Phan Van Thanh, chairman of the Viet Nam Plastic Association, said the industry shipped its products to 55 markets around the world, with the main ones being the US and Japan.
Despite the falling global prices and shrinking demand, they achieved an “impressive result,” growing by 25-43% in these markets, he said.
Total exports were worth US$900 million and the industry is aiming for $1 billion this year. Vietnam’s overall exports last year were nearly $63 billion.
Thanh said raw material costs plummeted by up to 70% in the last four months of 2008 due to falling crude oil prices.
But the industry also suffered some adverse impacts from the global economic slowdown, Thanh said.
Businesses had to lay off 10% of their workforce, he said, though this is low compared to other sectors such as footwear, textile and garment, and fishery.
The industry’s 34% export growth was also higher than that of footwear and fishery, he said.
The association quoted the United Nations Commodity Trade Statistics Database as saying in a recent report that Vietnamese plastic products enjoy low tariffs in many markets.
Viet Nam exports products including boxes, shopping bags, pipes, household and office products.
Recession to bring opportunities
Thanh said businesses are focusing on investment to install new machinery and technologies to strengthen their competitiveness at home and abroad.
Economist Tran To Tu said the economic slump could actually provide the industry a good opportunity since many foreign plastic manufacturers could sell off their machinery and technologies.
Tu, who consults the industry on export strategy, said the association should set up a technology fund to help members install equipment and adopt new technologies. (TN)
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