In 2025, Vietnam has achieved its highest industrial production growth in 5 years. A report from National Statistics Office of Vietnam (NSO) shows that Vietnam’s industrial production in the second quarter of 2025 rose by 10.3% year-on-year based on the Industrial Index of Production (IIP), with 12.3% increase in the processing and manufacturing sector.

These figures reflect the robustness of the country’s industrial sector – with automotive, consumer goods and food manufacturing sectors being at the forefront of the industrial expansion.

These industries are served by Vietnam’s plastics producers who offer tailored production solutions for various demanding applications that require specific mechanical properties.

Vietnam posted its highest industrial production growth in 5 years, according to the National Statistics Office of Vietnam. (Source: Pexels)

Continuous growth in Vietnam’s plastics market

In particular, production of Vietnam’s plastics market has been on the upswing at 11.84 million tons in 2025 and moving forward, it will reach more than 17 million tons by 2030 (CAGR 8.44%), according to a report from Mordor Intelligence.

Robust foreign direct investment, aggressive infrastructure spending, and decisive regulatory modernization, all contribute to Vietnam’s status in becoming Southeast Asia’s fastest-growing plastics hub, the report states.

One significant trend pertains to the adoption of recycled content in production of packaging, auto parts and construction supplies, etc., is the growing environmental awareness has led consumers to patronize recycled plastics products. The circular economy transition has led to the rise in the use of sustainable materials and utilization of more advanced recycling technologies.

As Vietnam emphasizes its own Extended Producer Responsibility (EPR) law that mandates packaging producers and importers to implement recycling and treatment of their products and packaging after disposal, Vietnam-based packaging suppliers are moving to enhance recycling capabilities and increase the recycled content in their products to achieve a circular economy.

Plastics industry strives to meet rigorous applications

Vietnam’s plastics industry supports the growth of multiple sectors. Food and beverage sector is one of the major contributors to Vietnam’s impressive industrial performance. This sector accounts for nearly 50% of the plastics industry’s production as this sector relies on plastic films, blow molded containers and injection molded packaging products to meet strict standards for food-contact packaging. 

Robust growth of industries such as food & beverage is pushing demand for plastic processing technologies and materials. (Source: Pexels)

Infrastructure spending has been strong with over 40% growth year-on-year in the first half of 2025 alone, posing huge demand for PVC pipes, insulation boards, flame-retardant cable trays and more. The latest breed of halogen-free compounds and heat-resistant engineering plastics are key factors enhancing quality of building and construction supplies which need to undergo mandated quality checks and adhere to stringent standards.

The surge in automotive production has created demand for high-performance engineering plastics which guarantee lightweighting and respond to Vietnam’s fast-emerging electric vehicles manufacturing sector.

Other fast-emerging users of plastics include manufacturers of household and furniture items, consumer electronics and electrical products, as well as medical devices.

Amplifying Vietnam’s role in the global plastics market

Vietnam has always been one of the favorite investment locations of global companies who want to move their production hub to Southeast Asia. New investments and expansion of existing companies operating in Vietnam provide a clear example of the country’s ability to lure investors. These investments also reflect Vietnam’s move to encourage sustainable production processes aligned with the circular economy goals.

The surface treatment global business unit of Germany-based BASF Coatings operating under the Chemetall brand, was selected by Circular Plastics Company, a Singapore-based regional plastic recycler with operations in Myanmar and Vietnam, to supply innovative PET recycling washing solutions for its plastic recycling plant in Vung Tau, Vietnam. Under the agreement, Chemetall is set to provide a range of novel technologies tailored for Circular Plastics Company’s facilities, which recycle post-consumer PET plastics into food-grade products in Myanmar and Vietnam.

Chemetall was selected by Circular Plastics Company to supply innovative PET recycling washing solutions for its plastic recycling plant in Vung Tau, Vietnam. (Source: BASF)

Circular Plastics Company’s Vietnam plant employs advanced recycling technologies, including an Italian Sorema washing line, a TOMRA sorter, and a granulation line from Starlinger. The integration of these technologies substantially improves the quality of treated flakes, boosts productivity, and reduces energy and resource consumption. The solutions also enable the plastic recyclers to produce washed flakes that comply with food contact standards.

In the area of flexible packaging, Mainetti, an Italian company in retail packaging solutions, has opened a new factory in the Hung Yen Province of Vietnam to provide sustainable packaging solutions. The facility is projected to produce up to 3,000 metric tons of bags annually (equating to approximately 360 million bags). Most components of the bags are made from recycled materials, contributing to a reduction in carbon emissions, while high-speed and efficient machinery facilitates large-scale production. 

Mainetti has opened a new factory in Hung Yen Province of Vietnam. (Source: Mainetti)

SCG Packaging Public Company Limited, a subsidiary of Thailand's industrial giant SCG, has acquired an additional 30% stake at Duy Tan Plastics Manufacturing Corporation (Duy Tan JSC), becoming its sole owner. This demonstrates that SCGP considers Vietnam as its most important strategic market after Thailand, and this acquisition aims to deepen its consumer packaging presence in the ASEAN region.

SCG Packaging Public Company Limited is now the sole owner of Duy Tan JSC. (Source: Duy Tan JSC)

Swedish multinational packaging giant, Tetra Pak, has expanded its production facility by adding a second packaging material production line to its Binh Duong facility in Vietnam, boosting annual production of food and beverage packaging from 12 billion to 30 billion. The production line features a barrier system equipped with high-resolution inline scanning cameras, LED lighting, AI technology to detect defects in real-time.

Tetra Pak adds a second packaging material production line to its Binh Duong facility in Vietnam, raising production of food and beverage packaging to 30 billion. (Source: Tetra Pak)

CHINAPLAS 2026 as stage for plastic solutions suited for Vietnam’s industries

All investments and projects above are expected to boost demand for high-tech production technologies and materials solutions from Vietnam-based companies to ensure supply chain and competitive operations.

At CHINAPLAS 2026, which will take place on April 21-24 in Shanghai, China, will showcase innovative technologies, cutting-edge solutions and green materials which will facilitate Vietnam’s fast industrial expansion.