Vietnam Acrylic Resin Market Outlook to 2030

Vietnam Acrylic Resin Market Overview

• Vietnam Acrylic Resin Market has experienced a notable growth. This is reflected in Global Acrylic Resin Market which reached a valuation of USD 22 billion, driven by large demand from various end-use industries including construction, automotive, and electronics.
• Key players in Vietnam Acrylic Resin Market include BASF SE, Dow Inc., Arkema Group, Mitsubishi Chemical Holdings Corporation, and LG Chem. These companies dominate the market due to their extensive product portfolios, significant investments in research and development, and established distribution networks.
• In 2023, Arkema introduced its Incellion range of sustainable waterborne acrylic solutions, designed for high-capacity anodes, cathode primers, and ceramic coated separators in battery applications. This launch demonstrates Arkema's commitment to innovation in the acrylic market, particularly in supporting the electric vehicle (EV) and energy storage systems (ESS) sectors.
• Ho Chi Minh City and Hanoi are the dominant cities in the Vietnam acrylic resin market. These cities lead due to their extensive industrial base, rapid urbanization, and large-scale construction activities. The presence of major manufacturers and higher disposable incomes also contribute to the increased demand for acrylic resins in these urban centers.

Vietnam Acrylic Resin Market Segmentation

The Vietnam Acrylic Resin Market can be segmented based on several factors:

By Product Type: Vietnam Acrylic Resin Market is segmented by product type into thermoplastic acrylic resins, thermosetting acrylic resins, and water-based acrylic resins. In 2023, thermoplastic acrylic resins hold a dominant market share due to their extensive use in automotive and construction applications. Water-based acrylic resins are also gaining traction, driven by increasing demand for eco-friendly and low-VOC (volatile organic compounds) coatings.

By Application: Vietnam Acrylic Resin Market is segmented by application into paints & coatings, adhesives & sealants, and plastic modifiers. In 2023, the paints & coatings segment dominates the market share, attributed to the increasing construction activities and the growing automotive industry. Acrylic resins are extensively used in high-quality paints and coatings due to their excellent weather resistance and aesthetic properties. Additionally, the adhesives & sealants segment is witnessing steady growth, supported by rising demand in packaging and construction sectors.

By Region: Vietnam Acrylic Resin Market is segmented by region into North, South, East, and West. In 2023, the southern region dominates the market share due to its status as an industrial and commercial hub. The high concentration of manufacturing facilities and infrastructural developments in this region significantly contribute to the demand for acrylic resins. Moreover, ongoing investments in infrastructure projects and urbanization initiatives are expected to further boost market growth in the southern region.

Vietnam Acrylic Resin Market Competitive Landscape

• Mitsubishi Chemical Holdings: In 2022, Mitsubishi Chemical Holdings Corporation (MCHC) has been actively developing its acrylic resin business in Vietnam, particularly through its subsidiary Mitsubishi Chemical UK, which operates a manufacturing plant producing SoarnoL, an environmentally friendly ethylene-vinyl alcohol copolymer.
• LG Chem & GS Caltex: In 2023, LG Chem and GS Caltex recently signed an MOU to collaborate on a joint project for the eco-friendly bio material 3HP (3-Hydroxypropionic acid), an essential raw material for biodegradable plastics. A testing plant has been successfully completed at the GS Caltex Yeosu Plant, with plans to produce a prototype in Q1 2024.

Vietnam Acrylic Resin Industry Analysis

Vietnam Acrylic Resin Market Growth Drivers:

• Industrial Expansion: Vietnam manufacturing output for 2022 was $101.22B, a 12.3% increase from 2021. Also, the country needs US$25-30 billion annually for infrastructure if the country wants to ensure economic growth. The surge in infrastructure projects and the establishment of new manufacturing units like Dragon Bridge and Ring Road 4 Construction Projects have increased the consumption of acrylic resins for various applications, including paints, coatings, and adhesives.
• Construction Boom: In 2022, the number of newly established businesses for the construction sector reached about 15.9 thousand in Vietnam. The governments commitment to developing smart cities and enhancing urban infrastructure has further fueled the demand for high-quality acrylic resins.
• Automotive Industry Growth: In 2023, the auto sales of Vietnam had reached 301,989 units. The increasing production of automobiles has led to a higher demand for acrylic resins used in automotive coatings and plastic components. Major automotive manufacturers are expanding their operations in Vietnam, contributing to the robust growth of the acrylic resin market.

Vietnam Acrylic Resin Market Challenges:

• Raw Material Price Volatility The volatility in raw material prices poses a significant challenge to the acrylic resin market. In 2024, the cost of key raw materials like acrylic acid and methanol fluctuated between USD 1,200 to USD 1,500 per ton. These fluctuations impact production costs and profit margins for manufacturers, making it challenging to maintain consistent pricing and supply.
• Environmental Regulations Stringent environmental regulations regarding the use of chemicals in manufacturing processes are a challenge for the acrylic resin industry. The Vietnamese government, through its National Action Plan on Green Growth, has imposed stricter controls on emissions and waste management in 2024. Compliance with these regulations requires substantial investment in eco-friendly technologies and processes, increasing operational costs for manufacturers.

Vietnam Acrylic Resin Market Government Initiatives:

• Vietnam Green Growth Strategy: The VGGS was indeed launched in 2012 and was updated in 2021. The updated strategy, approved by Vietnam's Prime Minister on October 1, 2021, outlines objectives for the period from 2021 to 2030, with a vision extending to 2050. Its primary goals include economic restructuring for sustainable development, greenhouse gas emission reductions, and the promotion of green technologies across various sectors, including the production of low-VOC acrylic resins to mitigate environmental impacts
• National Action Plan on Chemical Management: The National Action Plan on Chemical Management, initiated by Vietnam's Ministry of Natural Resources and Environment in 2023, aims to implement stricter regulations for the safe management and use of chemicals, including those utilized in the production of acrylic resins. This aligns with the country's commitment to sustainable development and environmental protection

Vietnam Acrylic Resin Future Market Outlook

By 2028, the Vietnam Acrylic Resin Market is expected to experience significant growth, driven by continuous industrialization and infrastructural development. The market is expected to grow with further advancements in resin technologies and increased applications in emerging industries such as renewable energy and electronics.

Future Trends

• Growth in Renewable Energy Applications Over the next five years, the demand for acrylic resins in renewable energy applications is expected to rise. Acrylic resins are increasingly used in solar panel coatings and wind turbine components due to their durability and weather resistance. By 2028, the expansion of renewable energy projects in Vietnam driven by the government's Renewable Energy Development Strategy, will significantly contribute to the growth of the acrylic resin market.
• Increased Adoption in Electronics Industry: Vietnamese electronics industry is projected to grow substantially, due to which acrylic resins will play a crucial role in this growth, being widely used in electronic device housings and components. The ongoing shift towards advanced electronics manufacturing will drive the demand for high-performance acrylic resins in the coming years.