With a growth rate of 15-20 percent per year and a total annual revenue of 15 billion USD, with 3 billion from exports, Vietnam’s plastic industry boasts huge development potential.
Indeed, numerous foreign investors have joined the industry in recent times. However, apart from the opportunities and benefits brought by foreign enterprises, they also bring challenges for domestic firms, especially the risk of being acquired by multinational groups.
According to the Vietnam Plastic Association, mergers and acquisitions deals in the sector have been ongoing for some time now, often with drastic takeovers. Many big local names are now waiting for new bosses, while small- and medium-sized firms are being exhausted of their funds.
Vietnam’s plastic sector has found itself in quite a difficult situation, requiring timely changes in management and production strategies. Preferential policies and legal assistance are needed for Vietnamese firms to ensure fair competition in the local market.
Capital, production scale, and business administration capacity, along with the heavy dependence on imported materials are all factors holding Vietnamese plastic firms back, resulting in the risk acquisition by foreign conglomerates.
According to experts, effectively using local scraps as materials may reduce production costs, thus improving local firms’ competitive edge.