Comparison of Packaging in Vietnam, Thailand & China – Advantages & Competitive Weaknesses

Southeast Asia and China are the world’s “production hubs” for packaging, where supply chains for food, FMCG, and e-commerce are growing rapidly. Within this landscape, Vietnam, Thailand, and China both cooperate and compete across multiple aspects: market size, production costs, workforce skill, international standards, and environmental policies. Understanding the relative positions of these three countries will help Vietnamese businesses identify distinct advantages to stand out in the 2025–2030 period.

In terms of market size, China leads overwhelmingly: the packaging market is estimated at USD 218 billion in 2025, projected to reach USD 278 billion by 2030; Thailand around USD 15.7 billion (2025); while Vietnam is experiencing rapid growth in the paper/corrugated and rigid plastic segments thanks to booming exports and e-commerce. Industry reports indicate that Vietnam’s paper/corrugated segment is growing strongly, with a projected CAGR of 6–11% depending on the segment, and rigid plastics are also expanding to meet the demand for food & beverage, pharmaceutical, and online retail packaging. (Mordor Intelligence)

Regarding policy, all three markets are moving toward circular economy/EPR and restricting single-use plastics. Vietnam has implemented an EPR portal and regulations requiring packaging recycling under the Environmental Protection Law 2020; the EU – a key export destination – banned single-use EPS containers from July 3, 2021 and is finalizing a new legal framework to reduce packaging waste, requiring recycled content in packaging by 2030. This is reshaping material strategy (PET/rPET, PP, paper) and serves as a “compliance test” for Vietnamese businesses competing with Thailand and China. (Reuters, morihamada.com, rkcmpd-eria.org)

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1. Market Size & Structure

1.1 China – the “world’s packaging factory”

China is currently the largest producer and consumer of packaging globally. The market is projected to reach USD 218 billion in 2025, increasing to USD 278 billion by 2030. The main drivers are e-commerce, the food & beverage sector, and pharmaceuticals. In addition, China benefits from a fully integrated supply chain—from raw materials (plastic pellets, paper) to finished products—resulting in low production costs and rapid market responsiveness.

1.2 Thailand – ASEAN regional manufacturing hub

Thailand is one of the leading countries in packaging within the region. The market is estimated at USD 15.7 billion in 2025, with a growth rate of approximately 4% per year until 2030. Thailand’s strength lies in packaging production for processed foods, beverages, pharmaceuticals, and agricultural exports. Thai companies have also invested early in sustainable packaging solutions, especially recycled paper/corrugated and PET, to meet stringent requirements from partners in Japan, the US, and Europe.

1.3 Vietnam – fast growth, high potential

Compared to the two countries above, Vietnam’s packaging market is still relatively small but growing the fastest. The paper/corrugated segment is projected to reach USD 10.6 billion by 2030, with a CAGR of ~6%, while rigid plastic packaging is expected to reach USD 6.4 billion by 2032, with a CAGR of ~11.5%. This growth is driven by three factors:

• Export of seafood, fruits, and agricultural products requiring internationally compliant packaging.

• Booming e-commerce post-pandemic, increasing demand for paper packaging.

• New environmental policies (EPR) encouraging investment in recycled and sustainable packaging.

1.4 Market structure comparison

• China: comprehensive strength, leading in flexible plastics, cartons, e-commerce packaging.

• Thailand: focused on packaging for processed foods, beverages, and FMCG.

• Vietnam: rising in rigid plastics (PET/PP) for food, seafood, fruits, and paper packaging for e-commerce.

1.5 Implications for Vietnam

Vietnam’s market is small but fast-growing, offering opportunities for new entrants. However, reliance on imported raw materials and a smaller production scale than Thailand and China means Vietnam must leverage labor cost advantages, market adaptability, and trade agreements (EVFTA, CPTPP) to compete effectively.

References:

• China Packaging Market Report – Mordor Intelligence

• Thailand Packaging Market Report – Mordor Intelligence

• Vietnam Packaging Market Report – Mordor Intelligence

2. Production Costs & Capabilities

2.1 China – cost and scale advantage

China has a strong advantage in economies of scale. Its packaging production system is closely linked to the petrochemical and paper industries, reducing raw material costs by 10–15% compared to many other countries. Moreover, China has highly automated factories with large capacities, capable of producing everything from low-cost items (carton boxes, EPS boxes) to premium packaging (rPET, smart packaging). This allows Chinese companies to serve all segments of the international market, from budget to premium.

