VietNamNet Bridge – While more and more foreign giants are coming to Vietnam, domestic plastics companies are still fumbling for a way to control supply sources, reported Dien Dan Doanh Nghiep newspaper.
In the plastic tube market segment, for example, Tien Phong Plastics holds 60 percent of northern market share and Binh Minh 50 percent of southern market share.
Acquiring Tien Phong’s or Binh Minh’s shares would allow foreign investors to easily set foot in the Vietnamese plastic tube market.
Vietnam doesn’t set limits on the foreign ownership ratio in Vietnamese plastics companies, which means that foreigners can buy up to 100 percent of shares of the companies.
However, though the market has great potential, Vietnamese enterprises have to struggle to exist. Their biggest problem is the heavy reliance on input material imports.