The plastics industry has enormous potential.

In recent years, plastics has been considered one of the fastest-growing industries, second only to telecommunications and textiles, with an average growth rate of 10-12% per year.

Currently, Vietnamese plastic products are exported to more than 160 countries and territories worldwide , and are particularly popular in large and demanding markets such as the United States, the European Union (EU), and Japan. It is projected that exports of plastic products in the first six months of 2024 will increase sharply, reaching over US$3.15 billion, a rise of over 32% compared to the same period in 2023.

The potential and bright prospects of the plastics industry are undeniable, but according to experts, the industry is also facing many difficulties, the biggest of which is the supply of raw materials. Statistics show that in 2023, Vietnam's plastics industry imported more than 6 million tons of raw materials. Domestic sources currently only meet 30% of domestic demand, with the remaining 70% imported from countries such as Saudi Arabia, South Korea, and China. This dependence will drive up input costs, increase exchange rate risks, reduce competitiveness, and make it difficult to take advantage of tariff preferences.

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Bright prospects for Vietnam's plastics industry.

Meanwhile, Vietnam is known to have an advantage in the production of plastic additive resins due to its large limestone resources in the North and Central regions. Compared to the two major production markets, China and India, Vietnam has strengths in its high-quality and stable limestone raw material sources and low labor costs.

In parallel with the production of conventional additive granules, Vietnam can also utilize limestone powder to produce higher-grade additives, meeting the growing global demand for green raw materials.

Therefore, analysts believe that, if they know how to seize opportunities, Vietnamese plastic additive manufacturers still have a lot of room to supply both domestic and international markets.

Enhance production capacity and gain market share.

Recognizing the great potential and room for growth, in recent years, many plastics businesses have proactively invested in machinery, equipment, and technology to increase production output and meet the growing demands of the market.

“Over the past five years, witnessing the huge demand for raw materials in both domestic and foreign markets, we have proactively restructured our investments, equipping ourselves with modern production lines worth tens of billions of VND. In particular, we have recently invested in a new grinding system to optimize production and increase output, while simultaneously improving product quality and diversifying our high-end product line,” said Mr. Ngo Van Thu, General Director of An Tien Industries JSC (HII).

An Tien Industries is a well-known enterprise in the plastic additive manufacturing market in Vietnam and the region. The company currently owns two factories with a production capacity of 96,000 tons of plastic additives and 150,000 tons of limestone powder per year. HII's raw materials are sourced from two main quarries in Mong Son and Luc Yen ( Yen Bai province ), which have large reserves and are considered among the best in Southeast Asia, with a CaCO3 content of over 98%, high whiteness, brightness, and uniformity.

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An Tien Industries has a production capacity of 96,000 tons of plastic additives and 150,000 tons of limestone powder per year.

In addition to the advantage of high-quality raw materials, HII also possesses a nearly closed production and supply chain, which helps shorten transaction and transportation times, optimize operations, increase management efficiency, and minimize costs.

“We have two subsidiaries: An Tin Intermodal Transport Joint Stock Company, which mainly operates in the field of freight transport and transport support, and An Thanh Bicsol Joint Stock Company, which specializes in distributing plastic resin products. Through these two companies, we can easily transport and distribute products to customers quickly and at competitive prices,” an HII representative added.

Not only has HII promptly grasped the significant market demand, but it is also actively transforming its production to keep pace with the strong green growth trend currently underway. According to Mr. Thu, in 2024 and the years to come, HII will accelerate the development of high-quality engineering plastic compounds and biodegradable compounds for the production of environmentally friendly plastic products.

“We are accelerating the development of our biodegradable additive product line (AnCal Bio). This is a high-end product used for biodegradable packaging with high profit margins. In addition, the company is also researching and developing more ‘green’ product lines that are both high in added value and environmentally friendly,” Mr. Thu shared.

With a well-structured business strategy, HII is currently among the leading manufacturers and exporters of plastic additive resins in Vietnam. The company is now aiming to become the leading plastic additive manufacturer in Southeast Asia.

Thu Loan