Vietnam’s chemicals and chemical products industry increased by 27.1 percent in January compared to the 2019 baseline, according to Vietnam’s Industrial Production Index. However, this was lower than December 2024, when output stood at 35.8 percent above 2019 levels.
Month-on-month, production declined in January compared to December by 10.2 points. Year-on-year, the sector recorded an 8.4 percent decline from January 2024.
Vietnam’s chemicals and chemical products industry is a vital part of the country’s manufacturing sector, supplying key materials for industries such as agriculture, textiles, pharmaceuticals, construction, and consumer goods. The industry has grown steadily, driven by increasing domestic demand, foreign investment, and Vietnam’s expanding industrial base.
The sector produces a wide range of chemical products, including fertilizers, industrial chemicals, petrochemicals, pharmaceuticals, and household cleaning products. Fertilizer production is one of the largest segments, supporting Vietnam’s strong agricultural sector. Major companies produce nitrogen, phosphate, and potassium-based fertilizers to meet local farming needs and export to regional markets.
Industrial chemicals and petrochemicals are essential for manufacturing processes in textiles, plastics, rubber, and coatings. Vietnam has invested in refining and petrochemical complexes to reduce reliance on imports, with large projects such as the Nghi Son and Dung Quat refineries playing a crucial role in domestic chemical production.
Pharmaceutical and personal care chemicals are also expanding, driven by rising demand for healthcare and hygiene products. The growing middle class has increased consumption of cosmetics, detergents, and household cleaning products, leading to higher production output in these segments.
Despite its growth, the industry faces challenges such as reliance on imported raw materials, environmental concerns related to chemical waste, and the need for stricter safety regulations. The government has encouraged investment in sustainable chemical production and advanced technologies to improve efficiency and reduce pollution.
See also: Chemical Industry in Vietnam