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Home > News > Regional News

ASEAN rising: Vietnam, Indonesia and Malaysia under spotlight

Source：Adsale Plastics Network Date ：2025-04-09 Editor ：RC
Copyright： This article was originally written/edited by Adsale Plastics Network (AdsaleCPRJ.com), republishing and excerpting are not allowed without permission. For any copyright infringement, we will pursue legal liability in accordance with the law.

Established in 1967, the Association of Southeast Asian Nations (ASEAN) aims to promote cooperation in the economic, social, cultural, technical, educational and other fields among the Southeast Asian countries.

 

Among the member states, Vietnam, Indonesia and Malaysia have achieved more significant growth in economic and industrial sectors in the past few years. The plastic industry in these three countries see opportunities in different application areas, especially packaging, automotive, and electrical and electronic (E&E) industry.

 

Vietnam’s economy leading the way 

 

In 2024, Vietnam’s gross domestic product (GDP) marked a positive result of 7.09%, according to Vietnam’s General Statistics Office (GSO), despite the challenging global economy.

 

Among various sectors in the country, industrial and construction sector stands as the second of the main economic growth drivers for Vietnam. This sector contributed 45.17% to its GDP growth, with an increase of 8.24% compared to 2023 data.

 

Vietnam will stand out from the top six ASEAN (ASEAN-6) economies in the next few years. Oxford Economics, a global economic advisory firm related to Oxford University’s business college, as well as other international financial institutions including the Asian Development Bank, HSBC, Standard Chartered, and UOB, forecasts Vietnam’s GDP growth rate in 2025 will be 6.5-6.7%.

 

Vietnam also reported to have attracted over US$38.2 billion in foreign direct investment (FDI) in 2024, according to data from the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

 

Based on the data from Japan External Trade Organization (JETRO), Vietnam was listed the first country to attract most FDI among Asian countries, and second among the world. Foreign investment into the country were made in various economic sectors. Among them, “manufacturing and processing” sector took the lead.


ASEAN_480.jpg

Vietnam is establishing itself as a dynamic manufacturing hub.

 

Plastics industry expected to grow 

 

Vietnam’s plastics market size is forecasted at 11.84 million tons in 2025 and expanded to 17.76 million tons by 2030, at a CAGR of 8.44% during the forecast period 2025-2030, according to Mordor Intelligence.

 

The country’s plastics industry is experiencing significant transformation, driven by technological advancement and sustainability initiatives.

 

Packaging industry dominates the plastics market

 

Plastic packaging industry dominates the plastics market in Vietnam, accounting for approximately 50% of the total market share in 2024, according to Mordor Intelligence.

 

The organization also pointed out that Vietnam’s plastic packaging market is anticipated to increase from 10.07 million tons in 2023 to 15.09 million tons in 2028, boasting a CAGR of 8.44%. Plastic packaging for the food and beverage (F&B) industry retains a significant market share.

 

One of the growth drivers for the substantial growth of Vietnam’s packaging industry is its rapid economic development. With the rise of middle class income, demand for packaged F&B products, personal care products and pharmaceuticals, as well as the expanding e-commerce market, increase the demand for plastic packaging solutions.

 

Automotive industry transforming to sustainability

 

Vietnam’s Ministry of Industry and Trade has released a draft decision on the “Development Strategy for Vietnam’s Automotive Industry to 2030, with a Vision to 2045”. It outlines ambitious targets for the industry to achieve an average market growth rate of 14-16% annually by 2030, with sales reaching 1-1.1 million units per year.

 

By 2045, the automotive market is projected to grow at a rate of 11-12% annually. A significant focus is placed on electric, hybrid and solar-powered vehicles, ranging 4.3-4.4 million units, which would account for 80-85% of the market.

 

For production, it is forecasted to grow to up to 700,000 vehicles annually by 2030, with 18-22% of them are green vehicles.

 

Indonesia’s new starts welcome investment opportunities

 

Indonesia has sustained a strong economic performance in the past few years, proven by its role as the tenth largest economy among the world. According to the World Bank’s forecast, the country’s high private consumption and favorable foreign trade has been contributing to the growth of its positive GDP, which would average around 4.9% annually.

