Strength of Vietnam plastic bag industry

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Published: 21st December 2010
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The first advantage of Vietnam in producing plastic is cheaper cost of raw material, land rent, labor cost. Big factories in Vietnam are usually located in provinces which far away from center. The reason for it is its absolute advantages in land cost and labor cost. Vietnam is usually known as an agricultural nation which specialized in working on farm with very low income. However, when industrial zone appeared, it created big advantages to recruit a huge number of workers from those farmers with very cheap salary. In average, the labor cost for 1 ton of plastic bags range from 250USD to 400USD up to different kinds of bags. Moreover, rent fee of land also is much cheaper compared with developed countries. That's why a lot of big companies in plastic bag industry in developed countries can not compete with Vietnam companies. They have to close their factories and change to become wholesalers and importers. They import bags from Vietnam and resell in their market (especially for EU, US, Japan...)

The other advantage of Vietnam plastic bags is no anti dumping tax to EU countries. Anti dumping tax on plastic bags is created because the companies in EU,US cannot compete with cheap prices from Asia. The anti dumping tax ranges from 8 percent to 30 percent for almost Asian countries especially put on China; the tax rate depends on different factories. There is no anti dumping tax on Vietnamese companies therefore, it makes Vietnam become a very strong competitor compared with other Asian countries, especially China.

Regarding to the quality of plastic bag, Vietnam also imports materials (virgin resin) from Thailand, Japan, Saudi Arabia, etc and machines from Taiwan, therefore, the quality is at the same level as other Asian countries. Even Vietnam's bag quality is known more stable than China.

Taking those advantages, Vietnam become more and more competitive in global market and attract a lot of customers from developed countries and try to expand their capacity. It will open very promising future for Vietnam plastic industry and big opportunities for worldwide customers to get high quality and cheap prices.

To see a prominent example of one very big manufacturer of plastic bags in Vietnam, please visit http://hanoiplasticbag.com/, to see how it supplies many plastic bags at high quality and detailed comparative advantages of them.

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