|
Forecast Period
|
2024-2028
|
|
Market Size (2022)
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USD 350.17 million
|
|
CAGR (2023-2028)
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5.60%
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Fastest Growing Segment
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Concrete Admixtures
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|
Largest Market
|
Central Vietnam
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Market Overview
Vietnam Construction Chemicals Market has valued at
USD 350.17 million in 2022 and is anticipated to grow with a CAGR of 5.60%
through 2028. Vietnam Construction Chemicals Market is anticipated to grow
significantly in the projected period 2028 due to the improving socio-economic
status of its population, growing demand for ready-mix concrete (RMC), growing
use of green chemicals, and rise in urbanization and industrialization in the
regions. United Nations Population Fund estimated that the population of
Vietnam in 2023 will reach 100 million and make Vietnam among to top 15 highly
populated countries around the world. Furthermore, the per capita income of
Vietnam is estimated to be USD 4163.5 in 2022. Hence, as the population rises
the demand for new and repaired buildings will drive the demand for
construction chemicals in Vietnam. Apart from these, the government of Vietnam
recognizes the impact of infrastructure development to support economic growth
and improve living standards. Hence, the government has initiated various
infrastructure projects, including transportation networks, housing programs,
and industrial zones as a part of its urbanization and industrialization
efforts. The Vietnamese government has approved different plans to spend
approx. USD 43-65 billion for the construction and re-development of building
and upgrading road, rail, inland waterways, sea, and air transport infrastructure
during the 2021-2030 financial year. Such favorable government policies and
initiatives create a conducive environment for the construction industry to
develop new infrastructure projects and are expected to propel the demand for
Vietnam's construction chemicals market in the forecasted period.
Key Market Drivers
Rise in urbanization and industrialization in the
region Drives the Vietnam Construction Chemicals Market Growth
Urbanization and
industrialization lead to an increase in infrastructure development activities,
such as the construction of residential buildings, commercial complexes,
industrial facilities, and transportation networks. These projects require the
use of construction chemicals for various purposes, including concrete
admixtures, waterproofing compounds, adhesives, and sealants. The financial
losses that occur across the various industry & sectors are estimated at
around 3% of the global GDP while Vietnam loses approx. 5% of their total GDP.
Thus, the upsurge in such projects & activities is expected to drive the
market demand for construction chemicals in Vietnam. There is a growing
emphasis on the quality and durability of constructed structures as
urbanization and industrialization activities rise in Vietnam. Construction
chemicals play a crucial role in enhancing the strength, durability, and
performance of buildings and infrastructure. As they advance the concrete
properties, by protecting against corrosion, improving water resistance, and
enhancing complete structural integrity. The need for reliable and long-lasting
construction solutions increases as urban areas and industrial zones expand and
thereby such factors will boost the demand for construction chemicals in
Vietnam. Due to the use of chemicals that contain VOCs substance, Urbanization,
and industrialization also faces environmental challenges and hurdles such as
air pollution, water pollution, and waste management. Hence, the construction
industry is also under pressure to adopt more sustainable and environmentally
friendly practices. As an outcome, Construction chemicals that are eco-friendly
and meet stringent environmental regulations are exclusively preferred by the
industry. This shift towards sustainable construction practices contributes to
the growth of the construction chemicals market in Vietnam. Technological
advancements are one of the major factors for the growth of every sector such
as the construction sector. New construction techniques such as 3D printing,
materials like polycarboxylate ether-based green admixtures, and products are
constantly being introduced to improve efficiency, productivity, and
sustainability. Construction chemicals manufacturers are investing in research
and development to introduce innovative products that cater to the evolving
needs of the market and government policy. This technological progress in the
industry further propels the growth of the Vietnam construction chemicals
market.
Growing demand for ready-mix concrete (RMC) is
Impacting the Vietnam Construction Chemicals Market Growth
The growing demand for ready-mix concrete (RMC) in
Vietnam has a substantial impact on the growth of the Vietnam construction
chemicals market. Ready-mix concrete is a pre-mixed and proportioned concrete
mixture that is directly delivered to construction sites. In RMC, besides
Cement, water, and aggregate as the main constituent, chemical admixtures,
mineral admixtures, and fibers are used by various users as it offers many
advantages such as consistent quality, time efficiency, and reduced labor
requirements. Hence, concrete admixtures are widely used to enhance the
performance and workability of RMC. These admixtures, like plasticizers,
superplasticizers, accelerators, and retarders, are added to enhance the
strength, durability, and workability of the concrete or building structure.
