Strength of Vietnam plastic bag industry

The first advantage of Vietnam plastic bag manufacturers in producing plastic bags is much cheaper cost of raw materials, land rent, labor cost compared with other Asian countries. Big factories in Vietnam are usually located in province which far away from center. The reason for it is its absolute advantages in land cost and labor cost. Vietnam is usually known as an agricultural nation which specialized in working on farm with very low income.
However, when industrial zone appeared, it created big advantages to recruit a huge number of workers from those farmers with very cheap salary. In average, the conversion cost for 1 ton of plastic bag for Vietnam plastic bag manufacturers ranges from 250USD to 500USD up to different kinds of bags.

Moreover, rent fee of land also is much cheaper compared with developed countries. That’s why a lot of bigcompanies of plastic bag in developed countries can not compete with Vietnam plastic bag suppliers. They have to close their factories and change to become wholesalers and importers. They import bags from Vietnam and resell in their markets (especially for EU, US, Japan…).

The other advantage of Vietnam plastic bag manufacturers is no anti dumping tax to EU countries. Anti dumping tax on plastic bags is created because the companies in EU,USA cannot compete with cheap prices from Asia. The anti dumping tax ranges from 8% to 30% for almost Asian countries especially put on China; the tax rate depends on different factories. There is no anti dumping tax on plastic bag suppliers in Vietnam therefore, it makes Vietnam become a very strong competitor compared with other Asian countries, especially China.

The most advantage of Copa Vina JSC is no anti dumping duty to USA, no company in Vietnam candoit.
Regarding to the quality of plastic bag, Vietnam also imports materials (virgin resin) from Saudi Arabia, Israel, Thailand, Japan, etc and machines from Taiwan, Japan, Germany therefore, the quality is at the same level as other Asian countries. Even Vietnam’s plastic bag quality is known more stable than China.

Taking those advantages, Vietnam become more and more competitive in global market and attract a lot of customers from developed countries and try to expand their capacity. It will open very promising future for Vietnam plastic industry and big opportunities for worldwide customers to get high quality and cheap prices.