2.2 Thailand – stable technical capability

Thailand’s production costs are higher than China’s due to smaller scale and dependency on imported raw materials. However, this is offset by stable technical expertise, with factories holding international certifications (ISO 22000, HACCP, GMP). As a result, Thai packaging is highly regarded for quality and consistency, suitable for demanding partners such as Japan.

2.3 Vietnam – competitive labor costs, raw material dependency

Vietnam benefits from low labor costs, lower than Thailand and only 40–50% of China’s in certain production segments. This attracts FDI and export-oriented businesses. However, Vietnam heavily relies on imported plastic pellets, paper, and printing chemicals, making production costs vulnerable to global market fluctuations.

2.4 Automation & technology

• China: high automation, many large-capacity production lines.

• Thailand: stable lines with investment in environmentally friendly technology.

• Vietnam: transitioning; many SMEs lack funds for topseal, skin pack, or co-extrusion lines but adapt quickly to market demand.

2.5 Competitive implications

Vietnam can leverage labor cost advantages and rapid growth to enter segments not fully covered by Thailand and China, especially PET/PP packaging for seafood and fruit exports. However, to enhance competitiveness, Vietnam must invest in automation technology and raw material supply chains to reduce import dependency.

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References:

• China Packaging Industry Outlook – Research and Markets

• See also: Products | HUNG DU CO., LTD

• Read more: Impact of Plastic Packaging on Seafood Preservation – Solutions for Vietnam’s Export Sector in 2025

3. Standards & Regulations

3.1 China – restricting single-use plastics, promoting recycling

China introduced a roadmap to phase out single-use plastics from 2020, banning ultra-thin nylon bags and EPS foam boxes in many major cities. Simultaneously, the government supports the development of rPET and rPP recycling technologies to meet domestic and export demand. China’s legal framework strongly emphasizes a circular economy, but remains flexible to support small and medium-sized enterprises.

3.2 Thailand – national circular economy strategy

Thailand implements the BCG (Bio-Circular-Green) Economy Strategy, focusing on reducing single-use plastics, increasing recycling, and developing bio-based packaging. Food safety regulations are harmonized with Codex and Japanese standards, facilitating exports to premium markets. However, EPR (Extended Producer Responsibility) enforcement is still in a trial phase and not as strict as in the EU.

3.3 Vietnam – ASEAN pioneer in EPR

Vietnam is among the first ASEAN countries to formally adopt EPR under the 2020 Environmental Protection Law, effective from 2024. Manufacturers and importers of packaging are financially responsible for collection and recycling. Vietnam has also set a roadmap to reduce single-use plastics by 2030, aligned with the Net Zero 2050 commitment. This early adoption enhances Vietnam’s sustainable packaging credibility, especially for exports to the EU and the US.

3.4 Regulatory stringency comparison

• China: banned many single-use plastics, promotes recycling, but prioritizes large-scale production.

• Thailand: clear “green” policies, focuses on bio-packaging, but EPR enforcement is weak.

• Vietnam: ahead in ASEAN on EPR, but collection and recycling capacity are limited and require infrastructure investment.

3.5 Implications for Vietnamese businesses

Vietnam’s early EPR adoption is an advantage, boosting sustainability image for international partners. To compete effectively, businesses need to:

• Upgrade recycling systems to meet EU/US standards.

• Ensure transparency of certifications (FDA, HACCP, ISO 22000, EU 10/2011).

• Increase collaboration with ASEAN packaging associations to share resources.

References:

• China bans single-use plastics – Reuters

• Thailand BCG Economy Model – Thailand Board of Investment

• Vietnam EPR Implementation – MONRE

4. Export Opportunities & Risks

4.1 Opportunities for Vietnamese businesses

Vietnam benefits from free trade agreements (EVFTA, CPTPP, RCEP), reducing import duties on packaging and raw materials and opening markets in the EU, US, and Japan. This is an advantage not matched by China due to trade barriers or anti-dumping measures. Additionally, Vietnam is seen as a dynamic market with low labor costs, rapidly improving environmental regulations (EPR), increasing international buyer confidence.

4.2 Opportunities compared to Thailand and China

• Compared to Thailand: Vietnam’s packaging growth is faster, labor is cheaper, and it is emerging in rigid plastic packaging (PET/PP) for seafood and fruit exports.

• Compared to China: Vietnam gains an advantage exporting to the EU with fewer trade disputes. Some international buyers pursuing the China+1 strategy also open opportunities for Vietnamese companies.

4.3 Risks and challenges

Vietnamese businesses face several risks:

• Small scale, limited price competitiveness: China’s large-scale production can offer prices 10–20% lower.

