5% Growth in a 2% Market: How Is AkzoNobel Winning in Vietnam’s USD 2.8 Billion Paints & Coatings Industry?

Vietnam's paints and coatings market, valued at USD 2.8 billion in 2024, is expected to grow at a 2% YoY rate, driven by rising demand for eco-friendly coatings and regulatory shifts. As part of its National Green Growth Strategy, the government is pushing for low-VOC and water-based solutions, impacting both residential and commercial sectors. Despite facing raw-material cost pressures and global supply-chain disruptions, AkzoNobel is outperforming the broader market.  

The company has focused on premium coatings and sustainability, leading to a 5% revenue growth in Vietnam in 2024. This article delves into how AkzoNobel has strategically positioned itself to capture growth in this evolving market, focusing on its differentiation through sustainability, premium products, and operational efficiency. 

AkzoNobel’s Strategy: Premium Products and Operational Efficiency 

AkzoNobel’s strategy has centred on sustainability and premiumisation, with the company focusing on eco-friendly coatings and high-performance products. In 2024, AkzoNobel’s total revenue reached USD 10.71 billion, with its Performance Coatings segment contributing USD 6.4 billion. To further understand AkzoNobel's revenue generation and regional performance, the following graph breaks down the company's 2025 revenue by region and product category. 

As part of its operational efficiency initiatives, AkzoNobel has achieved a significant EBITDA margin of 14.2% for 2025, an increase from 13.8% in the previous year, 2024. This improvement is due to cost-control measures and pricing discipline across its operations. 

 In particular, AkzoNobel has focused on reducing operating expenses, with USD 98 million in OPEX reductions globally. These operational improvements are critical as the company navigates inflationary pressures and raw material cost increases, allowing AkzoNobel to continue driving growth while maintaining high profitability. Furthermore, AkzoNobel’s investments in R&D have led to the development of more durable and sustainable coatings, which command higher prices and margins. 

AkzoNobel Outpaced PPG in Vietnam’s Tough Paints Market 

While PPG Industries has faced a 2% decline in sales and struggled in key markets like Asia-Pacific, AkzoNobel’s strategy of focusing on eco-friendly coatings and premium segments has allowed the company to outperform its competitors, achieving approx. 5% growth in Vietnam.  

This performance is a testament to AkzoNobel’s ability to outperform the broader market by focusing on high-margin segments such as eco-friendly and fibre-based products.  

Alongside revenue growth, AkzoNobel has also achieved significant improvements in operational efficiency. In 2024, the company reported a 13.8% EBITDA margin, an 11% increase from the previous year, driven by cost-control measures. This contrasts sharply with PPG’s margin pressures, where the company faced flat demand in key segments. 

AkzoNobel’s focus on premium coatings, especially in sustainable and high-performance categories, has allowed it to maintain strong margins and achieve operational efficiencies, enabling it to navigate the challenges faced by the broader market. The company’s ability to expand its fibre-based offerings and optimise costs has made it more resilient compared to PPG Industries, whose flat growth in key segments has limited its potential.  

AkzoNobel’s Strategic Mergers and Investments Will Redefine the Coatings Industry 

AkzoNobel’s operational efficiency has paved the way for strategic moves that will further solidify its market dominance. The upcoming merger with Axalta Coating Systems is expected to create a USD 17 billion entity, enhancing AkzoNobel’s position in the global performance coatings market, particularly in industrial solutions. The merger is expected to drive synergies and further solidify AkzoNobel’s leadership in high-growth coatings sectors.  

Moreover, AkzoNobel’s divestiture of its Indian decorative paints unit to JSW Paints for USD 1.6 billion allows the company to refocus its efforts on premium coatings and growth markets such as Vietnam. This move is in line with AkzoNobel’s broader strategy to streamline its portfolio and boost profitability in high-margin segments.  

AkzoNobel’s emphasis on sustainable coatings and eco-friendly solutions will continue to drive future growth, as global demand for green building materials and high-performance coatings expands. By continuing to innovate with sustainable technologies, AkzoNobel is well-positioned to capture a larger share of the Vietnamese coatings market.  

Additionally, AkzoNobel’s investments in advanced manufacturing and digital supply chain solutions will allow the company to optimise its cost structure and stay competitive in a challenging market. These moves ensure that AkzoNobel remains a dominant force in premium coatings and sustainable solutions.  

Ken Insight 

Ken Research projects Vietnam’s paints and coatings market will continue its modest growth trajectory, with a forecast CAGR of 4.5% through 2032, driven by increasing demand for high-performance coatings and eco-friendly solutions. 

Akzo Nobel’s strategy in Vietnam will be centred around expanding its fibre-based portfolio and maintaining its premium product focus while continuing to optimise operational efficiency. By maintaining its leadership in sustainable products, AkzoNobel is well-positioned to outpace the broader market’s growth and capture a larger share of high-margin segments. 

AkzoNobel’s 5% YoY revenue growth in Vietnam, coupled with its strong EBITDA performance, underscores the company’s ability to navigate a challenging environment and capitalise on premium market demand. Going forward, the company’s continued focus on fibre expansion, product innovation, and operational discipline will be key to its long-term success in the Vietnam paints and coatings market, securing its position as a leading player in this competitive sector.