Duy Tan Plastics Manufacturing Corporation (Vietnam)

The subject engages in manufacturing and trading plastic products. Its diverse product portfolio is classified into 3 main groups: household products, industrial products, and packaging products. Its products are distributed through many channels such as stores, showrooms, businesses, and supermarkets. It is also a supplier of plastic containers for many famous companies such as Unilever, Lavie, Nestle, Castrol, Kao… Most of its products are sold in Vietnam and about 20% of products are exported to the USA and other markets. Duy Tan Plastic is a member of Vietnam Plastic Association. On May 17, 2023, this company continued to be honored in the list of "Top 500 fastest growing enterprises in Vietnam in 2023".As of 2021, the subject became a member of SCG Packaging (SCGP) through the 70% ownership of Scgp Rigid Packaging Solutions Pte. Ltd. This company is one of the subsidiaries of Siam Cement Group (SCG) - the largest, oldest cement and building material company in Thailand. In the Vietnamese market, this group has carried out many M&A deals and acquired domestic enterprises. The influence of SCG on the packaging, petrochemical, and building materials industries in Vietnam is becoming more and more prominent. According to the Vietnam Plastics Association (VPA), the growth rate of the plastic industry will be 8.4% from 2023 - 2028. In Vietnam, the plastic industry has nearly 4,000 businesses; Of which, 90% are small and medium-sized enterprises, concentrated mainly in the Southern region. Besides the domestic market, Vietnamese plastic products have been exported to more than 160 countries around the world such as the USA, Germany, France, UK, Italy, Netherlands, Spain, Japan... Plastic product export turnover has grown steadily over the years from USD 3 billion in 2018 to USD 5.5 billion in 2022, with an average growth rate of 12-20%/year. Domestic raw materials can meet 30% of domestic market demand, the remaining 70% is imported from many countries and territories. The growth rate of Vietnam's plastic industry has been slowing down since the end of 2022 until now due to the impact of the Covid-19 pandemic in particular and the global economic recession in general. Raw material costs account for the highest proportion in the cost structure of the plastic industry. However, Vietnamese plastic companies cannot proactively source domestic supplies, having to import up to 70% of input materials. This situation leads to plastic companies having to maintain large raw material inventories to ensure uninterrupted production and business activities. This leads to increased financial costs, plus risks of exchange rate changes and world oil prices. This limitation is a common characteristic of the entire Vietnamese plastic industry and is unlikely to change in the next few years.