Global trends in chemical industry development and Vietnam's orientation.

Vietnam is becoming an attractive destination for the chemical industry.

In Vietnam, the chemical industry began to develop in the 1950s and 1960s, starting with fertilizer and consumer chemical factories in the North, supported by the Soviet Union and China, to meet the demand for fertilizers and some essential chemicals for daily life.

From its inception, the Party and State have issued numerous policies and guidelines to promote the development of the chemical industry. Thanks to this, alongside the country's industrialization and modernization process, Vietnam's chemical industry has made significant progress. 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.

Over the years, the chemical industry has made a positive contribution to Vietnam's economic development. Specifically, in 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.

In recent years, the general trend in the global chemical industry has been to relocate manufacturing plants to developing countries. Many international corporations such as AGC (Japan) and Donggang (China) have surveyed investment opportunities in large-scale chemical complexes. This shows that Vietnam is becoming an attractive destination on the regional chemical investment map.

*During the period 2022-2025, the chemical industry attracted 27 outstanding projects with a total investment of nearly 100,000 billion VND. (Illustrative image)*

Currently, Vietnam has established several chemical industrial parks and complexes in localities such as Ba Ria - Vung Tau , Phu Tho, Thai Nguyen, Thanh Hoa, etc. Many provinces and cities have also proactively included specialized chemical industrial parks in their planning, reflecting a clear shift in the perception of the industry's role.

These industrial zones are oriented towards modern development, ensuring safety, integrating with the circular economy, and effectively exploiting the advantages of seaports and logistics. Although Vietnam still has a trade deficit in chemicals, domestic products have begun to improve in quality and variety. This is a prerequisite for gradually reducing dependence on imports in the future.

Strategic steps to build a breakthrough chemical industry.

The socio-economic development strategy for 2021-2030 emphasizes the development of fundamental industries such as energy, metallurgy, mechanical engineering, and chemicals, while promoting a green economy and a circular economy. Resolution 29-NQ/TW of the Central Committee of the Communist Party of Vietnam on continuing to accelerate industrialization and modernization of the country until 2030, with a vision to 2045, also emphasizes prioritizing the development of basic chemicals, petrochemicals, pharmaceuticals, and fertilizers.

In particular, the Strategy for the Development of the Chemical Industry until 2030, with a vision to 2040, as outlined in Decision 726/QD-TTg of the Prime Minister, is a crucial step, creating a legal framework for the modern and sustainable development of the chemical industry. These orientations clearly demonstrate the determination of the Party and the State to build a self-reliant, green, and high-tech chemical industry.

According to the Chemical Department (Ministry of Industry and Trade), the Government's Strategy for the Development of the Chemical Industry until 2030, with a vision to 2040, is an important step, creating a legal framework for the chemical industry to develop in a modern and sustainable way. These orientations clearly demonstrate the determination of the Party and the State in building a self-reliant, green, and high-tech chemical industry.

The Department of Chemicals further reported that the industry currently employs approximately 2.7 million workers, equivalent to 10% of the total industrial workforce nationwide. Notably, labor productivity in this sector is 1.36 times higher than the average for the entire industrial sector, thus affirming the increasingly improved professional skills and quality of human resources.

*The industry currently employs approximately 2.7 million workers, equivalent to 10% of the total industrial workforce nationwide. (Illustrative image)*

From a long-term development perspective, chemicals play a crucial role in the country's industrialization and modernization process because they are present in almost all areas of life, from agriculture, industry, processing, textiles and footwear, construction materials to healthcare and high technology.

Many experts share the view that without the chemical industry, no other industry would exist. This further highlights the central role of human resources in the chemical industry in ensuring the operation of a wide range of sectors, from fertilizers, petrochemicals, basic chemicals, paints, inks, industrial gases to cosmetics and pharmaceuticals.

To ensure the chemical industry truly becomes a pillar of the economy, in 2025 the National Assembly enacted the amended Chemical Law, which came into effect on January 1, 2026. The 2025 Chemical Law for the first time clearly defines key chemical industry sectors such as: basic chemicals, petrochemicals, pharmaceuticals, high-quality fertilizers, hydrogen production, green ammonia, specialized chemical industrial zones, and large-scale chemical complexes.

To ensure chemical safety and security, the Chemical Law also requires that projects develop a chemical incident prevention and response plan from the investment preparation stage. Compliance with safety distance regulations is also necessary when site planning. Feasibility studies must fully demonstrate safety solutions. These are mandatory regulations aimed at ensuring the sustainable development of the chemical industry and the safety of the community.

Alongside this, promoting green transformation, circular economy, and digital transformation is crucial. The Chemical Law includes requirements for selecting resource-efficient technologies, reducing the use of hazardous chemicals, minimizing waste, designing production according to green chemistry principles, and applying digital transformation in corporate governance and state management. This is an inevitable trend in the global chemical industry and opens up opportunities for the Vietnamese chemical industry to develop strongly in the new era.

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