Vietnam Construction Chemical Market Outlook to 2027F

The report provides a comprehensive analysis of the potential of construction chemical industry in Vietnam. The report covers an overview and genesis of the industry, market size in terms of revenue. Its market segmentations includes: by region, by end-user, by product type, by organized & unorganized product, by type of concrete admixtures, by type of waterproofing, by type of grouting chemicals, by type of repair & rehabilitation chemicals, by type of coating chemicals, by type of sealants & adhesives chemicals, by type of industrial flooring chemicals; growth enablers and drivers; challenges and bottlenecks; trends and developments; regulatory framework; Porter’s five forces, industry analysis, competitive landscape including competition scenario (Inception, global presence, manufacturing plants, business verticals, end-user, brands, Est. revenue) and market shares of major players. The report concludes with future market projections of each market segmentation and analyst recommendations.

Market Overview:

According to Ken Research estimates, the Vietnam construction chemical market expanded at a CAGR of ~5.6% between 2017 – 2022E on the basis of revenue generated. The market saw rapid growth owning to influx of FDI, availability of cheap & abundant raw material, major merger & acquisitions, rapid urbanization, increasing use of green chemicals and strong government investments. Vietnam construction chemical market is estimated to grow at a positive CAGR of ~11.9% between 2022E and 2027F.

• 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.
• Residential Sector, Commercial Sector, Industrial Sector and Government Infrastructure projects are the most prominent users of construction chemicals in Vietnam. 

Key Trends by Market Segments:

By Product type: The Vietnam Construction Chemical industry is dominated by Concrete admixtures in the product type segment. They are increasingly used for producing super-strong concrete, are comprised of plasticizers/superplasticizers, accelerators, air-entraining agents, bonding agents, retarders, shrinkage reducers, and so on, followed by adhesives and sealants, which helps in joining dissimilar building components in a flexible, cost-effective, and durable manner.

By Product Component:  In Central Region, by end of June 2022, many projects were under construction with a value of USD ~Bn by the FDI, as the projects in the Central region only accounts for a small number of registered projects. Whereas, Northern and Southern market is largely affected by the FDI. There are several projects under construction in northern & southern region of the country respectively with a total investment of USD ~Bn. The southern market is a type of market that is open to experiment in the construction chemical sector and is also a very competitive market due to presence of multiple players, whereas Northern market is bit of traditional market, therefore the market is quite concentrated, due to the presence of only some big players like SIKA.

Competitive Landscape

Vietnam Construction Chemicals Market is moderately fragmented with the top players holding more than half of the market share in the organized market and remaining market being highly unorganized. There are more than 40 players in organized construction chemical market including manufacturing units & import (raw materials & finished products) and are also regulated by multiple government agencies for construction material vision 2050. The market also has a significant presence of small sized local players operating in different product categories. Some of the major player in the Vietnam Construction Chemical market are Sika, Fosroc, Mapei, BASF (now acquired by Sika).

Future Outlook

The construction chemicals market in Vietnam is anticipated to grow with the growing Real Estate and Infrastructure Construction Industry over the forecasted period 2022E – 2027F. The Vietnam construction chemicals market revenue is further anticipated to increase to USD ~ Bn by 2027F with a CAGR of 11.9%. It is expected that the disparity between the unorganised and organised markets will get more pronounced, with Organized Players gradually eating away at the Unorganized Market's share.