Ample room for Vietnamese plastic exports to Australia
Ample room for Vietnamese plastic exports to Australia
Room for growth is ample for Vietnamese plastic exports, as Australian demand has risen steadily in recent years.
The Vietnamese Trade Office in Australia (VTOA) reported that Vietnamese plastic exports to the country grew by over 11 per cent between 2017 and 2021. In 2021, Viet Nam took revenue of nearly US$87 million in plastic trade with Australia, up 28.5 per cent year-on-year.
Since the changing consumption habits in Australia are associated with a greater preference for convenience and ready-to-eat foods, the demand for plastic bags used in the food industry is expected to hold steady, creating more room for Vietnamese plastic.
Additionally, Australian agricultural and food exports are forecast to continue to climb in the short term thanks to free trade agreements, raising the demand for plastic bags in packaging. Vietnamese plastic is believed to benefit significantly from this upward trend.
Notably, Australian states have planned to ban single-use plastic products by 2025. That means Vietnamese environment-friendly plastic will become more appealing to the country in the coming years, another good news for plastic exporters.
The VTOA underlined trade fairs as an effective channel allowing Vietnamese firms to reach out to Australian partners. The organisation said it would help firms stay well-informed about Australia's trade fairs and trade opportunities.
It also said that it promoted Vietnamese firms to Australian partners and developed plans to help these firms look for exclusive distributors in the market.
Australia consumes over 3.5 million tonnes of plastic every year, 60 per cent of which comes from imported plastic. In 2021, the country imported $7.3 billion of plastic, up 18 per cent compared to 2020.
