For many other industries, packaging is an auxiliary industry that plays an important role and has been contributing significantly to economic growth. In an interview on VTV, Mr. Le Xuan Dong, Managing Director and Head of Market Research and Consulting at FiinResearch, shared some insights on the development of Vietnam's packaging industry.
According to FiinGroup, packaging is one of the fast-emerging sectors in Vietnam, enjoying annualized growth rate of around 13.4% during the period of 2015 – 2020. The sector is expected to continue its double-digit growth in the years to come. Regarding segmentation, in 2020, Plastic Packaging and Paper & Corrugated Packaging holds around 81.6% market share in terms of sale revenue.
The strong development of packaging sector in Vietnam is driven by solid growth of such related sectors as F&B, consumer goods, export activities, and the robust development of modern trade.
Despite the uncertainties by COVID, in the last two years, many foreign industry players, realizing the long-term growth potentials and promising business opportunities in Vietnamese packaging sector, have been actively penetrating the market and/or expanding their existing business in the sector via M&As and greenfield investments.
In addition to taking advantages from Vietnam’s low labor cost and investment incentives, that foreign investors have expanded their investment in packaging sector aims to take advantage of incentives from bilateral and multilateral free trade agreements (FTA) to promote export and participate in the global value chain.
To support the development of local packaging industry, Mr. Le Xuan Dong also mentioned to several solutions for domestic packaging companies:
See more detail in video.