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VIETNAM PLASTICS INDUSTRYOVERVIEW

Vietnam Plastics Association

Vietnam Economy:

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

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

-

500

1,000

1,500

2,000

2,500

INFLATION

2010 2011 2012 2013 2914eInflation 12.75% 18.6% 13.5% 6.4% 7.2%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

20.00%

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)

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…

Packaging35%(702)

Consumer40%(794)

Construction11%(232)

Technical14%(272)

By Industry

South84%

(1.669)

Central643%

North13%(267)

By Geographic

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 SơnPP: 300,000 tons (2010) PS: 60,000 (2010)

Dung QuatPP: 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

37

133

105

126

4839

322835

0

20

40

60

80

100

120

140

2010 2011 2012 2013 '2014e World USA EU Japan

8Vietnam Plastics Association

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

2010 2011 2012 2013 2014eTotal Import Plastic: KT 2,610 2,804 2,464 2,739 2,929Growth rate: % 9.3 6.9 -13.7 10.2 6.7

-15

-10

-5

0

5

10

15

2,200

2,300

2,400

2,500

2,600

2,700

2,800

2,900

3,000

Tons USThousand Tons US

Thousand Tons USThousand Tons US

Thousand Tons USThousand

2010 2011 2012 2013 204eRaw 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 5,066,652Products/ 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

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

List of products imported by Viet Nam in 2009 - 2014e

List of main raw material imported by Viet Nam in 2009 - 2013

Product label

2009 2010 2011 2012 2013

Quantity(Tons)

Value(US thousand)

Quantity(Tons)

Value(US thousand)

Quantity(Tons)

Value(US thousand)

Quantity(Tons)

Value(US thousand)

Quantity(Tons)

Value(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

PE32%

PP23%PET

10%

PVC5%

PS5%

ABS4%

Polyester3%

Others18%

Spilt of Main Raw Material for Import 2013(% by Quantity)

PE27%

PP21%

PET9%

PVC4%

PS5%

ABS5%

Polyete4%

Others25%

Spilt of Main Raw Material for Import 2013(% by Value)

Arab Saudi21%

Republic ofKorea19%

Taipei14% Thailand

11%

Malaysia6%China

7%

Others market23%

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

Republic ofKorea19%

Arab Saudi16%

Taipei15%

Thailand10%

Malaysia6%

China7%

Others market27%

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

-

100,000

200,000

300,000

400,000

500,000

600,000

2009 2010 2011 2012 2013Quarterly 1 210,618 254,170 351,750 475,450 490,472Quarterly 2 255,556 295,641 388,420 480,235 498,219Quarterly 3 248,109 318,025 410,900 508,680 557,333Quarterly 4 253,891 400,541 447,798 530,907 592,432

Vietnam plastics export revenues in 2009 - 2013(in US thousand)

List of main importing markets for a product exported by Viet NamUnit : 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

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

Packaging, 37.3%

Films/Sheets, 19.5%

Household, 10.6%

Engineering plastic, 8.2%

Tarpaulin, 6.3%

Furniture, 4,7%

Stationery, 3.6%

Pipe & fittings, 2.1%

Others, 7.8%

Spilt of Plastics Products for Export in 2013(% by Value)

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

0%

5%

10%

15%

20%

25%

30%

35%

40%

Year 2010 Year 2015 Year 2020 Year 2025

39%

36%

34%

31%

21%

21%

18%

17%

21% 23

% 25% 27

%

19% 21

% 23% 25

%

Packaging

Household

Construction

Engineering

Plastics Manufacturing equipment import forecastSource: National Statistic / VPA - Unit: million USD

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Year 2005 Year 2010 Year 2015

500

1100

2000

Import Turnover

► 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.

Information on Environment TaxSource: VPA

Recycling and present situation of recycling in HCM citySource: 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

PlasticsPaperMetalsGlassOthers

Recycling and present situation in HCM city (continued)Source: Waste Recycling Fund /VPA

Recyclers in Industrial ZoneLegal status

Vietnam Plastics Association 21

MetalsPaperHoldingbusinesslicense

No businesslicense

State control on recycling operationsSource: Waste Recycling Fund /VPA


Law on Environmental Protection approved by theN.A. session XI, 8th meeting 29/11/2005 and effectiveas of 1/7/2006. Specifically:• Policy: Appropriate and economical use of natural resources,

development of clean energy, recyclable energy; promoting ofrecycling, reuse, and reducing waste (Item 3, Article 5, ChapterI)

• Encouraged activities: waste reducing, collection, recycling andreuse (Item 3, Article 6, Chapter I).

