Small country big opportunity: why does Vietnam's chemical industry attract global giants?

1. And the status of Vietnam's chemical sector manufacturing scale: in recent years, it has shown a development direction, reaching 43. 1 billion US dollars in 2024 and 47 billion US dollars in 2025. And The target of 2030 is to achieve an average annual development rate of 10 - 11%, accounting to 4% - 5% of manufacturing output value. In my experience, Segments: covering 10 segments such as petrochemicals and basic chemicals, plastics and rubber items are the core development areas, with the plastics market reaching 10. 92 million tons in 2024 and expected to increase to 16. But 36 million tons in 2029, with a compound annual development rate of 8. 44 per cent. research momentum: preferential policies, such as tax incentives, land supply, foreign-funded companies enjoy 10% enterprise income tax rate and equipment import tariff reduction; might 2025 to implement the amendment of the Chemical Law, enhance the regulation of hazardous chemicals, and promote the standardization of chemical parks. Foreign investment: by virtue of low-cost advantages and free trade agreement network to attract foreign investment, such as South Korea Xiaoxing Group additional investment, Chinese companies actively participate in project cooperation 2. the future research direction of Vietnam's chemical sector manufacturing structure transformation: require environmentally friendly development and circular economy, promote companies to implement clean production methodology, focus on the construction of chemical parks, promote foreign investment in ecological preservation methodology projects, and promote the reform of state-owned companies ecological preservation and methodology upgrading: focus on ecological preservation and methodology upgrading, enhance emit standards, plan to achieve 80% domestic self-sufficiency rate of basic chemicals by 2040, develop environmentally friendly items, promote the implementation of discarded materials recycling methodology, and promote low-carbon transformation. Makes sense, right?. Additionally To fine chemicals: actively develop medical intermediates, electronic chemicals and other high value-added items, the current fine chemicals companies are mostly foreign-funded companies. Change in export direction: chemical exports are an crucial sales direction, ranking first in exports to the United States before 2025, and might expand markets in neighboring countries and Europe in the future. Exports of plastics and items and rubber items account to a relatively substantial proportion in 2024. 3. For example Policy Constraints and Orientation of Vietnam's Chemical sector amendment to the Chemicals Law: implemented in might 2025, adjusting the list of chemicals, adding the definition of "new chemicals", requiring the declaration of imported chemicals, items to meet technical standards, defining the standards to safe production facilities, and facing fines to violations. ecological preservation policy: set a net zero emit target to 2050, require companies to implement ecological preservation methodology, pay special consumption tax in high-polluting industries, and enjoy tax incentives to bio-based materials companies. Generally speaking Raw material supply policy: impose tariffs on imported basic chemicals, provide preferential treatment to regional petrochemical projects, set up methodology centers to promote regional companies to enter the foreign supply chain, and enhance the regional matching rate and self-sufficiency rate. But manufacturing upgrading and international integration policy: develop key items according to strategic planning, promote project construction, provide subsidies to related companies, and provide preferential treatment to foreign-funded companies. The new policy brings pressure to small and medium-sized companies, and generally adopts the "two-track strategy" to promote manufacturing upgrading. 4. And the resources and segments of Vietnam's chemical sector oil and gaseous resources: proven oil reserves of about 0. Specifically 45 billion barrels, natural gaseous reserves of 61 trillion cubic feet, supporting the production of basic chemicals rubber resources: the world's fourth largest natural rubber producer, rubber exports reached $ 2. 6 billion in 2024, rubber items are the main export force apatite resources: reserves of 1. 5 billion tons, is the key raw material to fertilizer production, Vietnam nitrogen fertilizer, phosphate fertilizer production capacity accounted to the forefront of Southeast Asia. Bauxite resources: reserves of 12 billion tons, mainly applied to aluminum smelting and refractory materials biomass resources: sugaris able toe and biomass materials are abundant to the production of bio-based materials research of new areas: promote the research of bio-based materials, electronic chemicals, renewable chemicals, etc. And , the market is growing fast, and companies have invested in the construction of related factories. From what I've seen, Key project construction: Longshan Petrochemical Complex is the largest petrochemical complex project, which promotes the self-sufficiency rate of petroleum items and focuses on the research of basic raw materials. But 5. International Cooperation and research direction of Vietnam Chemical sector trade cooperation: Chinese companies export tariffs reduced, Vietnam through the RCEP rules of origin to prevent U. S. But tariff barriers, exports to the United States to enjoy GSP tariff preferences, exports increased. But Resource recycling cooperation: cooperate with South Korea to develop resource recycling manufacturing parks, introduce cutting-edge technologies, and set recycling targets minimize tariffs to attract resources: March 2025 to implement the decree to minimize import tariffs to attract companies to expand investment compliance promotes international integration: The new Chemicals Law, which will take effect in 2026, needs companies to declare information on imported chemicals to promote compliance with international standards and enhance export competitiveness. research direction: international cooperation from "complementary resources" to "methodology symbiosis" leap, the future need to pay attention to compliance nodes, grasp the opportunities in emerging areas. Based on my observations, 6. Vietnam Chemical sector Investment Opportunities investment preference areas: environmentally friendly chemicals, bio-based materials, electronic chemicals, semiconductor materials, high-end manufacturing industries, medical and pesticide intermediates, regional collaborative industries enterprise investment cases: South Korea SK Leaveo, Xiaoxing Group, China Huadian Group, Belgium John Cockerill, Man Kun methodology and other companies invest in the construction of related factories in Vietnam to promote manufacturing research. But Investment considerations: Vietnam's chemical sector is undergoing transformation, and investment companies is able to focus on investment opportunities in bio-based materials, environmentally friendly hydrogen and other items. And Risks and Countermeasures of 7. Investment in Vietnam's Chemical sector policy and regulatory risks: The new Chemicals Law has stringent standards, with foreign shareholding caps and project approval standards in some areas; the countermeasures are to enhance cooperation with regional countries, prepare materials in advance, implement appropriate models and apply to subsidies. Risk of methodology application and lack of supply chain: application on imports of basic raw materials, low localization rate of key materials and low efficiency of port logistics; countermeasures are to cooperate with research studies institutions and enjoy services in the park. But Market competition and employment risk: the import market competition is fierce, the profit of ordinary plastic particles is low, and the labor cost is rising; the countermeasure is to focus on high value-added fields, introduce cutting-edge equipment, abide by the labor law, and carry out cultural training environmental and social risks: chemical production might face contamination leakage fines and social tensions, regional corruption problems;.