Hence, the growing demand for RMC leads to higher consumption of concrete
admixtures and drives the growth of the construction chemicals market. Ready-mix
concrete is known for its consistent quality and performance which makes it a
preferred choice by end users for construction projects. However, specific
construction requirements often necessitate the use of construction chemicals
to enhance the properties of RMC. For example, waterproofing compounds,
corrosion inhibitors, and air-entraining agents may be added to RMC to improve
its resistance against water, corrosion, and freeze-thaw cycles. Thus, the need
for specialized construction chemicals to meet these performance requirements
is expected to contribute the market growth. Ready-mix concrete (RMC) offers
several advantages in terms of efficiency and cost-effectiveness as it reduces
construction time, minimizes material wastage, and optimizes labor utilization.
As an outcome, RMC is progressively adopted in different construction projects
across various sectors, including residential, commercial, and infrastructure.
The rising usage of RMC translates into higher demand for construction
chemicals used in its production, such as admixtures, curing compounds, and
surface retarders. Green building practices, including the use of sustainable
materials and energy-efficient construction methods, are gaining momentum in
Vietnam. RMC is considered an eco-friendly and energy-efficient construction material
as it reduces the consumption of water and cement, minimizes construction
waste, and improves energy efficiency during construction. The green building
trend creates a demand for eco-friendly construction chemicals that align with
sustainable construction practices, thereby impacting the growth of the
construction chemicals market. The RMC industry is witnessing technological
advancements aimed at improving the quality, performance, and durability of
concrete. For instance, the introduction of self-compacting concrete (SCC) and
high-performance concrete (HPC) requires the use of specialized construction
chemicals to achieve the desired properties. These advancements in RMC
technology drive the demand for construction chemicals, including rheology modifiers,
viscosity agents, and specialized admixtures. The combined effect of the
above-mentioned factors has propelled the demand for construction chemicals and
supported the Vietnam Construction Chemicals Market growth.
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Key Market Challenges
Sustainability and Environmental Concerns
The construction chemicals market in Vietnam finds
itself at a crucial juncture of transformation, where the convergence of rapid
urbanization and infrastructure development meets heightened environmental
consciousness. Amidst the industry's remarkable growth, a pressing challenge
emerges - sustainability and environmental concerns. Construction chemicals can
have far-reaching environmental consequences, including air and water
pollution, soil degradation, and depletion of natural resources. Ensuring that
the production, application, and disposal of these chemicals adhere to
stringent environmental standards is a complex challenge. The disposal of
construction chemicals and related waste presents a significant hurdle. The
industry must find efficient and eco-friendly ways to manage waste products to
prevent contamination and environmental harm.
Price Fluctuations and Cost Sensitivity
The construction chemicals market plays an
indispensable role in enhancing the durability, strength, and aesthetics of
structures. However, the delicate balance between product performance and
cost-effectiveness becomes strained when faced with price fluctuations of raw
materials. The construction chemicals market relies heavily on a range of raw
materials, including polymers, resins, aggregates, and additives. The prices of
these inputs are subject to global market dynamics, geopolitical events, and
supply-demand imbalances, leading to unpredictable price fluctuations. Economic
shifts, such as inflation, currency devaluation, and trade disputes, can impact
the cost of importing or procuring raw materials, creating a ripple effect on
overall production costs.
Key Market Trends
Education and Training Initiatives
Construction chemicals play a pivotal role in
enhancing the durability, performance, and aesthetics of buildings and
infrastructure projects. From waterproofing solutions to high-performance
admixtures, these chemicals are essential components in modern construction
practices. Education and training help improve the quality of construction
projects by ensuring that the right chemicals are used in the right quantities
and at the right stages of construction. This contributes to the overall performance
and safety of buildings and infrastructure. Moreover, education initiatives
facilitate the adoption of eco-friendly and sustainable construction practices.
Professionals gain knowledge about environmentally conscious alternatives and
methodologies that align with global sustainability objectives.
Local Production and Sourcing
Vietnam's construction industry is experiencing
significant expansion, fueled by infrastructure projects, urbanization, and
economic growth. This growth necessitates a heightened demand for construction
chemicals, such as additives, adhesives, sealants, and coatings, which enhance
the durability, aesthetics, and functionality of buildings and infrastructure. Global
disruptions and uncertainties, such as supply chain disruptions during the
COVID-19 pandemic, have highlighted the vulnerability of relying heavily on
imports. Local production and sourcing enhance supply chain resilience by
reducing dependence on international markets. Moreover, producing construction
chemicals locally allows for greater control over quality assurance and
adherence to international standards. Manufacturers can ensure that products
meet local regulatory requirements and the specific needs of the domestic
market.
