardly be processed and classified in accordance with specifications; outdated technology ... ", Nguyen Khac Long, general director of Vietnam Plastic Corporation said.

According to calculations by economists, the current price of imported PET plastic beads around $ 1,300 / ton, if regeneration is the main source of scrap, the price will be reduced by nearly 30%.

Unlike the previous period, the proportion of renewable renewable particles mixed with virgin resin usually less than 20%, current ratio has increased 3-4 fold.

In addition, the advanced technology the world has allowed enhance competitiveness by limiting the amounts incurred in production as power consumption, labor ...

According to Mr Long, in Vietnam, only calculating the leverage from 35-50% recycled plastic materials will contribute to saving more than $ 600 million each year for business and also increase exports 25% of industry.

In the context of fierce competition, many enterprises are committed to using recycled plastic acts as a source of raw materials, cheap fuel in lowering production costs.

Surveys of businesses, with the use of plastic scrap as raw material prices fell by about 30% will contribute to reducing product costs more than 15%, increase the competitiveness of exports of Vietnam.

"In addition to more demanding customers such as the US, Japan ... they also require export plastic products to use at least 10% recycled plastic to lower prices and products with environmentally friendly" Nguyen Van Phuoc, Deputy Director of the Department of Natural Resources and Environment Ho Chi Minh City said.

Source: Collectibles