By Abbas Nazil
Strong foreign direct investment inflows are accelerating the transformation of Vietnam’s plastics sector, positioning it as a critical pillar in the country’s supporting industries and global supply chains.
Rising FDI is reshaping production standards, localisation efforts and competitiveness, as plastics packaging and components serve industries ranging from electronics and automobiles to healthcare, construction and consumer goods.
According to the Ministry of Industry and Trade, Vietnam’s localisation rate across supporting industries remains at about 35 per cent, significantly below the government’s 45 to 50 per cent target for 2030.
This gap highlights both challenges and opportunities, as shifting global supply chains and growing domestic demand open a vast market space for local plastics manufacturers.
While a number of Vietnamese firms have mastered complex and high-tech plastic components, their scale is still limited compared to overall market needs.
Heavy dependence on imported raw materials, which can account for up to 70 per cent of inputs, continues to expose firms to oil price volatility and exchange rate risks.
At the same time, increasingly strict green and sustainability standards from export markets are forcing plastics companies to accelerate technological upgrades.
Industry players say participation in global supply chains requires comprehensive transformation across production lines, technology adoption, workforce skills and financial management.
Le Van Thanh, chief accountant of a healthcare plastics component manufacturer in Dong Nai, said significant upfront capital is needed to modernise operations and ensure sustainable growth.
Export-oriented plastics producers also face long payment cycles that lock up cash flow and intensify financial pressure.
Nguyen Van Hung, director of a plastics firm supplying foreign-invested factories and exporting to the EU, said access to suitable financial partners is as important as capital itself.
He noted that green standards from the US and EU demand large investments in new processes and technologies.
Banks are responding to these pressures by developing specialised financial solutions tailored to the plastics industry.
Southern lender ACB said it has created a full-cycle financial ecosystem to help plastics enterprises manage resources and expand global integration.
The bank offers flexible working capital loans, including unsecured facilities or those requiring minimal collateral, alongside medium and long-term financing for machinery upgrades.
Trade finance services such as letters of credit, export document pre-payments and contract guarantees are also designed to support delivery schedules and credibility.
For companies exposed to foreign exchange risks, ACB provides FX rate lock-ins, reduced transfer fees and hedging tools.
Foreign-invested enterprises can also access preferential credit packages aligned with different development stages.
To address recycling obligations and environmental standards, ACB has launched a green credit package worth up to $200 million.
This funding supports investments in energy-efficient machinery, recycling systems and emission-reduction technologies.
By linking incoming FDI with the upgrading of domestic suppliers, financial institutions aim to strengthen Vietnam’s long-term industrial competitiveness.
As FDI momentum continues, Vietnam’s plastics sector is expected to play an increasingly strategic role in global value chains.
