Data from the General Department of Customs show that Vietnam’s plastic exports in the first 7 months of 2022 reached 3.37 billion USD in turnover, up 21.7% over the same period in 2021.
In the first 7 months of 2022, Vietnam’s plastic export turnover still increases. However, its growth rate lowered due to a drastic decline in exports to major markets such as the US, Japan, Germany, and Cambodia in July 2022.
Plastic exports of Vietnam in July were down significantly compared to June 2022 and only increased slightly in comparison with July 2021. In July, Vietnam exported 443.6 million USD worth of plastic, down 10.5% compared to June 2022, and up 0.9% over July 2021.
In the first 7 months of 2022, Vietnam's plastic products were still exported to major markets such as the US, Japan, Korea, Germany, Cambodia, Indonesia, India, etc., but the growth rate has decreased.
Meanwhile, exports of plastic products to China, the UK, and Thailand decreased.
The three largest export markets of Vietnamese plastic products in the first 7 months of 2022 are the US, Japan, and South Korea, with the total export turnover of plastic products to these three markets accounting for 60% of Vietnam’s total plastic export turnover.
The US remained Vietnam’s top plastic exporting market in the first 7 months of 2022, accounting for 41.4% of the total export turnover. Plastic exported to this market reached 1.39 billion USD, up 36.7% compared to the same period in 2021.
Japan claimed the second spot with 447.2 million USD, accounting for 13.3% of the total plastic export turnover. Compared to 2021, the turnover was an increase of 14.4%
Korea was Vietnam’s third-highest plastic exporting market. In the first 7 months of 2022, plastic exported to this market was 178.5 million USD, taking up 5.3% of the total export turnover. That turnover was an increase of 8.7% compared to the same period in 2021.
Vietnam’s exports of plastic products to Germany and Cambodia markets still increased strongly, reaching 115.1 million USD and 110.9 million USD respectively, accounting for 3.4% and 3.3% of total turnover, respectively. export plastic products. Compared to the same period in 2021, the export of plastic products to Germany increased by 29.4%, and the Cambodian market increased by 22.2%.
In particular, the export of plastic products to the Indonesian market increased sharply in the first 7 months of 2022, reaching 90.4 million USD, accounting for 2.7% of the total export turnover of plastic products. Compared to the same period in 2021, the export of plastic products to this market increased by 40.1%.
Exports of plastic to some markets decreased in the first 7 months of 2022. For example, exports to China reached 91.9 million USD in turnover, down 14%, accounting for 2.7% of the total plastic export turnover. Exports to the UK were 71.9 million USD, down 7.5%, accounting for 2.5% of the total plastic export turnover.
Plastic companies in Vietnam enjoyed a second quarter of 2022 of improved profit margins. Binh Minh Plastics(HoSE: BMP) announced the second quarter consolidated financial statements with revenue of 1,555 billion VND, up 7%. Profit after tax for shareholders of the holding company was 3.5 times higher than in the second quarter of 2021, mainly thanks to the significant improvement in gross profit margin from 12.9% to 25.1%.
Vietnam Plastic Corporation (UPCoM: VNP) reported second-quarter gross profit margin increased from 0.45% to 3.6%, and gross profit reached 2.4 billion VND, much higher than 316 million VND in the same period in 2022
Similarly, Dong A Plastic (HoSE: DAG) announced that its second-quarter revenue increased by 8% to 633 billion VND. The company's net profit was 5 billion VND, much higher than 393 billion VND in the same period in 2021. The gross profit margin increased from 4.4% to 5%.
With the strong increase in investment of domestic and FDI enterprises, it is forecasted that Vietnam's export of plastic products and plastic materials will soon reach 10 billion USD in the coming time.
Vietnam's plastic industry is benefiting from the need to shift investment and business from multinational corporations.
Strong investment in production from FDI and domestic enterprises recently has promoted the growth of production and export of Vietnam's plastic products. With overall revenue growth of 16-18% from 2016 to 2021, the plastic industry is forecasted to maintain a double-digit growth rate in the coming years.
In 2022, the outlook for Vietnam's plastic industry is very favorable, thanks to 15 implemented free trade agreements (FTAs) such as CPTPP, EVFTA, and RCEP, which opens up opportunities to attract investment not only from FTA partners but also from other countries.
Investors from Thailand, Korea, and Japan have bought shares in many plastic enterprises in Vietnam. In 2021, SCG Group (Thailand) completed the acquisition of 70% of shares in two packaging and household plastic businesses of Duy Tan Plastic Company (revenue of nearly 5,000 billion VND), with a value of 280 million USD.
Source: The Ministry of Industry and Trade
Compiled by VietnamCredit