In the modern economy, chemicals play an important role and are present in almost every area—from industrial production and agriculture to healthcare and daily life. The strong growth of this industry not only improves productivity and product quality but also supports innovation and sustainable development.
But what exactly is the chemical industry, and where does Vietnam’s chemical sector stand in the world? This article gives an easy-to-understand overview of the chemical industry, looks at the current situation in Vietnam, and points out opportunities for investment and cooperation in this promising market.
1. What is the chemical industry?
The chemical industry can be defined as the sector that produces chemicals, chemical products, and intermediate substances needed by many other industries. This industry includes the production of basic chemicals, specialty chemicals, plastics, rubber, fertilizers, pharmaceuticals, and a wide range of other products.
The chemical industry plays a vital role in everyday life. According to Investopedia, , 96% of manufactured goods use products from the chemical industry. This shows that chemicals are almost an essential foundation in the production of consumer goods, from household essentials and electrical equipment to furniture, clothing, packaging, and many industrial products.
Globally, the chemical industry is a large-scale sector ,valued at around USD 5–5.5 trillion, contributing 7% to the world’s GDP, and expected to grow at a CAGR of approximately 4% from 2023 to 2030.
2. Industrial chemicals
Industrial chemicals are chemical products manufactured on a large scale and used in industries such as textiles, plastics, paints, paper, and construction, helping to improve product quality and durability. According to CEFIC, 60% of global chemical products are intermediate materials for other industries, with plastics and polymers accounting for 80% of this usage.
The global basic chemicals market is estimated to reach USD 721.36 billion in 2024 and is expected to grow to USD 1,057.56 billion by 2034, with a compound annual growth rate (CAGR) of approximately 3.9% from 2024 to 2034, highlighting the foundational role of industrial chemicals in the economy.
Industrial chemicals play a foundational role in production in Vietnam. According to World Bank data, the chemical industry accounted for about 4.4% of the manufacturing sector’s value added in 2022. With an average growth rate of 10–11% per year until 2030 and usage of 2–5% of the country’s industrial products, the chemical market is an important driver in Vietnam’s industrialization and modernization process.
3. Agricultural chemicals
Agricultural chemicals, including fertilizers, crop protection products, and growth regulators, are key to improving food productivity. Nearly 50% of all agricultural output relies on these products. The global agricultural chemicals market cwas valued at USD 271.42 billion in 2023 and is expected to reach USD 390.17 billion by 2030, growing at a CAGR of 5.4% from 2024 to 2030. This reflects the rising global demand for agricultural chemicals.
Agricultural chemicals play a crucial role in improving productivity and ensuring food security in Vietnam. In 2024, the agricultural chemicals market—including fertilizers, crop protection products, and growth regulators—was valued at approximately USD 1.2 billion and is projected to grow to USD 1.7 billion by 2033, with a CAGR of around 3.74%.
4. Current State of the Chemical Industry in Vietnam
Strengths of Vietnam’s Chemical Industry
Large domestic demand: Chemicals are key input materials for over 70% of Vietnam’s industries, especially textiles, leather and footwear, plastics, fertilizers, paints, and electroplating. In 2022, the chemical sector accounted for 4.4% of the value added in industrial products.
International integration: Vietnam has signed several free trade agreements FTA (CPTPP, EVFTA, RCEP) creating opportunities to expand export markets. In 2022, chemical exports reached USD 3.09 billion, up 23% compared to 2021.
Attracting investment: Japanese, Korean, and European corporations are increasingly investing in industrial and agricultural chemicals, particularly in major industrial zones such as VSIP and Long Sơn.
Weaknesses of Vietnam’s Chemical Industry
Dependence on imported raw materials: About 70–80% of basic chemical materials need to be imported from China, Korea, and Japan.
Limited technology: Most domestic enterprises are small to medium-sized, mainly producing simple chemicals with low added value.
5. Chemical Industry – Trends & Outlook
Global Trends in the Chemical Industry:
The global chemical industry is rapidly shifting towards green chemicals, biotechnology, and smart chemicals. Leading corporations are focusing on solutions to reduce carbon emissions, replace fossil-based raw materials with renewable sources, and develop biodegradable chemicals. The global green chemicals market is expected to grow from around USD 147 billion in 2024 to approximately USD 388 billion by 2034, becoming a major growth driver for sectors such as agriculture, textiles, plastics, and healthcare.
Outlook of Vietnam’s Chemical Industry
The chemical industry is not only the “backbone” of industrial and agricultural sectors but also a key to a sustainable future through green chemicals and environmental solutions. Vietnam is emerging as a strategic destination for global businesses, supported by strong domestic demand and growing international investment.
With increasing consumption and investment-friendly policies, Vietnam’s chemical industry is expected to grow strongly over the next 5–10 years. Trends such as production expansion, promotion of FDI, and the adoption of modern technologies will help enhance the industry’s competitiveness.
In particular, international events like ChemExpo Vietnam play a crucial role in connecting businesses, allowing domestic companies to reach global partners, expand their markets, and stay updated on the latest trends. It’s not just an exhibition hall—it’s a gateway to thousands of collaboration opportunities, market expansion, and establishing a strong presence in the global chemical industry.
Join us in taking the next step at ChemExpo Vietnam – a gathering place for leading manufacturers, suppliers, and strategic partners in the chemical sector.
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