Situation of export logistics of plastic goods in the first quarter of 2020 in Vietnam

According to preliminary statistics, in the first 3 months of 2020, Vietnam's plastic material export turnover reached 268.5 thousand tons, valued at US $ 276.5 million, down 1.9% in volume and down 12.5% in value compared to 2019. Meanwhile, our country's plastic exports reached 801.5 million USD, down 0.8% compared to Q1 2019.

1. Mode of transport

Modes of transport in plastic exports in the first quarter of Vietnam (by value)

About 90.2% of Vietnam's plastic and plastic products value was exported by sea in the first three months of 2020, down 3.1% over the same period in 2019, to markets such as Japan, USA, Indonesia, Korea, China, Thailand, Netherlands, Germany, United Kingdom, Philippines, Taiwan (China), India, Bangladesh, Malaysia, Australia, Myanmar, Hong Kong (China), Canada, and France.

Export of this item by air decreased by 50.3%, accounting for 0.1% proportion, used in exports to markets: Korea, Japan, USA, India, China, Indonesia, Hong Kong (China), Netherlands, Brazil, Thailand, Austria, Australia, Taiwan (China), Russia, Myanmar, Singapore, United Kingdom, Germany, Malaysia.

In addition, plastic products exported via roads accounted for 0.7% but increased by 7.2% over the same period last year.

2. Method of delivery

delivery under incoterm conditions in Vietnam's export of plastics in Q1 2020 (by value)

In the first 3 months of 2020, exports of plastic and plastic products using FOB delivery methods accounted for the largest proportion of value (accounting for 44.1%), down 1.6% compared to the same period in 2019, reaching 353.5 million USD; Used for exporting to main markets such as USA, Japan, Germany, England, Netherlands, Korea, Indonesia, Australia, India, Canada, Thailand, China, Belgium, France, Hong Kong (China), Taiwan (China), Poland, Russia, Brazil.

Export of this commodity using CIF method also decreased by 14.2% in the first 3 months of 2020 compared to the same period last year, accounting for 24.2%, reaching US $ 194 million, used for exports to other markets: Japan, Indonesia, USA, Thailand, China, Korea, Taiwan, Philippines, Malaysia, India, Netherlands, Myanmar, South Africa, Hong Kong (China), Australia, Singapore, Romania.

Next is EXW export, down 10.2%, accounting for 10.9% of the proportion, used for exports to major markets: Indonesia, South Korea, Bangladesh, Japan, USA, Cambodia, Pakistan, India, China, Philippines, Hong Kong (China), Taiwan (China), Guatemala, Malaysia, Dominica, United Arab Emirates.

In addition, domestic enterprises also export this item by other delivery methods such as: CFR, FCA, DDP, DAP, DAF, CIP, DUU, reaching over 2.3 million USD. In general, most of methods have decreased compared to the same period last year; Particularly, the DAP method increased sharply by 212.1%.

3. Seaports and export border gates

In the first 3 months of 2020, Cat Lai port (Ho Chi Minh City) transported 32.6% of the value of plastic and plastic products exported from our country, equivalent to US $ 261.3 million, down 13, 2% over the same period last year, from here exported to markets: Japan, Indonesia, South Korea, USA, Thailand, China, Taiwan (China), Malaysia, India, UK, Philippines, Hong Kong (China), Australia, Myanmar, Germany, South Africa, France, Cambodia.

Structure of ports and border gates in the export of plastics and plastic products in the first 3 months of 2020

The export value of this item via Tan Cang Hai Phong (Tan Cang Dinh Vu) ranked second, reaching 71.7 million USD, down 18.6% over the same period in 2019. Thus, this port has contributed to handling 9% of the country's plastic export value, to markets such as Japan, South Korea, Indonesia, USA, Bangladesh, Myanmar, China, Malaysia, Philippines, Netherlands, Poland, Portugal, France, Italy, Iran, India, Greece, Hong Kong (China), United Kingdom.

Ranked third, Nam Hai Port reached 53.2 million USD, capturing 6.6% in value, up 5.2% over the same period last year; From here exported to markets such as Indonesia, Japan, USA, Bangladesh, Singapore, Poland, England, Malaysia, China, Myanmar, Netherlands, Germany, Sweden, Australia, Brazil, Spain, Belgium, India, France.

Notably, while exports to the majority decreased, exports via Cai Mep Port - TCIT (Vung Tau City) increased sharply by 71.9% over the same period in 2019, reaching 44 million USD.

4. Some related information

Global PET bottle demand signals an improvement

PET bottle prices in major markets increased in April 2020 after significantly reducing the asking price to the lowest level since 2008/2009. Although a number of markets including Asia, the Mediterranean and Europe have signaled a recovery, the lack of support from costs still makes the outlook less optimistic. Warmer weather boosts demand a little better in China.

In China, businesses are quite optimistic about PET demand. Purchasing power has improved relatively but still decreased compared to the same period last year. FOB China price dropped to 650-700 USD / ton.

Prolonged blockade continues to put pressure on Southeast Asia. Offering price of PET bottle from China is nearly 650 USD / ton CIF, Southeast Asia.

Imports of PET goods face weak purchasing power in Europe. This area has been badly affected by the COVID-19 pandemic since March 2020.

Data from China's Import Statistics shows that China's PE imports in the first quarter of 2020 decreased by 3.3% compared to the same period last year, reaching about 3.8 million tons, the lowest number. from the fourth quarter of 2018.

China's PE demand dropped in the first quarter of 2020 despite a positive signal in March 2020

The Chinese market signaled some positives in March 2020 due to the start of the easing order after two months of strict quarantine measures taken against the COVID-19 outbreak. End of blockade as well as a slight recovery of PMI due to improved industrial output.

However, statistical data shows that the purchasing power of Chinese PEs this year, the first three months of the year was weaker despite the aforementioned supportive factors.

Total import of HDPE of the whole country in quarter 1/2020 increased by 1.1% compared to the same period last year, reaching over 1.9 million tons. Saudi Arabia is the leading HDPE supplier to China with about 484 thousand tons.

China's LLDPE imports in Q1 dropped by nearly 9% over the same period in 2019, reaching over 1.2 million tons. Saudi Arabia is the leading LLDPE supplier to China with around 262 thousand tons.

China's LDPE imports were down 5% in the first quarter of 2020, reaching 738 thousand tons. Iran is the largest supplier of this item to China, reaching 183,000 tons.

Phaata (Source: Industrial and Trade information center - Ministry of Industry and Trade)