Plastic packaging is an intersection sector between two industries, Plastics and Packaging. Plastics packaging sector can be broadly categorized into (i) Flexible packaging i.e. mostly for food sector; (ii) Plastic containers & Closures which are mostly for beverage sector; and (iii) Rigid packaging. Plastic packaging is the biggest segment which has 460/2,000 plastic companies nation-wide. As reported by Vietnam Plastic Association, 66% of the plastic export value contributed by packaging items.
Market Size and Growth
• Based on imported resin data obtained from Vietnam Customs Office, we have estimated that total market size of plastic industry in Vietnam is approximately US$6.2bn in 2012. This estimation was based on the total imported plastic resin of 2.56 million tons valuing US$4.36 billion. And the ratio of 70% of total sales in plastic industry is the imported resin.
• Included in the plastic industry, plastic packaging segment accounted for 39% of total production output of the plastic industry, according to Ministry of Industrial & Trade. Therefore, the plastic packaging would be estimated at US$2.4bn in 2012.
• According to Vietnam Packaging Association, Vietnamese plastic packaging has been growing sharply recently with the annual growth rate of around 25% over the last 5 years.
• Plastic packaging sector has been increasing due to a trend of usage PET container and recycling plastic bag which be forecasted to growth of 20%/year.
• Flexible packaging: The sector is rather fragmented with many small companies. The major local players are Tan Tien Plastics Packaging JSC (17.49%), Liksin (7%), Saigon Plastics (4.55%) and Saigon Trapaco (4.78%). Large foreign companies are Ngai Mee (7.1%), Tong Yuan (5.8%), Huktamaki (7.81%).
• Plastic Bottles and Closures: PET bottles in Vietnam were almost imported before 2000 and the pioneer producers in this sector are Ngoc Nghia JSC and Bao Van Plastic JSC, with their first plants established in early 2000. Together, Ngoc Nghia and Bao Van are now dominating the PET bottle manufacturing industry with total market share of 80%, as claimed by company managements.
Plastic Import-Export Activities
• Product Export: Total plastic products exported by Vietnam amounted to nearly US$2bn in 2012.
• Resin Import: Total plastic resin imported to Vietnam in 2012 is US$6.8bn. Main import items are PET (27%), PP (21%), PET (9%). In which, PET resin amounted to US$394mn with 212.5 thousand tons.
Key Local Players
• Flexible Packaging: Tan Tien Plastic JSC, Saigon Plastic Packaging JSC, and Saigon Trading & Packaging JSC.
• Pet Containers: Ngoc Nghia Plastic JSC and Bao Van Plastic JSC.
• Rigid Packaging: Duy Tan Plastic JSC.