The plastics enterprises complain about difficulties caused by strict control of scrap imports

VCN - On 14th August 2018, at a press conference organized by the Vietnam Plastics Association,  plastics enterprises have reflected many difficulties caused by the strict control of scrap imports  over the past time.
the plastics enterprises complain about difficulties caused by strict control of scrap imports 228 enterprises were granted certificates of eligibility for scrap imports by the MONRE
the plastics enterprises complain about difficulties caused by strict control of scrap imports The Customs takes initiative to inspect and control scrap imports
the plastics enterprises complain about difficulties caused by strict control of scrap imports Expose the trick of using forged documents to import scrap plastics of Duc Dat Company
the plastics enterprises complain about difficulties caused by strict control of scrap imports
Scrap plastics ineligible for imports were seized at Cat Lai port in Ho Chi Minh City. Photo: Thu Hoa

Nearly 5,000 containers of scraps are backlogged

According to the Vietnam Plastics Association, currently there are nearly 5,000 backlogged scrap containers at Ho Chi Minh City port and Hai Phong port, causing difficulties for plastics enterprises due to lack of materials for production.

Tran Vu Le, Director of Le Tran Company – an exporter of recycled plastic products said that its plan on exporting about US$ 30 million of recycled plastic products in 2018 might not be successful due to the lack of materials for production. However, with the orders signed with customers, the enterprise still has to implement, so it must import new plastics instead of scrap plastics. Thus, the enterprise will suffer a loss of US$ 10 million in this year.

He added that the strict control of scrap imports makes it difficult to a series of other recycling enterprises when they have to pay hundreds of billion to invest in plants and technology lines to solve environmental problems related to the recycling of scrap plastics, but have no materials for production.

In regard to the imports of scrap plastics, Mr. Ho Duc Lam, Chairman of the Vietnam Plastics Association shared that China's policy to ban imports of scrap plastics to its country is opening a very good opportunity for Vietnam plastic recycling enterprises about the source of the materials. Accordingly, plastics enterprises are also growing up. Many enterprises paid hundreds of billion to invest in technology for recycling and treatment of waste and exhaust emission. The export turnover of recycled plastics of Vietnam also grew remarkably in the past two years from US$ 86.5 million in 2016 to US$ 95.7 million in 2017.

The reason why enterprises must import scrap plastics from abroad for recycling is that the scrap plastics from foreign countries are a source of clean and qualified materials because they are well sorted. Meanwhile, scrap plastics in Vietnam are limited, only accounting for 10% of total living waste and are not well sorted, so their quality is low and fails to meet the manufacturing requirements for export products to foreign countries.

Regarding the environmental pollution, enterprises also confirmed that if scrap plastics are properly processed, they will not harm the environment. In addition, there are many scrap plastics but actually they are clean and new products such as such as zumbo bags, plastic film (these products were imported a lot and were sold to other units in their right purpose for use). However, recently, they are listed as products banned from imports. Therefore, the determination of some products in scrap plastics as hazardous waste is not in accordance with regulations of both Vietnam and the world.

Why are there a lot of goods backlogged at ports?

Analysing the reason for backlogs of thousands of scrap containers at ports, which annoys the public and imposes pressure on state management agencies, the representative from the Vietnam Plastics Association noted that one of the reasons was the change in the management of import licensing by the Ministry of Natural Resources and Environment.

From September 2015, the licensing of scrap imports has been done by the Ministry of Natural Resources and Environment. However, in 2016-2017, very few enterprises applied for licenses because they could not compete with Chinese enterprises. From 2018, when China issued a ban on scrap imports, the recycling enterprises began investing in building plants to satisfy the licensing requirements of the Ministry of Natural Resources and Environment. However, it will take 1-2 years to perfect the plants, and meanwhile imported scraps have arrived at ports, but the technical infrastructure was not completed.

Another reason for the backlogs at ports is that the National Technical Standards QCVN-32 of the Ministry of Natural Resources and Environment are unable to be applied in reality because enterprises have no way to calculate the proportion of contaminant in the shipment, which should not exceed 2% as per regulations. According to this standard, only 4 types of raw materials are allowed for imports. Other types though, that bring great benefit in the recycling business, are not allowed. Therefore, goods are backlogged at ports because the goods owners could not receive goods for failing to meet the standards.

