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Nuggets Southeast Asia, time to go to sea! Vietnam’s plastics market has huge potential

Vice Chairman of the Vietnam Plastics Association Dinh Duc Sein stressed that the development of the plastics industry plays an important role in the domestic economy. At present, there are about 4,000 plastic enterprises in Vietnam, of which small and medium-sized enterprises account for 90%. In general, the Vietnamese plastics industry is showing a booming momentum and has the potential to attract many international investors. It is worth mentioning that in terms of modified plastics, the Vietnamese market also has huge potential.

According to the "2024 Vietnam Modified Plastics Industry Market Status and Feasibility Study Report of Overseas Enterprises Entering" released by the New Thinking Industry Research Center, the modified plastics market in Vietnam and other Southeast Asian countries has developed rapidly, driven by the increase in demand in the downstream field.

According to the Vietnam General Bureau of Statistics, each Vietnamese household will spend about 2,520 yuan on household appliances in 2023. With the increase in consumer demand for household appliances, and the development of the household appliance industry in the direction of intelligence and lightweight, the proportion of low-cost plastic modification technology in the industry is expected to increase. Therefore, the household appliance industry is expected to become one of the important growth points for the development of Vietnam's modified plastics industry.

RCEP (Regional Comprehensive Economic Partnership) : The RCEP was signed on November 15, 2020 by the 10 ASEAN countries and partner countries including China, Japan, the Republic of Korea, Australia and New Zealand, and will come into force on January 1, 2022. After the agreement comes into force, Vietnam and its partners will eliminate at least 64 percent of existing tariffs. According to the tariff reduction roadmap, after 20 years, Vietnam will eliminate 90 percent of tariff lines with partner countries, while the partner countries will eliminate about 90-92 percent of tariff lines on Vietnam and ASEAN countries, and ASEAN countries will almost completely eliminate all taxes on goods exported to Vietnam.

China's tariff commitment to ASEAN member states a total of 150 tax purposes of plastic and its products will be directly reduced to 0, accounting for up to 93%! In addition, there are 10 tax purposes of plastic and its products, will be reduced from the original 6.5-14% base tax rate, to 5%. This has greatly promoted the plastic trade between China and ASEAN member states.

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Post time: Sep-20-2024