Belonging to the supporting industry, Vietnam’s plastic and rubber products are also gradually being standardized to match the integration trend and meet the international standards that Vietnam is committed to implementing. Currently, the development of the plastic – rubber industry has many changes and the competitiveness is increasing in the production of products in general and the rubber – plastic products of the supporting industry in particular. Accordingly, the goal that should be directed is to improve the supply of supporting industrial products for high-tech enterprises and at the same time improve the quality of traditional rubber-plastic products.
In the period from 2016 to 2020, there are more than 3,000 manufacturing and trading enterprises in the field of rubber and plastic across the country. In which, 70% of enterprises belong to Ho Chi Minh City with more than 120 members of the City Rubber – Plastic Association. Ho Chi Minh City is producing 30% car tires, 50% two-wheel tires, 70% technical rubber,… In 2020, the industry’s contribution proportion will be about 15.75%, down 1.25% compared to 2013.
The rubber – plastic products in the supporting industry are mainly consumed in the domestic market, with about 92% of revenue. In general, the supply and production capacity of plastic-rubber manufacturers is still low: it can meet 85-90% of the needs of the motorcycle manufacturing and assembling industry; 20% demand of the automobile manufacturing and assembly industry; 40% of the consumer electronics industry’s demand; 15% of the needs of the electronics and telecommunications industry and 5% of the high-tech industry.
Some basic rubber products are produced by enterprises in the rubber supporting industry such as: Footrest rubber, shock absorber, cushion rubber… Meanwhile, most high-end rubber products such as transmission belts, seals, hydraulic rubber hoses… are all imported or provided by FDI enterprises.
It can be seen that it is the fragmentation in industry development that has not created a supply chain that makes the enterprises producing rubber – plastic products in the supporting industry develop inefficiently, and individual manufacturing enterprises. , do not combine to create product clusters, and at the same time, there has not been a large investment in modern production technology, so the capacity to make large and high quality orders is still very limited. Not only that, one of the biggest challenges of the industry is coming under direct competitive pressure from foreign products, when most of these companies are manufacturing according to global supply chains, applying innovative technology. advanced technology, environmentally friendly. Therefore, in order to increase the competitiveness of the domestic market share as well as to export, domestic enterprises need to overcome the above limitations.