In addition, some recent regulations of the Customs on tightening the scrap imports also contributed to the backlogs of many scrap containers at ports due to failure of Customs clearance.

Moreover, due to the long-stay of goods, demurrage and storage fees are greater than the value of the shipment, so many enterprises refuse to receive goods, which is one of the reasons for backlogs of thousands of containers of scrap plastics at ports.

Facing these difficulties, the Vietnam Plastic Association proposed the Ministry of Natural Resources and Environment to mobilize human resource to speed up the import licensing for enterprises, which have made investments in technical infrastructures according to the standards, to facilitate them quickly into production. Considering and extending VNQV32 standards, putting recyclable plastics without hazardous contaminant into the list of goods which are permitted for imports in order to make use of the material resources and avoid backlogs at ports.

The Ministry of Transportation requested that the shipping lines should only receive goods from enterprises which were granted import licenses. Shipping companies are requested to exempt the demurrage and storage fees for enterprises to quickly release the backlogged goods.

the plastics enterprises complain about difficulties caused by strict control of scrap imports Vietnam to restrict import of scrap

The General Department of Vietnam Customs will study and submit to the Ministry of Finance a proposal ...

Furthermore, the Vietnam Plastics Association has also recommended the Customs authorities to carry out the clearance of scrap plastics according to Decree 38/2015 / ND-CP and Circular 41/2015 / TT-BTNMT and clear containers of scrap plastics that have been backlogged at ports.

By Nguyen Hue/ Huyen Trang

Related News

Vietnamese goods in the face of the cross-border e-commerce "whirlwind"

Vietnamese goods in the face of the cross-border e-commerce "whirlwind"

VCN - In order to compete with goods on cross-border e-commerce platforms entering Vietnam, experts and businesses recommend that in addition to improving product quality and lowering costs, it is necessary to remove bottlenecks in transportation and delivery.
Ho Chi Minh City Customs answered over 30 customs procedure questions for businesses

Ho Chi Minh City Customs answered over 30 customs procedure questions for businesses

VCN - On November 27, Ho Chi Minh City Customs Department coordinated with Ho Chi Minh City Investment and Trade Promotion Center (ITPC) to organize a dialogue conference with over 200 import-export enterprises (IPEs) that regularly carry out procedures through Ho Chi Minh City border gates.
Major reforms in the management of state capital in enterprises

Major reforms in the management of state capital in enterprises

VCN - The draft Law on Management and Investment of State Capital in Enterprises is set to be presented and discussed at the National Assembly, featuring numerous new provisions after multiple rounds of public consultation. The draft law is expected to bring significant reforms to the operational framework for managing state capital and state-owned enterprises (SOEs).
Amending the Law on Corporate Income Tax, not giving preferential treatment to overlapping and spreading industries

Amending the Law on Corporate Income Tax, not giving preferential treatment to overlapping and spreading industries

VCN - The promulgation of the Law on Corporate Income Tax (amended) is necessary, in line with international practice, associated with restructuring revenue sources, expanding the tax base in line with the context of socio-economic development.

Latest News

MoIT sets export growth at 6% in 2025

MoIT sets export growth at 6% in 2025

The recovery of major markets such as the US and EU will be an important driving force for exports, especially in electronics, consumer goods and textiles, the MoIT said.
Vietnam's first logistics park opens in Lang Son

Vietnam's first logistics park opens in Lang Son

The Viettel Lang Son Logistics Park, the first of its kind in Vietnam, officially opened in Cao Loc district, the northern mountainous province of Lang Son, on December 11.
Vietnam’s coffee exports possibly top 5 billion USD for first time

Vietnam’s coffee exports possibly top 5 billion USD for first time

Coffee prices have increased by over 50% on average this year, enabling the export revenue to potentially surpass 5 billion USD for the first time.
Support aggregate demand to promote economic growth

Support aggregate demand to promote economic growth

VCN - Financial policy, especially fiscal policy, has played an important role in promoting aggregate demand to contribute to economic development. In the current context, when the economy is entering the final year of the 2021-2025 terms with many difficulties and challenges, it is necessary to have solutions to promote production and business, supporting economic development.

