Vietnam’s plastic industry is experiencing rapid growth. From packaging and engineering plastics to recycled products and export-ready goods, this sector is becoming one of the strongest manufacturing pillars in the country. If you’re a business leader, manufacturer, or investor exploring opportunities in Vietnam’s fast-changing industrial landscape, Source of Asia’s sectorial notes about the plastic industry in Vietnam deserve your full attention.
Download the full note below for in-depth charts, figures, and expert insights.
Explosive Growth in Plastic Production
Between 2010 and 2020, Vietnam’s plastic industry recorded some of the highest growth among all sectors. According to data, production surged across all categories:
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Packaging plastic: +39%
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Household plastic: +32%
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Construction plastic: +14%
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Engineering plastic: +9%
In 2021 alone, Vietnam produced 10 million tons of plastic, marking a 24.9% year-on-year increase from 2020.
The biggest demand? It is packaging. Nearly 1 million tons of packaging plastic were produced in 2021, primarily serving the food and non-alcoholic beverage sectors.
What Is Driving Growth?
Several clear factors are accelerating the sector’s momentum:
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Over 4,000 active businesses, with more than 99% privately owned.
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Heavy concentration in the southern region of Vietnam.
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Versatile applications across packaging, automotive, home goods, electronics, and construction.
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High projected growth in segments like electrical (8.48% CAGR) and automotive (7.44% CAGR) through 2027.
Clearly, plastics are not just everywhere; they are driving industrial expansion.
However, one challenge looms large: raw material dependency.
Vietnam currently produces only 15–35% of the raw materials used in plastic manufacturing. The remaining 65–85% is imported from countries like China, Korea, Japan, and ASEAN nations. This reliance presents both risks and opportunities, particularly for companies offering alternative sourcing, recycling, or local production solutions.
Export & Import Momenta: Up and Rising
Exports of plastic materials and products from Vietnam are growing quickly. Here are key highlights:
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From 2017 to 2020, plastic export value rose from US$2.5 billion to US$3.65 billion.
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In Q1 2022 alone, plastic exports hit US$1.39 billion, a +28.9% increase over Q1 2021.
Top export markets include: United States (US$556M), Japan (US$190M), South Korea (US$72.8M).
Ingredient plastics and finished products both contribute strongly to these export numbers.
Vietnam doesn’t just export plastic; it also imports a large volume of raw materials and intermediate goods.
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In 2021, Vietnam imported 6.9 million tons of plastic. That’s a 38.2% year-on-year increase.
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Total plastic import turnover in 2021 reached US$11.69 billion.
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In Q1 2022 alone, imports already hit US$5.5 billion
Top import partners include South Korea, China, Saudi Arabia, and the US.
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Final Thoughts
Vietnam’s plastic industry has evolved from a manufacturing base to a dynamic, export-driven, and increasingly sustainable sector. With fast growth in both production and exports, and the support of international trade agreements, it’s now a serious destination for industrial investment.
Whether you’re sourcing, investing, or looking to partner locally, the time to explore Vietnam’s plastic sector is now.
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