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Raw materials for the plastics industry: In dependence, competitiveness

According to the experts, the ability to meet requirements from importers of plastic enterprises in the country is rather limited at the stage of input materials for the plastic industry was too passive in raw materials on the market world.

WTO accession would be a "nudge" to the plastic industry more determined (though rather late) plans in the "subsistence" material for yourself and have more "off" reaching out to the world market. Representatives Plastic Joint Stock Company Tien Phong said that since early this year, the price of plastic raw materials increased sharply. With PE nuts, "if good diplomacy", the price is $ 1,260 / ton (2005 was about 900 USD / tonne), while PVC also fluctuated around 750 USD / ton. So in the past few months, the company's products by the old prefer to keep the selling price should still have "gong" endure when input prices skyrocketed. But keep this momentum, sooner or later, the company will also have to take into account the rise in prices to avoid losses. In fact, many other businesses in the plastics manufacturing industry also fell into such a difficult situation. There have been many companies considering plans to increase the product but worried reaction from consumers. However, if not done so, the risk of loss is coming very close.

Mr. Nguyen Dang Cuong - General Secretary of the Vietnam Plastics Association (VPA), said this year's demand for plastic materials manufacturers in the country is very large, estimated at 1, 6 million tons. Meanwhile, the capacity to meet the domestic production was only about 200 thousand tons, while the rest is imported. Pressure to serve raw materials is still the largest producer. If the situation is so dependent on imported raw materials also extends the current, the companies can not be actively trading the manufacturing process and will also face more difficulties. In addition, outdated technology, the skill ... is also seen as challenges to the plastic industry. Especially with high-grade plastic, domestic enterprises will have fierce competition with similar products from China, Thailand ... would be a major obstacle for plastics VN, when we have to follow the market opening clause in the WTO.

According to the statistics and assessment of Comtrade (Statistical Office of the United Nations), then for plastic items, Vietnam is capable of penetrating the relatively good market and low tariffs or be treated on par with other exporting countries in most export markets. Vietnam's plastic items are currently being evaluated to have high competitiveness, but the biggest problem posed is the ability to meet the requirements from importers (mainly in terms of the number and types of products) is rather limited. Therefore, if you can solve the problem of raw material, product design as well as meet large orders, plastic items of Vietnam fully capable of large-scale export demand goods of this world for very high (above 2005 USD 200 billion and average growth in imports in the last 5 years 7% / year). The experts said that the development of raw materials for the plastic industry Vietnam is entirely doable, not beyond the reach. By the production of raw materials is not entirely dependent on the construction of petrochemical plants, but instead, can "go off" some stages. And according to calculations, if embark immediately on the domestic production of raw materials from this period, to 2010, Vietnam can produce from 1,2- 1, 3 million tons, about 30% to meet demand Meanwhile demand. To conduct the domestic production will make up the balance between the value of imports and exports of plastics.

VPA currently ongoing work associated with the oil and gas industry to carry out the production of plastic raw materials domestically. As planned, the project feasibility in the production of plastic raw materials in the country with millions of dollars of capital will be submitted to the Government. If this project is implemented, businesses will be less dependent plastic when world market fluctuations. The government has also oriented support to promote the development of plastics industry through nearly $ 1 billion plan to support the construction and renovation of factory production of raw materials such as PVC and PP, after completion will can meet 50-60% of the demand for raw materials for the plastic industry. The government also spent more funds to support other activities such as trade promotion organizations Vietnam Plastic Fair, established the data center industry, training and technical support for the purchase equipment and renovate the factory ...

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