More News

Plastics demand growing, says industry association

Plastics demand growing, says industry association

The plastics industry has enjoyed impressive growth this year, driven by steady demand from the construction, packaging and consumer industries, according to the Vietnam Plastics Association.
Vietnam’s tuna exports gain larger market shares in key markets

Vietnam’s tuna exports gain larger market shares in key markets

After overcoming challenges related to tuna size regulations and market volatility, Vietnam’s tuna exports are recovering and expanding in key markets.
Efficiency in emission reduction and sustainable development for wood enterprises

Efficiency in emission reduction and sustainable development for wood enterprises

VCN - Digital transformation aimed at reducing emissions and fostering sustainable development has become an intrinsic need for businesses. This shift stems from recognizing the tangible benefits demonstrated by pioneering enterprises that have successfully implemented and achieved these initiatives.
US emerges as biggest consumer of Vietnam’s pepper

US emerges as biggest consumer of Vietnam’s pepper

Vietnam exported 235,335 tonnes of pepper, including 207,498 tonnes of black pepper and 27,837 tonnes of white pepper, in January - November to earn 1.22 billion USD, with the US being the biggest importer, according to the Vietnam Pepper and Spice Association (VPSA).
Why are seafood exports to some Middle Eastern countries blocked?

Why are seafood exports to some Middle Eastern countries blocked?

VCN - Many seafood export shipments to some Middle Eastern countries have had their documents returned by the Consular Department due to the nightmare of consular legalization procedures, leading to a blockage in exports to these markets.
Seafood exports increase competitiveness through quality

Seafood exports increase competitiveness through quality

VCN - The "wave" of orders from a number of large markets and increased consumption demand in the coming months will be the driving force to accelerate seafood exports at the end of the year. Not only racing to increase exports, Vietnamese seafood also increases its competitive advantage by focusing on product quality, seed sources, green transformation in the production process...
Textiles, footwear enterprises need support to green the supply chain

Textiles, footwear enterprises need support to green the supply chain

VCN- As one of the world's leading textile, garment and footwear exporting countries, Vietnam is facing many opportunities as well as challenges in response to strict customer regulations in "greening" production, including a number of commitments such as implementing social and environmental responsibilities and reducing emissions...
Vietnam’s seafood export hits 1 billion USD mark for October

Vietnam’s seafood export hits 1 billion USD mark for October

Vietnam's seafood industry is on a roll, with export momentum propelling it toward the 10 billion USD target for 2024, laying robust groundwork for 2025.
Opportunities for export breakthroughs through e-commerce

Opportunities for export breakthroughs through e-commerce

VCN - According to Mr. Nguyen Van Thanh (in photo), Director of the E-commerce Development Center - Department of E-commerce and Digital Economy (Ministry of Industry and Trade), developing national e-commerce programs and fostering international cooperation are key to effectively harnessing Vietnam's potential in this area, thereby enhancing competitiveness and promoting sustainable development in the global market.
Read More

Your care

Latest Most read
MoIT sets export growth at 6% in 2025

MoIT sets export growth at 6% in 2025

The recovery of major markets such as the US and EU will be an important driving force for exports, especially in electronics, consumer goods and textiles, the MoIT said.
Vietnam's first logistics park opens in Lang Son

Vietnam's first logistics park opens in Lang Son

The Viettel Lang Son Logistics Park, the first of its kind in Vietnam, officially opened in Cao Loc district, the northern mountainous province of Lang Son, on December 11.
Vietnam’s coffee exports possibly top 5 billion USD for first time

Vietnam’s coffee exports possibly top 5 billion USD for first time

Coffee prices have increased by over 50% on average this year, enabling the export revenue to potentially surpass 5 billion USD for the first time.
Support aggregate demand to promote economic growth

Support aggregate demand to promote economic growth

VCN - In recent times, the world situation has been unstable, creating many difficulties and challenges for the sustainable growth of the global economy.
Plastics demand growing, says industry association

Plastics demand growing, says industry association

The plastics industry has enjoyed impressive growth this year, driven by steady demand from the construction, packaging and consumer industries, according to the Vietnam Plastics Association.
Mobile Version