SIBUR strengthens presence in strategically important Vietnamese market

Russia’s Sibur starts construction of massive polymer plant

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 tonnes 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 a feedstock for the production of versatile plastics. The plastics industry in Vietnam is set to grow by more than 10% per year over the period of 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. Vietnam’s recovery is further supported by the government’s shift from a “zeroCovid” approach to one of flexible adaptation, as the country’s full vaccination rate reaches 80% (March 2022 data). 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 tonnes 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.

Andrey Frolov, CEO of SIBUR International, commented: “We’re 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 SEA. This decision is driven by the dynamic development of the petrochemical market in the region, where we see growing demand for highquality ‘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.”