Plastics are material consisting of extensive range of synthetic or semi-synthetic organic compounds that can be molded into while soft shape, and then set into an inflexible or slightly elastic form. They are commonly organic polymers of high molecular mass and typically synthetic, most frequently derived from petrochemicals. They are classified by the chemical structure of the polymer’s backbone & side chains. Some important groups of these classifications include acrylics, polyurethanes, polyesters, silicones, and halogenated plastics. They can also be classified by the chemical process used in their synthesis such as poly-addition, condensation, and cross-linking. Some physical properties of plastics are included hardness, tensile strength, density, resistance to heat and glass transition temperature and others.
Key benefits offered by plastic over other materials including large-scale availability of raw materials, low manufacturing costs, flexibility of usage, and adaptability across a wide range of applications.
According to study, “Vietnam Plastic Comprehensive Report Q4/2019” the key companies operating in the Vietnam plastic market are Tien Phong Plastic Joint-Stock Company (NTP), An Phat Plastic and Green Environment Joint Stock Company (AAA), Binh Minh Plastic JSC, Dong A Plastic Group Joint Stock Company (DAG), Ngoc Nghia Industry-Service-Trading Joint Stock Company (NNG), Saigon Plastic Packaging Joint Stock Company (SPP), Dong Nai Plastic JSC, Tan Dai Hung Plastic Joint Stock Company (TPC), Rang Dong Plastic JSC. The key companies are comprehensively investing in capacity expansion coupled with research & development (R&D) to have a balanced product portfolio.
Based on product type, market is segmented into Polypropylene (PP), Polyvinyl chloride (PVC), Polystyrene (PS), Polybutylene terephthalate (PBT), Epoxy polymers, Polyether Ether Ketone (PEEK), Polyamide (PA), Polyphenylsulfone (PPSU), Polyethylene (High-density polyethylene (HDPE), Low-density polyethylene (LDPE), and LLDPE), Polyurethane (PU), Polyethylene terephthalate (PET), Acrylonitrile butadiene styrene (ABS), Polyphenylene oxide (PPO), Liquid crystal polymers, Polycarbonate (PC), Polysulfone (PSU) and others. PEEK is widely used in engineering applications due to its characteristics, which include being colorless and organic. Polyethylene is mainly used in the packaging sector, which includes plastic bags, plastic films, containers & bottles, and geomembranes. Based on raw material, market is segmented into hydrocarbon fuels, sand and salt. Hydrocarbon includes natural gas, coal, and crude oil. In addition, based on application, market is segmented into agriculture, electrical & electronics, medical devices, packaging, automotive, construction, consumer goods, furniture & bedding and other applications.
The Vietnam plastic market is driven by rise in shift in trend towards replacement of glass & metals, followed by growth in population coupled with rapid industrialization & urbanization, rise in construction spending by governments, growth in new technology & innovation in the field of bio-based or sustainable alternatives and increase in plastic consumption in the automotive, construction, and electrical and electronics industries. However, volatile raw material prices and rise in awareness about environmental concerns may impact the market. Moreover, growth in demand from construction industries in pipes, cables, insulation, floorings, windows, and storage tanks is a key opportunity for market. Furthermore, increase in automotive production is a major trend for market.
Vietnam’s plastic industry is an industry with a huge number of businesses, with approximately 4,000 enterprises nationwide and hiring up to 200,000 employees, most of which are determined in the South. More than 80% of domestic enterprises are small & medium-sized enterprises (SMEs) with equally limited technological level, approximately 85% of machinery & equipment in the industry are imported. The industry is witnessing substantial growth in the pipes & fittings segments caused by their lightweight, corrosion resistance, long life span, and reduced cost structures. In upcoming years, it is anticipated that future of the market will be optimistic on account of growth in demand for durable, low-cost & sustainable products from end-user industries coupled with increase in incorporation of plastics as opposed to metals & alloys in automotive components during the forecast period.
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Ankur Gupta, Head Marketing & Communications