The primary benefit of Vietnam in producing plastic is cheaper price of uncooked materials, land lease, labor price. Huge factories in Vietnam are often positioned in provinces which far-off from middle. The rationale for it’s its absolute benefits in land price and labor price. Vietnam is often generally known as an agricultural nation which specialised in engaged on farm with very low earnings. Nevertheless, when industrial zone appeared, it created large benefits to recruit an enormous variety of staff from these farmers with very low cost wage. In common, the labor price for 1 ton of plastic luggage vary from 250USD to 400USD as much as totally different sorts of baggage. Furthermore, lease charge of land is also less expensive in contrast with developed nations. That is why loads of large firms in plastic bag business in developed nations cannot compete with Vietnam firms. They’ve to shut their factories and alter to turn out to be wholesalers and importers. They import luggage from Vietnam and resell of their market (particularly for EU, US, Japan…)
The opposite benefit of Vietnam plastic luggage isn’t any anti dumping tax to EU nations. Anti dumping tax on plastic luggage is created as a result of the businesses in EU,US can’t compete with low cost costs from Asia. The anti dumping tax ranges from eight p.c to 30 p.c for nearly Asian nations particularly placed on China; the tax charge depends upon totally different factories. There is no such thing as a anti dumping tax on Vietnamese firms subsequently, it makes Vietnam turn out to be a really robust competitor in contrast with different Asian nations, particularly China.
Concerning to the standard of plastic bag, Vietnam additionally imports supplies (virgin resin) from Thailand, Japan, Saudi Arabia, and so forth and machines from Taiwan, subsequently, the standard is on the identical stage as different Asian nations. Even Vietnam’s bag high quality is understood extra secure than China fundas cuchillos.
Taking these benefits, Vietnam turn out to be increasingly aggressive in international market and appeal to loads of clients from developed nations and attempt to broaden their capability. It is going to open very promising future for Vietnam plastic business and large alternatives for worldwide clients to get top quality and low cost costs.