• Technology limitations: Many Vietnamese companies lack investment in modern lines (skin pack, co-extrusion, smart packaging), making it hard to compete with high-quality Thai and Chinese products.

• International compliance: EU/US exports require packaging meeting FDA, HACCP, ISO 22000, EU 10/2011 standards. Vietnam has EPR but testing and certification are not as integrated as in Thailand.

• Import dependency: Vietnam still imports plastic pellets, industrial paper, and chemicals from China, Korea, and Thailand, creating cost and supply risks.

4.4 Intensifying global competition

According to Euromonitor (2024), the Asia-Pacific sustainable packaging market grows 8–10% per year, intensifying competition. China invests heavily in smart packaging, Thailand in bio-packaging, while Vietnam must select the right segments to avoid being “squeezed” between the two major players.

4.5 Practical implications

Vietnamese companies should focus on segments with comparative advantages, such as PET/PP packaging for seafood and fruit exports and paper packaging for e-commerce, while enhancing international certification capabilities to overcome technical barriers in demanding markets.

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References:

• Vietnam Packaging Market – Mordor Intelligence

• Euromonitor – Sustainable Packaging Asia 2024

• European Commission – EPR and Packaging Waste Directive

Quick Summary: Key Advantages of Plastic Packaging

5. Recommended Strategies for Vietnamese Businesses

5.1 Focus on segments with competitive advantage

Instead of competing directly with China on large-scale production or Thailand on bio-packaging, Vietnamese businesses should concentrate on segments where they have distinct strengths:

• PET/PP packaging for seafood and fruit exports – closely tied to Vietnam’s agricultural and seafood strengths.

• Paper/corrugated packaging for e-commerce – a booming segment driven by rapid e-commerce growth.

5.2 Invest in technology & automation

Many Vietnamese companies still rely on manual production lines, leading to high costs and inconsistent quality. Investing in topseal, skin pack, co-extrusion, and smart packaging technologies is necessary to:

• Reduce long-term production costs.

• Enhance competitiveness against Thai and Chinese products.

• Meet increasingly strict requirements from supermarkets and international partners.

5.3 Ensure transparency of international certifications

Premium markets (EU, US, Japan) require certifications such as FDA, HACCP, ISO 22000, EU 10/2011. Vietnamese businesses should clearly display these on websites, catalogues, and packaging labels. This not only builds partner trust but also serves as a competitive advantage over Chinese companies, which are sometimes perceived as less transparent.

5.4 Strengthen value chain collaboration

Vietnam should build industry alliances to share resources (rPET, recycled paper) and invest in international-standard recycling infrastructure. Collaboration with logistics companies and agricultural/seafood businesses can also optimize costs across the supply chain.

5.5 Leverage trade agreements

Through EVFTA, CPTPP, and RCEP, Vietnamese companies can access large markets with preferential tariffs. To turn these opportunities into advantages, businesses must prepare legal documentation carefully, comply with EPR, and ensure full traceability of materials.

5.6 Position the Vietnamese packaging brand

Beyond technical aspects, businesses should brand themselves as “green – transparent – cost-competitive”, differentiating from Thailand (bio-packaging) and China (mass production) in the global marketplace.

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References:

• Vietnam Packaging Market Forecast – Mordor Intelligence

• McKinsey – Sustainability in Packaging 2023

• European Commission – Packaging and Packaging Waste

Conclusion

The comparison between Vietnam, Thailand, and China paints a multi-dimensional picture of the Asian packaging industry.

• China holds the position of the “global factory” with massive scale and advanced technology.

• Thailand stands out with a bio-packaging focus and stable export standards.

• Vietnam, although smaller in scale, boasts high growth rates, competitive labor costs, and is a pioneer in EPR within ASEAN.

Vietnam’s biggest weaknesses lie in its dependence on imported raw materials and limitations in modern technology. At the same time, advantages come from EVFTA, CPTPP, and RCEP, offering opportunities to expand exports to the EU, US, and Japan – markets that are demanding but willing to pay a premium for green and transparent packaging.

In a highly competitive environment, Vietnamese businesses need to:

• Identify segments with advantages (PET/PP packaging for seafood and fruit; paper packaging for e-commerce).

• Invest in technology to modernize production lines.

• Ensure transparency of international certifications.

• Build a green packaging brand.

This strategy will enable Vietnamese packaging not only to hold a strong position in the region but also gradually rise on the global map.

Read more: Differences Between PET, PP, and PS Packaging in Food – Optimal Choices for 2025