HA NOI — The plastic industry is targeting an export turnover of US$1 billion in 2009, a year-on-year increase of 15.9 per cent, says the Viet Nam Plastic Association.

The plastic industry will have many opportunities to expand production in the next couple years to increase export turnover. Moreover, the plastic market is wide and not too difficult to break into, the association says. The industry has recently experienced the most rapid export growth rate in the country. In 2006, the industry’s export growth rate was 37 per cent. The rate was 33 per cent and 34 percent in 2007 and 2008 respectively. UN Comtrade, the Statistics Division of the United Nations, has said that Vietnamese plastic goods has a good opportunity to break into foreign markets. The association, for its part, says that the domestic plastic industry will develop to meet the demands of the world market if it can solve problems relating to quantity and design. Though the industry is expected to reach a high export turnover, the association warns that it will be a year of challenges due to the world recession. It says that there will be major upheavals in the world market this year. For example, about 70 per cent of the plastic industry’s export turnover is from packing. This year, however, packing production will face strong competition as big markets like the United States and Japan limit plastic imports for vehicle production. So, instead of making plastics used for vehicle production, plastic companies will produce packing to serve the food industry. In addition, many countries will use economic barriers to protect their domestic industries, which will compound the Vietnamese plastic industry’s difficulties. The most important thing is that domestic plastic companies must cooperate and support each other to overcome difficulties, says Phan Van Thanh, chairman of the association. The world recession is temporary, but cheap imported plastics is a long term risk for the domestic plastic industry. Domestic companies must re-structure the industry to produce products on a large scale to reduce costs, he says. This year, to help the industry boost production, the association is encouraging domestic companies to study Japan and Middle East markets. In 2009, the association will set up a foundation to develop the Vietnamese plastic industry. It also proposes that the Government allow the industry to import machines to produce high quality plastics.

(Source: VNS)