 |
|
| .The
plastics industry has submitted to the Government 17 projects
for investment to 2005 and 2010. Of these projects, three are
involved in material production. The industry will focus its
efforts on hi-tech products; large production lines to turn out
products with high added value; production of parts for the
auto, motorcycle and refrigeration equipment industries, and
human resources development to prepare for world integration. The industry currently supplies only 10% of the materials needed in the industry and this implies a big risk to its development. Nguyen Minh Tan, general director of Vietnam Plastics Corporation, warns that if the plastics industry does not find local materials over the next five years, it will lose its advantage and face great difficulties due to reliance on imported materials. Investment in producing materials and chemicals for the industry therefore, is necessary. The plastics industry's output has reached over one million tons, 22 times last year's figure. However, its greatest success is the victory over imported household plastics. At present, 95% of household plastics on supermarket shelves are local products, which make up 30% of the industry's total output. Another product category that has achieved strong growth and made up the largest production ratio (40%) is plastic packaging. Previously, two-thirds of plastic packaging had to be imported but now almost all the packaging for food, foodstuffs, beverages, mineral water, seafood and chemicals are produced locally. At present, PVC household plastics production surpasses demand by 30%. However, export remains a remote prospect even though the industry has invested US$1 billion in technology to modernize production over the past ten years. This is due to the high prices of imported materials, especially the lack of directions for investment and hi-tech products. According to Pham Gia Duoc, chairman of Vietnam Plastics Manufacturers Association, few enterprises have invested in modern technology to produce equipment for the industry. Mold producers fail to meet the demand of plastics manufacturers. As a result, plastics and rubber processors can barely compete in terms of quality and price. Many plastics enterprises have invested in hi-tech equipment to make products for export. Long Thanh has purchased an automatic production line for beer cases in four colors and four-layer bottles, Dai Dong Tien has invested in producing thin films, Bavico in PET bottles and Liksin in complex PE films. Other companies like Binh Minh, Dat Hoa, Minh Hung, Tien Phong and Tan Tien have invested in PVC and PE pipe production. "There are high quality products but their prices are still high due to low productivity and high cost, especially electricity charges," says Nguyen Nhu Khue, deputy director of Bong Sen Plastics Technology and Trading Company and vice chairman of HCM City Plastics Manufacturers Association |