Page 34 - Plastics News Issue - January 2025
P. 34
INTERNATIONAL NEWS
Vietnam – U.S. Plastics Trade:
A Strategic Shift in Global Supply Chains
Once a surplus trade partner to the U.S., Viet-
nam has transitioned into a deficit position as its U.S. Plastics Trade Balance with Vietnam (in Mil-
imports of American plastic products overgrow. lions of Dollars, 1997-2023). Years reflecting a
trade deficit are red. Taken from 2023 Plastics
The evolution of Vietnam’s role in the U.S. plas- Global Trends Report.
tics trade highlights significant shifts in global
supply chains and trade dynamics. Initially a sur- According to recent data from the Plastics In-
plus trade partner with the U.S., Vietnam has in- dustry Association, the U.S. has become a sig-
creasingly become a vital player, transitioning to nificant supplier of resin and other raw plastic
a deficit position as its imports of U.S. plastics materials to Vietnam. The expansion of South-
products surge. east Asian countries’ industrial bases and efforts
to meet both domestic and export-oriented de-
This transformation reflects broader economic mand drive this trend. Vietnam’s economic goals
and industrial trends that will shape the future of of advancing up the value chain and reducing its
this relationship. reliance on low-margin manufacturing align with
this development.
Changing Patterns in Plastics Trade
Factors Shaping the Future
Historically, Vietnam was a source of low-cost,
finished plastic goods. However, its imports of The restructuring of global supply chains, a pro-
raw plastics and semi-finished goods from the cess hastened by geopolitical tensions and the
U.S. have increased substantially. This shift in- disruptions of the COVID-19 pandemic, has es-
dicates Vietnam’s growing manufacturing ca- tablished Vietnam as a significant alternative
pabilities and integration into global production manufacturing hub to China. This shift positions
networks, particularly in electronics, automotive, Vietnam to become increasingly reliant on U.S.
and consumer goods sectors. plastic resins and semi-processed materials as
34 PLASTICS NEWS January 2025