 

Indonesia also faces a lot of new starts in recent years. In 2025, Indonesia was officially announced as a full member of the BRICS, making the country the first Southeast Asian country to join the intergovernmental organization. This milestone allows Indonesia to deepen collaboration and partnership in the Global South.

 

Another new start is Indonesia’s new capital project – Nusantara – featuring smart city initiatives, cutting-edge technologies for sustainability, and inclusive development.

 

Reuters reported that Nusantara requires an estimation of US$33 billion to be built from scratch. The Indonesian government aims to adopt a 2:8 public-private partnership model for funding the new capital’s development.

 

Investment opportunities also spur, encompassing a wide range of sectors, including smart city technologies, sustainable infrastructure, real estate, logistics and transportation, and telecommunications.

 

Plastics market anticipated to grow

 

Indonesia’s plastics market has shown remarkable improvement over the years. With a market size estimated at 7 million tons in 2024, it is growing annually by 4.5% to reach 8.88 million tons by 2029, according to a report released by Mordor Intelligence.

 

Increasing demand from end-user industries, such as packaging, automotive, electrical and electronics as well as construction industry, heightens the demand for plastics.

 

Innovations in packaging aim at circular economy

 

Indonesia’s packaging industry is projected to grow at a CAGR of over 3% from 2023 to 2028, in which flexible packaging accounts for the highest share, with a growth at over 5% in the next few years.

 

Innovations in Indonesia’s packaging industry develop towards circular economy goals. For example, Danone and Prevented Ocean Plastic Southeast Asia partnered to open a new high-volume plastics collection center in Indonesia, which is designed to process 500 tons of recycled plastics per month.

 

Automotive industry focuses on EVs

 

Striving to be ASEAN’s biggest car manufacturer, Indonesia’s government has been offering attractive incentives, including tax breaks, subsidies and improvements in infrastructure, to attract foreign direct investments to develop the country’s automobile assembly and auto parts manufacturing sector.

 

Indonesia’s Coordinating Ministry for Maritime Affairs and Investment aims to put 15 million electric vehicles (EVs) – 13 million two-wheeled and 2 million four-wheeled vehicles – on the road by 2030.

 

Chinese car brands, including Neta, Wuling, Chery, and Sokon, have expanded their manufacturing operations to Indonesia, following the agreement with the Industry Ministry of Indonesia.

 

Wuling Motors, the first Chinese automobile manufacturer to build a production plant in Indonesia, has already started to produce EV models at its factory in Cikarang, West Java. It has been producing more than 100,000 units in Indonesia for both domestic and export markets. The company is also set to produce EV battery at its facility.

 

PT BYD Motor plans to build an EV production plant with a capacity of 150,000 EVs production per year. Chery Automobile also eyes producing plug-in hybrid electric vehicles (PHEVs) in Indonesia with plans to produce 100,000 EV units by 2030.

 

Malaysia to focus on high-value manufacturing industry

 

Malaysia’s GDP is estimated to achieve 1,647.2 billion MYR in 2024, which is a growth of 5.1% compared to the data in 2023, according to the Department of Statistics Malaysia (DOSM).

 

The manufacturing sector recorded a growth of 4.3% in Q4 2024, supported by production of “electrical, electronic & optical products”, “petroleum, chemical, rubber & plastic products”, “vegetable and animal oils & fats”, and “food processing products”.

 

In the New Industrial Master Plan (NIMP) 2030, Malaysia aims to develop high-valued and innovation-driven industries including electronic, chemicals, aerospace and automotive manufacturing. In particular, the electrical vehicle sector is considered a high-impact sector under NIMP 2030.

 

For the plastics industry in Malaysia, it is projected to reach US$3.89 billion in 2024 and grow to US$4.71 billion by 2029, representing a CAGR of 3.91% over the forecast period. The industry serves various downstream manufacturing sectors, including E&E, automotive, food and beverage packaging, medical and healthcare and building material.

