OVERVIEW OF VIETNAM’S PAINT AND COATINGS INDUSTRY

By 2023, there will be about 600 enterprises operating in Vietnam’s paint and coatings industry, of which 70 are foreign-invested enterprises. According to a report by VPIA (Vietnam Paint and Ink Association), in the past 5 years, paint produced by foreign-invested enterprises has accounted for more than 65% of the Vietnamese market even though the quantity is small, while Paints from domestic companies only account for 35% of the market share.
Value of Vietnam’s paint and coatings industry
Vietnam’s paint and coatings industry is predicted to grow from 383 million USD in 2018 to 459 million USD by the end of 2022. This industry has recorded steady growth in recent years due to the development Very active in the construction sector.

With the large participation of leading multinational paint and coating manufacturers such as AkzoNobel, Nippon, Jotun and companies in Southeast Asia such as Toa, 4 Oranges, the capacity of the paint and coating industry Vietnam has been expanding significantly in recent years. In addition, recently, a number of domestic companies have also invested in modern machinery lines to meet the increasing demand of the market.

Although heavily affected by the Covid-19 epidemic, in 2020, Vietnam’s economy grew significantly at 2.91%, while many countries around the world recorded negative growth. Steady economic growth over the next few years is expected to give the paint and coatings industry in Vietnam a much-needed boost in the short and medium term.

The architectural paint segment has a breakthrough opportunity, accounting for about 62% of Vietnam’s paint and coatings market by volume. The retail market for decorative paints and coatings in Vietnam is expected to increase from VND 89,000 billion (USD 382 million) to about VND 107,000 billion (USD 459 million) by the end of 2022 when the Covid-19 epidemic is controlled. good control.

Along with the rise of real estate creating a fever in the Vietnamese paint market, domestic and foreign paint businesses have entered a real race with increasingly high paint quality and variety of types. type, features, color. This has created a healthy competition and a vibrant and positive overall picture of the overall development of the coatings market in Vietnam.

Competition between domestic and foreign businesses.

There are currently about 600 enterprises operating in Vietnam’s paint and coatings industry, of which 70 are foreign-invested enterprises. According to a report by VPIA (Vietnam Paint and Ink Association), in the past 5 years, enterprises with foreign investment (FDI) in production have accounted for more than 65% of the Vietnamese market despite being small in number. while domestic enterprises only account for 35% of the market share.

Paint produced by foreign companies is more professional and has many types. It can be seen that each type of foreign paint has its own distinct features. Foreign paint products serve many purposes such as shipbuilding, galvanized steel coating, airport painting, wooden furniture, beverage packaging, etc. Therefore, ordinary consumers will know little or not about these products. this brand .

35% of the paint market is held by domestic companies and low quality paints. However, the domestic paint market still has a positive growth rate.

With the real estate market gradually recovering, leading to urgent demand for construction materials and decorative paint, the Vietnamese paint market is also flourishing and attracting many participants.

However, with the massive entry of large and small businesses, fake and poor quality goods appear widely, causing the market to become mixed. The Vietnamese government also does not have any specific penalties for this issue. The heaviest fine when discovered is only 20 million VND, too small compared to the profits earned by establishments producing fake and poor quality goods.

With such potentials and barriers, Vietnam’s paint and coatings industry is a growing industry with much room for development.