Overcoming bottlenecks, elevating the chemical industry.

For the chemical industry to thrive in the new era and make a positive contribution to economic growth, it is necessary to overcome the shortcomings and weaknesses of businesses in the industry.

Identifying the "bottlenecks" in the chemical industry.

Speaking with a reporter from the Industry and Trade Newspaper, Mr. Vuong Thanh Chung, Deputy Director of the Chemical Department ( Ministry of Industry and Trade ), highly appreciated the role of the chemical industry in Vietnam's economic development. At the same time, he pointed out bottlenecks and limitations that have prevented this important industry from achieving a breakthrough.

The chemical industry has many opportunities for growth. (Illustrative image)

Specifically, according to Mr. Vuong Thanh Chung, the limitations that the chemical industry is facing include uneven awareness among localities. Some places still have a hesitant attitude towards attracting chemical projects due to concerns about environmental safety.

Regarding this issue, at an event organized by the Department of Chemicals, representatives from several businesses stated that they encountered difficulties in obtaining permits to implement projects in some localities.

Furthermore, although Vietnam has approximately 2,000 businesses operating in the chemical sector, the majority of domestic chemical companies are weak, lacking capital and technology, making it difficult for them to compete with businesses that have foreign direct investment.

Also speaking about the "weaknesses" and "shortcomings" of the chemical industry, Mr. Do Duy Phi - Chairman of the Vietnam Chemical Society - said: The application of science and technology in the chemical field is still limited, which restricts domestic chemical enterprises from competing and has not contributed much to the growth of the industry in particular and economic growth in general.

Another "bottleneck" pointed out by Mr. Vuong Thanh Chung is that chemical projects often require large capital investments and high technology, while the credit mechanism for these projects is not really suitable. Data on the chemical industry is lacking, making it difficult for relevant agencies to forecast and plan policies. The legal system regarding chemicals lacks consistency and does not meet the development requirements of the economy…

The total output of Vietnam's chemical industry accounts for approximately 10-11% of the total GDP of the industrial sector. (Illustrative image)

Increase the contribution of the chemical industry to the economy.

According to the Department of Chemicals, thanks to the attention of the Party and the State, the chemical industry has made significant progress in recent years. Currently, there are approximately 2,000 enterprises operating in the chemical sector nationwide. The total annual output of Vietnam's chemical industry accounts for about 10-11% of the total GDP of the industrial sector, and the value of the chemical industry's output accounts for 13-14% of the entire industrial sector. The development of the chemical industry contributes to improving domestic production capacity, gradually reducing dependence on imports, and progressively participating in the global value chain.

During the period 2022-2025, the chemical industry attracted 27 outstanding projects with a total capital of nearly 100,000 billion VND, ranging from: technical rubber production; electrochemical power sources (batteries); basic chemicals, petrochemicals; industrial gases, to high-quality fertilizers.

Many international corporations such as AGC (Japan) and Donggang (China) have surveyed investment opportunities in large-scale chemical complexes, indicating that Vietnam is becoming an attractive destination on the regional chemical investment map. However, the reality shows that Vietnam is still importing more chemicals than it imports.

To overcome bottlenecks and create new opportunities for the chemical industry, the Department of Chemicals stated that Decision No. 726/QD-TTg dated June 16, 2022, of the Prime Minister approving the Strategy for the Development of the Chemical Industry until 2030, with a vision to 2040, and the Chemical Law No. 69/2025/QH15, approved by the National Assembly on June 14, 2025, are important legal and strategic pillars that form the foundation for state management activities and the development orientation of the industry.

These documents not only establish a clear legal framework but also outline strategic priorities for sustainable development, structural transformation, productivity and quality improvement, and deeper participation in the global chemical industry value chain.

Specifically, the Chemical Industry Development Strategy stated and emphasized the view that the chemical industry is a foundational industry, requiring a combination of extensive and intensive development, encouraging the increase of added value of products, applying modern, environmentally friendly technologies, promoting green growth and a circular economy, and applying digital transformation to improve production efficiency…

In terms of legal compliance and ensuring safety in the production and business of industrial chemicals under the state management of the Ministry of Industry and Trade, the Chemical Law No. 69/2025/QH15 has clarified the legal responsibilities of organizations and individuals throughout the entire chemical chain. These new regulations aim to improve management standards, protect workers, the community, and the environment. At the same time, they promote information transparency, providing businesses with a basis to enhance product value, build trust in the domestic and export markets, and assist managers in controlling and promoting the industry's development.

To promote the chemical industry, representatives from the Department of Chemicals (Ministry of Industry and Trade) stated that they will encourage and promote investment, production, and business activities based on green chemistry, green economy, circular economy, and closed-loop value chains within the industry, such as recycling, efficient resource utilization, and waste treatment. This will be considered a source of sustainable competitive advantage in the medium and long term.

To overcome the bottlenecks in the chemical industry, the Party and State have implemented numerous policies related to the development of the chemical industry. Among these, Resolution 29-NQ/TW of the Central Committee of the Party on continuing to promote industrialization and modernization of the country until 2030, with a vision to 2045, emphasizes prioritizing the development of basic chemicals, petrochemicals, pharmaceuticals, and fertilizers.

Source: https://congthuong.vn/khac-phuc-diem-nghen-nang-tam-nganh-cong-nghiep-hoa-chat-434427.html