Market and product
Plastic Exports to Cambodia Soar
(VEN) - In the first two months of this year, the Vietnamese plastic exports to Cambodia earned more than US$12.6 million, up 15 percent compared to the same period last year, turning Cambodia into one of the five largest export markets for Vietnamese plastic products.
Statistics from the General Department of Vietnam Customs showed that plastic exports to the neighboring market in February 2012 hit US$7.6 million, up 39.3 percent compared with February 2011, lifting total revenues in the first two months of this year to more than US$12.6 million, a year-on-year increase of 15.22 percent. Cambodia now ranks fifth among largest plastic importers of Vietnam, after Japan, the US, Germany and Thailand. According to the Vietnam Plastics Association (VPA), plastic exports revenue to Cambodia in March 2012 is predicted to reach more than US$8 million, earning the total revenues of more than US$20 million in the first quarter of this year.
In February 2012, Vietnamese companies exported a wide range of plastic products to Cambodia, of those plastic bags are major exports (US$2.9 million), followed by products used in transportation and packing (US$1.27 million) and plastic boards, sheets and plastic films (US$1.24 million). Since the requirements for plastic product's quality of this market are not too strict, Vietnamese enterprises did not encounter many difficulties in raising revenue and plastics product will remain key export products to Cambodia in 2012.
Remarkably, VPA predicted that the consumption and construction demand in Cambodia are now recovering strongly. Therefore, Vietnamese exports of household plastic products, pipes and accessories will register a significant growth this year. VPA also reported that thanks to the favorable geographical position and close trade relations between two countries, the prospect of raising plastic exports revenue to Cambodia is promising. Since Cambodian production capability remains weak and it has to import many goods from Vietnam, this offers big opportunities for Vietnamese enterprises to expand plastic exports to this market.
However, the competitiveness of Vietnamese plastic products in Cambodia market remains low due to the monotonous models, designs and quality. Therefore, VPA also warned Vietnamese enterprises that they need to innovate production technology, use recycled materials to protect the environment and take full advantages of the geographical position and other commitments made by the Cambodian Government./.
