CMC – South Korea’s National Plastic (NPC) on February 5 clinched a contract with Toda Industries Vietnam to establish a US$30-million joint venture to produce industrial and hi-tech plastic products.

The joint venture, NPC TODA Co. Ltd., will start operations in July this year at the Vietnam Singapore Industrial Park 2A (VSIP 2A) in the southern province of Binh Duong using energy-saving hybrid technology.

The project is expected to produce hundreds of thousands of products a year, including 288,000 pallets, for supply to foreign-invested firms in Vietnam and export to ASEAN countries.
NPC is now the supplier of industrial plastic products for many multinationals in the country. In Asia, the company has set up joint ventures in Singapore, Thailand, Malaysia and Myanmar.

Le Minh Tien, general director of Japan-invested firm Toda Industries Vietnam, told the Daily that the joint venture company will produce plastic items mainly for the domestic market.
In the past years, local demand for industrial plastic has increased by 20% a year and Vietnam has had to depend much on imports due to limited supply on the domestic market.
Almost all plastic firms in Vietnam are foreign-invested enterprises and mostly produce household plastic items and packaging, Tien said. He added that making industrial plastic products requires large investments and advanced technologies.

According to Jason Park of NPC, the South Korean firm has seen great potential for logistics development in Vietnam and new business opportunities when the country signs more free trade agreements such as the Trans-Pacific Partnership (TPP) .

According to the Vietnam Plastic Association (VPA), Vietnam earned more than US$2 billion from exporting plastic products last year, a year-on-year increase of 15.8%. Of which, industrial plastic products accounted for US$109.2 million, up 19.9% against 2013.

Source:  thesaigontimes