China's printing and packaging industry aggressively enters Vietnam, leveraging low prices to dominate, sparking fierce clashes

  According to Vietnamese media reports, in recent years, with the large-scale entry of Chinese enterprises into the printing and packaging industry in Vietnam, the industry has faced many unprecedented challenges. These enterprises not only occupy domestic and export market shares but also put significant pressure on many domestic printing and packaging enterprises in terms of finance, technology, and green transformation, forcing them to "sell themselves" through mergers and acquisitions.

  Vietnamese businesses have lost confidence. Although it's an auxiliary industry, the role of printing and packaging enterprises in enhancing product value and improving the image of Vietnamese goods with partners, especially those from markets like the European Union and the United States, is significant. However, Vietnamese businesses are finding that as foreign companies use finance and technology to gain market share, the situation of losing orders is becoming increasingly common.

  Ms. To Thi Tuong Lan, Deputy Secretary-General of the Vietnam Association of Seafood Exporters and Producers, stated that Vietnamese enterprises in the printing and packaging sector are adapting to changes slowly.

  There have been cases where Vietnamese shrimp exporters lost access to the European Union market due to packaging not meeting standards. Faced with opportunities and challenges, Vietnamese businesses seem to lack agility, especially in packaging printing in the seafood industry, where domestic enterprises find it difficult to support each other. "Many suppliers are now purchasing Thai products to make packaging and export quickly. The supporting industry for product packaging, especially current packaging, is continuously shifting towards environmental friendliness, while Vietnam's supporting industry in the food industry is very weak," Ms. Lan said.

  Ms. Truong Thi Thu Tram, Production Director of Mingwen Printing Company in Gu Chi Sinh Phu Chung Industrial Park, Ho Chi Minh City, stated that the company has improved many processes, machines, and materials. However, due to intense competition and strict standards, especially competition from Chinese enterprises in the Vietnamese market, Vietnamese enterprises are gradually losing confidence. Despite Minh Man Company having over 20 years of experience in providing printing and label production solutions and having many traditional clients, they are now facing pressure to reduce costs and update trends and requirements more promptly, making it difficult to meet market demands. "Chinese manufacturers have started investing in factories in Vietnam to provide products. They offer prices much lower than Vietnamese companies. Therefore, these products easily lead to enterprises losing market share. They cannot undertake some special orders, such as high-quality, beautiful printing labels, but partners always pressure Vietnamese enterprises to lower prices. Recently, the company retained goods and reduced prices by 3%, but now they continue to demand further discounts, causing difficulties for businesses," Ms. Tram revealed. Facing the risk of being replaced, Mr. Nguyen Van Duong, Chairman of the Vietnam Printing Association, admitted that in recent times, many delegations of companies from Japan, Thailand, China... have come to Vietnam to understand the market, invest in production technology, export... This indicates that foreign enterprises highly value Vietnam's market with nearly 100 million people. This will also be an opportunity for the development of the printing and packaging industry, but it is also immense pressure for domestic enterprises. In fact, out of over 2,000 printing and packaging enterprises in Vietnam, only over 400 are foreign enterprises investing in Vietnam. However, foreign-owned enterprises account for more than one-third of export orders. In addition, hundreds of other enterprises are continuing to study the Vietnamese market, aiming to enter in the near future. Therefore, not only a few enterprises feel worried, but the entire Vietnamese printing industry is showing signs of losing confidence.

  According to Mr. Tuong, these foreign enterprises will invest in production in Vietnam, even repurchasing the majority of shares, or acquiring domestic enterprise factories to quickly enter the market using existing skilled labor, technology, and resources such as factories. Meanwhile, in reality, due to competitive pressure and a lack of developed successors, the printing industry has decided to sell to foreign investors. It is worth noting that these transactions occur not only in small and medium-sized enterprises but also in large companies. Mr. Yang is concerned that the business courage of many Vietnamese enterprises is still weak, coupled with financial difficulties, making it difficult to cope with upcoming challenges. "Green economy and circular economy are having an impact, especially in export printing. If export printing does not use environmentally friendly materials, exports will be very difficult. A large amount of plastic, paper, etc., are used in the market. If paper is recycled, it will be more popular. Foreign countries only import paper bags.

  Faced with survival issues, foreign-owned enterprises are realizing earlier and developing better," Mr. Zhang analyzed. In order for enterprises, including printing and packaging enterprises, to develop, integrate, and survive, it is necessary to implement a circular economy and a green economy. Enterprises urgently need funds to operate, but currently, some companies still face difficulties in obtaining loans, and the green transformation process remains slow.