VIETNAM PLASTICS INDUSTRY

OVERVIEW

Vietnam Plastics Association

Vietnam Economy:
2,500 8.00%

7.00%

2,000

6.00%

5.00%
1,500

4.00%

1,000
3.00%

2.00%

500

1.00%

- 0.00%
2010 2011 2012 2013 2014e
GDP per capita (USD) 1,273 1,573 1,749 1,843 1,947
GDP Growth 6.78% 6.1% 5.7% 5.3% 5.4%
INFLATION
20.00%

18.00%

16.00%

14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
2010 2011 2012 2013 2914e
Inflation 12.75% 18.6% 13.5% 6.4% 7.2%
 VIETNAM PLASTIC INDUSTRY

+ More than 1.800 plastic enterprises

+ Growth rate: 15-20%/year

+ Consumption: 48 kg per capita. Target to 2015: 55 kg per capita
+ Most of materials imported (9 months of 2014: more 6.1 billion USD)
+ Export in 9 months of 2014: 1.8 billion USD.
Plan in 2014: over 2.1 billion USD
+ Technology:
 Injection technology
 Blowing injection technology
 Profile technology

4
 System of Plastics Businesses in Vietnam
(Geographical distributions & by Industry)

By Geographic By Industry
North
Central 13% Construction
64 (267) 11% Technical
3% (232) 14%
(272)

Consumer Packaging
South 40% 35%
84% (794) (702)
(1.669)

More Information…
only 2% state owned enterprises & 90% output volume attained by private sectors (100% FDI, limited, private…)
Technical products: High quality pressure-resistant pipes, TV covers…
 PROSPECT OF PLASTIC INDUSTRY IN VIETNAM

+ Oil & Chemical Industry will develop

+ Domestic consumption demand is very potential

+ Export: participated “ One billion USD Club”

6
VIETNAM PLASTIC: PLANNED INVESTMENTS FOR POLYMER

BOPP: 12,000 (2005) / 20,000 tons (2010)

Nghi Sơn
PP: 300,000 tons (2010) PS: 60,000 (2010)

Dung Quat
PP: 150,000 tons (2010)

Dong Nai PVC: 120,000 (2005)

BOPP: 30,000 (2005) / 20,000 tons (2010)

Ba Ria – Vung Tau PS: 60,000 (2010)

PE: 450,000 (2010)
PVC: 100,000 (2005)/ 200,000 (2010)
Consumption Index (kg per Capita)
2010 – 2014e

140 133
126
120
105
100

80

60
48
39 37
40 32 35
28

20

0
2010 2011 2012 2013 '2014e World USA EU Japan

Vietnam Plastics Association 8

Total Vietnam Plastic Import 2010 - 2014e
(Source: National Statistic/VPA)
3,000 15

2,900
10

2,800

5
2,700

2,600 0

2,500
-5

2,400

-10
2,300

2,200 -15
2010 2011 2012 2013 2014e
Total Import Plastic: KT 2,610 2,804 2,464 2,739 2,929
Growth rate: % 9.3 6.9 -13.7 10.2 6.7
 List of products imported by Viet Nam in 2009 - 2014e
6,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

-
US US US US US
Tons Tons Tons Tons Tons
Thousand Thousand Thousand Thousand Thousand
2010 2011 2012 2013 204e
Raw Materials & Chemical 2,390,162 3,784,117 2,555,998 4,763,144 2,234,010 4,000,701 2,491,251 4,746,619 2,657,591 5,066,652
Products/ Semi-finished products… 219,944 1,646,036 248,730 1,958,230 230,636 2,067,137 248,884 2,209,259 332,004 2,357,279
 List of main raw material imported by Viet Nam in 2009 - 2013

2009 2010 2011 2012 2013

Product label
Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value
(Tons) (US thousand) (Tons) (US thousand) (Tons) (US thousand) (Tons) (US thousand) (Tons) (US thousand)

PE 692,251 795,528 750,775 1,016,752 819,182 1,218,962 544,936 775,030 676,795 1,078,023

PP 628,457 670,299 607,493 817,569 629,057 1,021,762 472,011 701,170 613,594 947,251

PVC 139,636 131,736 131,597 152,849 134,847 181,639 133,327 155,871 162,651 230,463

PET 133,893 144,915 187,149 244,073 212,361 353,105 146,706 212,321 147,650 215,517

ABS 63,527 100,415 69,154 144,359 78,358 186,994 87,041 189,670 95,482 208,096

Polyester 67,357 96,786 72,476 123,834 65,155 129,338 202,324 361,704 95,136 166,342

