HCM City (VNA) – Recyclable plastics can help Vietnam ’s plastic industry reduce production costs, improve competitiveness and thus increase exports, according to industry insiders.

Ho Duc Lam, vice president of the Vietnam Plastics Association, said at a seminar on August 29 in Ho Chi Minh City that the industry had to import a large proportion of raw plastic materials, around 1.7 million tonnes, as well as additives, costing 2.5 million USD per annum. The current domestic market can only supply 300,000 tonnes.

However, if recyclable plastics subtitude between 35 and 50 percent of raw materials, the country would save an import value of almost 1 billion USD and further increase sales abroad as well, he said.

“Recyclable plastics represent from 16 to 25 percent of the total material volume in Thailand , Malaysia , the republic ofKorea and Japan . That’s equal to 5.7 to 8.6 million tonnes of their exports, bringing in 2.5-4.5 billion USD,” said Lam.

Meanwhile imports of recyclable plastics represent only around 0.5 percent of total imported plastics materials. Its exports of plastic products resulted in 750 million USD turnover last year.

Due to the scant use of recyclable plastics materials, plastic items from Vietnam are exported at prices 10 to 15 percent higher than Chinese and Indian goods, according to HCM City Plastics Association president Pham Trung Cang, Material generally account for 70 percent of the production costs of Vietnam’s plastics companies.

“Various importers in the US , the EU and Japan require a minimum use of 10 percent of recyclable plastic materials of our exported products,” said Cang.

Participants at the seminar proposed the Government and Ministries of Industry and Trade and Natural Resources and Environment adjust existing regulations on imports of recyclable plastics for production purposes.-Enditem