Graduate Thesis: Foreign Trade University Faculty of Business English

FOREIGN TRADE UNIVERSITY
FACULTY OF BUSINESS ENGLISH
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GRADUATE THESIS
Major: Business English
VIETNAM’S EXPORT AND IMPORT OF PLASTIC

ADDITIVES IN THE PERIOD OF 2018 – 2021:
ANALYSIS AND RECOMMENDATIONS
Student: Trần Thị Phương Anh
ID: 1817710014
Class: Anh 01 – K57- FBE
Supervisor: Nguyễn Việt Linh, MA.
Hà Nội, June 2022

1
LIST OF ACRONYMS
LIST OF TABLES AND FIGURES
ACKNOWLEDGEMENT 11
INTRODUCTION 12
CHAPTER 1: OVERVIEW AND THEORETICAL BASIS OF
VIETNAM'S PLASTIC ADDITIONAL ACTIVITIES IMPORT AND
EXPORT 17
1.1 Industry Overview of Vietnam's Plastic Additives 17
1.1.1 Additives to plastics 17
1.1.2. Vietnam's capacity for producing plastic additives 17
1.2. Imports and exports of plastic additives in Vietnam 18
1.2.1. Overview of the plastic additives supply chain in Vietnam and around the
world 18
1.2.2. Vietnam’s participation in the import and export of plastic additives 20
1.2.3. Vietnam's plastic additives import and export markets 21
1.3. Factors affecting Vietnam's import and export of plastic additives 21
1.3.1. Factors affecting Vietnam's export of plastic additives 21
1.3.1.1. Price factor 22
1.3.1.2. Quality factor 23
1.3.1.3. Product accessibility 23
1.3.1.4. Competitors 24
1.3.1.5. Import and export policy 24
1.3.1.6. Source of raw materials and production capacity 25
1.3.2. Factors affecting the import of plastic additives in Vietnam 26
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1.4. Criteria for assessing Vietnam's import and export of plastic additives 28
1.4.1. Criteria to evaluate Vietnam's export of plastic additives 28
1.4.1.1. Production scale 28
1.4.1.2. Value scale 28
1.4.1.3. Export price 28
1.4.1.4. Market Diversity 29
1.4.2. Criteria for evaluating Vietnam's import of plastic additives 29
1.4.2.1. Production scale 29
1.4.2.2. Value scale 29
1.4.2.3. Import price 30
1.4.2.4. Market Diversity 30
CHAPTER 2: CURRENT SITUATION OF VIETNAM'S IMPORT AND
EXPORT PLASTIC ADDITIVES FOR 2018 - 2021 32
2.1. Import and export situation of Vietnam's plastic additives in the period of
2018 - 2021 32
2.1.1. Export activities of Vietnam's plastic additives in the period of 2018 -
2021 32
2.1.1.1. Export volume 33
2.1.1.2. Exports 36
2.1.1.3. Structure of exported plastic additives 38
2.1.1.4. Export price 38
2.1.1.5. Export market structure 42
2.1.1.6. Export distribution channel 42
2.1.1.7. Mode of transport 43
2.1.1.8. Export promotion and promotion activities 44
2.1.2. Vietnam's import of plastic additives in the period of 2018 - 2021 45
2.1.2.1. Import volume 47
2.1.2.2. Import turnover 49
2.1.2.3. Import price 50
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2.1.2.4. Import market structure 51

2.1.2.5. Channel to access imported goods 52
2.1.2.6. Means of transportation 53
2.1.2.7. Import promotion activities 53
2.2. Analysis of the current situation of factors affecting the import and export
of plastic additives in Vietnam 54
2.2.1. Factors affecting Vietnam's export of plastic additives 54
2.2.1.4. Competitors 57
2.2.1.6. Source of raw materials and production capacity 58
2.2.2. The current situation of factors affecting the import of plastic additives in
Vietnam 59
2.3. Assessing the current situation of Vietnam's import and export of plastic
additives 61
2.3.1. Assessing the current situation of Vietnam's plastic additive export
activities 61
2.3.1.1. Achievement 61
2.3.1.2. Limit 63
2.3.1.3. Reason 65
2.3.2. Assessing the current situation of Vietnam's import of plastic additives 65
2.3.2.1. Achievement 65
2.3.2.2. Limit 66
2.3.2.3. Reason 67
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CHAPTER 3: SOLUTIONS TO COMPLETE AND PROMOTE

VIETNAM'S IMPORT AND EXPORT OF PLASTIC ADDITIVES 69
3.1. Opportunities and challenges for Vietnam's import and export of plastic
additives in the near future 69
3.1.1. Opportunities for Vietnam's import and export of plastic additives in the
near future 69
3.1.2. Challenges for Vietnam's import and export of plastic additives in the
coming time 70
3.2. The solution to complete and promote Vietnam's export of plastic
additives 72
3.2.1. Developing product advantages and market opportunities 72
3.2.1.1. Product advantage development 72
3.2.1.2. Developing market opportunities 74
3.2.1.3. Optimizing production lines and costs 76
3.2.2. Promotion channel to promote export 77
3.3. The solution to improve and optimize the import of plastic additives from
Vietnam 79
3.3.1. Optimizing import products and markets 79
3.3.1.1. Imported goods 79
3.3.1.2. Import market 81
3.3.2. Developing the import of goods for domestic production 81
3.3.3. Developing the import of goods for export production 82
CONCLUSION 86
REFERENCES 88
5
LIST OF ACRONYMS
Abbreviations Full name
ABS Acrylonitrile Butadiene

Styrene
ACFTA ASEAN China Free Trade

Area
AFPI ASEAN Federation of Plastic

Industries
AIFTA ASEAN India Free Trade

Area
ASEAN Association of South East

Asian Nations
ATIGA ASEAN Trade in Goods

Agreement
B2B Business to Business
CFR Cost and Freight
CIF Cost, Insurance and Freight
CO Certificate of Origin
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COVID-19 CoronaVirus Disease of 2019
CPTPP The Comprehensive and

Progressive Agreement for
Trans-Pacific Partnership
DDP Delivered Duty Paid
EU 10/2011 Commission Regulation (EU)

No 10/2011
EU 2020/1245 Commission Regulation (EU)

No 2020/1245
EVFTA The European Union –

Vietnam Free Trade
Agreement
EXW Ex Work
FCL Full Container Load
FDA Food and Drug

Administration
FDI Foreign Direct Investment
FT Feet
7
HIPS High Impact Polystyrene
HS CODE Harmonized System Codes
ISO International Standards

Organization
LCL Less Container Load
Lead time Lead time
MOQ Minimum Order Quantity
MT Met Tone
PE Polyethylene
PET Polyethylene Terephthalate
POM Polyoxymethylene
PP Polypropylene
PS Poly Styrene
PVC Poly Vinyl Clorua
QC Quality Control
REACH Registration, Evaluation,

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Authorisation and Restriction

of Chemicals
ROHS Restriction of Hazardous

Substances Directive
SPI Society of Plastic Industry
TPU Thermoplastic Polyurethane
VN EAEU The Vietnam - Eurasian

FTA Economic Union Free Trade
Agreement
VPAS Vietnam Plastic Association

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LIST OF TABLES AND FIGURES

TABLES
Table 2. 1 Statistics of export volume of Vietnam's color plastic additives in 2020 by
month 33
Table 2. 2 Export turnover of plastic filler additives of Vietnam in the period of 2018 -
2021 33
Table 2. 3 Export turnover of color additives of Vietnam in 2020 by month 35
Table 2. 4 Export situation of Vietnam's plastic filler additives in the period 36
Table 2. 5 Export prices of plastic additives for coloring according to Vietnam's HS
Code 32064990 in 2020 37
Table 2. 6 Import volume of plastic additives of Vietnam in the period 2018 – 2021 45
Table 2. 7 Import volume of plastic additives of Vietnam period 2018 - 2021 according
to HS Code 45
Table 2. 8 Import situation by HS Code 38249999 of Vietnam 46
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FIGURES
Figure 2. 1 Vietnam's export volume of plastic filler additives 32
Figure 2. 2 Vietnam's export volume of plastic color additives according to HS Code
32064990 in 2020 33
Figure 2. 3 Export turnover of plastic filler additives of Vietnam in the period 2018 -
2021 35
Figure 2. 4 The export situation of Vietnam's color additives in 2020 38
Figure 2. 5 Import volume of plastic additives of Vietnam in the period of 45
Figure 2. 6 Graph of regions where Vietnam imports plastic additives according to HS
Code 38249999 49
Figure 3. 1 Vietnam's supply chain of plastic additives according to the import-export

model 81
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ACKNOWLEDGEMENT
The author received a lot of aid from everyone when studying, researching, and
applying the topic. The author wishes to express her gratitude to Foreign Trade
University's teachers and lecturers for their enthusiastic teaching throughout the
study process, which enabled her to gain a wealth of knowledge and skills to aid
in the process of the thesis program for graduation.
The thesis cannot avoid limits and flaws due to time constraints and professional
competence; the author looks forward to receiving feedback from lecturers and
readers in order to improve the thesis. The author would like to express her
heartfelt gratitude to Nguyen Viet Linh MA., who energetically guided and
provided very beneficial guidance throughout the thesis.
- Pham Thi Hue Anh, 2019, Potentials and development trends of Vietnam's plastic
industry, Finance Magazine
- Hoa Ha, 2019, Enterprises producing plastic additives: Advantage from raw
materials, Bank Times
- Ta Viet Phuong, 2019, Plastic industry report, FPT Securities
- Various Analysts, 2019, 2019 Plastic Research Review, BCC Publishing
- Melvin Schlechter, 2018, The Global Market for Composites: Resins, Fillers,
Reinforcements, Natural Fibers and Nanocomposites Through 2022, BCC Publishing
- Srinivasa Rajaram, 2020, Global Markets for Plastics Additives, BCC Publishing
12
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INTRODUCTION
1. Research rationale:
Plastic, or polymer, is widely used in human life and industrial activities.

Vietnam's plastic industry in recent years has developed at a fast growth rate and
become one of the industry groups with the highest growth rate. Vietnam's plastic
products not only meet the needs of domestic use but also export to many
international markets, typically Japan, America, China, Europe, and Southeast
Asia. To strictly meet the production demand of plastic products, every year,
Vietnam requires millions of tons of plastic materials including primary plastic
and plastic additives to serve production activities. However, with natural
resources, exploitation, and processing capacity, Vietnam currently only meets a
part of Vietnam's demand for plastic materials, the rest is still dependent on other
resources and has to be imported a lot from outside of the border.
Although the industry of plastic additives makes up a small proportion of the total
volume of input materials for production, they play an essential role, not only
supporting the production process but also ensuring the quality of the finished
products. Moreover, it is a factor that makes the product competitive in the global
market. Almost all plastic products require different types of plastic additives in
the production process, most typically colorant resins and fillers, industrial
coloring powders, functional additives for products such as processing aids,
moisture-proof, fire-proof, smooth increase, increase in transparency, etc. In the
list of additives for the plastic industry, Vietnam only has production capacity and
self-sufficiency as well as exports of some types such as: plastic fillers and
colorants, some moisture-proof, the rest of the chemical additives are basically
imported. The import of these plastic additives not only serves the domestic
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plastic product manufacturing industry but also serves as a source of raw materials
for the production of plastic additives for export.
The plastic additives market was valued at USD 28.53 billion in 2020 and is
expected to reach USD 38.77 billion by 2026 growing at a CAGR of 5.24%
(Plastic Additives Market, 2021) and is still growing at a stable rate. This is a
good opportunity for Vietnam to export strong plastic additives, especially plastic
fillers produced from mineral resources exploited from Vietnamese mines.
However, at present, the value of Vietnam's strong plastic additives is still
relatively low, not bringing high economic efficiency as well as low foreign
currency earnings, compared to imports dependence of other chemical additives
with much higher value, creating a problem of trade balance deficit for Vietnam's
plastic additive industry. A comparison between the potential size of the
international plastic additive market and the current situation of Vietnam's export
of plastic additives along with Vietnam's import dependence on many additives
from abroad shows that there is still opportunities for Vietnam to promote
stronger exports of plastic additives and find the optimal import solution and
reduce dependence on many other additive products. Therefore, the author
chooses the topic "Vietnam’s export and import of plastic additives in the
period of 2018 – 2021: analysis and recommendations" as the graduation
thesis.
2. Previous studies
There have been a lot of research and scientific works published to date that have
discussed the plastic additive business, as well as the import and export of plastic
products and plastic additives in Vietnam, as well as the operation of worldwide
plastic additive markets. However, the common feature of these studies is that
they depict the current scenario and the overall position of plastic material import
and export operations, with an emphasis on primary plastic and no in-depth
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analysis of the group of plastic additives. Some outstanding problems or future

chances for the plastic additive group of Vietnam's import and export activities
have not been pointed out. Specifically, the following studies have been
conducted. In 2019, Pham Thi Hue Anh mentioned the potential and development
trend of Vietnam's plastic industry with an overview of enterprises’ strength and
limit. At the same time, Hoa Ha focused on the advantage of input sources in
Vietnam because the main plastic additives in the production of filler masterbatch
comes from possessing large limestone resources in the North and Central
regions. Moreover, in the 2019 Plastic industry report, Ta Viet Phuong analyzes
the plastic industry in terms of import and export numbers and advises the
potential of this industry. Mentioning the foreign studies, the 2019 Research
Review of the plastics industry has provided a sample of the types of quantitative
market information, analysis, and guidance that has aided business decision-
making. In 2018, The Global Market for Composites: Resins, Fillers,
Reinforcements, Natural Fibers and Nanocomposites Through 2022, by Melvin
Schlechter, illustrates an up-to-date overview and analysis of the global market for
composite. Furthermore, the report focuses on the global composites market's
major market drivers, current industry trends, and major end-user industries.
Srinivasa Rajaram, in 2020, gave a thorough examination of the applications and
global and regional markets for all types of plastic additives and the plastic
additives industry was conducted.
0. Research objectives/ Research questions:
Analyzing the current situation of import and export of plastic additives in