 

A large auto market in Southeast Asia

 

Malaysia is one of the largest auto markets in Southeast Asia, with car sales reaching nearly 800,000 in 2023, according to sales data released by industry groups from Malaysia, Thailand and Indonesia.

 

Malaysia’s automotive industry contributes to about 4% of the country’s annual GDP in 2023. The Malaysian government has launched the National Automotive Policy (NAP 2020), aiming for the automotive sector to contribute 10% of GDP by 2030.

 

Global auto manufacturers, such as Honda, Toyota, Nissan, Mercedes-Benz, BMW, VW, Porsche, Jaguar and Peugeot, maintain production facilities in Malaysia, with the intention of building production for the ever-expanding middle classes of Southeast Asia.

 

Malaysia is pushing towards trends such as diverse mobility, autonomous driving, electrification and digital connectivity that will shape the future of automotive industry. The Malaysian Investment Development Authority has approved of over 50 projects within the Energy Efficient Vehicles (EEV) category, recognizing the strong future shift towards electric.

 

A thriving E&E industry awaits

 

The E&E industry in Malaysia contributed to approximately 5.8% of the GDP in 2023, based on Malaysian Investment Development Authority (MIDA). The sector is also the largest in the country’s manufacturing industry. Malaysia’s export value of E&E products has continued to increase in the past few years. Statista, a global data and business intelligence platform reported that it was valued at approximately 575.46 billion MYR in 2023.


IVG_Photo.jpg

The E&E sector stands as the cornerstone of Malaysia's manufacturing industry.

 

Semiconductor sector is the key driver of the E&E industry in Malaysia. The semiconductor production in Malaysia has an increase of nearly three billion units from 2022 to 2023. The E&E industry is producing 13% of global back-end semiconductors, driving 40% of the country’s export output.

 

The NIMP 2030 recognized E&E industry as one of the focused high-value industries. Malaysia is also set to explore more high-end segments of the semiconductor supply chain such as integrated circuit design and wafer fabrication.


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Source：Adsale Plastics Network Date ：2025-04-09 Editor ：RC
Copyright： This article was originally written/edited by Adsale Plastics Network (AdsaleCPRJ.com), republishing and excerpting are not allowed without permission. For any copyright infringement, we will pursue legal liability in accordance with the law.

Established in 1967, the Association of Southeast Asian Nations (ASEAN) aims to promote cooperation in the economic, social, cultural, technical, educational and other fields among the Southeast Asian countries.

 

Among the member states, Vietnam, Indonesia and Malaysia have achieved more significant growth in economic and industrial sectors in the past few years. The plastic industry in these three countries see opportunities in different application areas, especially packaging, automotive, and electrical and electronic (E&E) industry.

 

Vietnam’s economy leading the way 

 

In 2024, Vietnam’s gross domestic product (GDP) marked a positive result of 7.09%, according to Vietnam’s General Statistics Office (GSO), despite the challenging global economy.

 

Among various sectors in the country, industrial and construction sector stands as the second of the main economic growth drivers for Vietnam. This sector contributed 45.17% to its GDP growth, with an increase of 8.24% compared to 2023 data.

 

Vietnam will stand out from the top six ASEAN (ASEAN-6) economies in the next few years. Oxford Economics, a global economic advisory firm related to Oxford University’s business college, as well as other international financial institutions including the Asian Development Bank, HSBC, Standard Chartered, and UOB, forecasts Vietnam’s GDP growth rate in 2025 will be 6.5-6.7%.

 

Vietnam also reported to have attracted over US$38.2 billion in foreign direct investment (FDI) in 2024, according to data from the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

 

Based on the data from Japan External Trade Organization (JETRO), Vietnam was listed the first country to attract most FDI among Asian countries, and second among the world. Foreign investment into the country were made in various economic sectors. Among them, “manufacturing and processing” sector took the lead.


ASEAN_480.jpg

Vietnam is establishing itself as a dynamic manufacturing hub.

