On October 30, Mr. Nguyen Van Duoc - Chairman of the Ho Chi Minh City People's Committee - had a working session with Hyosung Vina Chemical Company Limited - a company operating in the petrochemical sector, headquartered in Cai Mep Industrial Park, Tan Phuoc Ward (Ho Chi Minh City).
Reporting to the Chairman of the Ho Chi Minh City People's Committee, Hyosung Vina representative said that the petrochemical industry (including Polypropylene - PP) is a cyclical industry and the whole world is facing a cyclical recession after 2023 due to reduced demand and excess supply.
In addition, the slow economic recovery in many countries has affected the consumption of petrochemical products. At the same time, the largest market, China, has built many factories with the goal of self-sufficiency. This creates a situation of fierce supply surplus and price competition for the Vietnamese market, which is exempt from taxes compared to other Southeast Asian countries.
From 2018 to present, the enterprise has lost about 820 million USD (more than 21,300 billion VND calculated at the price of 26,000 VND/USD). The main reason is that other foreign exporters have dumped them in the market, causing many businesses in Vietnam (including Long Son Petrochemical Company Limited - LSP; Binh Son Refining and Petrochemical Joint Stock Company and Nghi Son Refining and Petrochemical Company Limited) to suffer.
On September 30, Hyosung Vina and LSP co-signed and submitted a dossier requesting an investigation to apply anti-dumping measures on PP plastic granules to the Ministry of Industry and Trade; it has been received and is within the dossier's processing period. Therefore, the enterprise recommended that the Ho Chi Minh City People's Committee coordinate with the Ministry of Industry and Trade to pay attention and promptly resolve the case, in order to protect domestic PP manufacturers.
Mr. Nguyen Van Duoc affirmed that Ho Chi Minh City will accompany, share and support businesses to operate and develop sustainably. In issues beyond its authority, Ho Chi Minh City will coordinate with businesses to propose to the Central Government to resolve them. Ho Chi Minh City always wishes to create a favorable and transparent investment environment, promoting the attraction of high-tech industrial projects in the area.
According to the Management Board of Export Processing and Industrial Zones of Ho Chi Minh City, Hyosung Group (Korea) is implementing 4 projects in the industrial park in the area, with a total registered investment capital of more than 3.5 billion USD.
These include: Polypropylene factory and underground warehouse containing liquefied petroleum gas (Cai Mep Industrial Park - 2.17 billion USD); specialized port in Cai Mep - Thi Vai (more than 34.2 million USD); bio-Bdo biological product factory (Phu My II Industrial Park - 730 million USD); carbon Vietnam fiber and materials factory (Phu My II Industrial Park - 570 million USD).