Vietnam to understand strengths, weaknesses and opportunities to boost exports
and optimize imports of Vietnam's plastic additives is focused to improve the
balance trade and increase the role of Vietnam in the supply chain of plastic
additives.
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- Analysis of Vietnam’s import and export situation of plastic additives in the

period of 2018 - 2021
- Analysis and assessment of factors affecting import and export activities of

plastic additives in Vietnam
- Analyzing industry and market opportunities for Vietnam's plastic additives in

the future
- Proposing solutions to boost exports and improve the import of plastic additives
for Vietnam.
3. Research subject and scope of study:
- Research subject: export and import activities of plastic additives in Vietnam.
- Scope of the study: the current situation in the period of 2018-2021 and
proposed solutions for the period of 2021-2025.
4. Research methodology:
Secondary data from books, online specialized journals, worldwide import and
export statistics pages, and Vietnam customs data were used in this research.
5. Research structure:
The course is divided into three chapters:
Chapter 1: An overview of Vietnam's import and export of plastic additives, as

well as the theoretical basis
Chapter 2: The current state of import and export of plastic additives in Vietnam
from 2018 to 2021
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Chapter 3: Import and export of plastic additives in Vietnam: Improving and

Promoting Import and Export
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CHAPTER 1: OVERVIEW AND THEORETICAL BASIS OF

VIETNAM'S PLASTIC ACTIVITIES EXPORT AND
IMPORT
1.1 Industry Overview of Vietnam's Plastic Additives
1.1.1 Additives to plastics
Plastic, also known as plastic or polymer, is a material used to manufacture

various products, from household plastics in daily life to materials in the
construction industry, from the packaging industry. packaging to the engineering
plastics industry for industrial automation applications.
The source of raw materials used for the production of finished plastic products
consists of two main types: base resin and plastic additives. The base plastic is
usually primary plastic or recycled plastic with a variety of different types of
plastic substrates, of which the most commonly produced and applied types are
PP, PE, PVC, HIPS, PS, etc. Plastic additives are all chemicals, liquid, powder or
granules used in the plastics industry to assist in manufacturing, add or enhance
the performance of plastic products. With the variety of plastic products, the
number of necessary additives for plastic production is also extremely rich, but for
the plastic product manufacturing industry in general, there are two main groups
of additives:
● Main additives: including filler masterbatch and color masterbatch.
● Functional additives: chemical additives, powder or granules added during

the production process to support performance such as: additives to
increase toughness, detergent additives, additives to increase smoothness,
additives to increase clarity, additives to prevent fire, ...
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1.1.2. Vietnam's capacity for producing plastic additives
Vietnam's plastic manufacturing industry has a large demand for plastic raw
materials, but at present Vietnam's self-sufficiency capacity is still very limited.
Vietnam's plastic materials only meet about 20% of demand (Vietnam Plastic
Association, 2020), most of them still depend on imports from Korea, the Middle
East, China...
As for the plastic additive industry, the main group of additives includes plastic
fillers and colorants, Vietnam has the initiative due to the source of stone powder
(Calcium Carbonate) - the main ingredient that accounts for over 70% of the
volume of plastic particles. filled, exploited from natural stone quarries;
Therefore, the group of plastic filler materials in Vietnam not only completely
meets the domestic demand but also is the main exporter of this product globally.
Although Vietnam does not have complete strength because it still depends on
importing primary resins and pigments, Vietnam has enough technology and
facilities for production, so it can meet most of the needs of plastic resins. meet
domestic demand and at the same time export a small number of colored plastic
beads to countries in Southeast Asia, Europe and Africa.
With the group of functional additives, Vietnam is basically completely dependent

on imports from Korea, China, etc. because these additives are manufactured from
chemicals or plastic-based that Vietnam cannot exploit by itself or there is not
enough technology to produce. Because the exploitation and production of these
additives requires the manufacturer to have a large enough scale, the number of
enterprises with production capacity is small, with the amount of supply capacity
of each manufacturer. The output is very large and is distributed through other
intermediaries.
1.2. Imports and exports of plastic additives in Vietnam
1.2.1. Overview of the plastic additives supply chain in Vietnam and around the
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world
The plastic industry is divided into two major production segments, upstream and
downstream.
Upstream segment includes petrochemical enterprises, chemical enterprises with

the main activity of converting fossil materials into plastic materials such as
primary plastic resins and plastic additives.
The downstream stage is the enterprises that use the above plastic materials to
process, process and manufacture finished plastic products for industrial and daily
life applications, including household appliances, packaging. , building materials,
engineering plastics for the automation industry.
Source: Author's own compilation
Plastic additives are produced in the upstream stage, in which:

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Filler masterbatch are produced from virgin plastic mined by oil refineries and
stone powder mined by natural mineral extraction plants.
Colored masterbatch are produced from primary plastic and pigments, produced
and exploited from inorganic chemicals such as carbon, titanium, iron oxide, etc.
from mining and mineral processing factories.
Functional additives are produced from primary plastic and functional chemicals.
Partially primary plastic is produced domestically, a large part is still imported

from Korea and the Middle East - the two main primary plastic suppliers. Stone
powder is mined directly from Vietnam - a group of countries with the leading
limestone mineral resources in the world along with other countries such as India,
China, Turkey, Egypt, at quarries in different regions. The province has limestone
mountains. Chemicals and pigments are exploited and processed from minerals,
but they are mainly imported from countries such as China, Korea, and India.
The output of plastic additives is plastic factories, with finished products such as
packaging, household appliances, building materials, industrial components, not
only domestically but also exported to manufacturers in Vietnam. many countries
in the world including Asia, Europe, America, Africa.
1.2.2. Vietnam’s participation in the import and export of plastic additives
Vietnam's plastic industry began to form in the 1960s, but the main source of
primary plastic resin materials is still imported, in parallel with the import of
accompanying plastic additives to serve the production process that the owner
uses. mainly produces for PVC plastic substrates with additives such as heat
stabilizers, UV protection additives for PVC, which are imported from China.
Vietnam's ability to export plastic additives appeared later. In the field of plastic
materials, Vietnam basically could not export virgin plastic until recent years
when the appearance of Dung Quat oil refinery (Ba Ria - Vung Tau) and refinery
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Nghi Son oil (Thanh Hoa), Vietnam has an advantage in some primary plastic
products for export. However, with plastic additives, with the advantage of
limestone sources exploited from natural mines in the areas of Yen Bai, Ha Nam,
Hoa Binh, ... Vietnam has started to export plastic fillers (with ingredients).
(mainly stone powder and primary plastic) since about 2010 with pioneers such as
European Plastics, Yen Bai Minerals, ..
Since its inception, Vietnam has been deeply involved in the global supply chain
of plastic additives. With a large production capacity of plastic products and a
steady growth rate, Vietnam imports and consumes many kinds of plastic
additives, mainly from China, Korea, and India, with a scale of up to tens of
thousands of people. thousand metric tons per month.
1.2.3. Vietnam's plastic additives import and export markets
The two main export items in Vietnam's plastic additives segment are plastic
fillers and colorants. Vietnam has now exported these two items to more than 80
countries with a total export volume of nearly 4 million tons per year, of which
China is the main import market with a rate of more than 40%. followed by
Southeast Asia with Indonesia, Philippines, South America, India, Bangladesh,
Russia, Ukraine, some countries in Western Europe… ((Vietnam Customs Data,
2020))
Vietnam currently imports a variety of plastic additives with an amount of over 2

million tons per year, from countries such as China, Korea, India, Russia,
Southeast Asia, and the Americas. .
1.3. Factors affecting Vietnam's import and export of plastic additives
1.3.1. Factors affecting Vietnam's export of plastic additives

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Vietnam's export of plastic additives is affected by many factors, of which the

most influential and decisive factors are: price, quality, ability, accessibility,
competitors and preferential policies.
1.3.1.1. Price factor
The price factor is the first criterion that customers and importers are interested in.
Through the item's price index, customers can compare suppliers in Vietnam, and
also compare with suppliers in other countries such as India, China, Thailand, etc.
For plastic additives, there are two most commonly used price terms, FOB and
CIF, in addition, in some cases, EXW and DDP are sold.
The price structure of plastic additives includes four components: raw material
cost, factory processing cost, profit, and shipping cost, if any. As for the cost of
raw materials, to produce an additive requires 5 to 10 different types of raw
materials, including both domestic and imported raw materials, which creates a
cost advantage. raw material cost in the price for some countries. In terms of
factory outsourcing costs, this is considered a fixed cost with little volatility and
doesn't make a big difference in a manufacturer's level of price competition. The
profit of the business is included in the price, accounting for a very low
percentage for plastic fillers, and higher for other items, the level of profit depends
on the price policy of the business. Finally, there is the shipping cost, which is
different for different price conditions: for the EXW sale condition, the shipping
cost is zero; on FOB terms, the cost of carriage is calculated as the cost of
bringing the goods from the exporter's factory to the port and unloading on the
carrier, including any additional charges; on CIF terms, the shipping cost will be
calculated as FOB cost plus sea freight and cargo insurance; In the case of DDP,
the shipping cost includes the cost of domestic shipping in the importing country.
Thus, shipping costs create a big difference in price for different price conditions:
EXW, FOB, CIF, DDP, etc., especially for long-distance import routes such as
Europe, America.
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1.3.1.2. Quality factor
The quality factor is a prerequisite for a customer to accept the purchase of a

product. Because plastic additives are input materials for a process to produce
plastic finished products, the quality of plastic additives is not only verified
through technical information and safety certification, but also has to be tested.
from the testing round in the research room to the test run on the line.
The quality of plastic additives is mainly determined by the types and proportions
of each type of raw material. The same raw material but mined or produced in
different regions and countries has different quality and characteristics. Therefore,
the purchase decision of the customer depends on the quality factor, not only the
product has good quality but also must be consistent with the source of raw
materials and the quality strategy of the customer.
1.3.1.3. Product accessibility
Accessibility is the availability and feasibility of offering products to customers in

different countries. For neighboring markets such as China, Korea, and Southeast
Asia, Vietnam has a close distance and relatively good transportation costs,
creating good accessibility for customers. In contrast to markets such as Europe
and America with long distances, transportation is difficult and expensive with sea
freight can be up to 10 times higher than near consumption markets, the ability to
reach customers is more difficult. a lot, and impact the manufacturer's sales
results.
The freight forwarding market is also a factor affecting the accessibility of goods
between customers and exporters. Transport activities determine whether the
service of freight forwarding from the exporting country to the importing country
is feasible, in how long and with how much it costs. At the same time, the state of
the transport market such as peak season also directly affects and can interrupt or
completely stop the export of goods to foreign countries or to certain countries.
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At the same time, the initial approach through many outreach channels such as
social networking sites, B2B online sales platforms, agency strategies,
distributors, etc. has a great influence on the ability to export plastic additives.
Having access to suppliers' information sources, and the convenience of testing,
analyzing and testing samples in the customer's market is a great advantage for
businesses, and is directly proportional to the export capacity. .
1.3.1.4. Competitors
Competitors are units that deal in the same product line, product area, and target
the same customer base. Competence and strengths and weaknesses of the
competition lead to the comparison of customers between different suppliers to
make purchasing decisions.
Vietnam's export of plastic additives is subject to competition mainly from

national markets capable of exploiting minerals and pigments. Minerals such as
calcium carbonate, talc powder have large reserves in areas outside Vietnam such
as India, Turkey, Egypt, etc. As for industrial pigments, the respective countries
are China, India. Competitors in the group of plastic additives mostly come from
these countries, and the strong and weak performance and business strategies of
these competitors are factors affecting the results of additive export activities.
plastic from Vietnam.
1.3.1.5. Import and export policy
The export of plastic additives has been promoted to markets with preferential
import-export policies with Vietnam, affecting the convenience of implementing
import-export procedures and import-export taxes. Major policies and agreements
such as the EU-Vietnam Free Trade Agreement (EVFTA), the ASEAN Free
Trade Agreement, the Vietnam-China Free Trade Agreement (ACFTA) and the
Comprehensive and Progressive Agreement Trans-Pacific Partnership CPTPP,
Vietnam Free Trade Agreement, Eurasian Economic Union VN EA-EU FTA, etc.
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For markets with preferential import and export policies, especially import tax
incentives. When the exporting country can provide the certificate of origin, it will
be a lever to promote Vietnam's export of plastic additives to these markets, and at
the same time create a competitive advantage over suppliers from the domestic
market. The school has no preferential trade policy.
However, for many markets that impose policies related to quality control of
imported products, especially the plastic industry and the impact on the
environment, this is a big barrier to the export of plastic additives. of Vietnam.
Control can take many forms, such as requiring the exporter to provide quality
certification according to the standards of the consumer market, or inspecting and
measuring actual quality, or more rigorously. impose import quotas or import bans
on certain plastic items.
1.3.1.6. Source of raw materials and production capacity
The country's source of raw materials and production capacity create strengths for
the export group. Having an abundant source of raw materials available will help
manufacturers gain advantages in cost and production time. On the contrary, when
raw materials are limited and difficult to access, especially if they have to be
imported, it will create large costs and long preparation time for production,
creating a disadvantage for manufacturers.
Production capacity is the ability to supply output of goods to the market in a

certain period of time. The production capacity of plastic additives, or the capacity
and scale of manufacturers in Vietnam that can supply a large amount of plastic
additives to the international market. The size of the factory, equipment, and
operation chain management capacity determine the production capacity and
supply of export plastic additives.
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Importers will consider and prioritize the import of plastic additives from
countries or from manufacturers with the ability to supply large volumes in a short
time with the most available raw materials.
1.3.2. Factors affecting the import of plastic additives in Vietnam
Vietnam has to import plastic additives that Vietnam cannot produce by itself, or
can produce but at high cost and inefficiently. Vietnam's import of plastic
additives is governed by the main factors of price, quality, accessibility and
preferential policies.
The price factor plays an important and decisive role in importing products.
Importers must compare prices between different suppliers to choose the supplier
with the most suitable price. That affects import activities, specifically the import
of plastic additives on the scale of import value and import market.
The import price of plastic additives depends on factors such as the type and
quality of the raw materials for the production of the plastic additive, the brand of
the plastic additive manufacturer and the shipping cost to Vietnam as well as other
costs. arising related to taxes and import procedures.
Importers in Vietnam often compare prices according to CIF delivery terms at

