Russia leading petrochemical firm SIBUR strengthens presence in Vietnam market
Russia leading petrochemical firm SIBUR strengthens presence in Vietnam market
The company sold more than 50,000 metric tons of polyolefin products in Vietnam in 2021 and aims to increase sales in the country by 30% in 2022.
SIBUR, the largest integrated petrochemicals company in Russia and one of the fastest-growing companies in the global petrochemicals industry, announces its decision to strengthen its presence in the Vietnamese market.
Nghi Son Oil Refinery plant. |
The move is part of the company’s long-term strategy to expand in the dynamic Southeast Asian market.
SIBUR plans to build a warehouse network in Vietnam in the second half of 2022 to support rising volumes of polyolefin supplies to the country. The company sold more than 50,000 metric tons of polyolefin products in Vietnam in 2021 and aims to increase sales in the country by 30% in 2022.
Polyolefins, such as polyethylene and polypropylene, serve as feedstock for the production of versatile plastics.
“We are happy to announce our decision to expand in the strategically important Southeast Asian region with an increase in supplies to Vietnam, followed by other countries in the region,” said Andrey Frolov, CEO of SIBUR International.
“This decision is driven by the dynamic development of the petrochemical market in the region, where we see growing demand for high quality ‘green’ feedstock. We aim to increase our market share significantly over the next five years to become one of the region’s main suppliers of polypropylene and polyethylene,” he added.
The plastics industry in Vietnam is set to grow by more than 10% per year throughout 2021-2026, according to research by Mordor Intelligence.
Packaging accounts for the largest segment of the Vietnamese plastics market. Rising household and commercial use of packaging products are expected to drive demand for plastics in the country through 2026.
The construction industry is set to be another driver as the local government aims to build one million affordable houses throughout the country.
Vietnam’s economic growth is expected to accelerate to 5.5% in 2022 as the region’s key economies recover from the effects of the coronavirus pandemic. The country’s recovery is further supported by the government’s shift from a “zero-Covid” approach to one of flexible adaptation, as the country’s full vaccination rate reaches 80%.
The plastics industry was the third-fastest growing industry in Vietnam during 2010-2020, with annual growth rates of 16%-18% per year.
In addition to its warehouse network, SIBUR plans to open a sales office in Vietnam in the coming years as a sign of strong commitment to its presence in the country. Currently, SIBUR has a representative employee in Vietnam working with local customers and providing consultations on questions related to polyolefin sales.
Overall, SIBUR sold 80,000 tons of polypropylene and polyethylene to the Southeast Asian market in 2021 and plans to continue to strengthen its position in the region with a stable supply of high-quality products.