 

Plastics industry expected to grow 

 

Vietnam’s plastics market size is forecasted at 11.84 million tons in 2025 and expanded to 17.76 million tons by 2030, at a CAGR of 8.44% during the forecast period 2025-2030, according to Mordor Intelligence.

 

The country’s plastics industry is experiencing significant transformation, driven by technological advancement and sustainability initiatives.

 

Packaging industry dominates the plastics market

 

Plastic packaging industry dominates the plastics market in Vietnam, accounting for approximately 50% of the total market share in 2024, according to Mordor Intelligence.

 

The organization also pointed out that Vietnam’s plastic packaging market is anticipated to increase from 10.07 million tons in 2023 to 15.09 million tons in 2028, boasting a CAGR of 8.44%. Plastic packaging for the food and beverage (F&B) industry retains a significant market share.

 

One of the growth drivers for the substantial growth of Vietnam’s packaging industry is its rapid economic development. With the rise of middle class income, demand for packaged F&B products, personal care products and pharmaceuticals, as well as the expanding e-commerce market, increase the demand for plastic packaging solutions.

 

Automotive industry transforming to sustainability

 

Vietnam’s Ministry of Industry and Trade has released a draft decision on the “Development Strategy for Vietnam’s Automotive Industry to 2030, with a Vision to 2045”. It outlines ambitious targets for the industry to achieve an average market growth rate of 14-16% annually by 2030, with sales reaching 1-1.1 million units per year.

 

By 2045, the automotive market is projected to grow at a rate of 11-12% annually. A significant focus is placed on electric, hybrid and solar-powered vehicles, ranging 4.3-4.4 million units, which would account for 80-85% of the market.

 

For production, it is forecasted to grow to up to 700,000 vehicles annually by 2030, with 18-22% of them are green vehicles.

 

Indonesia’s new starts welcome investment opportunities

 

Indonesia has sustained a strong economic performance in the past few years, proven by its role as the tenth largest economy among the world. According to the World Bank’s forecast, the country’s high private consumption and favorable foreign trade has been contributing to the growth of its positive GDP, which would average around 4.9% annually.

 

Indonesia also faces a lot of new starts in recent years. In 2025, Indonesia was officially announced as a full member of the BRICS, making the country the first Southeast Asian country to join the intergovernmental organization. This milestone allows Indonesia to deepen collaboration and partnership in the Global South.

 

Another new start is Indonesia’s new capital project – Nusantara – featuring smart city initiatives, cutting-edge technologies for sustainability, and inclusive development.

 

Reuters reported that Nusantara requires an estimation of US$33 billion to be built from scratch. The Indonesian government aims to adopt a 2:8 public-private partnership model for funding the new capital’s development.

 

Investment opportunities also spur, encompassing a wide range of sectors, including smart city technologies, sustainable infrastructure, real estate, logistics and transportation, and telecommunications.

 

Plastics market anticipated to grow

 

Indonesia’s plastics market has shown remarkable improvement over the years. With a market size estimated at 7 million tons in 2024, it is growing annually by 4.5% to reach 8.88 million tons by 2029, according to a report released by Mordor Intelligence.

 

Increasing demand from end-user industries, such as packaging, automotive, electrical and electronics as well as construction industry, heightens the demand for plastics.

 

Innovations in packaging aim at circular economy

 

Indonesia’s packaging industry is projected to grow at a CAGR of over 3% from 2023 to 2028, in which flexible packaging accounts for the highest share, with a growth at over 5% in the next few years.

 

Innovations in Indonesia’s packaging industry develop towards circular economy goals. For example, Danone and Prevented Ocean Plastic Southeast Asia partnered to open a new high-volume plastics collection center in Indonesia, which is designed to process 500 tons of recycled plastics per month.

 

Automotive industry focuses on EVs

 

Striving to be ASEAN’s biggest car manufacturer, Indonesia’s government has been offering attractive incentives, including tax breaks, subsidies and improvements in infrastructure, to attract foreign direct investments to develop the country’s automobile assembly and auto parts manufacturing sector.