Vietnamese ports to balance the most optimal import plan in terms of costs.
Plastic additives produced from different markets have different qualities and
characteristics. Therefore, in order to be suitable for the production line of the
importer, the plastic additive must be checked and analyzed for quality. Some
specific markets have the capacity to provide better quality products, while others
focus on providing lower quality products suitable for lower production needs.
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Therefore, the quality of plastic additives affects the decision of which supplier to
import products from.
Quality stability across different batches is also an important factor for importers
to consider in the sourcing process. The larger the manufacturers, the greater the
guarantee of long-term quality stability across different batches.
Accessibility is the availability of plastic additives for plastic additive importers in

Vietnam. Countries and suppliers that have the ability to push information closer
to importers and have authorized agents and distributors in Vietnam will have
advantages in approaching importers to offer and negotiate. and support import
and export transactions.
The geographical distance from the exporting country to the importing country
causes obstacles in the transportation process, risk management reduces
accessibility for importers and greatly affects the decision to import or source
goods. customer replacement.
Import-export policy is the regulation of the government, association managing

import and export activities, plastic association on macro issues related to import
and export activities such as export tax, import tax. , documentation procedures,
certification of origin or quality, toxicity standards of plastic additives, or
accepted payment method. When one of the above factors is not met, the import-
export transaction between the two units in the two countries cannot be done at
all.
1.4. Criteria for assessing Vietnam's import and export of plastic additives
1.4.1. Criteria to evaluate Vietnam's export of plastic additives

29
1.4.1.1. Production scale
Export output is the quantity of goods exported, the unit of which is ton for the
group of plastic additives. The export output shows the size of the supply capacity
of the Vietnamese market when exporting to consumption markets around the
world.
1.4.1.2. Value scale
Value scale, also known as turnover, is the total export value (for export turnover)
of the group of plastic additives. Import and export turnover helps to assess the
scale of value that Vietnam has received from export activities.
The consideration of the scale of export value shows the export capacity as well as
the total foreign currency value earned from the export of plastic additives
(mainly USD). The comparison of Vietnam's export turnover of plastic additives
with the value of the global plastic additive industry helps to assess future
opportunities for Vietnamese enterprises that aim to export plastic additives.
1.4.1.3. Export price
The export price helps to evaluate the group of goods and exported goods as high
or low value, compares with the prices of exported goods in other markets and at
the same time compares with the costs to see. profit margins for Vietnamese
manufacturers and exporters.
At the same time, the consideration of export prices according to delivery

conditions and payment methods also helps to further evaluate the effectiveness of
Vietnam's plastic additives export capacity in the plastic additive supply chain.
1.4.1.4. Market Diversity
The market diversity shows the proportion of export and import markets for
plastic additives that Vietnam can access. From there, it is possible to assess the
30
degree of initiative or dependence on export and import markets, and at the same
time see possible markets of opportunities for Vietnam to approach and
implement import and export activities of plastic additives. .
1.4.2. Criteria for evaluating Vietnam's import of plastic additives
1.4.2.1. Production scale
Import volume is the quantity of imported goods, the unit of which is ton for the
group of plastic additives. Import volume shows the scale of consumption of
plastic additives of the Vietnamese market in the production of plastic materials
and finished products.
1.4.2.2. Value scale
Value scale, also known as turnover, is the total import value of the group of
plastic additives. Import turnover helps to assess the scale of value that Vietnam
pays for import activities.
The consideration of the scale of import value shows the consumption power of
the Vietnamese market as well as the total value of foreign currency purchased
and paid for the import of plastic additives (mostly USD). Comparing Vietnam's
import turnover of plastic additives with the value of Vietnam's plastic industry
helps to assess the self-sufficiency capacity as well as the degree of dependence of
Vietnam on the foreign plastic additive industry.
1.4.2.3. Import price
Import prices help to assess whether imported goods are high or low value,
comparable with the price of imported goods in other markets and at the same
time compared with the selling price. to see the profit margin and efficiency level
in plastic production.
31
At the same time, the consideration of import prices according to delivery

conditions and payment methods also helps to further assess the negotiating
capacity and proactive level of Vietnamese enterprises in importing plastic
additives.
1.4.2.4. Market Diversity
The market diversity shows the proportion of import markets for plastic additives
that Vietnam can access. From there, we can assess the degree of initiative or
dependence on specific markets such as China, Korea, India,..., and at the same
time see the possible market opportunities for Vietnam to approach and develop.
Declare import activities of plastic additives.
32
SUB- CONCLUSION CHAPTER 1
Chapter 1 has studied the overview of Vietnam's plastic additives industry and
overview of Vietnam's import and export activities of plastic additives.
The basic characteristics of Vietnam's plastic additive industry and its role in the
global plastic additive supply chain are explained in Chapter 1. At the same time,
readers will gain a better understanding of the factors that influence the import
and export activities of Vietnam's plastic additives industry, as well as the criteria
used to assess the effectiveness of those activities.
In summary, the content of Chapter 1 serves as the premise and theoretical

foundation for the author to assess the current situation and evaluate the
accomplishments as well as the remaining limitations of Vietnamese plastic
additive import and export activities.

33
CHAPTER 2: CURRENT SITUATION OF VIETNAM'S

EXPORT AND IMPORT OF PLASTIC ADDITIVES IN THE
PERIOD OF 2018 - 2021
2.1. Import and export situation of Vietnam's plastic additives in the period
of 2018 - 2021
2.1.1. Export activities of Vietnam's plastic additives in the period of 2018 -

2021
Vietnam's export of plastic additives still focuses on two main groups of products:
fillers and coloring additives. These two groups of goods using HS code for export are:
For plastic fillers, the export HS Code is 382499, in which the detailed description is:
Part VI: Products of the chemical industry or related industries
Chapter 38: Miscellaneous chemical products
Heading 3824: Prepared binders for castings or cores; chemical products and
preparations of the chemical or related industries (including products and preparations
containing mixtures of natural products), not elsewhere specified or included .
Subheading 382499: Other
For plastic beads, the export HS Code is 320649, in which the detailed description is:
Chapter 32: Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments
and other substances; paints and varnishes; binders and other mastics; inks.
Heading 3206: Other coloring matter; preparations as specified in Note 3 to this

Chapter, other than those of heading 32.03, 32.04 or 32.05; inorganic products of a
kind used as luminescent, whether or not chemically defined.
34
Subheading 320649: Other.
2.1.1.1. Export volume
These two additives are classified as heavy goods and are typically exported in PP
woven bags lined with PE plastic bags with a net weight of 25 kg or jumbo bags with a
load of over 1000 kg. The goods are loaded into a standard 20ft container, which can
hold up to 28 tons of plastic additives, but each 20ft container of exported plastic
additives from Vietnam usually closes between 21 and 28 tons, depending on the
country's policy and the port of import.
Due to the low value of the goods and the need for a larger export quantity, plastic
filler additives are mostly exported in the form of FCL (full container load). Because
the plastic resin has a higher value than the color additive, it can be done in the form of
LCL (odd goods - goods that are not packed enough for one container but must be
combined with other goods). As a result, the total volume of plastic filler additives
exported is far greater than the total volume of color plastic additives exported.
Vietnam's plastic additive group exports by sea, and all are officially exported, so the
export data is fully and transparently declared, which serves as the foundation for
assessing the current state of export activities. Correctly import plastic additives from
Vietnam.
The export output statistics are most specific from the period of 2018 to 2021, thanks
to the formation and participation of plastic additive manufacturers in Vietnam only in
the last ten years, thanks to developed technology. Vietnam's export volume of plastic
additives has increased at a rapid rate in recent years, owing to the increasing scale of
exploiting stone powder materials and Vietnam's ability to access international
markets.
Figure 2. 1 Vietnam's export volume of plastic filler additives
in the period 2018 – 2021
35
Quantity (MT)
250000
201031,746
200000
157605,8093
150000
97050,256
100000
29374,526
50000
0
2018 2019 2020 2021
Source: Vietnam customs data
The volume of fillers used in Vietnam's plastic industry is relatively large, and it has
been steadily increasing in recent years. The output of plastic fillers exported under HS
Code 38249990 exceeded 100,000 MT in 2020, according to data compiled by the
General Department of Customs. The volume of fillers exported in 2021 is also
expected to be high, as production reached 221031,746 MT.
The increase in export volume of plastic filler additives is due to increased global
demand for this item, which stems from a shift in plastic manufacturers' production
methods. Because the traditional method is to only use primary plastic, recycled
plastic, or directly use filler, these manufacturers have tested and applied the use of
granular filler plastic additives from Vietnam as raw materials for the manufacturing
process, which not only meets technical quality requirements but also helps to reduce
raw material costs.
36
Figure 2. 2 Vietnam's export volume of plastic color additives according to HS

Code 32064990 in 2020
Color additives from Vietnam are exported under the HS Code 32064990. In 2020,
Vietnam's total export volume of color additives will be 10,723.93 MT, with June,
July, and December being the busiest months for export volume. Export output is
unstable because Vietnam's plastic coloring additive is not a key additive and has low
strength. Because this item is exported by LCL term, there is less incentive to export it.
This item's total export volume is also very low.
Table 2. 1 Statistics of export volume of Vietnam's color plastic additives in 2020
by month
Month 1 2 3 4 5 6 7 8 9 10 11 12
37
Quantity 354 87 683 929 577 189 1345 448 723 447 988 1457
(MT) 5 3
The export overview of color additives is still limited when the export volume is
relatively low. The highest is in the period of June and July with the output up to more
than 1800 MT. The first period of the year was a period of stagnation when export
output was very low, reaching just over 300 MT.
2.1.1.2. Exports
Plastic fillers are the main export items of Vietnam's plastic additives group, export
turnover is proportional to export output over the years.
Table 2. 2 Export turnover of plastic filler additives of Vietnam in the period of
2018 - 2021
(Unit: USD)
Year 2018 2019 2020 2021
Turnover (USD) 9,941,815 30,548,383 45,234,527 65,524,509
Following the trend of steady growth in export volume of plastic fillers of Vietnam,
export turnover has also increased steadily over the years at a commensurate rate.
Figure 2. 3 Export turnover of plastic filler additives of Vietnam in the period

2018 - 2021
38
The turnover in 2019 reached over 30 million USD and in 2020 reached over 45
million USD, playing the role of a major exporter of plastic filler additives for the
global plastic industry in recent years. The turnover of plastic fillers in 2021 alone has
also reached nearly 60 million USD, showing a sign of significant growth in the size of
Vietnam's export of this item.
Despite having a small export volume, Vietnam's color additives bring a large export
turnover.
Table 2. 3 Export turnover of color additives of Vietnam in 2020 by month
(Unit: USD)
Month 1 2 3 4 5 6 7 8 9 10 11 12
Quantity 353 876 681 928 578 1892 134 446 72 448 98 1459
39
(MT) 7 2 7
Source: Vietnam custom data
Although Vietnam's export output of color plastic resins is relatively limited, it brings a
large turnover. The total export turnover of this item in 2020 is more than 17 million
USD. The peak export month reached nearly 4 million USD in export value. The
monthly export turnover of color plastic additives is not stable, but fluctuates strongly
because this is not a strong product of Vietnam, so there is no stable source of
consumption to ensure monthly output but depend on customer needs.
2.1.1.3. Structure of exported plastic additives
The group of export plastic additives of Vietnam includes two main items, which are
plastic fillers and color additives. In terms of output, plastic fillers account for more
than 90% of the total export volume of plastic additives. However, the turnover only
accounts for more than 70% because the value calculated on the weight of color
additives is many times higher than the value of plastic fillers.
2.1.1.4. Export price
Table 2. 4 Export situation of Vietnam's plastic filler additives in the period
Year 2018 2019 2020 2021
Quantity (MT) 29,374 97,040 157,505 201031,746
Turnover (USD) 9,941,815 30,548,383 45,234,527 65,524,509

