Vietnam's Strong Demand for Plastics: Taiwanese Companies Overcome Tariff Challenges through R&D

COSMO Machinery Co., Ltd., a Taiwanese company, showcased its fully automatic packaging machinery on the 5th at the 12th Hanoi International Plastics & Rubber Industry Exhibition. Business marketing manager Yarzar Khan (left) observed that while Vietnamese companies mostly prioritize price, they are gradually starting to pursue quality as well. Photo by Chen Jialun, Hanoi, Central News Agency, June 5, 2024.

(Central News Agency reporter Chen Jialun, Hanoi, June 5th) Vietnam is one of the world's important manufacturing hubs, with high demand for plastics and related machinery, attracting about 40 Taiwanese companies to set up booths. Observations indicate that without a Free Trade Agreement (FTA) between Taiwan and Vietnam, Taiwanese companies rely on enhancing R&D and service quality to gain market favor.

The 12th Hanoi International Plastics & Rubber Industry Exhibition runs from the 5th to the 8th in Hanoi, Vietnam's capital. Over 200 companies from 13 countries, including Taiwan, China, Japan, Indonesia, the United States, and Vietnam, are participating. Chinese companies have the largest presence with about 120 exhibitors, while Taiwan has around 40.

The Taiwan Association of Machinery Industry (TAMI) brought a delegation of five companies to showcase injection molding machines, bag-making machines, and more. TAMI business specialist Zhang Jiahua noted that Vietnam has numerous shoe and consumer goods industrial clusters, and Taiwanese businesses established a brand presence there 30 years ago.

He observed that without an FTA between Taiwan and Vietnam, Taiwanese companies must enhance their product's added value to remain competitive. Taiwan has performed well in R&D capabilities, intelligence, energy efficiency, quality, and providing comprehensive solutions, thus gaining market favor.

Vietnam Titan Technology Development Joint Stock Company's business manager, Trac Van Hoang, attended the exhibition to find advanced machinery for his clients. He believes that foreign exhibitors generally possess a technical advantage over Vietnamese companies, which helps upgrade Vietnam's plastics industry and stay abreast of industry trends.

During his speech, Vietnam Plastics Association Vice Chairman Dinh Duc Thang stated that there are approximately 4,000 companies in Vietnam's plastics sector, with 90% being small and medium enterprises. In recent years, the scale and specialization of northern plastics companies have been increasing, meeting international market demand.

He mentioned that in terms of structure, packaging plastics account for 38%, followed by household plastics and construction plastics at 30% and 21%, respectively, with engineering plastics making up the remaining 11%. It is expected that in the first half of 2024, Vietnam's plastic product exports will grow significantly, exceeding USD 3.15 billion, an annual increase of over 32%

Taiwanese exhibitor COSMO Machinery Industrial Co., Ltd. showcased fully automatic packaging machinery on-site. Business marketing manager Yarzar Khan observed that smaller Vietnamese companies still prioritize price, but some are beginning to pursue stability, quality, and service, making it a market worth watching.

The event was organized by Chan Chao International Co., Ltd., a Taiwanese company whose business scope primarily covers Taiwan and Southeast Asia. Chan Chao set up an office in Vietnam in 1999 and has hosted over six major international exhibitions annually in Vietnam since then.

Chan Chao International noted that companies are now adopting a "China+1" strategy, which has led to a positive outlook for Vietnam. Not only has the scale of exhibitions expanded, but the content has also become more diverse, ranging from beauty and healthcare, baking, medical care, ICT, logistics, to optoelectronics and semiconductors, making the competition more intense.
(Editor: Chen Chenggong) 1130605

The 12th Hanoi International Plastics & Rubber Industry Exhibition, held from the 5th to the 8th in Hanoi, Vietnam, is expected to attract tens of thousands of visitors over the four-day event, according to Chan Chao International. Photo by Chen Jialun, Hanoi, Central News Agency, June 5, 2024

News source URL:
https://www.cna.com.tw/news/afe/202406050370.aspx