Report Overview

Vietnam Biodegradable Plastics Market- Industry Trends & Forecast Report 2027

Vietnam biodegradable plastics market is estimated to grow at a CAGR of 21.0% during the forecast period (2021-2027). The growth can be attributed to the increased awareness and rigorous government rules on non-biodegradable plastics. Biodegradable plastics are increasingly used in packaging, consumer goods, textiles, agriculture & horticulture, and other end-use industries.

Vietnam Biodegradable Plastics Market Overview

Degradable plastics are known as biodegradable because they can decompose when exposed to living organisms, typically microbes, including fungi, bacteria, and algae. Both bio-based and synthetic/petrochemical-based biodegradable polymers are sold in the biodegradable plastics market. The growing awareness of environmental issues among consumers and the strict implementation of environmentally friendly products are driving growth in the Vietnamese biodegradable plastic market.

Vietnam Biodegradable Plastics  Market Trend

Growth Drivers

The Adverse Effect of Plastics on Environment is Pushing the Demand for the Market

Plastic contaminates and accumulates in food chains via agricultural soils, aquatic food chains, and terrestrial water supply once it reaches the environment in the form of macro- or microplastics. Conversely, biodegradable or environmentally-friendly plastic absorbs harmful chemicals from the environment or concentrate existing toxins that could be re-exposed to humans either directly or indirectly. Microplastics that enter the human body through ingestion or inhalation can cause inflammation, genotoxicity, oxidative stress, necrosis,  and apoptosis, all of which have been linked to a variety of adverse health outcomes, including cancer, cardiovascular disease, inflammatory bowel disease, diabetes, rheumatoid arthritis, chronic inflammation, auto-immune conditions, neurodegenerative diseases, and stroke. Hence, the adverse impact of plastics on the environment is pushing demand for biodegradable plastics in the country, thereby driving the market’s growth.

Restraints

High Cost of Bioplastics is Limiting the Market’s Growth

The high cost of bioplastic products is a significant factor impeding the market's growth. Bioplastics are currently more than twice as expensive as regular petroleum plastics. The high cost of R&D initiatives and polymer plant building, combined with the high price of raw ingredients, and the limited production scale are other primary factors restricting the growth of the Vietnam bioplastic market. Traditional PET resin costs USD 2.1 per kilogram while Bio-PET resin costs USD 2.3 per kilogram. Reduced production costs, on the other hand, may lower the final cost of bioplastic packaging, boosting the market over the projection period.

Impact of COVID-19 on the Vietnam Biodegradable Plastics Market

The novel coronavirus has had an insignificant impact on biodegradable plastics manufacturers in Vietnam. For instance, according to Nguyn Lê Trung, General Director of An Phát Bioplastics, bag production did not fall in 2020 since the company produces bags for the food sector, where market demand was stable. The total output was up 7.6% year-on-year. In February 2020, production went up by 956 tonnes, and revenue from bag exports rose from VNĐ10 billion (USD 427,460) to VNĐ358 billion. Due to the pandemic, many plants had shut down in China. However, since market demand was high, foreign sellers resorted to ordering bags from the manufacturers in Vietnam.

Vietnam Biodegradable Plastics  Market: By Type

Based on types, the Vietnam biodegradable plastics market is segmented into polylactic acid (PLA), starch blends, polyhydroxyalkanoates (PHA), and others. Among these, the PHA segment has witnessed the highest CAGR during the forecast period. PHA is gaining immense popularity in food applications. PHAs are biodegradable, compostable thermoplastics made from carbon-based feedstocks by microbial fermentation. By varying the monomer combinations used in the polymer chain, PHA polymers can be tailored to suit various applications.

Source: BlueWeave Consulting

Competitive Landscape

The Vietnam biodegradable plastics market is highly fragmented due to the presence of limited domestic and international players. Additionally, the emergence of new players has resulted in healthier competition among long-established service providers in the industry. Some key players in the Vietnam biodegradable plastics market are RKW Vietnam Ltd., An Phat Holdings, Biostarch, Phu My Plastic Production JSC, Minh Sang Trading Production Company Limited, and other Prominent Players.

