PLASTICS NEED TO BE RENEWED TO GAIN ACCESS TO THE EU MARKET
EU is considered as a big market of Vietnam plastic industry with impressive export growth in 2017 is 61.5%. However, the European Commission (EC) has proposed to ban plastic disposable products such as plastic straws, plastic cups, nylon bags … To maintain and expand import growth into the market In this field, exporters of plastic industry have to improve technology, as well as expand production and this makes many companies difficult.
According to the new EC proposal, disposable plastic products such as straws, plates, spoons, and chopsticks will be banned and replaced with solid hard materials, Environmental friendliness. At the same time, plastic manufacturers are encouraged to use less polluting alternatives and label products.
In addition, in this proposal, the EC also requires that in 2025 Member States must collect 90% of disposable bottles. Particularly, product manufacturers are responsible for supporting the cost of processing plastic bottles.
According to US and Canadian scientists, disposable plastic cups are made from polystyrene. This resin is commonly used in packaging. Low temperature or high-temperature polystyrene can release toxic and easily accessible styrene. Many countries around the world have to boycott plastic disposable toys because of concerns about environmental pollution and the potential danger to human health.
This proposal is still awaiting the 28 member countries of the European Union (EU) and the European Parliament to take effect. However, many economists say that the proposal is likely to come true. Prior to that, the British government had banned plastic straws and disposable plastic products. The French government also launched a roadmap beginning in 2020 that would prohibit the import of disposable plastic products.
On its side, the plastic industry of Vietnam recently is considered to have strong development but mainly plastic processing. However, the Import-Export Department (Ministry of Industry and Trade) statistics said that the plastic industry is active only about 20-25% of raw materials as well as chemical additives inputs, the rest have to import.
The material of PP, PE of plastic business in Vietnam is plastic waste products from abroad. The EU is exporting half of the plastic waste collected and 85% of that is exported to China. But now, many countries including Vietnam and China are applying the import ban on plastic scrap.
Therefore, materials for the production of Vietnamese plastic enterprises will be difficult. The inability to source raw materials will make the export of plastic products difficult to take advantage of tax incentives due to regulations related to the origin of goods.
Ho Chi Minh City Plastics Association has repeatedly recommended the Ministry of Industry and Trade, the Government considered the restriction of imports of plastic waste. Because although plastic waste materials can help some plastics enterprises to grow rapidly, they will increase their domestic secondary raw materials, reduce their production costs, and increase their competitiveness. causing serious consequences on the environment, even there are irreparable harms, seriously affecting the quality of life of people.
Tran Thanh Hai, Deputy Director General of the Import-Export Department under the Ministry of Industry and Trade, said that the signing of Free Trade Agreements (FTAs) brought many opportunities for exporters of plastic resins. As partners are shifting their orders from China to Vietnam to take advantage of cheap labor, low production costs and favorable export tariffs.
In addition, the demand for plastic products in the EU market, Japan is still high, and increasingly preferred plastic products in Vietnam, especially the need for plastic pipes and plastic bags. In the EU market, Vietnamese plastic products are not subject to anti-dumping tax. Enterprises producing plastic packaging for export to the EU market have dual benefits in terms of price and tax incentives.
Prior to the EC proposal will have certain impacts on the export of plastic in Vietnam in the coming time, leaders of the Ministry of Industry and Commerce recommended enterprises convert production technology and products in the direction of environmentally friendly to keep The Market share of exports to Europe.
In order for enterprises to do this, the leaders of the Ministry of Industry and Trade will connect with foreign businesses and some international equipment suppliers to support domestic plastics enterprises to access technology and raw materials. new material. In addition, the ministry will also organize plastic technology fairs in the country and internationally to create opportunities for domestic enterprises to access new technologies.