At the press conference before the 10th International Exhibition on Technology, Raw Materials, Machinery and Equipment for the Plastics and Rubber Industry in Vietnam (Plastics & Rubber Vietnam, Hanoi 2023) organized by Informa Markets Vietnam on the morning of June 22, Mr. Tee Bong Teong (BT Tee), General Director of Informa Markets Vietnam, said that the Vietnamese plastics market is expected to grow steadily at a compound annual growth rate (CAGR) of about 8%. Although the impacts of the pandemic on the plastics industry are undeniable; however, the recovery of the consumer goods and construction industries - the largest output groups of the plastics industry at present - reveals a strong recovery future for the Vietnamese plastics industry.
“More than 900 factories are currently operating in this sector, with about 70% of them located in the southern region, mainly in Ho Chi Minh City, Binh Duong and Dong Nai. Factors such as light weight, resistance to heat, chemicals and corrosion make plastic continue to be the most viable option for packaging in Vietnam. In particular, PET (Polyethylene terephthalate) is currently one of the most widely used materials in packaging in Vietnam, especially in the food and beverage industry,” Mr. BT Tee informed.
Mr. BT Tee specifically analyzed that a large part of rubber exported to the Chinese market - the largest official market for Vietnamese rubber, is used to serve the demand for automobile tire production. With a growth rate of 7% after the pandemic, the recovery of the automobile industry in China is a positive driving force for the growth rate of Vietnamese rubber export turnover.
In addition, it is forecasted that FDI enterprises in Vietnam will continue to maintain a compound growth rate of 7% in the period of 2021 - 2025 thanks to the shift of supply chains from China to Vietnam, infrastructure development, policy easing and increased signing of trade agreements. Above all, low labor and operating costs are also one of the characteristics attracting foreign investment to the rubber industry in particular and other industries in general.
However, despite having a lot of room for development, the representative of Informa Markets Vietnam also acknowledged that the Vietnamese rubber industry is facing great pressure to meet international standards. Because the export output of natural rubber products such as rubber blocks, latex concentrate, tires, medical supplies, and shoe soles has exploded from 2.9 billion USD in 2015 to nearly 5.5 billion USD in 2020. However, large international companies such as Nike and Adidas require businesses to provide FSC forest protection certification and many other standards. Meanwhile, most of Vietnam's rubber farms are small-scale owners, making it difficult to access technology in planting, harvesting, and processing latex to meet standards.
The representative of the Organizing Committee also said that this year's exhibition has a total display area of up to 3,300 m2 with the participation of 100+ booths from more than 14 countries/territories, including 5 international booth groups from developed countries such as Italy, Australia, Singapore, China... The exhibition is expected to welcome more than 3,500 individuals and specialized delegations from many fields in the Vietnamese plastic and rubber industry.
In parallel with the 10th International Exhibition on Technology, Raw Materials, Machinery and Equipment for the Plastic and Rubber Industry in Vietnam, Informa Markets Vietnam also co-organized the 15th International Exhibition on HVAC Technology, Refrigeration Systems and Smart Buildings in Vietnam (HVACR Vietnam 2023) taking place from July 25-27 at the ICE International Exhibition Center, 91 Tran Hung Dao, Hoan Kiem District, Hanoi .
During the 3-day exhibition, Informa Markets will collaborate with the Vietnam Internet Association (VIA) to organize a workshop with the theme “Innovation in Sustainable Cooling Technology, Leading the Green Data Center Trend.”
In addition, there will be a series of seminars revolving around topics such as “Conquering the Net Zero target in Vietnam with sustainable cooling solutions” and “Urgent issues in current air conditioning technology”, along with many other specialized technical seminars./.
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