Segmental Insights
Type Insights
In 2022, the construction chemicals market was
dominated by the concrete admixtures and is predicted to continue expanding
over the coming years. They are commonly utilized in the production of high-strength concrete.
These include plasticizers/superplasticizers, accelerators, air-entraining
agents, bonding agents, retarders, shrinkage reducers, and more. Additionally,
adhesives and sealants play a crucial role in flexibly, cost-effectively, and
durably joining dissimilar building components.
Application Insights
In 2022, the construction
chemicals market was dominated by infrastructure segment and is predicted to
continue expanding over the coming years. Vietnam has been experiencing robust economic
growth and rapid urbanization, leading to an increased demand for modern and
sustainable infrastructure. This growth has translated into the construction of
roads, bridges, airports, ports, railways, and other vital infrastructure
projects. The Vietnamese government has prioritized infrastructure development
as part of its long-term economic and social development plans. Major
initiatives, such as the National Strategy on Green Growth and the
Socio-Economic Development Plan, emphasize the importance of infrastructure to
the country's progress.
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Regional Insights
The Central Vietnam region has established itself
as the leader in the Vietnam Construction Chemicals Market. Central Vietnam is strategically located along the
country's north-south transportation corridor. This advantageous location
facilitates the movement of goods and materials, making it a convenient hub for
both sourcing and distributing construction chemicals across the country. Moreover,
The Central Vietnam region has been a focus of significant infrastructure
development initiatives. Major infrastructure projects such as highways,
bridges, and ports have been planned and implemented in this region, driving
the demand for construction chemicals to enhance the quality and longevity of
these projects.
Recent Developments
- In 2022, BASF Vietnam launched Gardobond X4802/2 RFU, non-chrome
pretreatment technology. Gardobond X4802/2 RFU is a more environmentally
friendly option than traditional chrome-based pretreatment technologies that
are designed to provide corrosion protection and paint adhesion for pre-painted
coils used in the construction and home appliance industries.
- In 2022, Saint-Gobain launched KorroGuard CP-400, a solvent-based
corrosion inhibitor. It helps in protecting steel and other metals from
corrosion in a variety of high-temperature applications. It is also an
effective product against a wide range of corrosive agents that includes water,
oxygen, and acids.
- In December 2021, Dow has announced the introduction of V PLUS PerformTM
next, an advancement of its previous V PLUS PerformTM polyurethane technology
designed for insulated metal panels. This offering combines the
high-performance energy efficiency and fire safety features of V PLUS PerformTM
with low carbon and circular ingredients, tailored to meet the specific needs
of our customers.
- In September 2021, Henkel, in collaboration with its LOCTITE adhesive,
sealant, and coating experts, has partnered with Weir Minerals, the
manufacturer of Linatex, the world's leading brand of premium natural rubber.
Together, they have developed a groundbreaking solvent-free adhesive for rubber
lining applications in the mining industry. Notably, this innovative adhesive
is free from volatile organic compounds, setting a new standard in
sustainability and performance.
Key Market Players
- Ecolab Vietnam Co. Ltd.
- Bestmix Corporation
- Solenis Vietnam Company Limited
- BASF Vietnam Co. Ltd.
- Kemira OYJ
- AkzoNobel Coatings Vietnam
- Baker Hughes Co., Ltd.
- Dow company Vietnam
- VATECH JSC
- Camix Company Limited
- Suez Water Technologies &
Solutions Vietnam
|
By
Type
|
By End
User Sector
|
By
Region
|
- Concrete Admixtures
- Waterproofing Chemicals
- Flooring Compounds
- Repair & Rehabilitation
- Adhesives & Sealants
- Others
|
- Infrastructure
- Real Estate
|
- Northern Vietnam
- Central Vietnam
- Southern Vietnam
|
Report
Scope:
In this
report, the Vietnam Construction Chemicals Market has been segmented into the
following categories, in addition to the industry trends which have also been
detailed below:
·
Vietnam Construction Chemicals Market, By Type:
o
Concrete
Admixtures
o
Waterproofing
Chemicals
o
Flooring
Compounds
o
Repair
& Rehabilitation
o
Adhesives
& Sealants
o
Others
·
Vietnam Construction Chemicals Market, By End User Sector:
o
Infrastructure
o
Real
Estate
·
Vietnam Construction Chemicals Market, By Region:
o
North
Vietnam
o
South
Vietnam
o
Central
Vietnam
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the Vietnam Construction Chemicals Market.
Available Customizations:
Vietnam Construction Chemicals Market report with
the given market data, TechSci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Vietnam Construction Chemicals Market is an
upcoming report to be released soon. If you wish an early delivery of this
report or want to confirm the date of release, please contact us at [email protected]