EVA 48,746 73,576 56,703 112,489 57,097 140,889 66,338 131,816 75,144 144,372

Polyether 42,998 86,312 52,068 126,506 61,332 193,912 58,580 174,342 70,179 199,459

Acrylic 40,369 71,343 55,673 113,730 53,263 128,792 60,260 138,397 66,057 160,721

PC 19,875 44,364 30,050 84,833 35,440 111,249 40,088 111,493 47,558 128,946

PU 38,748 108,608 49,233 147,146 47,694 159,441 34,275 116,066 45,116 152,978

PS 77,040 103,688 90,948 150,810 102,526 202,060 108,027 195,987 44,259 96,358

PA 15,930 40,661 20,603 69,544 42,796 161,783 39,789 130,691 39,140 197,960

Alkyd 30,294 45,376 32,643 52,448 32,277 61,166 33,918 66,614 37,209 73,698

EPS 36,467 44,256 46,863 69,838 40,656 67,698 30,516 48,064 34,675 62,686
 Spilt of Main Raw Material for Import 2013
(% by Quantity)

Others
18%
Polyester
3%
PE
32%
ABS
4% Spilt of Main Raw Material for Import 2013
(% by Value)
PS
5%

PP
PVC 23%
5% PET
10% Others PE
25%
27%

Polyete
4%

ABS
5%
PP
PS 21%
5%
PVC
4% PET
9%
 List of main supplying markets for a product imported by Viet Nam in 2013
(% by Quantity)

Taipei
14% Thailand
Republic of 11%
Korea
Malaysia
19%
6%
China
7%
Arab Saudi
21% Others market
23%

List of main supplying markets for a product imported by Viet Nam in 2013
(% by Value)

Others market Republic of

China 27% Korea
7% 19%

Arab Saudi
16%
Thailand
10% Taipei
15%
Malaysia
6%
 Vietnam plastics export revenues in 2009 - 2013
(in US thousand)
600,000

500,000

400,000

300,000

200,000

100,000

-
2009 2010 2011 2012 2013
Quarterly 1 210,618 254,170 351,750 475,450 490,472
Quarterly 2 255,556 295,641 388,420 480,235 498,219
Quarterly 3 248,109 318,025 410,900 508,680 557,333
Quarterly 4 253,891 400,541 447,798 530,907 592,432
 List of main importing markets for a product exported by Viet Nam
Unit : US Dollar thousand

Importers 2009 2010 2011 2012 2013

Japan 143,535 194,684 250,397 321,429 403,112

China 34,670 55,584 97,514 247,502 300,274
United States of America 160,203 127,726 143,211 161,734 172,632
Germany 66,701 86,149 125,151 140,073 161,301
Indonesia 19,259 44,525 84,710 140,836 144,092
United Kingdom 47,563 58,582 87,371 98,942 102,024
Thailand 30,061 46,139 79,457 137,903 96,666
Netherlands 56,637 66,304 80,748 76,991 84,505
France 42,415 49,982 63,748 70,002 69,307
Malaysia 23,997 34,144 48,139 58,535 64,808
Korea, Republic of 15,011 25,306 38,476 44,987 56,186
India 15,794 23,599 29,421 39,597 44,853
Australia 16,359 19,675 30,460 36,053 42,231
Taipei, Chinese 17,943 28,977 46,975 33,887 34,429
Canada 21,162 23,936 22,904 29,754 34,297
Philippines 6,348 13,827 18,861 19,355 34,251
Belgium 19,938 16,865 18,662 19,900 28,190
Italy 37,381 27,257 31,298 22,752 27,385
Singapore 14,564 32,705 26,791 23,688 26,420
Sweden 13,520 14,793 15,888 22,355 24,000
 Spilt of Plastics Products for Export in 2013
(% by Value)

Others, 7.8%

Pipe & fittings, 2.1%

Stationery, 3.6%

Furniture, 4,7%

Tarpaulin, 6.3%

Engineering plastic, 8.2%

Household, 10.6%

Films/Sheets, 19.5%

Packaging, 37.3%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%

 2010 - 2025's Plastic Products Structure Targets
(Source: National Statistic / VPA) -- Unit: %

