Minh-Ngoc Nguyen
Research Expert covering Vietnam
Chemicals and resources in Vietnam - statistics & facts
Vietnam's chemicals and resources sector has emerged as one of the country's most profitable engines of growth in recent years. With the rapid expansion of the industrial and construction sectors, the demand for materials such as plastics, rubber, and other basic resources has surged dramatically. This heightened demand has pushed Vietnam to rely on both domestic production and imports to fill the gap. In 2023, the mining and quarrying industries alone contributed a significant 2.5 percent to the nation's GDP, highlighting the essential role these sectors play in fueling economic progress.
Beyond agriculture, the chemical sector is indispensable to Vietnam’s rapidly expanding industrial sector, which includes everything from textiles to construction. However, despite its importance, domestic suppliers have struggled to meet the growing demands. The fast pace of industrialization, combined with resource-intensive sectors, has outstripped the country’s production capacity. As a result, Vietnam has become increasingly dependent on imports to cover shortages, particularly in high-demand products like rubber, plastic goods, and paper. These imported materials are vital for keeping the wheels of industry turning in Vietnam’s flourishing manufacturing sector.
Environmental concerns also pose a significant challenge. The chemical and resource processing industry generates considerable waste, but Vietnam’s waste treatment infrastructure and worker safety standards remain underdeveloped. These environmental impacts, coupled with global pressures for more sustainable production, signal that the sector must evolve to remain competitive on the international stage.
Looking ahead, investments in modern technologies, sustainability initiatives, and a stronger domestic production base is needed for Vietnam’s chemical industry to achieve long-term growth and global competitiveness.
The role of chemicals and resources in Vietnam's economic rise
What began as a wartime necessity, Vietnam’s chemical industry has evolved into a pillar of the country’s economy, supplying vital materials to various key industries. The agrochemical segment is a prime example of this transformation. Historically, agriculture has been the backbone of the Vietnamese economy, and the chemical sector has supported its growth by producing essential products like insecticides, pesticides, and fertilizers. As domestic agriculture continues to develop, the demand for agrochemicals has risen steadily, allowing this segment to thrive and provide critical support to farmers across the country.Beyond agriculture, the chemical sector is indispensable to Vietnam’s rapidly expanding industrial sector, which includes everything from textiles to construction. However, despite its importance, domestic suppliers have struggled to meet the growing demands. The fast pace of industrialization, combined with resource-intensive sectors, has outstripped the country’s production capacity. As a result, Vietnam has become increasingly dependent on imports to cover shortages, particularly in high-demand products like rubber, plastic goods, and paper. These imported materials are vital for keeping the wheels of industry turning in Vietnam’s flourishing manufacturing sector.
Challenges on the road to success
Despite its growing significance, the chemicals and resources sector in Vietnam faces several pressing challenges that could hinder its full potential. One of the key issues is low productivity, which has deepened the country's dependence on imports—particularly from neighboring China. Many domestic companies are still relying on outdated technologies, which limit their ability to produce crucial materials such as soda ash, synthetic fibers, and dyes—key components for Vietnam’s booming textile and garment industry. The garment sector, a cornerstone of Vietnam’s export economy, depends heavily on these materials, further intensifying the need for innovation in the chemical sector.Environmental concerns also pose a significant challenge. The chemical and resource processing industry generates considerable waste, but Vietnam’s waste treatment infrastructure and worker safety standards remain underdeveloped. These environmental impacts, coupled with global pressures for more sustainable production, signal that the sector must evolve to remain competitive on the international stage.
Looking ahead, investments in modern technologies, sustainability initiatives, and a stronger domestic production base is needed for Vietnam’s chemical industry to achieve long-term growth and global competitiveness.
