Econ
How big is Vietnam carton packaging industry following inauguration of Tetra Pak US$135M site?
The development of manufacturing, customer goods, food processing, and export over the past years has driven up carton packaging industry.
Sweden-based Tetra Pak has opened a US$135-million aseptic carton packaging plant in Vietnam, signaling the growth of this industry in the country whose GDP reaches approximately 7% annually.
The development of manufacturing, customer goods, food processing, and export over the past years has driven up carton packaging industry, according to Vietnam Packaging Association (VINPAS).
Vietnam’s packaging industry posts an annual growth rate of 15%-20%, and carton packaging segment accounts for more than 85% of the entire industry, VINPAS said.
Carton packaging has appeared to be one of the fastest-growing sectors in Vietnam with rising demand, mostly in the south which is home to hundreds of industrial parks.
Nearly 90% of carton packaging companies are located in Hanoi and the southern metropolis of Ho Chi Minh City.
Statistics by Vietnam Paper and Pulp Association (VPPA) showed that in 2018 paper used for packaging reached 3.82 million tons, accounting for 77.2% of paper consumption during the year, up 20% on year, the record-high growth rate in Vietnam’s paper industry. Of total carton packaging volume used in 2018, uncoated paper made up 83%.
In the same year, domestic paper used for packaging hit 3.05 million tons, accounting for 81.3% of total paper productions in the year, up 37% on year. The locally-made volume came from foreign-invested enterprises namely Lee & Man, VinKraft, and some local firms.
Different products namely white-top liner, coated duplex, and cement paper in carton packaging are mainly imported while the production volume chiefly comes from the south (75%) and the north with 25%.
The case of Tetra Pak
Operating in Vietnam for 25 years, Tetra Pak has inaugurated a carton packaging factory in the southern province of Binh Duong, north of Ho Chi Minh City.
The site with an expandable capacity of 20 billion packs per annum and currently produces the Tetra Brik Aseptic and Tetra Fino Aseptic packages will serve both the domestic and export markets.
There is the possibility of producing more packaging formats from the facility in the future marks Tetra Pak’s eighth factory in the Asia Pacific region and
“This greenfield investment is a strong testimony of our long-term commitment to Vietnam, contributing to the nation’s economic development, generating employment opportunities and boosting the local industry,” said Adolfo Orive, president and CEO of Tetra Pak.
FoodBev Media cited Tetra Pak that the liquid food market in Vietnam has been growing at a 6% compound annual growth rate (CAGR) for the last three years and is projected to grow at a similar pace during the next three years.
Illustrative photo
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Vietnam’s packaging industry posts an annual growth rate of 15%-20%, and carton packaging segment accounts for more than 85% of the entire industry, VINPAS said.
Carton packaging has appeared to be one of the fastest-growing sectors in Vietnam with rising demand, mostly in the south which is home to hundreds of industrial parks.
Nearly 90% of carton packaging companies are located in Hanoi and the southern metropolis of Ho Chi Minh City.
Statistics by Vietnam Paper and Pulp Association (VPPA) showed that in 2018 paper used for packaging reached 3.82 million tons, accounting for 77.2% of paper consumption during the year, up 20% on year, the record-high growth rate in Vietnam’s paper industry. Of total carton packaging volume used in 2018, uncoated paper made up 83%.
In the same year, domestic paper used for packaging hit 3.05 million tons, accounting for 81.3% of total paper productions in the year, up 37% on year. The locally-made volume came from foreign-invested enterprises namely Lee & Man, VinKraft, and some local firms.
Different products namely white-top liner, coated duplex, and cement paper in carton packaging are mainly imported while the production volume chiefly comes from the south (75%) and the north with 25%.
The case of Tetra Pak
Tetra Pak's newly-operated packaging site. Photo: FoodBev Media
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The site with an expandable capacity of 20 billion packs per annum and currently produces the Tetra Brik Aseptic and Tetra Fino Aseptic packages will serve both the domestic and export markets.
There is the possibility of producing more packaging formats from the facility in the future marks Tetra Pak’s eighth factory in the Asia Pacific region and
“This greenfield investment is a strong testimony of our long-term commitment to Vietnam, contributing to the nation’s economic development, generating employment opportunities and boosting the local industry,” said Adolfo Orive, president and CEO of Tetra Pak.
FoodBev Media cited Tetra Pak that the liquid food market in Vietnam has been growing at a 6% compound annual growth rate (CAGR) for the last three years and is projected to grow at a similar pace during the next three years.
