HCM City (VNS/VNA) - The plastics industry is likely to reduce imports of rawmaterials in the coming years due to increased domestic production, accordingto the Vietnam Plastics Association.

The plastics industryhas achieved growth of 12-15% a year for the last five years, chairman of the VietnamPlastics Association Ho Duc Lam said.

Its revenues topped 25billion USD, with exports accounting for 22%, he said while speaking at theassociation’s congress for the 2023-2028 tenure held in Ho Chi Minh City on October25.

The industry imports 70%of its raw materials, he said.

They jumped to 7.1million tonnes in 2022 from 5.5 million in 2018.

Domestic supply comesfrom Long Son, Dung Quat and SCG oil refineries and Hyosung polypropyleneplant.

Their output is nearlythree million tonnes a year, and Lam said it is expected to increase in thenext few years, resulting in the reduction of imports.

Vietnam exports plasticsproducts to 160 countries and territories and they have grown at an average of12-20% annually, reaching 5.5 billion USD last year.

Lam said there is ampleroom to increase exports on the back of trade deals like the EU-VietnamFree Trade Agreement (EVFTA).

The EVFTA providesVietnamese plastic products with a significant competitive advantage whenentering the EU market with zero tariffs, he said.

Vo Tan Thanh, Vice Chairmanof the Vietnam Chamber of Commerce and Industry, said the plastics industry,with its high growth rate in recent years, is one of the Government’s prioritysectors.

With new policiesrelated to the circular economy and sustainable development, the plasticsindustry nevertheless faces many challenges along with opportunities, he said.

Vietnamese plasticmanufacturers need to be well prepared to switch to eco-friendly products,he added.

There are around 4,000plastics companies in the country, of which 90% are small or medium-sizedenterprises, the vast majority of them in the South./.