SCRAP BACKLOG, PORT REFUSED TO ENTER THE BUSINESS, ANXIETY
Explaining the situation of goods stagnant in seaports, a business leader said that one of the factors is the business enlisted the time when China stopped importing scrap.
According to the General Department of Vietnam Customs, in the first 6 months alone, Vietnam has spent 3.5 times more than the total amount spent on plastic scrap in the whole year 2017. In terms of quantity, In the first six months of this year, Vietnam imported more than 3 times more scrap plastic in 2017 (about 90,000 tons).
Remaining very small in total import scrap of countries around the world, about 15.5 million tons, worth $ 5.4 billion, according to the US Institute of Recycling Technology, but the rapid increase put out big issues for Vietnam.
Data from the General Department of Customs said the number of container waste is in stock at the port of Hai Phong and Cat Lai (HCM) is about 5,000 units. In there, the number of containers that existed at Cat Lai port on July 25 was 3,579 containers, of which 2,423 containers lasted more than 90 days.
In Hai Phong, as of July 5, the total number of containers remaining is 1495 containers, of which more than half have the number of over 90 days. Plastic scrap alone accounted for 1342 containers in stock at Hai Phong port.
In the face of overcrowding, some Vietnamese ports have announced the temporary suspension of import of recycled materials. Specifically, in early June, Saigon New Port Corporation has notified the company refused to import scrap materials to port. Cat Lai also announced not to receive scrap from Cai Mep port (Ba Ria – Vung Tau) and Hiep Phuoc port. Period of application from 25/6 to 15/10.
A plastic industry business leader said the consequence of the suspension was that it directly affected the importers of scrap metal as shipping lines dared not ship to Vietnam.
He shared despite the letter 4202 / TCHQ-PC still allow the shipping company to Vietnam, shipping lines are still worried and not pick up the goods. Suppliers in Europe and the United States also do not continue to sell. As a consequence, while goods are stuck in the port, enterprises that meet the criteria for producing waste plastic have no raw materials for production, seriously affecting the production and business.
Why should I?
Explaining the situation of goods stagnant in seaports, a business leader said that one of the factors is that enterprises are taking advantage of the time when China, the world’s largest importer of scrap, stopped most Import activities of scrap (24 items).
Hoang Duc Nhuong, director of a recycled plastics business, said that in the past when China did not have a ban on plastic scrap, it could buy all sorts of recycled plastics. Good quality, and Vietnam only buy bad plastic waste with low recycling rate.
“When China has a ban, Vietnam has the opportunity to buy high-quality, low-cost plastics to recycle, produce and export,” he said.
China suddenly stopped importing to create abundant supply, but also put the Vietnamese business before the situation was passive.
“By 2017, businesses are not keen on importing scrap because they are not competing with Chinese partners,” said a recycling business leader.
Therefore, in the 2016-2017 period, very few enterprises applied for licenses under the new regulations of the Ministry of Natural Resources and Environment. Meanwhile, permits issued by the provincial Department of Natural Resources and Environment almost expired at the end of 2017.
“Seeing the opportunity from China to stop importing, the recycling business rushed to build a factory meeting the new import licensing conditions. However, for proper investment, it will take at least 12-24 months. Imported goods are on the sea, the Department of Natural Resources and Environment does not have the function of licensing anymore, technical infrastructure of the plant is not complete, will naturally lead to the status of port presence, “a leader of the plastic industry. said.
Another reason for the large volume of unprocessed scrap is the requirement of Vietnamese import standards. An industry expert said a large amount of cargo at ports was labeled as “waste not allowed to be imported”.
He added: “The scrap is the seller cannot always be 100% of the goods in accordance with Vietnamese standards. If the seller put in the container and a few other types, the whole lot will be labeled waste is not allowed to import, so bitter business to swallow not to dare to receive goods.