39% Packaging

40%

36%
Household

34%
Construction

31%
35% Engineering

27%

25%
30%

25%

23%
23%

21%
21%

21%
21%

25%
19%

18%

17%
20%

15%

10%

5%

0%
Year 2010 Year 2015 Year 2020 Year 2025
Plastics Manufacturing equipment import forecast
Source: National Statistic / VPA - Unit: million USD

2000

1800

1600

1400

1200 Import Turnover

1000

800

600

400
2000
200 1100
0 500

Year 2005 Year 2010 Year 2015

Information on Environment Tax
Source: VPA

► Decree No. 69/2012/NĐ-CP recently issued on 14/09/2012 by PM. Nguyễn Tấn

Dũng effective from 15/11/2012 opened a way to manufacturers of commodity pre-
made packaging, multi-layer packaging, as well as products related to PE film will
not be levied of Tax for Environment Protection 40.000 đồng/kg such as they were
since early this year to now.

► VPA executive board jointly participated with ministries and governmental

organs to raise a campaign and draft policies to propose the state to solve
inadequate issues that businesses are bearing .

► VPA chairman is one of the official seven members of the Board of

Evaluation of registered dossiers for environmental friendly plastic bags
Recognition.
Recycling and present situation of recycling in HCM city
Source: Waste Recycling Fund /VPA

Number of recyclers:
 274 small recyclers located in residential area (RA) and small,
craft industries (SCI) and
 11 recycling businesses located in Industrial Zone (IZ)
Small recyclers in residential area

Plastics
Paper
Metals
Glass
Others
Recycling and present situation in HCM city (continued)
Source: Waste Recycling Fund /VPA

Legal status
Recyclers in Industrial Zone

Holding No business
Paper Metals business license
license
Vietnam Plastics Association 21
State control on recycling operations
Source: Waste Recycling Fund /VPA

Law on Environmental Protection approved by the

N.A. session XI, 8th meeting 29/11/2005 and effective
as of 1/7/2006. Specifically:
• Policy: Appropriate and economical use of natural resources,
development of clean energy, recyclable energy; promoting of
recycling, reuse, and reducing waste (Item 3, Article 5, Chapter
I)
• Encouraged activities: waste reducing, collection, recycling and
reuse (Item 3, Article 6, Chapter I).
• Organizations, individuals, who have activities that generate
waste are responsible to reduce, recycle, reuse it to the minimal
quantity that is to be destroyed and discarded (Item 1, Article 66,
Chapter VIII).

Vietnam Plastics Association 22

State control on recycling operations (continued)
Source: Waste Recycling Fund /VPA

Legal documents issued by HCM city People’s

Committee (HCMPC):
 Decision No.364 /QĐ-UBND dated 24/01/2008 of
HCMPC on regulations on the organization and
operation of the Waste Recycling Fund for the
assistance and preferential loaning to recycling
operations in HCM City;
 Decision No. 200/2004/QĐ-UB dated 18/8/2004 of
HCMPC on the list of professions not allowed to be
granted new license or to adjust their investment
license located in gathered residential areas,
including recycling and trade of waste materials.
Vietnam Plastics Association 23
 Solutions for improving waste collection and classification efficiency
Source: Waste Recycling Fund /VPA

 Policies supporting recycling operations in HCM city:

o Support in operational space: at Củ Chi North West Solid
Waste Treating Area, Solid Waste Treating Planned Area and
Đa Phước Cemetery and Long An –HCM city Waste Treating
Industrial Zone
o Financing assistance : capital financing (larger borrowers
scope), tax preferences
o Technical and information support: making approaches to
modern technologies
o Recycled products market support: certification of quality
and origins
 Foundation of Recycling Association

Vietnam Plastics Association 24

 Solutions for improving waste collection and classification efficiency
(continued) Source: Waste Recycling Fund /VPA