40
Average price (USD/MT) 338 314 288 326
Plastic fillers have a relatively low value when exported at an average price of 288
USD/MT to 338 USD/MT in the period from 2018 to 2021. This is the average price
unit that is totaled. The combination from the declared value on the export bills of
lading from Vietnam should include different price conditions such as FOB, CIF, CFR,
etc., most of which is the CIF price. In 2020, the export volume of plastic fillers to
China is relatively high, with low prices and sea freight being the main reasons for the
low average unit price. In 2021, there is a huge fluctuation in sea freight, causing the
export price of plastic filler additives to increase significantly.
At the same time, in recent years, with the increase in the number of plastic filler
manufacturers in both the domestic and international markets, the filler industry is
much more competitive than in the 2010-2015 period. , resulting in a significantly low
net price of filler plastic additive (store selling price).
Figure 2. 4 The export situation of Vietnam's color additives in 2020

41
With the diverse characteristics of properties and types, plastic fillers have strong price
fluctuations and large differences between different product codes. The price for
common, simple color plastic additive codes is only a few hundred USD/MT while the
price for complex color additive codes can be up to over 3000 USD/MT.
Table 2. 5 Export prices of plastic additives for coloring according to Vietnam's

HS Code 32064990 in 2020
(Unit: USD/MT)
Month 1 2 3 4 5 6 7 8 9 10 11 12
Price 961 632 1313 834 2523 2031 1446 2274 865 1156 1631 2378
(usd/mt)
42
The export price of Vietnam's color additives in 2020 fluctuates on average from 632
USD/MT to 2523 USD/MT. The difference in the average export price of each month
is very large, because the color plastic additives are exported in small quantities, while
the prices of different colors are relatively large, leading to the lack of uniformity when
considering the average price level. Specifically, the white and black color additives
have the lowest price, maybe as low as 500 USD/MT, while other color additives such
as blue, red, purple, yellow, or other colors special colors such as silver, pink glitter,
color with glitter or sparkle effect will have a very high price, possibly up to 4000 -
6000 USD/MT.
From the export price list of Vietnam's color plastic additives in 2020, it can be seen
that the average price is highest in the months with relatively low export output such as
May, June, August, and December. July has the largest export volume, however, the
export products are mainly black and white plastic additives, so the average export unit
price is not high.
The prices of plastic additives calculated from Vietnam customs data are mostly CIF
prices, that is, including the cost of sea freight and insurance to the port of discharge in
the importing country. The cost of sea freight in 2020 - 2021 ranges from 10 -30
USD/MT for importing countries such as China, Korea, Southeast Asia; For further
areas such as South Asia: India, Bangladesh, Sri Lanka, sea freight ranges from 50 to
80 USD/MT. In remote areas such as Europe, Africa, America, sea freight is very high,
in the peak season and under the impact of the Covid-19 epidemic, sea freight can be
up to 8,000 - 10,000 USD per container packed with 25MT of additives. plastic,
equivalent to nearly 400 USD/MT for the cost of sea freight. The cost of insurance
does not make much of a difference in the price of the exported goods, the export
premium for class A conditions is only 0.1% of the insured amount, so the exporter
does not need to consider Sometimes importers ask to change the choice between CIF
43
and CFR price terms. For plastic additive goods exported under FOB terms, the export
price does not include sea freight and insurance fees but includes transportation costs
from the exporter's warehouse to the seaport and the costs of paying for the goods.
customs, seaport in the exporting country. Depending on the location and distance from
the exporter's warehouse to the export port near or far, the total cost will range from 30
- 60 USD/MT.
2.1.1.5. Export market structure
The group of plastic additives in Vietnam has now been exported to more than 80
countries around the world, on all continents. Most of them are exported to China and
Southeast Asia due to advantages in transportation costs and sea freight. Next are
South Asian countries such as India, Bangladesh, Sri Lanka that have a high demand
for importing plastic fillers; countries in Africa such as Nigeria, Kenya, South
America; the Americas such as Argentina, Brazil, USA, Canada, Dominican; Russia,
Ukraine and a few in Western Europe such as Turkey, France, Italy, Spain, etc.
As for plastic fillers, because Vietnam has the advantage of available output and good
price, it can be well exported to all regions. However, the color additive plastic product
is strongly competitive with China and India because the source of coloring powder is
not available, so it cannot create an advantage, so this product Vietnam only exports to
a few countries. regulations, and especially the export of this item to China and India is
very limited, only achieving a small amount, mainly color additives for engineering
plastics.
2.1.1.6. Export distribution channel
Vietnam exports the group of plastic additives through both direct distribution channels
and indirect distribution channels.
A direct distribution channel is a distribution channel where the seller directly

approaches the buyer in another country to offer to negotiate and sign import-export
44
contracts. Most of Vietnam's export of plastic additives is done through this channel.
The international and export business teams of Vietnam's plastic additive export
companies are relatively large in number and at the same time master the import-export
knowledge as well as the skills to use supporting tools. exports, with an aim to bring
about large export volumes and export opportunities to many different markets. Direct
export distribution channel using a number of export support tools such as e-commerce
sites such as EC21, India Trade, Asiatrade; social networking sites such as Facebook,
Linkedin, Wechat; especially a tool to provide import and export data such as customs
data, ITC trade, Panjiva, etc.
Indirect distribution channel is a distribution channel where the seller and buyer
through a third party support the connection agreement, implementation of import and
export purchase and sale contracts. Currently, Vietnam uses indirect distribution
channels such as distribution agents in foreign markets, signing long-term commercial
contracts with trading companies in the local market, and commercial counselors
through ambassadors. With the strength of a stable supply of plastic additives, Vietnam
can not only connect and build distribution agents in a number of countries and regions
with good consumption potential such as the Philippines and India but also save a lot of
costs, especially shipping costs in sample testing and technical support when problems
arise.
2.1.1.7. Mode of transport
In export activities, goods are transported through many different modes of transport
such as road, sea and air. However, for plastic additives, the characteristic is heavy
goods with low value, so shipping by sea is always preferred.
Exported plastic additive goods are almost always transported by sea in containers,
except for some special cases exported to China, Thailand, Laos, Cambodia, which can
be transported by road at a low cost. This kind of delivery will be more efficient.
45
The transportation of plastic additives by sea can be transported directly from the port
of loading to the port of discharge, or transshipped at another port. Goods of plastic
additives exported from Vietnam to neighboring countries such as China, Korea, Japan,
Thailand, Southeast Asia have an estimated shipping time of about 1 week, however, if
any Transshipment time can take up to 3 to 4 weeks depending on the speed and
schedule of the transshipment arrangement. For goods exported to distant routes such
as Africa, Europe, and America, the shipping time is long, up to over 30 days.
Long shipping times lead to requirements on shipping conditions and packaging when
delivering. Fumigation of pallets for wooden pallets is an almost mandatory condition
for exporters. The lack of conditions on fumigation (shown by the fumigation
certificate) can lead to the Customs of the importing country to refuse to import the
goods and force the shipment to return to the exporting country.
2.1.1.8. Export promotion and promotion activities
Promotion and export promotion activities for plastic additives are mainly carried out
on an enterprise scale.
Some businesses with strong financial resources and a focus on export development
have conducted market research by sending experts and officials to foreign markets to
research and develop development strategies. markets, including the culture, approach,
negotiation, and product specifications in these markets, as well as possible export
options for plastic additives to these markets.
Businesses also participate in commercial counseling activities through Vietnamese

organizations and embassies abroad, as well as foreign embassies in Vietnam, to
connect businesses and introduce products.
Annually, there are plastic industry fair events with many Vietnamese businesses
participating to introduce and promote products, such as the plastic fair in Germany in
2016 (Plastic Düsseldorf Trade Fair) and the plastic fair in India (Indiaplas 2019). Due
46
to the impact of the Covid-19 pandemic, the plastic fair in China (Chinaplas) was
moved to 2021.
2.1.2. Vietnam's import of plastic additives in the period of 2018 - 2021
Vietnam primarily imports plastic additives for which the country lacks manufacturing
capacity or for which production is not economically viable. The products of plastic
additives along with the weakly imported HS Code are:
- Group of additives to increase smoothness and transparency for plastics: HS Code

292419, in which the detailed description is:
Chapter 29: Organic Chemicals
Heading 2924 - Carboxyamide functional compounds; amide compounds of carbonic

acid.Open-chain amides (including open-chain carbamates) and their derivatives; their
salts:
Subheading 292419 – Other:
- Group of color additives for plastics, HS Code 320649, in which detailed description
is:
Chapter 32: Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments
and other substances; paints and varnishes; binders and other mastics; inks.
Heading 3206: Other coloring matter; preparations as specified in Note 3 to this

Chapter, other than those of heading 32.03, 32.04 or 32.05; inorganic products of a
kind used as luminescent, whether or not chemically defined.
Subheading 320649: Other.

47
- Group of lubricating additives to support the production and processing process, HS

code 340490, in which the detailed description is:
Chapter 34: Soap, organic surface-active substances, washing preparations, lubricating

preparations, artificial waxes, processed waxes, polishing or cleaning preparations ,
candles and similar articles, modeling pastes, waxes for
Heading 3404 - Man-made and prepared waxes.
- Group of additives to stabilize and prevent oxidation for plastic production and
processing, HS Code 38123900, detailed description is:
Chapter 38: Other chemical products
Heading 3812 - Prepared rubber vulcanization accelerators; rubber or plastic

plasticizing compounds, not elsewhere specified or included; Antioxidant preparations
and other compounds stabilize rubber or plastics. Antioxidant preparations and other
compounds stabilize rubber or plastics:
Subheading 381239 – Other
- Group of additives to prevent moisture, fire, increase toughness, and slip, HS Code
382499, in which detailed description is:
Part VI: Products of the chemical or other related industries
Chapter 38: Other chemical products

48
Heading 3824 - Prepared binders for castings or cores; chemical products and
preparations of the chemical or related industries (including products and preparations
containing mixtures of natural products), not elsewhere specified or included .
2.1.2.1. Import volume
Figure 2. 5 Import volume of plastic additives of Vietnam in the period of
(Unit: Ton)
The total import volume of Vietnam's plastic additives group was calculated named HS
codes 29241990, 32064990, 34049090, 38123900, and 38249999, based on the
following import and export data:
Table 2. 6 Import volume of plastic additives of Vietnam in the period 2018 – 2021
49
Year 2018 2019 2020 2021
Quantity (ton) 326,01 383,372 775,08 861,708

0 8
In recent years, Vietnam's imports of plastic additives have expanded dramatically. In

2019, output increased by 17.5 percent over 2018; in 2020, output will increase by
roughly 100 percent over 2019, and import volume will exceed 700,000 MT. During
2021, statistics reveal that the total import volume likewise has a positive growth rate,
with an average monthly import volume of 71,809 MT in 2021 compared to 64,590
MT in 2020, a 11 percent rise.
Table 2. 7 Import volume of plastic additives of Vietnam period 2018 - 2021

according to HS Code
(Unit: ton)
Year 2018 2019 2020 2021

HS Code
29241990 49,138 46,330 69,939 43,999

32064990 5,913 9,386 4,106 7,293
34049090 9,949 10,334 9,473 55,072

38123900 56,009 52,179 109,582 300,771
38249999 204,999 265,140 581,986 225,743
From the aggregated data from the import data of Vietnam's plastic additives by
commodity groups with the corresponding HS code: 29241990 (smooth, transparent
additives); 32064990 (coloring additive); 34049090 (additives to support machining);
50
38123900 (stabilizer, anti-oxidant); 38249999 (additives to increase toughness, fire

resistance, moisture resistance), showing that the group of additives with HS Code
38249999 was imported with the largest volume, accounting for over 50% of the total
import volume of Vietnam's plastic additives during the period. The period 2018 -
2020. The group of color additives with HS Code 320649990 contributes the lowest
rate of output because this product itself, Vietnam has self-sufficient capacity, only
importing when there are special production requirements.
All groups of plastic additives have shown positive development in import volume
throughout the years, with the group of stable and antioxidant additives with HS Code
38123900 experiencing particularly rapid growth in 2021. In particular, the 2021
number is nearly three times more than 2020.
2.1.2.2. Import turnover
Import turnover for the group of plastic additives with HS Code 38249999 has a
relatively large value, equivalent to an output that accounts for 50-70% of the total
import volume of plastic additives.
Table 2. 8 Import situation by HS Code 38249999 of Vietnam

in the period 2018 -2021
38249999
Year 2018 2019 2020 2021
Quantity (MT) 20499 265140 581986 225743

Turnover 68,879,664 90,147,600 305,542,650 136,123,029
(USD)
Price 336 340 525 613

(USD/MT)

