Vietnam packaging industry to lure foreign investment with high, stable growth

Vietnam's packaging industry has posted a high and stable annual growth rate in the past years, hitting 13.4% per year in the 2015-2020 period, according to Nguyen Ngoc Sang, chairman of the Vietnam Packaging Association.

“As the packaging industry will continue to grow in tandem with the development of Vietnam's economy, it is expected to be very attractive to investors from many countries,” Sang said at the opening ceremony of the 16th International Processing, Packaging Exhibition for Vietnam (ProPak Vietnam 2023) in Ho Chi Minh City Wednesday.

However, to attract more FDI, Vietnam's packaging industry must increase its competitiveness through effective management, implement digital transformation, and turn itself into a green industry that meets the requirements of a sustainable economy, he said.

BT Tee, general manager of expo organizer Informa Markets Vietnam, said packaging played an important role in preserving, transporting and distributing goods.

Over the past few years, the food and beverage packaging industry has seen gains from the development of e-commerce and the rapid spread of app-based delivery businesses. The free trade agreements that Vietnam participates in were another catalyst for growth, he said.

Market Research Future, a leading market analysis company, has forecast a compound annual growth rate (CAGR) of 3.6% for the global plastic packaging market and 4.7% for paper packaging in 2023-2030.

According to leading global market researcher Mordor Intelligence, Vietnam's plastic packaging market is expected to grow from 10.07 million tons in 2023 to 15.09 million tons in 2028, with an average annual growth rate of 8.44% in 2023-2028.

It expects paper packaging to expand from $2.37 billion in 2023 to $3.77 billion in 2028, with a CAGR of 9.73%. Packaging for the food and beverage industry will continue to occupy a significant market share.

The three-day (Nov 8-10) ProPak Vietnam 2023 has attracted 400 exhibitors from more than 30 countries and territories, including the U.S., the UK, France, Germany, Italy, Denmark, Poland, the Netherlands, Australia, Austria, Belgium, Japan, South Korea, Singapore, mainland China, and Taiwan. It showcases advanced packaging, processing and pharmaceutical technologies, cold chain logistics and warehousing, coding and marking, labelling and testing equipment.