Market News

Vietnam’s industrial production surged in 2025, marking its highest growth in five years, with a 10.3% year-on-year increase in the Industrial Index of Production and a 12.3% rise in manufacturing. The plastics industry is central to this expansion, producing 11.84 million tons in 2025 and projected to exceed 17 million tons by 2030 (CAGR 8.44%). Growth is driven by FDI inflows, infrastructure spending, and regulatory modernization, positioning Vietnam as Southeast Asia’s fastest-growing plastics hub.

Key sectors include packaging, automotive, electronics, construction, and consumer goods, with strong demand for high-performance plastics in EV manufacturing and food-contact packaging. Environmental awareness is reshaping production, with recycled content adoption and compliance with Vietnam’s Extended Producer Responsibility (EPR) law, which mandates recycling and treatment of packaging waste.

Major investments underscore Vietnam’s global role: BASF’s Chemetall unit supports advanced PET recycling; Mainetti opened a sustainable packaging plant; SCG Packaging acquired full ownership of Duy Tan JSC; and Tetra Pak expanded its Binh Duong facility to produce 30 billion aseptic cartons annually. These moves highlight Vietnam’s attractiveness for multinational firms and its alignment with circular economy goals.

Vietnam is emerging as a plastics powerhouse in ASEAN, combining industrial growth with sustainability, and will be a focal point at CHINAPLAS 2026.

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