Demand for chemicals is surpassing supply in Vietnam: Ken Research
Posted on 25 October 2016 by KenResearch Metal Mining and Chemical,
The report titled “VIETNAM CHEMICALS STANDARD REPORT Q2/2016” provides a comprehensive review about the global and Vietnam chemical industry which includes Overall scenario of the global, regional, domestic economies, with America, China, and Germany described.
Chemicals are used for manufacturing various products. It plays an important role in the economic development of the country. From 2010-2014, chemicals industry in Vietnam witnessed a high growth. Demand for chemicals is more than the supply in Vietnam thus it needs to import chemicals to fulfill the input requirement of chemicals for various industries.
Overview of Vietnam’s Chemical Industry
Chemicals industry is adding to the GDP growth. Chemicals industry registered high growth rate of 19.25% from 2010-2014. Vietnam’s exports are lower in comparison to imports due to out-dated technology in Vietnam but exports are expected to increase in the forecast period. Chemicals are ranked 11th in the list of top imported items. Vietnam’s chemical industry is unable to supply input material to the various industries and imports most of it from China. There are various reason for the low productivity of chemicals. Vietnam does not have high end technological equipments. If we compare the technology in Vietnam with that of the other countries’, it’s far away in the line, thus the low productivity and need for imports.
The top chemical companies in Vietnam are: Petro Vietnam Fertilizer and Chemicals Corporation (PVFCCO). It is awarded for the consecutively 4th time as ‘Top 50 best listed companies in Vietnam’ and maintained outstanding growth in the challenging years. Company’s revenue in 2015 is VND 10,047 billion and profit after tax is VND 1.48 billion. The other competitor company is Petro Vietnam Ca Mau Fertilizer JSC. It manufactures and supplies granular urea in Vietnam. It also owns and operates plant with 8,00,000 tons of fertilizers. Binh Dien Fertilizer JSC is also considered as the top company. It is engaged in manufacturing and trading of agricultural chemicals. Company exports its products to other countries as well. Leading products are nitrogen-phosphorus-potassium (NPK) fertilizers.
Benefits of chemicals:
- Increases agricultural productivity
- Used as an input to various industries
- Helps in fruit ripening
- Used as preservatives
Key Drivers in Chemical Industry
- Demand and supply for chemicals
- Used in which product
- Government regulations
Future of Commercial Real Estate Industry
Vietnam’s chemical industry is expected to grow at high rate in the coming years. Looking at the demand for chemicals, Vietnam will soon replace the outdated technology. Thus, there will be sufficient amount of chemicals to meet the domestic requirement of inputs and lower imports. This will improve Vietnam’s balance of payments and there will be low current account deficit which will improve the economic situation of the country. Growth of various industries is associated with the growth of chemical industry because chemicals act as an input in production of various goods.
To know more on “Chemical industry report in Vietnam” click on following link:
Ankur Gupta, Head Marketing & Communications