Thursday, January 26, 2023

Vietnam Construction Chemical market revenue is expected to get doubled by 2027F with a CAGR of ~11.9% between 2022E-2027F owing to rapid urbanization, increasing use of green chemicals and strong government investments: Ken Research

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Vietnam Construction Chemical Industry is a moderately fragmented market with the presence of local as well as international brands in the market. Currently, there are ~40 International players in the organized market, including manufacturing units & import (raw materials & finished products) from other countries. More than half of the market is organized and major share of the market is highly concentrated and rest of the industry is fragmented. Some of the major players in the Vietnam Construction Chemical Market are Sika, Silkroad, DOW, BASF, Bestmix, FOSROC etc.

  • Rapid urbanization, growing use of Ready-Mix Concrete (RMC) and green chemical will lead to increase in usage and quality of Chemicals in Construction industry in Vietnam.
  • Vietnam Construction Chemicals Market is moderately fragmented with the top player holding more than half of the market share in the organized market and remaining market being highly unorganized.
  • Future Infrastructure Development Projects by govt. such as Bac Tan Uyen Vietnam-Singapore Industrial Park III, Rach Mieu II Bridge and others will fuel the usage of construction chemicals in Vietnam.

Rapid Urbanization: Vietnam’s growing middle class is becoming rapidly urbanized, pushing up the demand for built environment solutions–especially in the residential sector and in affordable housing. Vietnam’s urbanization rate–the proportion of the population living in cities–was ~35% in 2019 and is expected to reach nearly 50% by 2040, precipitating a potential housing shortage. Also, the Vietnamese government has set aside USD ~1.4 Bn as incentives for developers to focus on such affordable housing projects between 2018 and 2022. Furthermore, with the opening of the school after Covid-19 and sudden increase in the demand for housing repair services has also led to the rise in the growth of construction chemical market of Vietnam.

Increasing use of Green Chemical: Construction chemical companies are working on advanced technologies, equipments, high degree of mechanization and automation to ensure high quality, stability of products and competitiveness in international markets, simultaneously saving raw materials and using alternative fuels. Thus, increasing the use of green technology and increasing the focus towards protecting the environment. This push towards Green Chemicals has a significant positive impact on the Vietnam construction chemical industry.

Strong Government Investments: In order to revive the economy and drive growth, the government has allocated USD ~ $35 billion to its economic recovery plan for the 2022-2023 period. Through this plan, the government is promoting infrastructure development. For instance, the Government has approved infrastructure projects like the construction of four airport in Sa Pa, Quang Tri, Lai Chau and Phan Thiet which are expected to kick off in late 2022 and early 2023. More projects like Bac Tan Uyen Vietnam-Singapore Industrial Park III and Rach Mieu II Bridge are also in the pipeline. Moreover, through its 2022 budget, the government has focused on bolstering the economic recovery and progressing post-pandemic reforms like master plan of urban development in Vietnam, Vision development urban water supply, urban drainage orientation to Vietnam. With all these government initiatives, the Vietnam Construction Chemical industry is expected to see a robust growth.

Analysts at Ken Research in their latest publication Vietnam Construction Chemical Market Outlook to 2027F - Driven by growing construction sector, high FDI Investments and favorable government initiative by Ken Research observed that Vietnam Construction Chemical market is in the growing phase, growing at CAGR of 5.6% between 2017-2022E owning to the influx of FDI, availability of cheap & abundant raw material, major merger & acquisitions, rapid urbanization, increasing use of green chemicals and strong government investments. It is expected that Vietnam Construction Chemical market will continue to grow, at a CAGR of 11.9% for the 2022-2027F forecasted period.

vietnam-construction-chemical-market

Key Segments Covered:-

Vietnam Construction Chemical Market

By Region, 2022E & 2027F

Northern Vietnam

Central Vietnam

Southern Vietnam

By End-User, 2022E & 2027F

Commercial

Industrial

Residential

By Product Type, 2022E & 2027F

Industrial Flooring

Sealants & Adhesives

Coating

Grouting Chemicals

Repair & Rehabilitation Chemicals

Waterproofing

Concrete Admixtures

By Product Type), 2022E & 2027F

Organized

Unorganized

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By Type of Concrete Admixtures, 2022E & 2027F

Organized

Unorganized

By Type of Waterproofing, 2022E & 2027F

Organized

Unorganized

By Type of Grouting Chemicals, 2022E & 2027F

Organized

Unorganized

By Type of Repair & Rehabilitation Chemicals, 2022E & 2027F

Organized

Unorganized

By Type of Coating Chemicals, 2022E & 2027F

Organized

Unorganized

By Type of Sealants & Adhesives Chemicals, 2022E & 2027F

Organized

Unorganized

By Type of Industrial Flooring Chemicals, 2022E & 2027F

Organized

Unorganized

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Key Target Audience:-

Construction Chemical companies

Concrete Additive companies

Waterproofing companies

Adhesive and Sealant Companies

Grouting chemical companies

Coating companies

Time Period Captured in the Report:-

Historical Period: 2017-2022E

Base Year: 2022E

Forecast Period: 2022E – 2027F

Companies Covered:-

Sika

MAPEI

FOSROC

MBCC Group

BASF

GCP

Bestmix

Silkroad

MC BIFI

Dow

Key Topics Covered in the Report:-

Country Overview of Vietnam

Vietnam Construction Chemical Market Overview

Vietnam Construction Chemical Market Size Overview, 2017-2022E

Vietnam Construction Chemical Market Segmentation

Industry Analysis of Vietnam Construction Chemical Market

Porter’s Five Forces

Challenges in Vietnam Construction Chemical Market

Trends & Developments in Vietnam Construction Chemical Market

Swot Analysis of Vietnam Construction Chemical Market

List of Vietnam Construction Projects

Major Mergers & Investments in Construction Chemical Industry

End User Analysis of Vietnam Construction Chemical Market

Covid-19 Impact on Vietnam Construction Chemical Market

Competition Framework of Vietnam Construction Chemical Market (Inception, global presence, manufacturing plants, business verticals, end-user, brands, Est. revenue)

Future Outlook to Vietnam Construction Chemical Market 2022E-2027F

Analyst Recommendation

For more insights on the market intelligence, refer to the link below:-

Vietnam Construction Chemical Market

Related Reports by Ken Research:-

Indonesian Construction Chemicals Market Outlook to 2025

India Construction Chemicals Market Outlook to 2025 ( Second Edition )

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