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Plastics industry strives for bigger, better export targets
Boosting exports is an indispensable measure to help the plastics industry ensure sustainable development, said vice chairman of the Viet Nam Plastics Association, Pham Trung Cang, at a conference on Wednesday.
At the conference, held in HCM City by the Ministry of Industry and Trade and the Viet Nam Plastics Association, Cang urged local businesses to reduce production costs, provide better information exchange and experiences sharing and to foster co-operation with partners to enhance exports.
Local plastic producers are facing many difficulties triggered by increases in material, fuel and freight costs. According to the plastic association, for the past two months, prices of plastic materials have increased 40 per cent over the same period last year.
In May alone, prices of plastic materials such as PP, PVC and HDPE had increased by US$30-50 per tonne over April, and up 23-25 per cent compared to the same period last year. This has contributed to a 10-30 per cent increase in prices of plastic products such as schoolbags, raincoats and children’s toys on the domestic market.
Moreover, growth in plastics enterprises was also being hindered by a shortage of investment capital in the wake of credit tightening, especially concerning greenback loans. Domestic plastics producers must import up to 90 per cent of their materials, the association reported.
Viet Nam has earned an estimated $345 million from exports of plastic products in the first five months of this year, up 31.9 per cent compared to the same period last year, reported the Ministry of Industry and Trade. The ministry added that in May alone the figure was estimated at $75 million, registering a year-on-year increase of 27 per cent.
The domestic plastics industry has made considerable progress in expanding production and business one year after the country joined the World Trade Organisation (WTO), and has gained a firm foothold in 48 countries around the world.
In 2007, Viet Nam earned $710 million from plastic exports, a year-on-year increase of 48 per cent. This figure is expected to reach $1 billion in 2008, up 41 per cent over the previous year.
Viet Nam has so far been able to produce high-quality products at international standards including packing, mosquito-preventing canvas, windows, insulating aprons and automobile spare parts.
VNN
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