Plastic business to upgrade products for competition with foreign enterprises

In order to compete with foreign plastic enterprises, domestic enterprises are gradually transforming to produce high quality and aesthetic plastic products to meet domestic consumer and for export.

According to Mr. Ho Duc Lam, Chairman of Vietnam Plastics Association, in addition to the development of the export market, the domestic consumption of plastic products is also increasing. However, the level of plastic use per capita in Vietnam is only 41kg-45kg/person/year which is very low compared to the world (100kg/person/year in Thailand, 200kg/person/year in Japan, 200kg-300kg/person/year in America, etc.). Since then, the market of plastic industry in Viet Nam has been evaluated to be very large.

Currently, a number of domestic plastic enterprises have strategy to compete with foreign companies. For example, Binh Minh Plastic Joint Stock Company has launched its operation strategy since 2017 to accept not to increase selling prices even though the price of plastic materials has increased sharply; it also increases discount for domestic agents by 4%. Besides, Binh Minh Plastics also spent heavily on promoting and adding new products such as PP-R plastic pipes, PVC-U to the market.

In the near future, Binh Minh Plastics will pursue a strategy to focus on core segments (plastic pipes), diversify products, aim at many segments as well as increase sales and product consumption through bidding for projects and construction. In particular, Binh Minh Plastics will enter into joint ventures with construction material manufacturers, consultants, designers and construction contractors to form a chain of links.

Meanwhile, Rang Dong Plastic also affirmed that it will research more new products, increase distribution network in the domestic market, increase export with the aim of increasing revenue and profit and expanding market share.

Technological innovation for export

Facing the competitive pressure of imported plastic products as well as a series of FDI enterprises, many Vietnamese plastics enterprises are trying to find ways to innovate technology and factories to improve productivity and quality of products.

One notable point is that enterprises with domestic strengths have boosted investment in technology, factories, or associated with other multinational corporations to focus on investing products for the domestic market as well as export.

For example, on May 2018, Rang Dong Plastic Joint Stock Company cooperated with Sojitz Pla-Net Group (Japan) specializing in technical plastic products, invested 32 million USD to build a factory in Long An province.

Phase 1 of the factory has just come into operation. Sojitz Pla-Net will help Rang Dong Plastic to control materials and achieve business objectives, creating international standard quality products with strong competitiveness in domestic and world markets.

An Phat Plastic Company has invested and put into operation Factory No.6 (capacity of 3,000 tons/ month) and No.7 (capacity of 800 tons/month), specializing in exporting biological plastic bags and thin film packaging.

Tien Phong Plastic Company merged Nam Sao Plastic Company and increased its capacity in the Central region to over 15,000 tons/year. Dong A Plastics is also seeking to increase the capacity of profile plate factory, with the expectation to be the leader in construction plastic and advertising materials.

Productivity and Quality Office