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Chemical Industry 

he chemical manufacturing industry is a fundamental pillar of Vietnam’s industrial economy, supplying essential feedstock for key sectors such as agriculture, pharmaceuticals, textiles, electronics, food processing, and energy. Currently, the industry accounts for approximately 10% of the nation’s industrial GDP, with over 1,800 active enterprises operating across basic and specialty chemicals.

Amid the global “China +1” strategy, Vietnam has emerged as a new manufacturing hub in Asia, experiencing significant growth in foreign direct investment (FDI). In 2023 alone, the sector attracted more than USD 2 billion in FDI—an impressive increase amid shifting global supply chains. 

Vietnam is also accelerating its transition toward sustainable and green chemicals, aligning with its goal of achieving carbon neutrality by 2050 and commitments under international trade agreements such as EVFTA, RCEP, and CPTPP. This not only ensures long‑term momentum but also opens investment opportunities in clean, eco‑friendly technologies.

Chemical Products with Competitive Production Advantages in Vietnam

1. Agricultural Chemicals
   Includes inorganic fertilizers, crop protection agents, and biocontrol products. With over 60% of the population residing in rural areas and agriculture remaining a key economic driver, domestic demand for agricultural chemicals is consistently high and stable.

2. Active Pharmaceutical Ingredients (APIs) and Pharmaceutical Chemicals
   This segment is a national priority to reduce import dependency. Vietnam’s annual pharmaceutical demand is growing at more than 10%, yet API localization remains low, presenting significant investment opportunities.

3. Electronic and Semiconductor Chemicals
   Rapid growth in electronics manufacturing—anchored by major plants from Samsung, Intel, LG, etc.—has created demand for ultra‑pure chemicals, solvents, and industrial gases. Vietnam is well‑positioned to become a regional supplier for the electronics value chain.

4. Specialty and Industrial Chemicals
   Includes detergents, textile additives, engineering plastics, and composite materials. Technically skilled labor at competitive cost enables efficient domestic production for both local use and export.

5. Green Chemicals
   Supported by the National Green Growth Strategy and green financing mechanisms, opportunities abound for green fertilizers, bio‑acids, bio‑solvents, and biodegradable materials.

Reasons to Invest in Chemical Manufacturing in Vietnam

1. Highly Competitive Production Costs
   Labor costs in Vietnam are approximately 50% lower than in China and 30–40% lower than in Thailand or Malaysia, with productivity improving through upskilling and technology transfer—ideal for labor‑intensive continuous‑process chemical manufacturing.

2. Strategic Location and Developing Industrial Infrastructure
   With over 3,000 km of coastline and well‑developed ports/logistics, Vietnam provides ideal access to Northeast/Southeast Asia and CPTPP markets. Industrial clusters in Dong Nai, Binh Duong, Ba Ria–Vung Tau, Hai Phong, etc., are well‑equipped to host large chemical projects.

3. Clear Incentive Policies and Substantial Investment Support
   The Vietnamese government has introduced favorable regulations such as Decree 08/2023 (streamlining investment and environmental licensing) and Decision 726/QD‑TTg (industrial roadmap to 2040). Green bonds, green credit lines, and innovation funds further support investment.

4. Deep Integration into Global Trade Networks
   Vietnam’s extensive network of free trade agreements enables domestically manufactured chemicals to access major markets—including the EU, Japan, Korea, and CPTPP member countries—at competitive tariff rates.

5. Strong Commitment to Sustainable Development
   With a clear pathway to carbon neutrality by 2050, the country offers incentives for clean production technologies and circular economy models. This positions early investors to capture emerging markets in "green chemicals" with limited domestic capacity.

Mitritín Vietnam supports investors throughout this journey—from feasibility studies and environmental permitting to plant design, technology transfer, and operational management. With deep understanding of legal regulations, the industrial ecosystem, and local investment processes, Mitritín mitigates risks and accelerates project execution. 

For more information or service inquiries, please contact us:

MITRITÍN VIETNAM LIMITED
The Firm of Strategy & Solutions

Address: 39 Le Hien Mai Str,  Cat Lai Ward,
Ho Chi Minh City, VIETNAM
Tel: +84 96 3939 247
Email:   This email address is being protected from spambots. You need JavaScript enabled to view it.  
Website: www.mitritin.com

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