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In 2025, Vietnam posted its highest industrial production growth in 5 years. A report from National Statistics Office of Vietnam (NSO) shows that Vietnam’s industrial production in the second quarter of 2025 rose by 10.3% year-on-year based on the Industrial Index of Production (IIP), with 12.3% increase in the processing and manufacturing sector. These figures reflect the robustness of the country’s industrial sector – with automotive, consumer goods and food manufacturing sectors being at the forefront of the industrial expansion. These industries are served by Vietnam’s plastics producers who offer tailored production solutions for various demanding applications that require specific mechanical properties.


In particular, production of Vietnam’s plastics market has been on the upswing at 11.84 million tons in 2025 and moving forward, it will reach more than 17 million tons by 2030 (CAGR 8.44%), according to a report from Mordor Intelligence. Robust foreign direct investment, aggressive infrastructure spending, and decisive regulatory modernization, all contribute to Vietnam’s status in becoming Southeast Asia’s fastest-growing plastics hub, the report states. Significant growth has been noted in the areas of packaging, automotive and transportation, electrical and electronics, construction, as well as consumer products manufacturing. Another major boost is the popularity of Vietnam as manufacturing location for multinational companies such as IBM, Samsung, Microsoft, Procter & Gamble, etc.

One significant trend pertains to the adoption of recycled content in production of packaging, auto parts and construction supplies, etc., is the growing environmental awareness has led consumers to patronize recycled plastics products. The circular economy transition has led to the rise in the use of sustainable materials and utilization of more advanced recycling technologies. As Vietnam emphasizes its own Extended Producer Responsibility (EPR) law that mandates packaging producers and importers to implement recycling and treatment of their products and packaging after disposal, Vietnam-based packaging suppliers are moving to enhance recycling capabilities and increase the recycled content in their products to achieve a circular economy.

Plastics industry strives to meet rigorous applications

Vietnam’s plastics industry supports the growth of diverse sectors with production solutions aimed at enhancing end-product quality. The manufacturing of food and beverage sector is one of the major contributors to Vietnam’s impressive industrial performance. This sector accounts for nearly 50% of the plastics industry’s production as food and beverage producers rely on the supply of plastic films, blow molded containers and injection molded packaging products to meet strict standards for food-contact packaging.

Infrastructure spending has been strong with over 40% growth year-on-year in the first half of 2025 alone, posing huge demand for PVC pipes, insulation boards, flame-retardant cable trays and more. The latest breed of halogen-free compounds and heat-resistant engineering plastics are key factors enhancing quality of building and construction supplies which need to undergo mandated quality checks and adhere to stringent standards.


The surge in automotive production has created demand for high-performance engineering plastics which guarantee lightweighting and respond to the needs of Vietnam’s fast-emerging electric vehicles manufacturing sector. Vietnam has a progressive vehicle manufacturing landscape with homegrown vehicle models and assembly of vehicles for global brands. This has also driven the increase in demand of automotive parts and components.

Other fast-emerging users of plastics include manufacturers of household and furniture items, consumer electronics and electrical products, as well as medical devices.

Amplifying Vietnam’s role in the global plastics market

There is no doubt that Vietnam has always been one of the favourite investment locations of global companies who want to move their production hub to Southeast Asia. New investments and expansion of existing companies operating in Vietnam provide a clear example of the country’s ability to lure investors. These investments also reflect Vietnam’s move to encourage sustainable production processes aligned with the circular economy goals.

The surface treatment global business unit of Germany-based BASF Coatings operating under the Chemetall brand, was selected by Circular Plastics Company, a Singapore-based regional plastic recycler with operations in Myanmar and Vietnam, to supply innovative PET recycling washing solutions for its plastic recycling plant in Vung Tau, Vietnam. Under the agreement, Chemetall is set to provide a range of novel technologies tailored for Circular Plastics Company’s facilities, which recycle post-consumer PET plastics into food-grade products in Myanmar and Vietnam. Circular Plastics Company’s Vietnam plant employs advanced recycling technologies, including an Italian Sorema washing line, a TOMRA sorter, and a granulation line from Starlinger. The integration of these technologies substantially improves the quality of treated flakes, boosts productivity, and reduces energy and resource consumption. The solutions also enable the plastic recyclers to produce washed flakes that comply with food contact standards.


In the area of flexible packaging, Mainetti, an Italian company who is a global leader in retail packaging solutions, has opened a new factory in the Hung Yen Province of Vietnam, based in Minh Quang Industrial Park, to provide sustainable packaging solutions. The opening marks a significant step in Mainetti’s continued expansion into Southeast Asia to deliver flexible packaging solutions and tap into a dynamic market. The facility spans 5,000 square meters and is set to employ 200 workers once operations are at full capacity, it is also projected to produce up to 3,000 metric tons of bags annually (equating to approximately 360 million bags). Most components of the bags are made from recycled materials, contributing to a reduction in carbon emissions, while high-speed and efficient machinery facilitates large-scale production.


SCG Packaging Public Company Limited (SCGP), a subsidiary of Thailand's industrial giant SCG, has acquired an additional 30% stake at Duy Tan Plastics Manufacturing Corporation (Duy Tan JSC), becoming the sole owner of the leading producer of rigid plastic packaging products in Vietnam. Duy Tan JSC first sold 70% of its shares to the Thai company in 2021 and became a member of SCGP. Duy Tan JSC offers leading proprietary branded products, operates 5 manufacturing facilities in Vietnam and offers packaging solutions, innovations, and sustainable packaging to address evolving consumer lifestyles. This demonstrates that SCGP considers Vietnam as its most important strategic market after Thailand, and this acquisition aims to deepen its consumer packaging presence in the ASEAN region.


Swedish multinational packaging giant, Tetra Pak, has expanded its production facility by adding a second packaging material production line to its Binh Duong facility in Vietnam, boosting annual production of food and beverage packaging from 12 billion to 30 billion. The expanded facility aims to produce aseptic carton solutions for food and beverage producers across Southeast Asia. The production line features a barrier system equipped with high-resolution inline scanning cameras, LED lighting, AI technology to detect defects in real-time. Additionally, climate-control systems are implemented to preserve and maintain the quality of packaging materials during production and warehousing.



All investments and projects above are expected to boost demand for high-tech production technologies and materials solutions from Vietnam-based companies to ensure supply chain and competitive operations.

At CHINAPLAS 2026, Asia’s leading plastics and rubber trade fair, more than 4,600 exhibitors will showcase innovative technologies, cutting-edge solutions and green materials which will facilitate Vietnam’s fast industrial expansion for sure.