51
The main commodity group in the group of plastic additives has the import value of
more than 60 million USD since 2018 with a relatively fast growth rate, by 2020 the
import value will be more than 300 million USD. In 2020, the value of import turnover
increased significantly, showing that domestic consumption demand increased, along
with the impact of the Covid-19 pandemic on the price and supply of plastic additives.
The scarcity in the market pushed up the price level, causing the total import turnover
to increase significantly.
2.1.2.3. Import price
The group of additives increased smoothly, with HS Code 29241990, the import price
to Vietnam ranged from 1000 USD to 3000 USD/MT.
The group of color additives with HS Code 32064990 has a price of from 1800
USD/MT or more, there are very high price color codes up to more than 8000
USD/MT, because Vietnamese importers import this color additive. Special color raw
materials are required to manufacture various high-tech, high-value items such as
vehicle components, electronic equipment components such as phones, printers, and so
on.
The import price of the group of additives supporting processing with HS Code
34049090 ranges from $800/MT to $3000/MT, depending on the kind and chemical
formula, as well as the source of import. Vietnam now imports from China, Korea,
Russia, Germany, and other countries.
The group of additives to create stability and anti-oxidation with HS Code 38123900
has various import prices ranging from less than 1000 USD/MT to more than 10000
USD/MT.
The HS Code 38249999 set of chemicals that improve toughness, fire resistance, and
moisture resistance has the lowest average import price, rising marginally from 336
USD/MT in 2018 to 613 USD/MT in 2021.
52
2.1.2.4. Import market structure
Vietnam imports additives from the major exporting countries, including China, Korea,
Southeast Asia, Russia, Turkey, Germany, Argentina, and others. For each
commodities group separately. based on HS Code:
Around half of the HS Code 32064990 category of plastic additives for coloring is
imported from China, followed by the Philippines, Indonesia, Japan, and other
countries.
HS Code 38249999, a set of additives that promote toughness, moisture resistance, and
fire resistance, has the greatest import rate, accounting for almost half of the entire
import volume of this commodity group from three countries: China, Korea, and the
Philippines.
Figure 2. 6 Graph of regions where Vietnam imports plastic additives according

to HS Code 38249999
Source: Global import and export data- 52WMB

53
The remaining HS Codes are also imported from the main countries of China, Korea,
Southeast Asia, Russia, and India, because these countries have large manufacturers
and distributors of plastic additives in each area.
2.1.2.5. Channel to access imported goods
To import plastic additives to Vietnam, importers approach sellers through 2 channels:

direct channel and indirect channel.
Direct channel is a channel where importers communicate directly with sellers through
websites, booths on e-commerce sites or accounts to promote products on social
networks to inquire about goods, negotiate prices and conduct sales transactions or
purchase transactions. This channel is often used for additives in the product group
with HS Codes 32064990 and 38249990 because these additives have many small and
medium-sized companies and enterprises capable of producing, so the competition is
high and coverage as well as a high level of available information, easy to find and
access.
An indirect channel is a channel where the importer communicates and purchases

goods through an intermediary, an agent or distributor of the manufacturer in a foreign
country. For HS Codes such as 29241990, 34049090, 38123900, importers in Vietnam
can access through this channel, because the additives according to these HS Code
groups are produced by large manufacturers and corporations. With agent coverage,
distributors in many different countries help to facilitate communication and exchange.
For this method, import and export activities still take place normally between
importers in Vietnam and exporters in foreign countries, but with the participation of a
third intermediary in Vietnam who plays a role as the third agent to help communicate
information between two parties.
54
2.1.2.6. Means of transportation
Vietnam's import of plastic additives is also almost entirely preceded by sea way,
packed in 10kg, ỏr 25kg bags in 20ft or 40ft containers depending on how heavy or
light the item is: for example, smooth, transparent, and color additives are heavy,
however some fine granules, or powders can be classified as light and packed in 40ft
containers. The volume of goods packed in the container must depend on the maximum
volume of the container that the Vietnamese government allows for circulation, but in
Vietnam this volume is 28MT – relatively large compared to many other countries, so
they can make the most of the packing volume per imported container.
Most plastic additives in Vietnam are imported from China, so the import time is
relatively fast, the shipping time at sea is only 4 - 7 days, the total time from placing
the order to when the goods arrive at the warehouse. importer within 2-4 weeks.
Additives imported from Korea or Southeast Asia have a longer shipping time at sea,
about 7-12 days, and from other countries such as Russia and India, it will take longer.
2.1.2.7. Import promotion activities
In order to promote the import of plastic additives, Vietnamese importers now

participate in a number of activities such as an international plastic fair to learn and try
out the raw materials displayed and introduced at the fair. At the same time, they also
participate in plastic associations such as VPAS, SPI, AFPI to exchange information on
market trends, grasp price forecasts, increase and decrease to make import decisions
and place orders. There are also a number of seminars, online sharing connecting
businesses and consulting support for importing effective raw materials.
2.1.3. Trade balance of Vietnam's plastic additives industry in the period of 2018 -
2021
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For the group of plastic additives in Vietnam, the trade balance is currently in deficit
because the number of items and the unit value of exported goods are much lower than
the number of items and the unit value of imported goods.
The export segment of plastic additives has only two main products, which are plastic
fillers and color additives, with a value of about 250-400 USD/MT for filler plastic
additives and 800-2500 USD/MT for color additives. Meanwhile, in terms of the
import segment, from the five listed HS Codes, there are more than a dozen different
additives imported to Vietnam with a much higher value of goods, averaging over
$2000/MT and having high commodity groups up to 5000, 8000 USD/MT.
2.2. Analysis of the current situation of factors affecting the import and
export of plastic additives in Vietnam
2.2.1. Factors affecting Vietnam's export of plastic additives
The price factor is an important factor in the customer's decision to import goods, the
price comparison is inevitable for importers. Importers will compare prices on both the
external and internal perspectives of the business.
From an external perspective, the price of plastic additives in Vietnam will be

compared with the price of similar products in other supply markets, and the price
condition is usually CIF to create a cost correlation. Vietnam's plastic filler products
have major competitors such as India, the Philippines, and Indonesia. When comparing
prices between these countries, Vietnam is a market that can produce plastic fillers at
good prices. The price can reach as low as 250 USD/MT FOB. When including the
cost of transportation to the importer's country, the CIF rates for comparison become
different. At this time, for the consumption market of China, Vietnam has a complete
advantage from better product prices to better transportation costs because the distance
to China is the closest among competing countries. Therefore, the export volume of
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Vietnam's plastic filler additives to China is very large. For South Asian markets such
as Bangladesh, Bhutan, Nepal, Sri Lanka, with the advantage of location to help reduce
transportation costs for India, India also owns the Kolkata seaport as the main import
port. For some countries located in the mainland like Nepal, Bhutan is a great
advantage for India to export plastic additives at a cheaper CIF price than Vietnam's
CIF price to these markets. In addition, the price of suppliers depends on the cost of
input materials of manufacturers, such as the shortage of plastic materials due to the
Covid pandemic and the Texas frozen prices event in 2021 lead the plastic prices
increasing up to 30 - 50 % in a short time (Vietnam Plastic Association, 2021). In this
situation, countries and manufacturers that have a reserve of available materials will be
able to maintain production at good prices and at a more stable rate. While countries in
the region have limited or no sufficient reserves of input materials, they will have to
accept the use of raw materials with great costs to maintain production, making the
price of plastic additives too high. It is one of the reasons why it cannot be exported.
Price comparison from the internal perspective of the business is the importer
comparing the price or cost of importing plastic additives to make raw materials with
the use of another alternative material with equivalent use. In this comparison, the cost
of importing plastic filler additives is compared with the cost of using virgin plastic, or
recycled plastic, or stone powder directly, while the cost of importing color additives
will be compared to the cost of alternative raw materials such as pigments or
compound granules. When compared with the cost of alternative raw materials, in
Southeast Asian countries such as the Philippines and Malaysia, many manufacturers
still prefer to use stone powder instead of plastic filler additives to save costs. One
explanation is that powder stone only costs about 80 USD/MT while plastic fillers cost
3-5 times higher; In other countries such as China, Japan, Russia, South Asia, Africa to
reduce production costs, most of them prefer to use plastic filler additives instead of
using recycled plastic, because of the high price. Filler costs around 250-400 USD/MT
while the price of recycled plastic is over 600 USD/MT.
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Quality factor is a prerequisite for importing goods. The quality of Vietnam's plastic
additives depends largely on the quality of the raw materials that make up the plastic
additive, namely the source of stone powder and pigment, which creates its own
characteristics for the quality of the plastic additive product.
For easy markets such as India, Bangladesh, South Asia, China, Southeast Asia,
Vietnam's plastic additives basically meet the quality requirements. However, for some
manufacturers of specific products, especially in the Indian market, the Philippines
refuses to import plastic filler additives from Vietnam due to the high hardness from
stone powder affecting the processing process and the quality of their finished
products. For color additives, fastidious countries such as Japan, Europe, and America
often have strict requirements on the quality of Vietnamese goods, requiring the quality
of origin of pigment materials. and requires some quality certifications such as ROHS,
REACH, FOOD CONTACT, etc., which is a big barrier for many manufacturers and
suppliers in Vietnam. Failure to meet these quality requirements will make importers
refuse to import plastic additives from Vietnam, but switch to countries with strengths
in color additives such as China, India.
Accessibility is an extremely important factor for successful export of goods.

Currently, the accessibility of Vietnamese plastic additives in the international market
is not much. Basically, Vietnam only has access to large manufacturers and importers
that have regular import needs and are proactive in self-implementing import and
export activities. While still a large number of buyers with demand of other plastic
additives cannot access to Vietnam's source due to the product's lack of presence in the
consumer market, and these manufacturers with the need cannot access, negotiate
prices, test samples of additives for quality control, so they are forced to use additive
sources from a local distributor or agent. Currently, the group of plastic additives in
Vietnam has distributors in some main importing countries such as India, China,
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Philippines, Nigeria, Kenya, UK, Germany, etc. These distributors play a role
supporting raw materials ready in the consuming market and fast lead time.
At the same time, Vietnam's geographical distance with different consumption markets
is also a barrier to customers' ability to access sources of goods. For distant markets
such as Europe: UK, France, Germany, sample delivery costs can be up to several
thousand USD and freight time can be up to 2 months, making importers hesitate to
source from Vietnam.
2.2.1.4. Competitors
Competitors are businesses and manufacturers who also have the ability to supply
plastic additives. Vietnam is subject to major competition from India, China, Southeast
Asia, and Turkey. In recent times, there are more and more manufacturers and
distributors of plastic additives in Southeast Asia and Africa located in the consumer
market, competing directly with the source of export goods from Vietnam. Therefore, it
makes Vietnam's export opportunities significantly reduced. These distributors can be
agents of large corporations such as Clariant, Polyone, Alok Masterbatch... or they can
also be exclusive distributors for manufacturers in India such as Satyam Polymer, Sidh
Masterbatch,. .
In terms of competitors' capabilities, each group of competitors has its own strengths
that are suitable for a number of customers, affecting the efficiency and output of
Vietnam's plastic additives exports. Specifically, the group of competitors from China
has the strength in plastic beads to create white, black, red and yellow colors due to the
availability of Titanium and Carbon raw materials, and iron oxide; A group of
competitors from India has the ability to supply plastic fillers at good prices and deliver
them in the importing country to surrounding markets, and has strengths in the
production and export of cheap plastic resins to all markets in the world thanks to the
diverse and available source of pigment materials; a group of competitors from the
Southeast Asian market that have strengths in supplying plastic additives to the
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domestic market; The group of competitors from Turkey has the strength in providing
high quality plastic resins and the strength in geographical location as well as
transportation distance to the European consumer markets.
Regarding Vietnam's export policy for the group of plastic additives, they are entitled
to 0% export tax and also not subject to 10% VAT special consumption tax, which
promotes businesses that tend to export this product. At the same time, when Vietnam's
plastic additives are exported to countries with preferential trade agreements, the
provision of certificates of origin also helps importers benefit from the import tax
incentives up to zero. %.
Plastic additives exported to China with a certificate of origin form E enjoy 0% import
tax incentives under the ASEAN - China ACFTA preferential agreement. Plastic
additives exported to Southeast Asia with CO form D enjoy 0% import tax incentives
under the ASEAN ATIGA trade agreement in goods. Plastic additives exported to the
Indian region enjoy tax incentives under the ASEAN - India AIFTA preferential
agreement. Plastic additives exported to the European region enjoy tax incentives
under the Vietnam - European Union free trade agreement EVFTA. Plastic additives
exported to the Canadian market enjoy preferential tariffs under the Comprehensive
and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
2.2.1.6. Source of raw materials and production capacity
The strong source of raw materials in the production of plastic additives in Vietnam is
Calcium Carbonate stone powder with large reserves, providing very good accessibility
both in terms of supply volume and lead time for orders. By taking advantage of raw
material resources, Vietnamese plastic additive manufacturers can shorten lead times
and provide customers with a short lead time, which is an advantage for importers.
Priority importers choose to import plastic filler additives from Vietnam. However, for
color additives, as the source of raw materials depends on imported pigments, the cost
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may be higher, the production time is longer and may be delayed, importers do not give
priority to imports from Vietnam.
The production capacity of Vietnamese manufacturers is reflected in the amount of

output that can be supplied in a specified period of time. Usually, fastidious importers
require an allowable lead time of 4 - 7 days for an export order of plastic additives.
This lead time can be accommodated by large manufacturers that have clear production
schedules and are strictly adhered to. However, for many small and medium-sized
manufacturers, the lead time for plastic additive export orders is 10-15 days from the
date of order, which is considered a long time for fastidious importers. hinder the
import decisions of these importers. The pursuit of importer requirements forces small
and medium-sized manufacturers to change production schedules, leading to delay in
fulfilling other orders, affecting overall export production results.
2.2.2. The current situation of factors affecting the import of plastic additives
in Vietnam
Price is the first factor that importers of plastic additives in Vietnam consider when
planning to import this group of products. Most of the additives Vietnam imports come
from China, Korea, and India thanks to the advantages of competitive product prices
and good shipping costs. For some types such as toughness, smooth, and transparent
additives, which are produced by big brands, which are multinational corporations with
subsidiaries in different countries, Vietnamese importers will consider importing from
a subsidiary located in a country with the most optimal cost-effective transportation
distance such as Korea, China, and Singapore.
As for color additives, the importers of this item to Vietnam are based on two
purposes: the first is to import colorants at a very cheap price from China, only 50 -
70% of production cost in Vietnam; and the second type is imported at a higher cost
thIndiamestic equivalent goods, but the purpose is to put quality and brand first.
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For the group of color additives imported with the goal of quality, the quality criterion
is placed on top when the customers using this additive in Vietnam are usually large
companies, or enterprises with high capital. Foreign direct investment (FDI), or
vendors for global brand corporations such as Samsung, Canon, Honda, Yamaha, etc.
These customers often request and specify the import of plastic additives from a single
supplier. certain foreign suppliers, typically Japan, Korea, Thailand and the United
States. Some typical suppliers are usually designated as imported such as Polyone
Thailand, Dainichi Colors Japan, Sam A Korea, Modern Dispersion USA.
For the remaining group of functional additives, because most of them are produced by
big brands such as Exxon Mobil, Mitsubishi, Croda with the global distribution chains,
the quality of the goods has been standardized and is almost guaranteed stable. The
quality factor for these goods only needs to be tested and matched on the production
line of the importer to ensure eligibility. In addition, because most of the product codes
of these big brands have been standardized with clear technical information, usually
Vietnamese importers do not need to test samples on the production line but can
immediately place import orders.
Accessibility is also a decisive factor for Vietnam's import of plastic additives.