• Organizations, individuals, who have activities that generatewaste are responsible to reduce, recycle, reuse it to the minimalquantity that is to be destroyed and discarded (Item 1, Article 66,Chapter VIII).

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


Legal documents issued by HCM city People’sCommittee (HCMPC):

Decision No.364 /QĐ-UBND dated 24/01/2008 ofHCMPC on regulations on the organization andoperation of the Waste Recycling Fund for theassistance and preferential loaning to recyclingoperations in HCM City;

Decision No. 200/2004/QĐ-UB dated 18/8/2004 ofHCMPC on the list of professions not allowed to begranted new license or to adjust their investmentlicense located in gathered residential areas,including recycling and trade of waste materials.

Solutions for improving waste collection and classification efficiencySource: Waste Recycling Fund /VPA


Policies supporting recycling operations in HCM city:

o Support in operational space: at Củ Chi North West SolidWaste Treating Area, Solid Waste Treating Planned Area andĐa Phước Cemetery and Long An –HCM city Waste TreatingIndustrial Zone

o Financing assistance : capital financing (larger borrowersscope), tax preferences

o Technical and information support: making approaches tomodern technologies

o Recycled products market support: certification of qualityand origins

Foundation of Recycling Association

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


Refunding deposit for PET bottles module

Managing Center

4. Collection station

1. Manufacturer

2. Retailer

3. Customer Waste

5. Recycling Plant

Empty bottles

Empty

bottles

100%

empt

ybo

ttle

Deposit

100 % Deposit

Collection fees

Transportation fees

Raw materialssales revenue

Cash flow Materials flow

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 RECYCLINGFESTIVAL SCHEDULE…is an important communicating eventon 3T to be hold every year in HCMCity since 2008.

Targets: Improving the public concernand enhancing public awareness onreducing, recycling and reuse of wasteactivities (3T).

The concept of 3R (Reduce-Reuse-Recycle) has been “Vietnamesed” into

3T: “Tiết giảm” (Reduce)

“Tái sử dụng” (Reuse)

“Tái chế” (Recycle)


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



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



Competitions in response to the Festival

• New vitality from waste: for primary, basic secondary andgeneral secondary school students;

• Fashion from waste materials: for junior college,university, and vocational secondary school students;

• Instant design of Green Bags for Green Environment: forjunior college, university and vocational school students;

• Short comedy “Green Life – 3T life ” for staffs andmembers of Women Association;

• “Establishing a Green life – The 3T life ” for staffs andworkers


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


“Fashion from wastematerials” competition

“Supporting 3T posterdesign “competition for

students“New vitality from waste”competition for students


New vitality from waste, Green bags for environmentproducts exhibitions.



Hazardous waste andrecyclable waste collectingcounter

• “Gifts in exchange for hazardouswaste: booth

• PET empty bottles, plasticpackaging, plastic bags collectingbooth 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 inexchange for respective gifts.


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

Paper bags folding &decoration counter

Guidance to school children for paper bagsfolding and decorating made from used/ recycled paper thus encouraging themto reuse used / recycled paper and useeco-friendly bags.

3T games areaFeatures games counters with various

activities for every people dedicated to3T theme in general and 3T inpackaging use in particular to educateand improve people awareness throughpleasant games.



On 28/9/2014, the HCM city Environment and Resources Dept.joined with the People’s committee of District 5 to hold theGreen Bag Festival Day, attracting nearly 1.000 visitors. This isone of activities related to the 2014’ Reducing Plastic Bags Usein HCM City Program.



Thank you very much.

For further information, please contact:

VIETNAM PLASTICS ASSOCIATION - VPA156 Nam Ky Khoi Nghia St., Ben Thanh Ward, Dist 1, Tp.HCM

Tel: 848 – 3521 8552/53 Fax: 848 – 3521 8554E-mail: [email protected]

Website: www.vpas.vn

37Vietnam Plastics Association

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