On June 16, 2022, Vietnam released its chemical industry development strategy for 2030 and its vision towards 2040 (Resolution No. 726/QD-TTg). Under the strategy, the chemical industry in Vietnam will be developed into 10 sub-branches:

basic chemicals,

petrochemistry,

industrial rubber,

pharmaceutical chemistry,

fertilizers,

plant protection chemicals,

industrial gases,

paint and printing inks,

detergents, and

batteries.

Vision towards 2040

By 2040, Vietnam is to adopt advanced technologies to produce products under international standards and deeply participate in global value chains. Moreover, economical and effective use of energy and fair competition shall be guaranteed in the course of international integration. A professional and skilled labor force with good discipline and high productivity shall be cultivated. Vietnam shall also take the initiative in the research, design and manufacturing stages, and technologies for producing high-quality products. By promoting internal forces, great contributions will be made to develop an independent and self-reliant economy.

The chemical industry is expected to have an average growth rate of 10-11%/year and account for approximately 4-5% of the whole industrial sector by 2030; it is expected to have an average growth rate of 7-8%/year and account for approximately 4-5%/year of the whole industrial production sector by 2040.

Specific objectives

The petrochemistry and rubber products are expected to have an average growth rate of 10-12% between 2021 and 2030 and keep an average growth rate of 8-11%/year in the 2031-2040 period.

The average growth rate of fertilizers, plant protection chemicals, batteries, detergents, industrial gases, tires and tubes, and paint and printing ink products is expected to reach 3-5%/year between 2021 and 2030 and 4-6%/year in the 2030-2040 period.

By 2030, the domestic demand for fertilizers, plant protection chemicals, tires, industrial gases, paint and printing inks, detergents, and batteries will be met and the export market for these products will be developed. By 2040, the industry will partially meet the domestic demand for basic organic chemicals, specialist paint products, and hi-tech cells and batteries.

By 2030, capacity shall be met up to 40%, 30%, 70%, 40% and 75% of the domestic demand for petrochemical products, plant protection chemicals, basic chemicals, technical products and rechargeable battery products respectively.

By 2040, capacity shall be met up to 60%, 50%, 80%, 50% and 80% of the domestic demand for petrochemical products, plant protection chemicals, basic chemicals, technical products and rechargeable battery products respectively.

To ensure long-term sustainable growth, the average growth rate is adjusted to 9-11%/year for 2021-2030 and 7.5-9%/year for the 2030-2040 period.