Chemical industry strategy: Opportunity for the platform industry to accelerate

Double-digit growth target

The goal set by the Government in the Chemical Industry Development Strategy to 2030, with a vision to 2040, is to build a chemical industry with a relatively complete structure by 2030, including the production of production materials and consumer goods, serving many other industries; increasingly meeting domestic demand and boosting exports. Prioritizing the development of a number of key sub-sectors such as basic chemicals, petrochemicals, technical rubber, pharmaceuticals, fertilizers, etc.

*The strategy for developing Vietnam's chemical industry to 2030, with a vision to 2040, sets a target of average chemical industry growth of 10-11% per year until 2030. Illustrative photo*

Forming value chains, deeply participating in the production network of Vietnam and the region's industry. Using resources rationally and economically, applying modern technology, digital economy and digital transformation, to increase added value, improve the competitiveness of the industry, promote capital accumulation of economic groups in the chemical sector.

Along with that, reasonably distribute production forces by industry and territory, form and effectively promote concentrated industrial zones and clusters, and large-scale chemical production complexes.

By 2040, Vietnam's chemical industry will be developed with most sub-sectors having advanced technology, product quality meeting international standards, deeply participating in the global value chain, using energy economically and effectively, competing equally in international integration, with a professional, disciplined and highly productive workforce; initially proactive in the stages of research, design, manufacturing, mastering the technology to produce a number of high-quality products, promoting internal resources, contributing to the development of an independent and self-reliant Vietnamese economy.

The specific goal of the Chemical Industry Development Strategy to 2030, with a vision to 2040, is to strive to achieve an average growth rate of 10-11% per year in the chemical industry and a proportion of the chemical industry compared to the entire industry of about 4-5% by 2030; in the period of 2040, the growth rate of the chemical industry will reach an average of 7-8% per year and the proportion of the chemical industry compared to the entire industry will maintain about 4-5%.

Of which, the group of petroleum, pharmaceutical, rubber, technical, and basic chemical products will achieve growth of 10-12%/year in the 2021-2030 period and an average of 8-11%/year in the 2031-2040 period.

The group of fertilizer products, plant protection chemicals, chemical power products, detergent products, industrial gases, tire and paint products, and printing ink will reach about 3-5%/year in the 2021-2030 period and an average of 4-6%/year in the 2031-2040 period.

By 2030, maintain the level of meeting domestic demand for urea, phosphate, NPK fertilizers, plant protection products, tires, industrial gases, paints, common printing inks, detergents, common batteries and develop export markets. Meet part of the domestic demand for ammonium sulfate fertilizer products. Increase the ability to meet the average domestic demand for petrochemical products to 40%, plant protection active ingredients to 30%, basic chemicals to 70%, technical rubber to 40%, batteries to 75%.

*Vietnam currently has about 2,000 businesses operating in the chemical sector. Illustrative photo*

Solving challenges for the platform industry

According to the Department of Chemicals ( Ministry of Industry and Trade ), Vietnam currently has about 2,000 enterprises operating in the chemical sector, distributed to 10 sub-sectors and across the 3 regions of North - Central - South. Vietnam has initially formed a chemical industry with a relatively complete structure, including main production sectors such as fertilizers: Nitrogen fertilizer, phosphate fertilizer, DAP, NPK; basic chemicals such as H2SO4, caustic soda, HCl; petrochemical products such as fibers, PS, PP plastics; rubber products, consumer chemicals...

The chemical industry currently accounts for 2-5% of the GDP of the entire industry with a growth rate of 10-11%/year. The labor force in the chemical industry accounts for 2.7 million people, accounting for 10% of the labor force of the entire industry. Labor productivity of the chemical industry accounts for 1.36 times the average labor productivity of the entire industry.

Not only is it one of the fundamental industries, developing the chemical industry is one of the key tasks and solutions to promote the country's socio-economic development. However, high-tech products are still not produced domestically, and input materials are still heavily dependent on imports.

Also talking about the challenges of the chemical industry, Mr. Vuong Thanh Chung - Deputy Director of the Department of Chemicals (Ministry of Industry and Trade) said: In recent years, thanks to the attention of the Party and the State, the chemical industry has made significant developments, contributing to improving domestic production capacity and gradually reducing dependence on imports, gradually participating in the global value chain.

However, besides the advantages, the chemical industry is facing many difficulties and challenges, such as uneven awareness in localities. Some places are still hesitant to attract chemical projects due to safety and environmental concerns.

Domestic enterprises are still weak, lacking capital and technology, and have difficulty competing with foreign direct investment enterprises. Chemical projects require large capital investments and high technology, while credit mechanisms and policies are not yet appropriate. Chemical industry data is still weak, causing difficulties in forecasting and policy making. The legal system related to chemicals needs to be synchronized and further improved.

To overcome the above shortcomings, the Chemical Law 2025 was passed by the National Assembly in June 2025 and took effect from January 1, 2026. According to Mr. Vuong Thanh Chung, with many major policy groups, the Chemical Law 2025 coming into effect will open up development opportunities for the Vietnamese chemical industry.

Sharing the same view, sharing with reporters of Industry and Trade Newspaper, Mr. Do Duy Phi - Chairman of Vietnam Chemical Association said that the Law on Chemicals 2025 and the Strategy for Development of the Chemical Industry to 2030, vision 2040 with many breakthrough policies. In particular, prioritizing the development of science and technology, developing green chemicals, will open up new opportunities for the domestic chemical industry in the new era.

The strategy for the development of the chemical industry to 2030, with a vision to 2040, determines the development of the chemical industry in the direction of a modern, fundamental industry with a relatively complete industry structure including 10 sub-sectors: Fertilizers, pesticides, pharmaceuticals, petrochemicals, basic chemicals, rubber products, electrochemistry, detergents, paints and printing inks, and agricultural gases. In particular, the strategy focuses on developing a number of key sub-sectors such as basic chemicals, petrochemicals, technical rubber, pharmaceuticals, and fertilizers.

Source: https://congthuong.vn/chien-luoc-nganh-hoa-chat-co-hoi-de-cong-nghiep-nen-tang-but-toc-433760.html