Refunding deposit for PET bottles module

Managing Center 5. Recycling Plant

100 % Deposit Raw materials

sales revenue

1. Manufacturer

Transportation fees
4. Collection station
100% empty

Collection fees
bottle

2. Retailer
Deposit
bottles
Empty

3. Customer
Waste
Empty bottles
Materials flow
Cash flow

Vietnam Plastics Association 25

Public activities on environment (continued)
Source: Waste Recycling Fund /VPA

HCM CITY RECYCLING FESTIVAL SCHEDULE

Public activities on Environment (continued)
Source: Waste Recycling Fund /VPA

HCM CITY RECYCLING

FESTIVAL SCHEDULE
…is an important communicating event
on 3T to be hold every year in HCM
City since 2008.
Targets: Improving the public concern
and enhancing public awareness on
reducing, recycling and reuse of waste
activities (3T).
The concept of 3R (Reduce-Reuse-
Recycle) has been “Vietnamesed” into
3T: “Tiết giảm” (Reduce)
“Tái sử dụng” (Reuse)
“Tái chế” (Recycle)
Vietnam Plastics Association 27
 Public activities on Environment (continued)
Source: Waste Recycling Fund /VPA

HCM City recycling Festival outcomes from 2010 - 2014

• Received common approval and support from leaders of the city, the Ministry
and the Dept. of Resources and Environment, other Departments and
governmental offices, the media, and the citizens;
• Attracted the attention and full participation of city organs and citizens

Vietnam Plastics Association 28

 Public activities on environment (continued)
Source: Waste Recycling Fund /VPA

HCM City Recycling Festival outcomes from 2008 – 2011

• Increasing number of units participating in products exhibitions,
waste recycling technologies, recyclable waste collection at the
Festivals (16 units), attracting the public concern

Vietnam Plastics Association 29

 Public activities on environment (continued)
Source: Waste Recycling Fund /VPA

Competitions in response to the Festival

• New vitality from waste: for primary, basic secondary and

general secondary school students;
• Fashion from waste materials: for junior college,
university, and vocational secondary school students;
• Instant design of Green Bags for Green Environment: for
junior college, university and vocational school students;
• Short comedy “Green Life – 3T life ” for staffs and
members of Women Association;
• “Establishing a Green life – The 3T life ” for staffs and
workers

Vietnam Plastics Association 30

 Public activities for Environment (continued)
Source: Waste Recycling Fund /VPA

“Fashion from waste

materials” competition

“Supporting 3T poster
design “competition for
students
“New vitality from waste”
competition for students
Vietnam Plastics Association 31
Public activities for Environment (continued)
Source: Waste Recycling Fund /VPA

 New vitality from waste, Green bags for environment

products exhibitions.

Vietnam Plastics Association 32

Public activities for Environment (continued)
Source: Waste Recycling Fund /VPA

 Hazardous waste and

recyclable waste collecting
counter
• “Gifts in exchange for hazardous
waste: booth
• PET empty bottles, plastic
packaging, plastic bags collecting
booth joined by manufacturers,
plastic recyclers.
• Waste paper, milk empty boxes …
booth joined by paper recyclers,
packaging manufacturers.
 People bring hazardous waste
(battery cells, broken light bulbs/
tubes …) , PET empty bottles,
waste paper… to booths in
exchange for respective gifts.
Vietnam Plastics Association 33
Public activities for Environment (continued)
Source: (Waste Recycling Fund) /VPA

 Paper bags folding &

decoration counter
Guidance to school children for paper bags
folding and decorating made from used
/ recycled paper thus encouraging them
to reuse used / recycled paper and use
eco-friendly bags.

 3T games area
Features games counters with various
activities for every people dedicated to
3T theme in general and 3T in
packaging use in particular to educate
and improve people awareness through
pleasant games.

Vietnam Plastics Association 34

Public activities for Environment (continued)
Source: Waste Recycling Fund /VPA

 On 28/9/2014, the HCM city Environment and Resources Dept.

joined with the People’s committee of District 5 to hold the
Green Bag Festival Day, attracting nearly 1.000 visitors. This is
one of activities related to the 2014’ Reducing Plastic Bags Use
in HCM City Program.

Vietnam Plastics Association 35

Thank you very much.
Vietnam Plastics Association 36
 For further information, please contact:

VIETNAM PLASTICS ASSOCIATION - VPA

156 Nam Ky Khoi Nghia St., Ben Thanh Ward, Dist 1, Tp.HCM
Tel: 848 – 3521 8552/53 Fax: 848 – 3521 8554
E-mail: info@vpas.vn
Website: www.vpas.vn

Vietnam Plastics Association 37