OREANDA-NEWS. Sojitz Pla-Net Corporation (“Sojitz Pla-Net”) announced they will enter the packaging material manufacturing business in Vietnam through equity participation in Rang Dong Long An Plastic Joint Stock Company (“RLP”), a subsidiary of major Vietnamese plastics manufacturer Rang Dong Plastic Joint Stock Company (“RDP”).

RLP will use the investment received from Sojitz Pla-Net to construct a new plant in southern Vietnam’s Long An Province. The plant will produce a wide variety of products, including packaging products using various printing, laminating and bag making machine ; synthetic leather; and other processed products . Total investment for the plant reaches approximately JPY 3.6 billion, with operations anticipated to commence in March 2018.

The retail industry in Vietnam has continued to develop, growing to include supermarkets and convenience stores in recent years. This has led the country’s market for food product packaging to grow by 10%-15% annually. In the future, experts predict Vietnam will see continued advancement in cold chain logistics, greater economic growth, and an increase in packaging materials (starting with plastic bags and other daily-use items) produced with greater added value, such as ability to block out moisture and gas. RLP is poised to capture this new demand, targeting JPY 10 billion in sales within the next five years.

Sojitz Pla-Net concluded an agreement for a strategic alliance with RDP in March 2016, with the company having supplied RDP with plastic resins and handled sales of RPD’s products. Sojitz Pla-Net have also accumulated a wide variety of packaging materials expertise, having operated businesses manufacturing advanced plastic films in Europe and North America for many years. Through their investment in RLP, Sojitz Pla-Net will now not only acquire manufacturing functions in Vietnam and capture demand in the country, but also develop new markets in neighboring ASEAN countries like Myanmar, Cambodia, and the Philippines. Sojitz Pla-Net aims to further expand the business going forward, using this equity participation as a foothold to capture packaging material markets all across the growing countries of Asia.

Related Information:

Company Overview – Rang Dong Plastic Joint Stock Company (listed on Ho Chi Minh City Stock Exchange)

Established 1960
Head Office Ho Chi Minh City, Vietnam
Representative Director Ho Duc Lam
Shareholders Ho Duc Lam - 64.15%, Others - 35.85%
Main Business Manufacturing packaging materials, pleather, and other plastic products