“Rapid Industrialization and Rising Passenger Vehicle Sales
have led to rise in demand for both Automotive and Industrial Lubricants simultaneously
in Vietnam.”
Analysts at Ken Research
in their latest publication “Vietnam
Lubricants Market Outlook
to 2023 - By Grade (Mineral, Semi-Synthetic and Synthetic
Lubricants), By Application (Automotive and Industrial) By Type of Automotive
and Industrial Lubricants, By End User of Automotive and Industrial Lubricants
End User, and By Distribution Channel of Automotive and Industrial Lubricants” believe that rising vehicle sales, increasing industrial
capabilities, growing quantum of incoming FDI from ASEAN and other countries,
improving sales and promotion / advertising of lubricants, introducing
facilities for recycling and effective disposal of used oil will aid the lubricants
market in Vietnam. The market is expected to register a positive CAGR of 9.2% in terms of revenue and 6.7% in terms of sales volume during
the forecasted period 2018-2023.
Key Findings
The ASEAN Economic Community’s Trade in Goods Agreement
(ATGI), which abolished tariffs on trade of lubricants within ASEAN nations,
supplemented the re-design of the competition scenario in the market, with
multiple companies from neighboring nations such as China, Taiwan, Indonesia,
Singapore and Japan entering the Vietnamese market.
CAGR in the automotive segment of the lubricants market in
Vietnam of around 2.0% was stimulated by healthy sales growth of passenger cars
owing to the rising personal disposable income of the ever expanding middle
income segment of the population in Vietnam.
Emergence of Vietnam as a manufacturing and production hub,
as evident in the all time-high USD 39.2 billion GDP contribution of the
manufacturing sector to the GDP of Vietnam in the year 2018, spearheaded growth
in demand for industrial lubricants in Vietnam.
Low level of customer awareness regarding lubricant quality
and overt dependence on brand name and reputation for decision making puts the
consumer on the back foot with respect to holding bargaining power in the
market.
Bio Based Lubricants are the newest product segment to be introduced in the
market, with an increasing focus on sustainability and on curtailing
environment degradation. Environment-friendly and made from bio-degradable
substances, bio-based lubricants have been introduced by number of lubricant-providing
companies in the market. For instance, Green Lube Vietnam and others introduced
bio-based lubes within Vientam.
Rising Passenger Car Sales were observed during the period, accruing to a rise in the
personal disposable income of Vietnamese citizens and a rise in the middle
income segment in Vietnam. Sales of passenger cars grew at a compounded rate of
27.0% year-on-year during the period 2013-2018. A shift in consumer’s mindset
towards more comfortable mobility solutions and a perceived slowdown in the
growth of the two-wheeler retail segment in the country were also behind the
increasing demand for passenger cars and therefore lubricants for passenger
cars.
Major industrial end users such as construction, manufacturing, steel and power generation
utilize machineries that require usage of lubricants to stimulate heat
resistance and smooth running of machinery. Industrial growth in terms of a
high value added by the industrial sector to GDP, has led to an increasing
demand for industrial use lubricants in the country.
The spread of Used
Oil and Re-Used Lubricants has prompted the Vietnamese government to mandate the
collection and proper treatment of used oil. The guidelines have encouraged
lubricant companies towards developing used oil treatment and collection plants
and facilities in addition to encouraging the entry of waste management
companies in Vietnam.
Competitive landscape
within the market has evolved with increasing number of international companies
entering the space. Major Players in the market include joint venture Castrol BP
Petco and other international companies such as Shell, Total, Chevron, JX
Nippon and Idemitsu among others. Local competitive presence includes state-run
Petrolimex Petrochemical Corporation (PLC) and Mekong Lubricants primarily.
Key Segments Covered:-
By Grade
Mineral
based Lubricants
Semi-Synthetic
Lubricants
Synthetic
Lubricants
By Application
Automotive Lubricants
Industrial Lubricants
By Automotive Lubricant Type
Heavy
Duty Diesel Engine Oil
Motorcycle
Oil
Passenger
Car Motor Oil
Hydraulic
Oil
Gear
Oil
Greases
By Automotive Lubricant End User
Commercial
Vehicles
Motorcycles
Passenger
Cars
Marine
Vessels
By Automotive Lubricant Distribution Channel
Dealer
and Distributor Network
OEM
Workshops and Service Stations
Supermarket
and Online Retail
By Industrial Lubricant Type
Hydraulic
Oil
Metal
Cutting Fluid
Industrial
Gear Oil
Industrial
Grease
Turbine
Oil
Transformer
Oil
Compressor
Oil
Others
(Anti Rust Oil and Cleaner Oil)
By Industrial Lubricant End User
Manufacturing
Steel
Projects
Construction
Power
Generation
Others
(Textiles, Chemicals and Auto Parts primarily)
By Industrial Lubricant Distribution Channel
Direct
Sales
Dealer
and Distributor Network
Key Target Audience:-
Auto
And Auto Component Manufacturers
Manufacturing
Companies
Steel
Production Companies
Metal
Working Companies
Auto
And Auto Component Manufacturers
Construction
Companies
Textile
Companies
Cement
Companies
Mining
Companies
Power
Generation Companies
Food
& Beverage Companies
Petroleum
and Lubricant Associations
Time Period Captured in the Report:-
Historical Period – 2013-2018
Forecast Period – 2018-2023E
Companies Covered:-
Castrol BP Petco
Petrolimex Petrochemical Corporation (PLC)
Shell Vietnam
Chevron
Total
Mekong Lubricants
Idemitsu Lube Vietnam
JX Nippon Oil and Energy
ExxonMobil
Vilube Motul
Valvoline
Honda
Yamaha Lube
Sinopec
For more information on the research report, refer to below
link:-
Related
Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
Ken Research
Ankur Gupta, Head Marketing & Communications
Sales@kenresearch.com
+91-9015378249
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