Suppliers with longer distances with higher freight rates will not be selected. For
example, along with Chinese and Indian color additives for the low-priced segment, the
price range is similar, but the shipping cost from China to Vietnam only fluctuates at
200-500 USD/container which can load 27MT while the same volume of goods
imported from India has to bear shipping costs that can be up to $2000 along with
double shipping time at sea. The difficulty in accessing goods in India leads
Vietnamese importers to choose to import goods from China.
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Another factor affecting Vietnam's import of plastic additives is the import volume per
order. For the group of functional plastic additives produced by large corporations, it is
often difficult to access for small Vietnamese importers, and at the same time, the
minimum order volume MOQ is also large, making it difficult for small importers in
Vietnam. Vietnam must consider ordering more than it actually needs, either
abandoning imports, or switching to imports from smaller and less specialized
producers. Thus, the ability to access big suppliers is also a barrier preventing
Vietnamese importers from freely importing plastic additives when the gap in size of
many Vietnamese importers is too big. It is not enough to create attractiveness and
potential for multinational suppliers with large supply volumes.
2.3. Assessing the current situation of Vietnam's import and export of plastic
additives
2.3.1. Assessing the current situation of Vietnam's plastic additive export

activities
2.3.1.1. Achievement
● In terms of production scale, Vietnam has exported over 100,000 MT of filler

plastic additives in 2020 and is still on an increasing trend. The total export volume
of plastic filler additives accounts for nearly 90% of Vietnam's total exploitation
and production output, playing the role of a main supplier of plastic filler additives
to the world. There is the European Plastic Joint Stock Company, which is one of
the top five manufacturers and suppliers of plastic filler additives in the world.
● In terms of value scale, Vietnam's export turnover of plastic filler additives has
reached over 45 million USD in 2020, still in a steady increasing trend over the
years. Color additives, despite having a very low export volume, contributed to a
high export value, reaching more than 17 million USD in 2020.
● Regarding the price of export goods, the group of plastic additives can only
achieve high prices in some special items such as color additives with bright colors
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such as pink, blue, red, yellow, purple, .. multi-purpose additive is an additive with
additional functions, ... with the highest possible price up to over 5000 USD/MT.
Besides, for the group of plastic fillers, the production scale and the number of
suppliers participating in the export market are large enough to help stabilize and
competitive export price margins, creating the ability to supply attractive export prices
to international importers.
● Regarding the export market, Vietnam has exported plastic additives to more than
80 countries and territories around the world in all continents and Vietnam's plastic
additive raw material source has become a trusted source. Plastic manufacturers
trust to use long-term cooperation contracts and main distribution in many
countries such as the Philippines, Argentina, Russia, China, ...
● In addition, Vietnam has also gained other achievements in the export of plastic
additives: With the capacity of Vietnam's basic knowledge of import and export,
Vietnam's export of plastic additives has reached a high rate. The success rate is
high when the number of shipments has problems with transportation problems,
import and export procedures, and payment processes are relatively low, or almost
zero, except for a very small number of cases. Longtime customers are unable to
pay for the shipment that Vietnam has exported due to financial difficulties from
the importer.
● The number of exported plastic additive product codes is increasingly diverse, the
number of exporters participating in the industry increases, including both direct
manufacturers and traders, demonstrating that the industry's opportunity is still
there. development, and at the same time increase the competitiveness of the
plastic additive market, avoiding monopoly and dominating the market.
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2.3.1.2. Limit
Vietnam's plastic additive industry still has many limitations that need to be overcome
and improved.
● Regarding the scale of export output of plastic additives, Vietnam is still limited in
terms of color additives and functional plastic additives, the export output so far is
still very low compared to the supply capacity of domestic producers and the
consumption scale of the international market.
● In terms of export turnover, the value earned from Vietnam's export of plastic
additives is still relatively low compared to the scale and potential of the plastic
raw material industry.
● Regarding the price in the export of plastic additives, the value of exported goods
is relatively low, for long distances such as the US and Canada, the cost of sea
freight can even be as high as the price of goods. The fluctuation of freight rates
greatly affects the export of goods because the value of goods is too low, making
import and export activities to distant routes no longer effective. It leads to the fact
that many buyers of plastic additives change to alternative supply in the vicinity.
The price of Vietnam's export plastic additives is not only low, but the profit margin of
manufacturers and exporters is also very low, especially with plastic fillers, the profit
margin is only 5-10% equivalent to 15 - 30 USD/MT of exported goods. The low profit
margin makes manufacturers have to follow the volume and sometimes have to sell to
breakeven or sell at a loss to get output or keep customers.
At the same time, the surplus value that Vietnam creates for export plastic fillers is
very low compared to the proportion of ingredients when the proportion of stone
powder exploited in Vietnam can account for 85% of the finished products volume; but
the contribution value in finished products is only 20-30% while the rest of the value is
imported from raw materials, this is a very low percentage.
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● Some competitive markets that Vietnam has not been able to export or exports very
little to are such as India and China for color additives and Turkey, Egypt, Middle
East for filler additives. In addition, the access and penetration into difficult markets
such as Europe, the US and Canada has only been done by a few leading
manufacturers in Vietnam, the opportunities are still very limited. for the rest of the
suppliers.
● Furthermore, there are a number of other limitations in Vietnam's export of plastic

additives such as the quality problem of Vietnam's plastic additives, which is still
unstable when customers take plastic additives in the production line with different
batches and get different quality results, partly due to the manufacturer's production
technology and partly to the honesty of the manufacturer, namely when production
costs increase but manufacturers are forced to keep prices to keep customers, they
choose to sell lower quality additives to keep profit margins.
● In terms of quality, Vietnam's export of plastic additives to fastidious markets is

still limited due to the requirements for quality certificates, especially the European
market requires many other types of quality certificates. typically FOOD
CONTACT, REACH, EU 10/2011, EU 2020/1245, ISO, ROHS to ensure safety
and content of heavy metals as well as toxic substances in plastic additives in
Vietnam. Currently, the number of Vietnamese manufacturers providing these types
of certification is very low.
2.3.1.3. Reason
The reason for Vietnam's export of plastic additives to be considered low value is
because the products are manufactured from low value mineral raw materials,
especially for plastic fillers with 80 - 85% of the ingredients are stone powder, and the
value of stone powder is less than 100 USD/MT. This is also the reason why Vietnam's
export of plastic additives to faraway routes is inefficient, when the value of 1 FCL of
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plastic fillers fluctuates around 7,000 - 9,000 USD while sea freight can up to 8,000 -
10,000 USD at peak times.
The quality of Vietnam's exported plastic additives is still unstable, stemming from two
main reasons, which are problems of production techniques and problems of business
ethics. The problem of production techniques is related to the technological machinery
lines and input materials of Vietnamese manufacturers. These lines are usually
imported Chinese machinery, so the stability is less than that of the Vietnamese
manufacturers importing from Germany, Europe; while the input materials, if it is not
checked for quality and properly proportioned, it will lead to deviations between
different production batches. The second cause of business ethics is derived from the
subjective consciousness of the business itself. The manufacturer, under the influence
of market prices or profit targets, decides to cut costs. reduce the percentage of primary
plastic in the raw materials, but replace it with stone powder or plastic scrap to reduce
production costs, leading to quality differences between export shipments.
2.3.2. Assessing the current situation of Vietnam's import of plastic additives
2.3.2.1. Achievement
● In terms of volume of production, Vietnamese importers in recent years have

imported enough to meet the production needs of domestic customers up to nearly
800,000 tons in 2020, and also created storage warehouses and distribution to create
quick availability and preparation time to deliver to customers.
● In terms of import turnover, Vietnam imports plastic additives with a large

turnover, reaching more than 300 million USD in 2020.
Regarding the price of imported goods, Vietnam is importing at a net price from the
selling price in the exporting country and the cost of sea freight, which is almost free of
import tax. Therefore, the import cost that Vietnam is importing plastic additives is
relatively good, even lower than some equivalent products produced domestically.
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Normally, the import price of plastic additives to the warehouse in Vietnam is 113% of
the selling price in the exporting country. The importers of plastic additives in Vietnam
not only import additives suitable for the use purposes of domestic manufacturers, but
also import various types of different product codes for the same function. , bringing a
diverse selection base to domestic manufacturers in terms of types and prices as well as
quality on each criterion. The number of additive importers and distributors in Vietnam
has also increased gradually and is large enough to create a market for supplying
additives at competitive prices to help create industry efficiency.
● Regarding the import market, Vietnam has access to imports from many countries
in different regions such as Asia, Southeast Asia, America, and Europe.
2.3.2.2. Limit
● In terms of output and turnover, Vietnam's limitation is that it still has to import and
depends on importing many different plastic additives, making the output and
import turnover large, and the plastic additives group's trade balance deficit.
● In terms of prices, because of the dependence on imports, when the price of raw
materials in the manufacturing country increases, or the increase in sea freight
affects the price increase, Vietnam still has to accept imports. The prices of plastic
additives that Vietnam cannot produce are much higher than those of plastic
additives that Vietnam is capable of producing and exporting.
Locally, there are still many enterprises with the segment of producing technical plastic
products for high-quality applications that have demand for color additives, but do not
buy directly from domestic manufacturers but accept higher costs to import. It shows
that for the segment of color additives with the highest value, Vietnamese
manufacturers cannot meet them.
● For the import market, Vietnam's limitation is that it has not been optimized and has
regular access to markets that supply high quality plastic additives with diverse
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sources such as Europe and America. Vietnam's plastic additives are still imported
mainly from Southeast Asia, China, Korea, and India.
2.3.2.3. Reason
The inability of Vietnam to self-supply some types of plastic additives such as

increasing smoothness, increasing transparency, increasing brightness, increasing
toughness is because these additives are mainly produced by oil refineries producing
virgin plastic. While Vietnam has only two large oil refineries, namely Nghi Son,
Thanh Hoa and Vung Ang, Vung Tau oil refineries, both of these plants are new and
have not yet expanded to produce commodity groups. plastic additives. For some other
types of additives such as moisture-proof additives, some Vietnamese additive
manufacturers have production capacity, but the cost is still higher than that of
imported goods, so it has not been paid attention.
For the additive segment for high-tech plastics, Vietnamese manufacturers do not have
the advantage due to two main reasons. The first reason comes from customers - high-
tech plastic manufacturers, usually foreign-invested enterprises, so with a network of
relationships and strategies on raw materials, these manufacturers often only pre-
determined raw material suppliers from the investor's country. The second reason
comes from the intrinsic reason that Vietnam's plastic additive manufacturers have not
focused on the high-tech plastic additive industry. in the existing list, while the
development of the group of high-tech plastic additives requires a lot of investment in
gray matter and especially has to hire foreign technical experts for training and
guidance.
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SUB-CONCLUSION CHAPTER 2
Chapter 2 analyzes the current situation of export activities and activities of the group
of plastic additives in Vietnam, specific to each item and product code. Through
analyzing the current situation, we can see the results of import and export activities by
output, turnover, commodity prices, import and export market distribution, from which
we can see the trade balance of the group of plastic additives in Vietnam. The South is
currently in deficit.
From the current situation of Vietnam's import and export of plastic additives, the
author analyzes the factors affecting the export and import of plastic additives,
including price, quality, accessibility, competitors and import-export policy. The
analysis of influencing factors shows that price and quality are the two factors that
have the strongest influence on Vietnam's import and export of plastic additives.
From the analysis of the current situation and factors affecting the import and export of
plastic additives in Vietnam, the author draws conclusions about the achieved
achievements as well as the limitations and shortcomings along with the causes of the
plastic additives. limitations to serve as a basis for assessing opportunities and
challenges for proposals on solutions to complete and promote Vietnam's import and
export of plastic additives in the coming time.
CHAPTER 3: SOLUTIONS TO COMPLETE AND

