80TH Anniversary August Revolution and National Day
Log in
Econ

Russia leading petrochemical firm SIBUR strengthens presence in Vietnam market

The company sold more than 50,000 metric tons of polyolefin products in Vietnam in 2021 and aims to increase sales in the country by 30% in 2022.

SIBUR, the largest integrated petrochemicals company in Russia and one of the fastest-growing companies in the global petrochemicals industry, announces its decision to strengthen its presence in the Vietnamese market.

 Nghi Son Oil Refinery plant. 

The move is part of the company’s long-term strategy to expand in the dynamic Southeast Asian market.

SIBUR plans to build a warehouse network in Vietnam in the second half of 2022 to support rising volumes of polyolefin supplies to the country. The company sold more than 50,000 metric tons of polyolefin products in Vietnam in 2021 and aims to increase sales in the country by 30% in 2022.

Polyolefins, such as polyethylene and polypropylene, serve as feedstock for the production of versatile plastics.

“We are happy to announce our decision to expand in the strategically important Southeast Asian region with an increase in supplies to Vietnam, followed by other countries in the region,” said Andrey Frolov, CEO of SIBUR International.

“This decision is driven by the dynamic development of the petrochemical market in the region, where we see growing demand for high quality ‘green’ feedstock. We aim to increase our market share significantly over the next five years to become one of the region’s main suppliers of polypropylene and polyethylene,” he added.

The plastics industry in Vietnam is set to grow by more than 10% per year throughout 2021-2026, according to research by Mordor Intelligence.

Packaging accounts for the largest segment of the Vietnamese plastics market. Rising household and commercial use of packaging products are expected to drive demand for plastics in the country through 2026.

The construction industry is set to be another driver as the local government aims to build one million affordable houses throughout the country.

Vietnam’s economic growth is expected to accelerate to 5.5% in 2022 as the region’s key economies recover from the effects of the coronavirus pandemic. The country’s recovery is further supported by the government’s shift from a “zero-Covid” approach to one of flexible adaptation, as the country’s full vaccination rate reaches 80%.

The plastics industry was the third-fastest growing industry in Vietnam during 2010-2020, with annual growth rates of 16%-18% per year.

In addition to its warehouse network, SIBUR plans to open a sales office in Vietnam in the coming years as a sign of strong commitment to its presence in the country. Currently, SIBUR has a representative employee in Vietnam working with local customers and providing consultations on questions related to polyolefin sales.

Overall, SIBUR sold 80,000 tons of polypropylene and polyethylene to the Southeast Asian market in 2021 and plans to continue to strengthen its position in the region with a stable supply of high-quality products.

Reactions:
Share:
Trending
Most Viewed
Related news
Real estate firms sell bonds worth $402 million in May

Real estate firms sell bonds worth $402 million in May

Real estate companies have raised $862 million from bond issuance in April and May, thanks to an improved business environment and better access to funding.

Vietnam unveils new strategies to boost domestic market, aid businesses

Vietnam unveils new strategies to boost domestic market, aid businesses

As global trade uncertainties grow, Vietnam sees the domestic market not only as a key consumption driver but also a “lifeline” for businesses hit by protectionist export barriers.

Vietnam eyes US tilapia export boost as global supply falls

Vietnam eyes US tilapia export boost as global supply falls

Vietnam aims to increase tilapia output to 400,000 tons by 2030, making it the second-largest freshwater export species after pangasius.

Vietnam’s enterprises must act fast to weather US tariff shock: Experts 

Vietnam’s enterprises must act fast to weather US tariff shock: Experts 

Many of the key Vietnamese exports, such as wood products, electronics, and textiles, that are not on the US exclusion list could face steep tariffs.

Vietnam's mobile money pilot program extended to end of 2025

Vietnam's mobile money pilot program extended to end of 2025

Mobile Money, launched by the Ministry of Science and Technology, differs from e-wallets by linking users’ payment accounts directly to mobile phone numbers.

Vietnam taps innovation, global ties to elevate national brand

Vietnam taps innovation, global ties to elevate national brand

Vietnam is intensifying efforts to enhance its national brand, leveraging innovation, global partnerships, and strategic policies to bolster its global competitiveness and market presence.

Vietnam extends US$3.9 billion loan package for agro-forestry-fisheries

Vietnam extends US$3.9 billion loan package for agro-forestry-fisheries

The government has expanded the scope and scale of the credit program for the sectors which brought about US$62.4 billion worth of exports in 2024.

Vietnamese public shows rising satisfaction in 2024 PAPI survey

Vietnamese public shows rising satisfaction in 2024 PAPI survey

The 2024 PAPI survey found increasing citizen satisfaction with governance, but highlighted persistent administrative challenges, climate vulnerability, and gaps in access to public services.