VIETNAM PACKAGING INDUSTRY, DEVELOPMENT TREND

2. The development of the current packaging industry

During the period of international integration, Vietnam has free trade relations with the ASEAN market of more than 600 million people. Vietnam also established good relations with the United States, the European Union, China, Japan and Russia,… Relationships have helped the economy, including the packaging industry, grow.

Many investors choose Vietnam as a market that has opened up opportunities for the packaging industry:

As the economy grows, urbanization accelerates, so does the demand for consumption. Many big-name supermarkets such as Aeon, Lotte,.. Appeared in Vietnam. Besides, Vietnam’s e-commerce industry is growing like a storm. All create opportunities for investors to invest in factories in Vietnam

.Estimated growth in the period 2015 – 2020: packaged food increased by 38%, baby food increased by 76%, processed meat and seafood increased by 58%. In the face of this demand, the packaging industry must improve the design and preservation. This is both an opportunity and a challenge for the industry.

Packaging is a diverse product of types, designs, so packaging materials are also rich in variety. Vietnam packaging materials are mainly plastic, carton, paper, metal and glass. So this industry can start with small-scale factories. In 2019, it is estimated that the industry as a whole will increase by 25%, of which soft plastic packaging will increase by 15% and hard plastic by 5%.

3. What does the packaging industry need to do to keep up with the times?

The growth of the food, cosmetics and pharmaceutical industries is a great opportunity for the packaging industry to grow. To keep up with the times, Vietnam’s packaging industry needs to innovate further. Businesses need to improve a lot, especially in terms of technology to meet the requirements of the market.  Thus, enterprises can participate in the “race” of the global supply chain.

Business owners need a clear strategy. Effective management plans and solutions, finding the right technology equipment,… The production process needs to meet small orders, fast delivery. At the same time, the packaging design needs to be thinner, lighter, environmentally friendly and economical. Investors can rent workshops near Ho Chi Minh City to save costs. Kizuna is currently leasing a workshop of 200m2 to 10,000 m2. The factory is diverse in size, so it can meet any needs of the business..

The packaging industry needs to step up digital adoption

In the period of industrial revolution 4.0, the packaging industry needs to step up digital adoption. At the same time, building a smart factory, while saving costs, immediately meets the urgent requirements of welding customers.