Plastics products are showcased at the Việt Nam Plastics Association’s congress for the 2023-2028 tenure held in HCM City on Wednesday. VNA/VNS Photo

HCM CITY — The plastics industry is likely to reduce imports of raw materials in the coming years due to increased domestic production, according to the Việt Nam Plastics Association.

The plastics industry has achieved growth of 12-15 per cent a year for the last five years, Hồ Đức Lam, chairman of the association, said.

Its revenues topped US$25 billion, with exports accounting for 22 per cent, he said while speaking at the association’s congress for the 2023-2028 tenure held in HCM City on Wednesday.

The industry imports 70 per cent of its raw materials, he said.

They jumped to 7.1 million tonnes in 2022 from 5.5 million in 2018.

Domestic supply comes from the Long Sơn, Dung Quất and SCG oil refineries and Hyosung polypropylene plant.

Their output is nearly three million tonnes a year, and Lam said it is expected to increase in the next few years, resulting in the reduction of imports.

Việt Nam exports plastics products to 160 countries and territories and they have grown at an average of 12-20 per cent annually, reaching $5.5 billion last year.

Lam said there is ample room to increase exports on the back of trade deals like the Việt Nam-EU Free Trade Agreement (EVFTA).

The EVFTA provides Vietnamese plastic products with a significant competitive advantage when entering the EU market with zero tariffs, he said.

Võ Tân Thành, deputy chairman of the Việt Nam Chamber of Commerce and Industry, said the plastics industry, with its high growth rate in recent years, is one of the Government’s priority sectors.

With new policies related to the circular economy and sustainable development, the plastics industry nevertheless faces many challenges along with opportunities, he said.

Vietnamese plastic manufacturers need to be well prepared to switch to eco-friendly products, he added.

There are around 4,000 plastics companies in the country, of which 90 per cent are small or medium-sized enterprises, the vast majority of them in the south.