Plastics sector faces serious material shortage
VOV.VN - The Vietnamese plastics industry is heavily dependent on material imports at fluctuated prices.
President of the Vietnam Plastic Association (VPA) Ho Duc Lam says the sector needs around 2-2.5 million tons of plastics materials including PE, PP and PS, but domestic suppliers only meet around 800,000 tons. Therefore, the country has to import around 1.5-1.7 million tons of plastics materials each year.
Meanwhile direct material cost makes up 70-80% of product price, resulting in high sale prices, which makes domestic businesses find it difficult to compete with foreign rivals.
According to Mr Lam, in order to supply more materials for the plastics industry and make it less relying on imports, the oil industry should strictly follow the chemical industry’s development strategy.
Last year, the plastics sector earned US$2.5 billion from exports but spent US$7.35 billion on importing plastics materials and chemicals.
According to VPA statistics in the 2012-2017 period, the sector ran more than US$4 billion trade deficit annually while average export growth reached only 9%.