Vietnam Takes Central Role as Regional Manufacturing Hub

The plastics industry in Vietnam has been contributing to the country`s overall industrial development, and over the years, the industry has grown substantially. A study by the World Bank on Vietnam`s plastics industry brings into light how plastics have been extensively used in the packaging, consumer goods, automotive, electronics, transportation/aviation and agriculture. In 2019 alone, the plastics industry`s output reached 8.89 million tons, contributing about US$17.5 billion to the national economy or 6.7% of the GDP, according to World Bank figures.

The robust growth of Vietnam`s industrial production has been positively reflected in the Vietnamese plastics market which is set to grow by an estimated 8% yearly over the period 2023-2028, according to the report by Mordor Intelligence. While the COVID-19 pandemic adversely affected the Vietnamese plastics market, the recovery of major end-user industries spurred demand that the plastics market has now reached pre-pandemic levels, according to the report.


Opportunities in this fast-growing market have expanded – especially for those supplying raw materials, finished plastics and processing technologies as Vietnam remains a net importer of these items. Along with the need for engineering plastics, advanced technologies in blow molding, extrusion, injection molding, etc. for the processing of plastics are in high demand. Also, the influx of foreign investors in the manufacturing sector has driven requirements for plastics, especially in such applications as packaging, electrical and electronics, building and construction, automotive and transportation, housewares, furniture, and bedding, etc., based on the Mordor Intelligence report.