 

Indonesia’s Coordinating Ministry for Maritime Affairs and Investment aims to put 15 million electric vehicles (EVs) – 13 million two-wheeled and 2 million four-wheeled vehicles – on the road by 2030.

 

Chinese car brands, including Neta, Wuling, Chery, and Sokon, have expanded their manufacturing operations to Indonesia, following the agreement with the Industry Ministry of Indonesia.

 

Wuling Motors, the first Chinese automobile manufacturer to build a production plant in Indonesia, has already started to produce EV models at its factory in Cikarang, West Java. It has been producing more than 100,000 units in Indonesia for both domestic and export markets. The company is also set to produce EV battery at its facility.

 

PT BYD Motor plans to build an EV production plant with a capacity of 150,000 EVs production per year. Chery Automobile also eyes producing plug-in hybrid electric vehicles (PHEVs) in Indonesia with plans to produce 100,000 EV units by 2030.

 

Malaysia to focus on high-value manufacturing industry

 

Malaysia’s GDP is estimated to achieve 1,647.2 billion MYR in 2024, which is a growth of 5.1% compared to the data in 2023, according to the Department of Statistics Malaysia (DOSM).

 

The manufacturing sector recorded a growth of 4.3% in Q4 2024, supported by production of “electrical, electronic & optical products”, “petroleum, chemical, rubber & plastic products”, “vegetable and animal oils & fats”, and “food processing products”.

 

In the New Industrial Master Plan (NIMP) 2030, Malaysia aims to develop high-valued and innovation-driven industries including electronic, chemicals, aerospace and automotive manufacturing. In particular, the electrical vehicle sector is considered a high-impact sector under NIMP 2030.

 

For the plastics industry in Malaysia, it is projected to reach US$3.89 billion in 2024 and grow to US$4.71 billion by 2029, representing a CAGR of 3.91% over the forecast period. The industry serves various downstream manufacturing sectors, including E&E, automotive, food and beverage packaging, medical and healthcare and building material.

 

A large auto market in Southeast Asia

 

Malaysia is one of the largest auto markets in Southeast Asia, with car sales reaching nearly 800,000 in 2023, according to sales data released by industry groups from Malaysia, Thailand and Indonesia.

 

Malaysia’s automotive industry contributes to about 4% of the country’s annual GDP in 2023. The Malaysian government has launched the National Automotive Policy (NAP 2020), aiming for the automotive sector to contribute 10% of GDP by 2030.

 

Global auto manufacturers, such as Honda, Toyota, Nissan, Mercedes-Benz, BMW, VW, Porsche, Jaguar and Peugeot, maintain production facilities in Malaysia, with the intention of building production for the ever-expanding middle classes of Southeast Asia.

 

Malaysia is pushing towards trends such as diverse mobility, autonomous driving, electrification and digital connectivity that will shape the future of automotive industry. The Malaysian Investment Development Authority has approved of over 50 projects within the Energy Efficient Vehicles (EEV) category, recognizing the strong future shift towards electric.

 

A thriving E&E industry awaits

 

The E&E industry in Malaysia contributed to approximately 5.8% of the GDP in 2023, based on Malaysian Investment Development Authority (MIDA). The sector is also the largest in the country’s manufacturing industry. Malaysia’s export value of E&E products has continued to increase in the past few years. Statista, a global data and business intelligence platform reported that it was valued at approximately 575.46 billion MYR in 2023.


IVG_Photo.jpg

The E&E sector stands as the cornerstone of Malaysia's manufacturing industry.

 

Semiconductor sector is the key driver of the E&E industry in Malaysia. The semiconductor production in Malaysia has an increase of nearly three billion units from 2022 to 2023. The E&E industry is producing 13% of global back-end semiconductors, driving 40% of the country’s export output.

 

The NIMP 2030 recognized E&E industry as one of the focused high-value industries. Malaysia is also set to explore more high-end segments of the semiconductor supply chain such as integrated circuit design and wafer fabrication.


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ASEAN rising: Vietnam, Indonesia and Malaysia under spotlight

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