FTAs open door for plastics firms
FTAs open door for plastics firms
Free trade agreements (FTAs) have opened up opportunities for Vietnamese plastic makers to expand their exports, according to a report in the Vietnam Economic News.
The article stated that the domestic plastic industry would need to foster joint production among businesses in order to take advantage of new markets.
The country exported an estimated US$992.12 million worth of plastic products in the first half of 2014, up 17.61 percent from the same period last year.
Japan remained the biggest importer of Vietnamese plastic products, shipping $245.98 million in plastic exports from Viet Nam in the first half of this year, accounting for 25 per cent of plastic exports in that period.
Meanwhile, the US was the second biggest importer, importing $125.5 million worth of Vietnamese plastic products in the same period, accounting for 12.65 percent.
The EU market had also become an important market for Vietnamese plastic makers, driven by improvements in quality. Vietnamese plastic exports to Germany numbered $55.97 million in the first half of this year, up 6.26 per cent from the same period last year, while exports to the Netherlands reached $50.97 million. Meanwhile, collective plastic exports to EU markets had grown between 3-6.1 per cent annually.
Vietnamese plastic makers were also eyeing potential opportunities in India. According to the article, the need for packaging had seen Indian demand for plastic products soar in recent years. The boom in infrastructure, agricultural development, rising incomes and urban migration had also increased demand in the industrial and retail sectors.
Vietnam Plastics Association Chairman Ho Duc Lam said the industry was focused on improving the quality of its products and scaling production to meet export demand. This would involve using modern technology, developing environmentally friendly products and fostering opportunities for joint-production, he said.
With Vietnamese plastic exports set to grow between 13.5-16.5 per cent this year, Vietnamese plastic businesses needed to address issues in product quality and design, and study market trends to integrate with the global supply chain, Lam said.
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