PROMOTE VIETNAM'S EXPORT AND IMPORT OF
PLASTIC ADDITIVES
3.1. Opportunities and challenges for Vietnam's export and import of plastic
additives in the near future
3.1.1. Opportunities for Vietnam's export and import of plastic additives in the
near future
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The opportunity in export activities comes from the biggest advantage for Vietnam's
plastic additive industry, which is the natural stone quarries that are allowed to be
exploited in the provinces with limestone mountains such as Ha Nam, Yen Bai, Ninh
Binh, etc. These quarries produce huge reserves of exploited limestone with diverse
types of stone powder and low cost, which is the dominant source of raw materials for
Vietnamese manufacturers to produce plastic fillers. At the same time, the labor cost in
Vietnam is relatively cheap, accounting for a very small percentage of the product cost.
Vietnam's geographical location in the central region of Southeast Asia is favorable for
exporting goods to countries such as China, Korea, Southeast Asia, South Asia, and the
Americas at competitive costs and Shipping time is worth considering. At the same
time, Vietnam's logistics services are also relatively abundant and ready to help the
transportation of goods be more proactive. Vietnam participates in many free trade
agreements to support import and export activities with tax incentives and other
advantages in the import and export process. The code of imported plastic additives
Vietnam is subject to the normal import tax of 5%, but with free trade agreements such
as ACFTA, ATIGA, AIFTA, the source of plastic additives that Vietnam imports. All
imports are entitled to 0% import tax incentives.
Vietnam is also considered a potential market for plastic additives in Southeast Asia, so
major plastic additive suppliers such as Exxon Mobil, LG Chem, BASF, Koo Chem,
etc. have all deployed agents and commercial presence in Vietnam to support
purchasing and importing plastic additives in a more convenient way. At the same
time, the consumption potential of the Vietnamese market is also an opportunity for
domestic manufacturers to develop and promote the production of plastic additives to
supply domestic demand.
3.1.2. Challenges for Vietnam's import and export of plastic additives in the
coming time
The first challenge is the source of raw materials: all basic plastic additives are
produced on the basis of primary plastic, which Vietnam is currently only capable of
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self-supplying a small amount of primary plastic, but it is very difficult for plastic
additive manufacturers in Vietnam access to, so basically primary plastic raw
materials, pigments and chemicals to produce plastic additives in Vietnam all depend
on imported sources.
The geographical distance away from regions such as Africa and Europe is a big
challenge for Vietnam to export plastic additives to these regions, forcing it to be
outdone by competitors such as India and Turkey. Turkey, Egypt when comparing
prices and shipping costs.
In order to export plastic additives to large customers, it is necessary to have quality

certificates according to international standards. Sending test samples and issuing
certificates take a lot of time and cost that Vietnamese small and medium-sized
manufacturers are not willing to invest, specifically some certifications need up to 6
months to complete. Once completed, the cost of testing and certification can be up to
$2000 - $3000 per product sample. In terms of cost effectiveness per order, this is a
challenge for manufacturers to consider. Simultaneously with the characteristics of the
plastic industry, more and more countries and regions are issuing policies and decisions
on reducing or limiting the use and import of plastic as well as requirements for green,
environmentally friendly plastic materials. environmentally friendly. This makes it
more difficult and requires more quality for manufacturers in Vietnam to have the
opportunity to export plastic additives.
For import activities, due to the long distance, the transportation cost if importing
plastic additives from European countries is relatively high, so the import volume from
these countries is still limited, which is a challenge for Vietnamese importers and
manufacturers to access quality goods.
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3.2. The solution to complete and promote Vietnam's export of plastic

additives
3.2.1. Developing product advantages and market opportunities
3.2.1.1. Product advantage development
● The basis of the solution: Vietnam is currently only exporting plastic fillers and
color additives, while the international plastic market has a demand for a variety of
different types of plastic additives.
● Goal of the solution: Improve the supply capacity of Vietnamese manufacturers for
more types of plastic additives.
● Contents of the solution: Promote the production of all plastic additives, including
boosting the production and export of products that have been and are being
produced such as plastic filler additives, color additives, additives. moisture-proof,
research and manufacture other additives to diversify additive products.
For filler plastic additives, to create its own strengths, Vietnam needs to ensure the
stability of the output quality, strictly control the QC process, and have a plan to
control and manage the source of plastic raw materials. imports so as not to fall into a
passive situation in terms of raw material sources and raw material prices. Research on
improving the hardness of plastic fillers should be based on different types of stone
powder materials to meet a large group of customers in India.
For the group of color additives, besides producing and exporting basic colors on the
basic pantone system such as white, black, red, yellow, blue, orange, pink for PP and
PE base resins, Vietnam should promote research, development and production of a
group of special, high-quality color additives with a value that can be up to twice that
of ordinary colors, this special group of color additives includes a group of colors on a
technical plastic base. techniques such as PET, HIPS, ABS, POM, etc., a color group
with special effects such as glitter, glitter, golden effect, etc., are suitable for the
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production of highly aesthetic products such as packaging. cosmetics. At the same

time, studying the plan to promote penetration and cooperation in the supply of plastic
additives, including color additives, into the group of enterprises in the export
processing area, which until now have mainly used imported goods.
Researching and developing a group of functional additives, Vietnamese manufacturers

are now gradually developing the production of functional additives such as moisture-
proof, smooth, transparent, anti-UV, ... from imported materials, so it is mainly for
distribution to the domestic market. However, in the future, Vietnamese manufacturers
need to promote the production and export of functional additives by producing
specific multifunctional additives such as combining moisture-proof filler masterbatch
(desiccant filler masterbatch). ), UV resistant filler masterbatch, UV resistant color
masterbatch, ... help combine national advantages into export products and at the same
time help customers products that address many needs in one product, especially for
specific types of plastic products such as packaging, containers exposed to direct
sunlight, plastic products exposed to moisture, immersed in water, …
Thanks to the increasing demand for bioplastic additives, the development of

production and export of this item is extremely potential for Vietnamese
manufacturers. Due to the negative impact on the environment of plastic, many
countries now have regulations on limiting and limiting the use of plastic, especially
disposable plastic packaging and tools, which are banned in other countries and
regions. areas such as Europe, Canada, USA, China, India, Kenya, Zimbabwe, etc. and
plastic bag packaging is banned in 127 countries (according to United Nations
statistics). This is a great pressure for plastic manufacturers, seeing that the future of
the market is limited due to the government regulations of the consuming country,
forcing them to find an alternative, but finding an alternative material. It is very
difficult to have flexible use and reasonable cost like plastic, so manufacturers research
to use bioplastic. Bioplastic additives will be additives used on the basis of bioplastics
produced from organic substances such as plants, sugar cane, starch, ... with the
74
characteristic of being better able to decompose under the influence of water,

microorganisms in the ground. The group of bioplastic additives that Vietnam is
capable of producing includes bio-filler plastic additives, biological color additives,
and biological functional additives. Although Vietnam currently does not have a
complete advantage for this product group due to the limited supply of bioplastics,
parallel with the development of Vietnam's bioplastics industry is being promoted by
manufacturers. Vietnamese manufacturers such as An Phat Group, Biostarch, Phu My,
etc., the development, supply and export of bioplastic additives is a promising potential
opportunity for Vietnamese exporters due to the group of products. This has a higher
unit value of goods and is still rare in the international market, very few units have the
capacity to supply.
3.2.1.2. Developing market opportunities
● Basis of the solution: Although located in a convenient international trade location,

the export of plastic additives to current markets still has shortcomings that are not
optimally effective. Besides, there are still many potential new markets for Vietnam
to access to export plastic additives.
● Goal of the solution: Optimizing output and export turnover to existing markets and
exporting to new markets, long-term goal to reach all market areas in the world .
● The content of the solution:
For export plastic fillers, Vietnamese exporters have captured a good market share in
the Southeast Asian market of countries such as Indonesia, Philippines, Malaysia. The
main competition in these markets is currently only with a number of domestic
manufacturers. In order to further develop and maximize market share in this market, it
is necessary to focus on changing customers' habits and culture from using domestic
sources with the advantage of convenient transportation time and purchasing
procedures. sell. Therefore, in order to maximize market share and export volume to
the Southeast Asian market, Vietnamese export manufacturers need to sacrifice profits
75
at the beginning to create convenience for customers in testing samples, and good faith
to accept the time and import and export formalities when importing goods from
another country.
For the Chinese market, Vietnam's market share of imported plastic fillers is already
very high, but the unit value is still low, leading to low efficiency in export activities,
mainly focusing on quantity goals. To improve this problem, Vietnamese
manufacturers need to find a customer segment, or a product that is capable of
importing higher value for development, and bio-filler resin is a potential product for
Vietnam’s exports due to China's ban on single-use plastic packaging products,
creating a trend of large import demand for bio-filler plastic additives.
South Asian markets such as India, Bangladesh, and Sri Lanka often have relatively
low target prices, so in order to improve the efficiency of exporting plastic additives to
this market, Vietnam needs to focus on customer groups who have a demand for plastic
additives for the production of quality products, meeting safety standards, is a group of
customers willing to import at high prices, typically manufacturers of packaging of
medicines, cosmetics, engineering plastics, medical and health related products,...
Exporting to European and American markets faces the biggest difficulties in

transportation costs and quality safety certification, but the value of exported goods and
profit margins of this customer group are better than with other import markets, so it is
necessary to promote to achieve the goal of increasing export volume to the European
market. To pursue this goal, exporters need to be ready for FDA quality certificates for
the US market, and REACH, EU 10/2011, EU 2020/1245 Standard for the European
market, and at the same time take the initiative in matters relating to the quality of
products and services. To address logistics and sea freight costs through close contact
with logistics service providers, shipping lines determine the increasing and decreasing
trend of sea freight and choose the optimal cost sea freight service. best.
76
Vietnam's export of plastic additives to the African market has had remarkable results
when there is a relative consumption volume in some countries such as Kenya,
Ethiopia, South Africa, etc. However, besides the advantages from the easily in the
quality requirements of these countries, the biggest difficulty for Vietnamese exporters
is the fierce competition from Indian suppliers and the risks in international trade
activities with African importers, but this is also an opportunity for Vietnam to expand
its export market share if it can solve the competition of Indian suppliers. In order to
compete with the main advantage of Indian suppliers - the advantage of distance makes
CIF prices better, Vietnamese suppliers need to develop the market directly through
market staff or agents to create familiarity with African customers and minimize
sample testing costs, while also verifying customer reputation more closely to
minimize risks in international trade activities, especially the issue of payment.
Vietnamese exporters of plastic additives can also promote exports to new markets in
the region that do not have many import-export and trade activities but still have plastic
production activities and have demand for plastic additives such as Fiji, Madagascar,
Samoa, Solomon, Papua New Guinea, etc. The strategy for these markets is to
accompany customers in the process of developing and applying plastic additives in
their production lines and become a development partner, but cannot set the goal of
selling quickly and making profits immediately.
3.2.1.3. Optimizing production lines and costs
● The basis of the solution: Vietnam has the advantage of cheap limestone raw
materials, low labor costs, but it is dependent on imported primary plastic, which
has not yet reached the optimal level of efficiency.
● Goal of the solution: Optimizing production costs of plastic additives through raw
material costs, labor costs, production line costs and transportation.