Recent Developments

• In August 2021, An Phat Holdings, a leading environmentally-friendly plastics group in Vietnam with a closed business ecosystem, received the investment certificate for its An Phat PBAT manufacturing mega-project. Simultaneously, the company announced a deal with Technip Energies, world-leading engineering and technology company, for the plant's Front End Engineering Design (FEED) bidding package, as well as the award of intellectual property rights to its patents on green material creation. 

• In March 2021, An Phat Holdings, Vietnam's leading environment-friendly plastic firm, announced its plan to construct Southeast Asia's largest green material manufacturing plant in Vietnam.

Scope of the Report:

• By Type

· Polylactic Acid (PLA)

· Starch Blends

· Polyhydroxyalkanoates (PHA)

o Polycaprolactone (PCL)

o Polybutylene Adipate Terephthalate (PBAT)

o Polybutylene Succinate (PBS)

o Others

o

• By End-Use Industry

· Packaging

· Consumer Goods

· Textile

· Agriculture & Horticulture

· Others

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Primary & Secondary Research Application
      2. Secondary Research
      3. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation
3. Executive Summary
4. Vietnam Biodegradable Plastics Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   3. Recent Development
   4. Technological Advancements
   5. Regulatory Framework
   6. Porter’s Five Forces Analysis
      1. Bargaining Application of Suppliers
      2. Bargaining Application of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
5. Vietnam Biodegradable Plastics Market Overview
   1. Market Size & Forecast by Value, 2017-2027
      1. By Value (USD Billion)        
   2. Market Share & Forecast
      1. By Type
         1. Polylactic Acid (PLA)
         2. Starch Blends
         3. Polyhydroxyalkanoates (PHA)
            1. Polycaprolactone (PCL)
            2. Polybutylene Adipate Terephthalate (PBAT)
            3. Polybutylene Succinate (PBS)
         4. Others
      2. By End-Use Industry
         1. Packaging
         2. Consumer Goods
         3. Textile
         4. Agriculture & Horticulture
         5. Others
6. Competitive Landscape
   1. Company Market Share Analysis, 2020
   2. Competitive Benchmarking, By Product Offerings
   3. List of Key Players and their Offerings
7. Impact of COVID-19 across Industry
8. Company Profile (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
   1. RKW Vietnam Ltd.
   2. An Phat Holdings
   3. Biostarch
   4. Phu My Plastic Production JSC
   5. Minh Sang Trading Production Company Limited
   6. Other Prominent Players
9. Key Strategic Recommendations

*Financial details of unlisted companies will be available as per data availability in final deliverable

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable.

List of Figures

Fig 1: Vietnam Biodegradable Plastics Segmentation

Fig 2: Vietnam Biodegradable Plastics Market Value Chain Analysis

Fig 3: Company Market Share Analysis, 2020

Fig 4: Vietnam Biodegradable Plastics Market Size, By Value (USD Billion), 2017-2027

Fig 5: Vietnam Biodegradable Plastics Market Share, By Type, By Value, 2017-2027

Fig 6: Vietnam Biodegradable Plastics Market Share, By End-Use Industry, By Value, 2017-2027

List of Tables.

Table 1: Vietnam Biodegradable Plastics Size, By Value, 2017-2027

Table 2: Vietnam Biodegradable Plastics Market Size, By Type, By Value, 2017-2027

Table 3: Vietnam Biodegradable Plastics Market Size, By End-Use Industry, By Value, 2017-2027

Table 4: RKW Vietnam Ltd. Business Overview

Table 5: RKW Vietnam Ltd. Financial Analysis

Table 6: An Phat Holdings Business Overview

Table 7: An Phat Holdings Financial Analysis

Table 8: Biostarch Business Overview

Table 9: Biostarch Financial Analysis

Table 10: Phu My Plastic Production JSC Business Overview

Table 11: Phu My Plastic Production JSC Financial Analysis

Table 12: Minh Sang Trading Production Company Limited Business Overview

Table 13: Minh Sang Trading Production Company Limited Financial Analysis