Market Brief on Specialty Chemicals in Vietnam

A Hot Tip about Rubber Tires in Vietnam

Last updated: 4 Mar 2011

Overview

In the recent years, the chemical industry has played an important role in the development of Vietnam’s economy, accounting for approximately 8% of the total industrial output of the country. However, except for basic chemicals, Vietnam currently imports all chemical specialties for industrial manufacturing. Chemical imports from Taiwan, China and Japan are increasing sharply, according to recent statistics.

 

Increased chemical product imports are expected to be the trend for Viet Nam over the next five years in order to support rapid industrial growth across the board. Therefore, Vietnamese leaders are encouraging foreign investment and technology transfer in this field.

 

Under the master plan for the chemical industry approved by the Prime Minister last year, Viet Nam has targeted a modern chemical industry, focusing on such fields as fertilizers, rubber, petrochemicals and pharmaceuticals.

 

This market research is intended to highlight business opportunities for U.S. providers, analyze best sales prospects, competitors, end-users and related issues. It also aims to help U.S. exporters learn how enter the market more efficiently.

 

Market Demand

Vietnam saw an average growth in GDP of 7.1% per year from 2000 to 2004. GDP growth reached 8.4 % in 2005 and 8.17% in 2006, the second fastest in Asia, trailing behind only China. According to Vietnam's Ministry of Planning and Investment, the government has targeted a GDP growth rate of around 8.5 % for 2007.

 

There are 130 currently planned industrial zones (IZs) in Vietnam, within which 75 industrial parks are already in operation, including 68 IZs, four export processing zones (EPZs), and two high tech parks. The others are currently in land clearance process and/or undergoing basic infrastructure construction.

 

This rapid development is indicative of the rapid expansion in manufacturing that is driving the market for chemical imports.

 

In summary, the chemical industry is projected to grow at a rate of 16-17 % per year and contribute 10- 11 % to total industrial production value nationwide by 2010. Since local production cannot meet the domestic demand, supplies of chemical products for local industrial consumption include a considerable amount of imports.

 

By Vo Mac Thuy

 

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Posted: 29 April 2010, last updated 4 March 2011