Enterprise

Plastic Industry Flourishes Amid Lower Raw Material Costs

In Q3/2025, the plastics industry experienced a widespread surge in profitability, driven by consistently low prices of raw material pellets.

Administrator

27 November, 2025

The plastics industry experienced a vibrant quarter, with growth across construction plastics, packaging, and household goods. According to VietstockFinance, out of 23 listed companies, only 4 reported a decline in Q3/2025 profits compared to the same period last year.

Total industry revenue exceeded VND 12.7 trillion, up 3.9%, while net profit surged 66% to VND 934 billion, driven by lower raw material costs that enhanced operational efficiency.

Construction plastics extend their record streak

Construction plastics companies continued to lead the industry, with BMP and NTP both posting double-digit growth.

Bình Minh Plastics (HOSE: BMP) reported revenue of nearly VND 1.5 trillion, approaching a three-year high, thanks to a record-high gross margin of 47.9%. Net profit hit a record VND 351 billion, up 21% year-on-year.

Nhựa Thiếu niên Tiền Phong (HNX: NTP) saw a 34% revenue increase to over VND 1.6 trillion. Its profit margin rose from 28.5% to 31%, driving net profit to VND 258 billion, 1.5 times higher and just below the previous quarter’s peak.

Q3/2025 profits of BMP and NTP remain positive

An Phát Holdings group profits surge

Other finished product manufacturers also stood out, particularly those under An Phát Holdings.

An Phát Xanh Plastics (HOSE: AAA) reported a profit of VND 118 billion, over five times higher than the same period last year, despite a sharp revenue decline to VND 2.4 trillion after deconsolidating some units. Streamlining low-margin trading operations and focusing on high-margin finished products drove the positive results.

Hà Nội Plastics (HOSE: NHH) saw profits surge 5.2 times to VND 29 billion, as losses from associates were eliminated.

Similarly, An Tiến Industries (HOSE: HII) turned a profit of VND 37 billion, despite stable revenue. Expanding high-margin finished product operations significantly contributed to the bottom line.

Net profit of AAA improved due to restructuring of low-profit trading operations

Packaging and household plastics show improvement

The packaging group also performed well. Việt Nam Ecological Plastics (UPCoM: ECO) saw a 56% profit increase to VND 5.1 billion, driven by expanded finished product operations and reduced low-margin plastic resin trading.

Tân Đại Hưng Plastics (HOSE: TPC) turned a profit of VND 5.2 billion, thanks to higher revenue and improved profit margins.

Thuận Đức (HOSE: TDP) achieved record revenue and profit of VND 1.27 trillion and VND 35 billion, respectively, despite narrower margins due to higher raw material costs.

In the household plastics segment, Tân Phú Việt Nam (HNX: TPP) stood out with a 313% profit increase to nearly VND 40 billion, the highest ever, driven by significantly lower production costs.

Conversely, despite record revenue of nearly VND 1.2 trillion, Việt Thành Plastic Production and Trading (HNX: VTZ) saw profits halve to VND 10 billion due to higher production costs and interest expenses.

Several companies reported Q3/2025 profits up 2-3 digits (Unit: billion VND)

Source: Author’s compilation

Cement packaging also positive

The cement packaging group also had a strong quarter, benefiting from recovering demand for cement bags and low PP resin prices.

VICEM Bao bì Hải Phòng (HNX: BXH) reported revenue of over VND 68 billion, up 40%, and profit of VND 245 million, up 136%, as cement bag gross margin rose from 5.9% to 7.2%.

VICEM Bao bì Bút Sơn (HNX: BBS) saw revenue surge 71% and cement bag sales volume jump 78%, turning a profit of nearly VND 1.9 billion, a complete reversal from last year’s loss.

Cement packaging companies had a strong growth quarter

Source: Author’s compilation

Plastic resin trading faces challenges

HCD Investment, Production and Trading (HOSE: HCD) faced significant pressure as falling resin prices dragged revenue below VND 200 billion. Profit margins narrowed to 3.78%, causing net profit to drop nearly 60% to VND 3.5 billion. This marks the third consecutive quarter of decline, one of the most challenging periods in years.

According to HCD’s CEO, the main reasons were US tax policies that lowered raw material prices and reduced consumption demand, directly impacting the company’s performance.

Profits of HCD decline with falling resin prices

Final quarter remains promising?

Low PVC resin prices continue to be the main driver for BMP and NTP, enabling them to set consecutive profit records for nearly 2 years. Prices peaked at around 5,300 CNY/T in Q3, the lowest in 5 years, and have since fallen below 4,600 CNY/T, the lowest since 2016.

Prolonged low PVC resin prices. Source: tradingeconomics.com

According to FPT Securities (FPTS), domestic construction plastics output in the first 9 months rose 21% year-on-year, driven by recovering demand for construction materials and expanded real estate and infrastructure supply.

Going forward, increased housing supply in Hanoi and HCMC, particularly in expanded HCMC areas, is expected to boost demand for plastic pipes and accessories.

FPTS forecasts 15% growth in construction plastics output for 2025, driven by a clear recovery in housing demand and peak public investment disbursement. BMP and NTP are expected to ramp up promotions in the final quarter to maintain sales momentum.

Prices of key resins for packaging and household plastics like PE and PP have also declined continuously since late 2024. Despite a slight Q3/2025 recovery, prices remain over 10% lower year-on-year, keeping raw material costs favorable for companies.

The securities firm believes PVC and PE prices will likely stay low, while PP may decline slightly due to large oversupply, creating a positive outlook for companies in the final quarter.