The recent devaluation of the dong combined with higher power costscould rob plastic enterprises of all or most of their profits, Le QuangDoanh, chairman of Vietnam Plastics Association, said.
Doanh said most of plastic enterprises were heavily dependent on imported raw materials, especially in PP and PE production.
Enterprisescan't rely on locally recycled plastics to cut import costs as thelocal plastics recycling industry is underdeveloped. For instance,Vietnam doesn't have a plastic waste collection system, he said.
Inrecent years, the plastics sector had growth rates of 20-25 percent peryear, but the recent increase in input costs would impact heavily onthe operation and development of the plastic sector, the associationchairman said.
According to association, Vietnamese plastic product export value accounted for a tiny 0.02 percent of the global figure.
Theexport value is low because the limited number of products can't keeppace with the changing demands of foreign importers. Plastic makers hereare mainly subcontracted, the association said.
Most plasticmakers are small enterprises that have to contend with foreignenterprises, which have strength of capital, technology and moreexperience.
In addition, management staffs, technicians andskilled workers are hard to find because no schools or centres offerskilled human resources training for the sector.
Expertssuggested the association to encourage enterprises to improve productquality and invest in supporting industries. Large plastic projectsshould be exempted from tax, they said./.
Doanh said most of plastic enterprises were heavily dependent on imported raw materials, especially in PP and PE production.
Enterprisescan't rely on locally recycled plastics to cut import costs as thelocal plastics recycling industry is underdeveloped. For instance,Vietnam doesn't have a plastic waste collection system, he said.
Inrecent years, the plastics sector had growth rates of 20-25 percent peryear, but the recent increase in input costs would impact heavily onthe operation and development of the plastic sector, the associationchairman said.
According to association, Vietnamese plastic product export value accounted for a tiny 0.02 percent of the global figure.
Theexport value is low because the limited number of products can't keeppace with the changing demands of foreign importers. Plastic makers hereare mainly subcontracted, the association said.
Most plasticmakers are small enterprises that have to contend with foreignenterprises, which have strength of capital, technology and moreexperience.
In addition, management staffs, technicians andskilled workers are hard to find because no schools or centres offerskilled human resources training for the sector.
Expertssuggested the association to encourage enterprises to improve productquality and invest in supporting industries. Large plastic projectsshould be exempted from tax, they said./.
