Demand was considered sluggish for all products in Vietnam until a short while ago, as per ChemOrbis. This was despite relatively good demand as well as firmer prices seen in other regional markets in Southeast Asia, supported by higher feedstock costs and the global upturn. For a period of time, some overseas sellers even shifted their allocation to other regional markets including Indonesia, Malaysia and Thailand upon better buying interest. Unlike other markets in Southeast Asia, demand in Vietnam did not pick up amid fluctuating local price. In response to higher import prices, Vietnamese buyers preferred the local market for their urgent requirements.
Nevertheless, players in Vietnam have started to report a slight improvement in demand this week, as per ChemOrbis. A distributor in QuangNgai Province commented, “PP prices have been stable this week in the local market while demand is gradually improving these days.” A mould manufacturer in Dong Nai also said, “We are looking for PP and PE cargoes to buy for our needs for next week. Demand is slowly picking up.” Regarding the market outlook, the buyer still does not have a clear idea while he noted that he is still able to conclude deals with discounts in the local market as some distributors are trying to deplete their stocks. Another mould manufacturer also prefers the local market as deferred payment terms are provided by local distributors. A household wares manufacturer in Ho Chi Minh City commented, “Our end product demand is showing some improvements. We have received several offers for PP, PE, PVC, PS and ABS both on import and local basis but we are not planning to accept them as we still have stocks to run down.” A bag manufacturer in Hanoi says, “Demand for PP and PE is slightly picking up these days. We are running at 30% of our capacity in order to maintain our customers.” He explained that they are trying to compensate their losses from their earlier PE purchases by making profits from their PP products as they have had to switch their production after the new tax implementation effective in Vietnam as of the beginning of the year.