Vietnam’s packaging industry to expand against higher GDP

Vietnam’s gross domestic product (GDP) growth rate in 2016 fell slightly short of the set target at 6.21%, showing a slight decrease of 0.5% compared to the same period last year. However, many economists are confident that the country’s economy will remain strong and that Vietnam will still rank among the fastest-growing economies in Asia.

Foreign Direct Investment (FDI) is still on track to set a record thanks to the appeal of lower-cost manufacturing operations, improvements in infrastructure and labour skills, plus the easing of business regulations. Vietnam has become a destination of choice for foreign investors, continuing to attract high value investment projects. Disbursement of FDI capital in 2016 was estimated at US$15.8 billion, a record high and up 9% on a year-on-year basis.

Economists say that 2017 is expected to be an auspicious year for Vietnam’s economy as the nation further develops, with GDP growth projected by the Asian Development Bank ADB to be around 6.5%.

All these bode well for the growth of the packaging industry, which is also being driven by a number of trends. An increase in living standards and personal disposable income is fuelling consumption across a broad range of product categories, with significant growth in the food and beverage industry. This in turn leads to the rise in demand for new packaging solutions and products.

BMI Research reports that the food processing industry in Vietnam is projected to grow by 10.2% in 2016, while the beverage industry has a potential growth rate of 6% on average per annum, surpassing many other countries in Asia.

The future of Vietnam’s processing and packaging industry, however, will have to confront continuous challenges. The packaging trends are in constant fluctuation, and it has become too easy to produce packaging designs that quickly becomes obsolete or outdated. In addition, the rising affluence and environmental awareness amongst consumers is driving the need for high quality and environmentally friendly packaged products. Therefore, in order to keep up with the ever-changing packaging industry landscape, investing in flexible product design and manufacturing systems becomes a strategic advantage.

With sustained industry growth offering many opportunities, the industry leading trade event ProPak Vietnam makes a timely return for its 12th edition from 21-23 March 2017 at Saigon Exhibition & Convention Centre (SECC) and is said to be bigger and better than ever.

This three-day trade event is poised to feature more than 380 exhibitors from 28 different countries and regions. And this figure is likely to continue to increase by the show date, says the show organiser SES Vietnam Exhibition Services. Notable among the participating countries are the major first world economies such as Australia, Spain, US; EU member countries such as Germany, France, Italy; and other developed Asian nations like China, Korea, Japan.

A vast array of top-of-the-range machinery, equipment and solutions will be showcased in a fully sold out exhibition hall totalling ​​8,800 sq m, making ProPak Vietnam the largest trade exhibition for Vietnam’s lucrative processing and packaging industries. The 12th edition continues to gather innovation and technology leaders from the world’s most reputable companies, namely ABC Compressors, Altech, Bericap, Bosch, Fuji, Hseng Tex, Ishida, New Diamond, Phu Loc, Rieckermann, Song Song, Teampack, Uchida, Woojin, VMS, and many more.

In addition to the presence of returning country groups such as Germany, China, Korea, Japan, Singapore amongst others, this edition of ProPak Vietnam welcomes new groups from Denmark and Italy. ACIMGA - the Italian machine manufacturers’ Association will be showcasing the Printech pavilion with products and technologies dedicated to the converting, package printing and labelling sectors.

“A single visit to Printech and ProPak enables end users/visitors to satisfy their business needs and expand their horizons to embrace the total perspective of the entire supply chain, gaining valuable information and insights in terms of organization and strategy,” said ACIMGA in a recent press release.

(PRA)