Investment strategy plastics!

Investment strategy plastics!

The potential domestic market is still very large. Vietnam has nearly 86 million inhabitants, with consumption of plastic products average about 22 kg / person, and the target in 2010 could reach 32 kg / person. This figure is relatively low compared to neighboring countries such as Thailand, over 100 kg / person, in developed countries like Japan at 200 kg / person. The plastic enterprises are more conducive to development, particularly in the context of local goods and produce import substitutes are being encouraged. Gradually limit dependence on imported raw materials, particularly the petrochemical complexes in operation. There are many projects producing plastic materials PP, PE is ongoing. It is expected to end in 2010 when operational, the new plant can increase the total capacity of about 1.2 million plastic add tons / year. The increase in output of the sector to benefit from the projects produced plastic particles in the petrochemical complexes (such as Dung Quat) gradually become a reality. This can help reduce risk volatility of raw materials and exchange rate fluctuations. Plastic packaging and a large proportion of household. Demand is stable and generally higher at the end of the year. Enterprise production and household plastic packaging accounts for 75-80% of the entire industry’s business. This group does not require a high level of technology as engineering plastics and construction. However, import demand in the developed countries about packaging products and plastic household is decreasing. At the same time, the added value of these products is not high as the group of engineering plastics and construction materials. The products of this group serve the necessities, domestic demand increasingly high and relatively stable market. Packaging for agricultural products, packaging for processed foods, household products such as cabinets, chairs, … more growing trend by tastes like a compact, dynamic and modern. The last months of the year with the holidays, Christmas, New Year would make the use of the food, the shopping needs increase. Therefore, the business of packaging and household plastics can increase sales and boost revenue. Enterprises producing engineering plastics. Technical plastics sector have greater added value and are of interest to developing countries. However, supporting industry domestic plastic industry as mechanical engineering, machinery, molds … again incomplete. Therefore, the production of high-tech plastic serving the electrical industry – electronic, automotive assembly, motor … virtually negligible. Sales of engineering plastics industry depends on orders. Thus, in the last months, the business of engineering plastics business at mutations. Enterprises producing plastic construction materials. Numerous projects continue to invest in the deployment, the Government is still promoting investment for building infrastructure are factors that create demand for construction materials, including plastics built as plastic pipe, roofing, ceiling, … Plastic construction sector is also affected by the seasonality of the construction industry. Q1 and Q4 each year is usually the time of construction activity increased, the plastic enterprises will benefit and strong revenue growth often.

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