The domestic enterprise has more than 80% of the production market to produce the PET but can not be inserted into the production of dairy sector.
-Local enterprises over 80% of the PET bottle production market. Which mainly falls into the 2 business Ngoc Nghia and Bao van. Ngoc Nghia owns more than 1,000 customers including 2 brands of carbonated beverages are PepsiCo and Coca-Cola.
-Plastic packaging plate, paper packaging for the liquid food industry is mainly in the hands of foreign enterprises, especially the packaging of milk. Most of the packaging for Vietnamese dairy companies are both the world’s largest dairy companies, Tetra Pak (Switzerland) and Combibloc (Germany).
Although economic recession but according to statistics from Euromonitor International, food and beverage sectors in Vietnam continuously grow.
According to the analysis of Saigon Business newspaper, this increase is the agent that promotes packaging needs. The most important factor when customers consider a purchase is perceived on the product through packaging.
Domestic businesses over 80% of the PET bottle market
According to EIU, for food and non-alcoholic beverages in Vietnam in 2009 reached 24.3 billion, the equivalent of 38% of the consumer spending, in Canada is 9%, the U.S. is 7% and the EU is 13%. The turnover for the bottled water industry generally year 2013 grew at 13.4% and predicted 13.7% by the year 2017.
While paper packaging, the carton is largely part of the Taiwan company, South Korea, the plastic packaging market, which is largely a PET bottle located in the hands of two domestic enterprises, Ngoc Nghia and Bao van.
According to the Vietnam Packaging Association, 66% of the export value of plastic comes from packaging, 5 recent years plastic packaging has a growth rate of over 25%. The market scale of synthetic plastic packaging currently reaches 410 million, the PET bottle accounted for 282 million, which is equivalent to more than 68%.
Before the year 2000, beverage manufacturers, food mainly have to import PET bottles and plastic boxes However now have the advantage of internal enterprises with about 80% market share by Ngoc Nghia Company and Bao van company.
However, Ngoc Nghia has a stronger section than considering the sales and scale of investment. In 2011 the turnover from the Ngoc plastic product reached 85 million, Bao van only reached 40 million.
Ngoc Nghia owns more than 1,000 customers including 2 brands of carbonated beverages are PepsiCo and Coca-Cola. It is also the PET Bottle Supply unit for fruit juice, vinamilk or Lavie milk, the oil of An edible wall,…
The PET bottle business plate contributed primarily to the turnover of Ngoc Nghia, while the food sector invested in 2009 has not yet brought substantial revenues.
Tetra Pak exclusive Milk box
Contrary to plastic packaging plate, paper packaging for the liquid food industry is mainly in the hands of foreign enterprises, especially the packaging of milk. According to Mr. Ho Ph.D., senior Brand director Lantabrand, the reason for the technical requirement for the very high milk packaging group as the structure with 5-6 classes from paper, aluminium membrane, poly,… to preserve good products of perishable milk.
Most of the packaging for Vietnamese dairy companies are both the world’s largest dairy companies, Tetra Pak (Switzerland) and Combibloc (Germany). He means that the packaging cost usually accounts for about 10-20% of the product price, so that the market scale around 15,000 billion is currently the turnover of the dairy sector is not small.
Also because of the complex dairy processing technology, most machines are manufactured by packaging manufacturers and installations, then they sell packaging for dairy companies. Currently tetra Pak not only offers packaging but also is the supply partner of equipment, packing chains for Vinamilk. The airline is also a supplier of packaging for two other dairy enterprises in Vietnam, TH milk and Dutch Lady.
According to a dairy specialist, Tetra Pak has a more dominant combibloc in Vietnam due to its early legs.
Because the Vietnamese market is not yet large enough, Tetra Pak and Combibloc have not yet invested the factory here. However, the airline has had factories in India, Singapore, and the Cmbibloc factory in Thailand. Representative Tetra Pak said in Asia-Pacific, it is particularly interested in Vietnamese and Indonesian markets.
The Department of Internal Enterprises may be involved in a certain stage or cannot be inserted into the liquid food packaging industry due to high technical requirements. Besides domestic enterprises also take advantage due to a small, odd scale, operating in the form of resale purchases. At the same time the producers cannot risk “handshake” with internal suppliers due to risks these businesses hardly respond to a sudden order.