77
Regarding the cost of raw materials, it is necessary to optimize all input materials
including stone powder, primary resin, pigments and other additives. In order to get the
lowest input stone powder cost, it is necessary to cooperate with limestone and mineral
mining factories to become strategic partners. Limestone processing also helps to
reduce the cost of input limestone. Regarding virgin plastic, because the source of
supply is imported from Korea and Saudi Arabia, it is necessary to purchase directly
from the manufacturer or an exclusive distributor, the manufacturer's strategy such as
direct purchasing directly from the manufacturer Exxon Mobil, Lotte Chemical, or an
Opec distributor instead of purchasing through secondary commercial sources at a
higher cost. Regarding the source of raw materials for chemical additives and
pigments, although the quantity for production needs is not much, before purchasing
and importing, it is necessary to check, evaluate and test samples from many suppliers
to choose the source with low cost. Best charge for an equivalent quality.
Labor costs in production in provinces, especially those with quarries such as Yen Bai
and Ha Nam, are relatively cheap, so setting up factories in these areas not only helps
better material costs but also minimize labor costs.
3.2.2. Promotion channel to promote export
● Basis of the solution: With the development of technology and international trade
activities, there are more and more ways and methods for enterprises to deploy to
participate in and effective export activities.
● The goal of the solution: Access to customers and importers in all markets and
regions. Effectively find and reach potential customers with the highest success
rate.
In addition to the promotion channels that Vietnam's plastic additive manufacturers

have been using such as direct sales through internet search, on e-commerce sites,
78
social networks, setting up representative offices, etc. As a distributor and trade

representative, Vietnamese plastic additive manufacturers can also promote the export
of plastic additives through new channels such as:
Deploying a market sales team is crucial. Developing sales staff in the target market
can be Vietnamese employees sent to the market, or staff, recruitment collaborators in
the target market. Export promotion in this form has many difficulties, but the effect is
very high, especially the exporter, having a close connection and close connection, can
go deep into customer needs as well as be able to support Direct customer support
when there is a problem, creating an absolute advantage compared to other
competitors.
Participating in business networking seminars, sales seminars such as Procurement

Asia, The Global Plastic Industry Seminar, Chinaplasonline, etc. Enterprises
participating in the seminar are not only consulted and guided by experts in the global
plastic industry. ways to learn and approach potential customers but also as a support
forum to connect exporters with importers, opening up many cooperation
opportunities. At the same time, Vietnamese plastic additive exporters should also
participate in regional and global plastic associations, grasp market trend information
and take advantage of maximum connection opportunities to all businesses in the areas.
In the context of limited direct contact activities, plastic fairs are not held in the
traditional form but pushed online, which is also an opportunity for Vietnamese
businesses to participate in the chain. information, exhibition of plastic products with
lower investment costs. When the world returns to normal, there will be many plastic
fairs every year, which will be an effective channel for Vietnamese exporters to
connect and promote Vietnamese plastic additives to global customers.
The use of e-commerce platforms also needs to consider the suitability, in addition to
only pushing plastic additive information to B2B trading platforms, Vietnamese
exporters also need to evaluate the most effective channels for consumers regarding the
79
group of plastic additives and the target customer group. The most effective platforms
for the group of plastic additives that Vietnamese exporters should focus on are
Alibaba (for global customers), EC21 (for Asian customers), Asianet (for customers in
the world). Asia), India Trade (Indian customers), Europe.bloombiz (European
customers). Corporating customers in Europe and America gives priority to accessing
suppliers through corporate websites, so focusing on promoting the business' website
presence to high rankings in many countries will help export opportunities. Exports of
enterprises increased much higher.
In addition, Vietnamese exporters can also promote exports through trade partner
channels, specifically, Vietnamese exporters will contact and cooperate with their
customers (who are manufacturers and are already using Vietnam's plastic additives) to
trade products for partners and businesses in the domestic market of customers. Or,
exporters of plastic additives in Vietnam contact and cooperate with businesses in the
international market that have the same target customer group but are not competitors,
such as suppliers of virgin plastic beads, and plastic production machinery
suppliers, ....to cooperate, share customer sets and support mutual benefits.
3.3. The solution to improve and optimize the import of plastic additives from
Vietnam
3.3.1. Optimizing import products and markets
3.3.1.1. Imported goods
● The basis of the solution: Currently, the capacity of Vietnamese manufacturers to

provide plastic additives for domestic customers is limited, mainly plastic fillers
and color additives. The domestic plastic additive market is highly dependent on
imports.
● Goal of the solution: The goal is to increase the number of additive products
produced and self-sufficient in the country. Cost effectiveness of some additive
80
products that Vietnam has the ability to produce but has not had the opportunity to
produce much due to the higher cost of imports.
Regarding the group of imported plastic additives, Vietnam needs to consider

promoting the import of additives that the country is completely unable to produce and
limit the import of plastic additives that are domestically produced still available.
Promote the import of items such as additives to increase toughness, increase

smoothness, and prevent UV rays that cannot be produced domestically for distribution
to serve the domestic plastic manufacturing industry. Importing this group of additives
from manufacturers and distributors who are large corporations, helps to stabilize
import prices, but must have an approach and expertise in the field of purchasing and
importing to be able to work with major suppliers.
Limiting the import of plastic additives that still have production capacity and potential
in the country, such as color additives and moisture-proof additives. As for color
additives, the import restriction will create opportunities for domestic manufacturers to
develop the production of high-grade pigments segment, supply to large enterprises
and FDI enterprises, and help improve balance of trade. Currently, there are a number
of manufacturers that can produce and export moisture-proof additives for plastics, so
restrict the import of moisture-proof additives to create opportunities for domestic
manufacturers to boost production. This product, aiming at large production volume,
makes the price more competitive, can be supplied to domestic customers at a similar
cost, ensuring that the benefits of customers remain constant.
3.3.1.2. Import market
● The basis of the solution: Vietnam's import of plastic additives is recorded from
many exporting countries in different regions with different import costs and there
are still costs that create a shortage. efficiency in import activities.
81
● The goal of the solution: Maximize the quality of imported goods above the cost
from international markets and minimize the costs incurred.
Developing and promoting the import of additives from a number of markets with a list
of reputable suppliers and low-cost shipping distances such as the Korean market,
where there are suppliers from leading corporations world LC Chem, Chevron Phillips,
BASF,… ; Singapore market with corporations such as Croda, Exxon Mobil, ... China,
Hongkong, Taiwan market with many mid-range suppliers with the ability to supply
some types of plastic additives besides additives mainly provided by the world's
leading corporations. The advantage of these markets is the optimal import cost, from
the cost of goods to the cost of transportation, the sea freight for a container only
fluctuates at a few hundred USD, while the quality of the goods is still guaranteed. tell.
For markets as far away as the US, Europe, it is necessary to consider when importing,
and only import for additives that cannot be provided anywhere else. When importing,
it is necessary to carefully check the information about sea freight, the availability of
seats on the ship of the shipping route and transit time to optimize import costs and
delivery time.
3.3.2. Developing the import of goods for domestic production
● Basis of the solution: Due to the domestic demand for production of finished plastic
products, there is still a lot of demand for additives that were previously completely
dependent on imports.
● The goal of the solution: Importing chemical additives for the production of
additives for the domestic plastic industry, the goal is to increase the proportion of
national value in the supply chain of the plastic industry.

82
The import of plastic additives for domestic production activities is the import of
additives for the production of plastic finished products such as additives to increase
toughness, increase smoothness, increase gloss, prevent UV rays, and processing aids
for the production of packaging, film, toys, plastic molds, ....
Companies would find out the import of plastic additives to serve the production and
processing of technical plastics that domestic manufacturers of plastic finished
products have needs but have not been completely satisfied, specifically the production
segments. POM, ABS, TPU, ...
For FDI enterprises, plastic additive materials are preferred to be used in the form of
compounds - granules that have been pre-mixed with all necessary materials and can be
put into direct production with the advantage of being quick. and clean during
processing. From this opportunity, manufacturers of plastic additives in Vietnam can
import all necessary additive materials and then create granules to supply FDI
customers in Vietnam, the goal is to replace the source of raw materials. compound
materials that Vietnam's FDI is still importing from abroad.
3.3.3. Developing the import of goods for export production
● The basis of the solution: The goal of exporting more plastic additives from
Vietnam requires the source of raw materials for chemical additives that must be
imported.
● Objective of the solution: Importing chemical additives to meet the production of

new additives, multi-purpose additives for export.
For the import of plastic additives for export production, the focus will be on the group
of chemical additives such as powder, liquid, block, etc., then additive manufacturers
in Vietnam will increase processing, adding some materials available in Vietnam such
as primary plastic, stone powder, waste plastic, etc. to create additive particles that
83
customers can use directly in production. Thanks to the increase in price value in the
process of production and processing in Vietnam, this group of goods can be exported
to the international market. This form can be developed for additives such as moisture-
proof and light-enhancing materials imported from China, coal black powder materials
imported from Korea, and light pigment materials imported from India.
3.4. Improving and optimizing the supply chain of plastic additives for plastic
production in Vietnam
In order to optimize the supply chain of Vietnam's plastic additives, it is necessary to

optimize both the import and export stages so that the supply chains of Vietnamese
plastic additive manufacturers and traders create the greatest value.
Figure 3. 1 Vietnam's supply chain of plastic additives according to the import-

export model
84
(1) Filler plastic additives
(2) Color plastic additives
(3) Moisture-proof plastic additives
(4) Smooth, Gloss, Brightness plastic additives
(5) plastic additives increase toughness, anti-uv
Source: Author's own compilation
The goal for Vietnam's plastic additive supply chain in the near future is to maximize
the output and export value of plastic additives, strengthen the group of plastic fillers
and color additives, and develop production at the same time towards exporting the
group of anti-moisture additives, additives to increase smoothness, increase
transparency. Import activities aim to optimize the import of necessary groups of
additives that cannot be produced domestically, such as toughening additives, anti-UV,
and at the same time increase the import of plastic additives in the form of chemical
raw materials. There is a need for research and development in production of anti-
moisture, anti-slippery additives for production.
The entire supply chain will go from importing primary plastic, additives that cannot
be produced domestically, and plastic additives in the form of chemical raw materials.
After that, distributors and traders will distribute plastic additives to customers who are
domestic manufacturers of plastic products; At the same time, additive manufacturers
in Vietnam have imported input materials, combined with available domestic raw
materials to produce additives that a small part supplies to domestic customers. The
rest focus on exporting to the world.
85
CONCLUSION
Besides primary plastic, plastic additives are also an important and indispensable group
of raw materials in the plastic industry. The scale of the global plastic additive market
is expanding, which is an opportunity for manufacturers to increase production and
export of plastic additives, and manufacturers of finished plastic products have many
options to optimize plastic products.
Vietnam's import and export activities of plastic additives in the period 2018 to 2021
have achieved many achievements despite being strongly affected by the Covid-19
pandemic, the growth rate in output and price Import-export value has increased over
the years, imported and exported plastic additives have been expanded. However, in
general, the unit value of Vietnam's exported plastic additives is still very low
compared to the group of plastic additives that Vietnam cannot produce and must
import. The market coverage of Vietnam's plastic additives exports also achieved good
results when it was able to reach almost all regions in the world, whereas the basic
import market was only from surrounding countries. Vietnam.
In the coming time, in order to effectively import and export plastic additives in
Vietnam, Vietnam's plastic additive manufacturers need to focus on quality to achieve
certification according to standards for each market. markets in the US, Europe, etc.,
and research and develop color additives for the high-quality engineering plastic
segment to be able to approach the customer group of high-quality engineering plastic
product manufacturers. Researching and developing a number of plastic additives from
imported chemical raw materials for both domestic supply and export is an essential
task. Export activities take full advantage of opportunities to access niche markets,
strange markets: Fiji, Djibouti, Madagascar, Samoa, etc. to become a pioneer in
exporting and accompanying plastic manufacturers in foreign markets. this market. For
the import of plastic additives, it is necessary to optimize imported goods, promote the
import of domestic products that cannot be produced, and focus on importing from
86
China, Korea, and Singapore markets; at the same time restricting the import of plastic
additives that the country has production capacity but does not have a complete
advantage, to create opportunities for domestic manufacturers to develop products.
87
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FOREIGN TRADE UNIVERSITY

FACULTY OF BUSINESS ENGLISH

VIETNAM’S EXPORT AND IMPORT OF PLASTIC

ANALYSIS AND RECOMMENDATIONS

Student: Trần Thị Phương Anh

Class: Anh 01 – K57- FBE

Supervisor: Nguyễn Việt Linh, MA.

Hà Nội, June 2022

LIST OF TABLES AND FIGURES

2.1.2.4. Import market structure 51

CHAPTER 3: SOLUTIONS TO COMPLETE AND PROMOTE

Abbreviations Full name

ABS Acrylonitrile Butadiene

ACFTA ASEAN China Free Trade

AFPI ASEAN Federation of Plastic

AIFTA ASEAN India Free Trade

ASEAN Association of South East

ATIGA ASEAN Trade in Goods

B2B Business to Business

CFR Cost and Freight

CIF Cost, Insurance and Freight

COVID-19 CoronaVirus Disease of 2019

CPTPP The Comprehensive and

DDP Delivered Duty Paid

EU 10/2011 Commission Regulation (EU)

EU 2020/1245 Commission Regulation (EU)

EVFTA The European Union –

FCL Full Container Load

FDA Food and Drug

FDI Foreign Direct Investment

HIPS High Impact Polystyrene

HS CODE Harmonized System Codes

ISO International Standards

LCL Less Container Load

Lead time Lead time

MOQ Minimum Order Quantity

PET Polyethylene Terephthalate

PVC Poly Vinyl Clorua

REACH Registration, Evaluation,

Authorisation and Restriction

ROHS Restriction of Hazardous

SPI Society of Plastic Industry

TPU Thermoplastic Polyurethane

VN EAEU The Vietnam - Eurasian

VPAS Vietnam Plastic Association

LIST OF TABLES AND FIGURES

Figure 3. 1 Vietnam's supply chain of plastic additives according to the import-export

- Ta Viet Phuong, 2019, Plastic industry report, FPT Securities

- Various Analysts, 2019, 2019 Plastic Research Review, BCC Publishing

Plastic, or polymer, is widely used in human life and industrial activities.

analysis of the group of plastic additives. Some outstanding problems or future

0. Research objectives/ Research questions:

Analyzing the current situation of import and export of plastic additives in

- Analysis of Vietnam’s import and export situation of plastic additives in the

- Analysis and assessment of factors affecting import and export activities of

- Analyzing industry and market opportunities for Vietnam's plastic additives in

3. Research subject and scope of study:

- Research subject: export and import activities of plastic additives in Vietnam.

The course is divided into three chapters:

Chapter 1: An overview of Vietnam's import and export of plastic additives, as

Chapter 3: Import and export of plastic additives in Vietnam: Improving and

CHAPTER 1: OVERVIEW AND THEORETICAL BASIS OF