Packaging among sectors with highest growth in Vietnam: insiders

HCM City: The packaging industry, which is projected to expand 15-20% in the next few years, is among sectors posting highest growth rate in the country, experts said at a press conference held in Ho Chi Minh City on February 29 to introduce the 17th International Processing and Packaging Exhibition and Conference for Vietnam (ProPak Vietnam 2024.) Vietnam is now home to 900 packaging enterprises, with some 70% operating in the south, mostly in HCM City, Binh Duong and Dong Nai, they said, adding demand for carton packaging is rising on the back of e-commerce development. More than half of the 96 million Vietnamese population will shop online by 2025 and in the digital technology world, packaging is also considered a foundation for interaction between consumers and brands, they elaborated, highlighting rapid growth of the retail market, cosmetics industry and exports of electronics products also contributes to the surge in demand for carton packaging. Mordor Intelligence Inc revealed in its report that the Vietnam's paper packaging market size is estimated at 2.6 billion USD in 2024 and 4.14 billion USD in 2029, growing at a compound annual growth rate (CAGR) of 9.73% during the 2024-2029 period. Other market surveys estimated the metal packaging market in Vietnam at 2.11 billion USD in 2024 and 2.45 billion USD in 2029, growing at 3.07% in the period. At the pre-show press conference, Jeffrey Au, Director of the Informa Markets Asia - the operator of the ProPak Vietnam 2024 said that since the 'Race to Net Zero' campaign was launched by the Vietnamese Government, the concept of the circular economy and sustainable requirements have critical impacts on packaging designs. Recycling packaging has become important for the food and beverage sector, he said, adding the Vietnamese consumers are more conscious of their health and willing to spend more on products that are believed to have high quality and be manufactured in accordance with safety standards. Against this backdrop, the food and beverage sector has pa id due attention to developing automation process to standardise products' quality, improve production efficiency and ensure sustainability in recent years, he said. He added that there is an increasing number of businesses embracing the circular economy as they are shifting to circular production to provide the market with recyclable materials, designs and packaging. ProPak Vietnam will make a comeback in HCM City on April 3-5, drawing the participation of more than 450 exhibitors across the globe. This annual event is dedicated to technology suppliers involving in the food, drink and pharmaceutical processing and packaging, plus the printing and labelling industries, bringing together thousands of industry leaders and professionals from all segments of the supply chain under one roof./. Source: Vietnam News Agency