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Vietnam's plastics industry: Will thirsty materials

The formation of the plastic scrap recycling machines will be a first step in efforts to reduce the burden of raw material to the enterprise.

Maintaining annual growth rate of 15-20% over the past 10 years, Vietnam's plastic industry to boost exports, create jobs for laborers.

But before the market situation more volatile and unpredictable as today, many businesses and managers are suffering with the problem of raw material inputs.


Nearly 90% of raw materials to be imported

The plastics industry there are about 2,200 enterprises, of which more than 80% concentrated in Ho Chi Minh City and mostly small private enterprises, family size with weak competitiveness.
According to the survey results of the functional departments, more than 90% is now mainly do not actively processing and raw material source.

Mr. Vu Xuan Mung, deputy chief representative agency in the Ministry of Industry and Trade Ho Chi Minh City said the cost of raw materials accounted for 70-80% of the finished product, so the exchange rate fluctuations are directly affected business activities of enterprises.

The industry's biggest challenge now is to supply 80-90% of raw materials from abroad, the equivalent of about $ 2.1 billion / year.


From 2008 until now, the plastic industry gong to suffer from price hike of raw materials has a significant impact on the production of business enterprises. Over the May 11, 2009, the plastics industry has more than 2 million tons of imported plastic raw materials, with a total value of nearly $ 2.5 billion.

Due to over-dependence on raw materials that the retail prices of Vietnam are now higher than China, India is about 10-15%. At present, only about 3 factories producing raw materials for the plastics industry with a total capacity of about 250,000 tonnes of PVC per year and 150,000 tons of DOP.

Due to the domestic production of raw materials only meet about 10% of demand, so every year the industry has to import 1.6-2 million tonnes of other materials.

"However, because the majority of plastic raw materials are produced from oil and gas prices are directly affected by the earthquake from the price of these commodities. Not only for input passive, are now subject to the price fluctuates constantly, "Mr. Good explained.

Exit - plastic scrap domestic sources

Soon grasp this unsustainable factors, overall planning plastic industry the 2000-2010 period, the Ministry of Industry and Trade has commissioned the development of industrial production of raw materials for the plastics industry is one of three key programs.
Accordingly, the establishment of the factory scrap recycling plastic will be a first step in efforts to reduce the burden of raw material to the enterprise.

"Domestic Sources plastic scrap plentiful but we still do not take advantage of. The reason is that small gathering systems, unfocused; scrap hardly be processed and classified in accordance with specifications; ... outdated technology, "said Nguyen Khac Long, general director of Vietnam plastic Corporation said.

According to calculations by economists, the price of imported PET plastic beads around $ 1,300 / tonne, if regeneration is the main source of scrap, the price will fall by almost 30%.

Unlike the previous time, the proportion of recycled plastic particles renewable primary usually mixed with just under 20%, the current rate of which has increased 3-4 times.

Additionally, with advanced technology in the world has allowed enhancing competitiveness by limiting the amounts incurred in production as power consumption, labor ...

According to Mr Long, in Vietnam, only 35-50% utilization rate of recycled plastic materials will help save more than 600 million dollars annually for businesses and also increase exports 25% of branch.

In the context of fierce competition, many enterprises are committed to using recycled plastic acts as material supply, cheap fuel in lowering product costs.

Surveys of businesses, with the use of plastic scrap make input prices fell by about 30% will contribute to reducing product costs more than 15%, increase the competitiveness of export products of Vietnam.

"In addition to more demanding customers such as the US, Japan ... they require exporting plastic products to use at least 10% recycled plastic to lower product selling prices and friendly environment" Nguyen Van Phuoc, deputy director of Department of Natural Resources and Environment Ho Chi Minh City said.

Source: Collector

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