Report Description

Forecast Period

2024-2028

Market Size (2022)

USD31.26 million

CAGR (2023-2028)

3.42%

Fastest Growing Segment

Sulphonated Naphthalene Formaldehyde (SNF)

Largest Market

Central

 

Market Overview

Vietnam Naphthalene Derivatives Market has valued at USD31.26 million in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 3.42% through 2028. Naphthalene derivatives, organic compounds originating from naphthalene, a polycyclic aromatic hydrocarbon, exhibit a diverse range of forms, including powder and liquid, and are sourced from coal-tar, petroleum-based products, and other relevant sources. One prominent example of these derivatives is Sulphonated Naphthalene Formaldehyde (SNF), renowned for its versatile applications.

The growth of the naphthalene derivatives market in Vietnam is propelled even further by the country's notable industrial development. The increasing utilization of these derivatives across various sectors such as construction, agriculture, textile, and others is a key driving force behind the rising demand. Given their exceptional properties, including high solubility, low toxicity, and their ability to act as superplasticizers in concrete, these derivatives have become indispensable in these domains.

In conclusion, the Vietnam Naphthalene Derivatives Market showcases immense potential for growth in the foreseeable future. The escalating acceptance and widespread adoption of naphthalene derivatives across diverse industries, coupled with Vietnam's ongoing industrial development, serve as significant factors contributing to this promising trajectory. As Vietnam continues to solidify its position as a pivotal player in the global market, substantial expansion in the naphthalene derivatives market is anticipated.

Key Market Drivers

Growing Demand of Naphthalene Derivatives in Pharmaceutical Industry

The naphthalene derivatives market in Vietnam is experiencing a remarkable surge, propelled by the growing demands of these compounds in the pharmaceutical industry. Naphthalene derivatives, which are organic compounds derived from naphthalene, are being increasingly utilized in various industries due to their versatile properties and applications. The uptake of these derivatives in the pharmaceutical sector is particularly noteworthy, as they play a crucial role in the synthesis of various drugs, including antiseptics, analgesics, and antimalarials.

The pharmaceutical industry has emerged as a key driver for the growth of the naphthalene derivatives market in Vietnam. With the rising demand for pharmaceutical drugs in the country, the need for raw materials and intermediates used in their production, such as naphthalene derivatives, has witnessed a significant upsurge. Moreover, Vietnam's pharmaceutical industry is on a growth trajectory, supported by the government's increased focus on healthcare infrastructure and expenditure.

In addition to the pharmaceutical sector, other industries such as construction, agriculture, and textiles also contribute significantly to the escalating demand for naphthalene derivatives in Vietnam. These derivatives possess desirable properties, including high solubility, low toxicity, and the ability to act as a superplasticizer in concrete, making them invaluable across these sectors.

To summarize, the increasing demand for naphthalene derivatives in the pharmaceutical industry serves as a significant driver for the growth of the naphthalene derivatives market in Vietnam. As the country's pharmaceutical sector continues to expand, this trend is expected to persist, providing a substantial boost to the naphthalene derivatives market. The versatile properties and wide-ranging applications of these compounds position them as indispensable components of various industries, further fueling the market's growth.

Growing Demand of Naphthalene Derivatives in Construction Industry

Naphthalene derivatives come primarily in two forms: powder and liquid. The rising demand for the powder form of naphthalene derivatives is being fueled by the growth in the textile industry and increasing construction activities. The simplicity and ease of use associated with the powdered form make it a preferred choice for various applications within these industries.

The construction industry is driving the demand for naphthalene derivatives, such as sulphonated naphthalene formaldehyde (SNF) and phthalic anhydride. SNF is used as a superplasticizer in concrete, improving its workability and strength, while phthalic anhydride is a key ingredient in the production of plasticizers, which are extensively used in the construction industry.

Moreover, the Asia-Pacific region, where Vietnam is located, is expected to be the most lucrative market for naphthalene derivatives. This is attributed to the region's rising economy and strong growth of the construction sector. The booming infrastructure development in Vietnam, coupled with the government's increased focus on urbanization and industrialization, is further fueling the demand for naphthalene derivatives.

In conclusion, the growing demand for naphthalene derivatives in the construction industry is a significant driver of the Vietnam naphthalene derivatives market. As the country continues to experience rapid industrial and infrastructural development, this trend is expected to persist, providing a substantial boost to the naphthalene derivatives market. With its versatile applications and increasing demand, the future of naphthalene derivatives in Vietnam looks promising.


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Key Market Challenges

High Dependency on Raw Material Prices

Naphthalene derivatives, which are organic compounds derived from naphthalene, play a crucial role in various industries. These versatile compounds are available in two primary forms: powder and liquid and are predominantly sourced from crude oil. This direct link to crude oil makes the market highly susceptible to fluctuations in raw material prices, which can have a significant impact on the industry.

Crude oil prices, known for their volatility, are influenced by a myriad of factors, including geopolitical events, supply-demand dynamics, and global economic health. When crude oil prices rise, the cost of producing naphthalene derivatives also increases. This cost escalation can squeeze profit margins for producers and potentially result in higher prices for end-users, creating a challenging environment for market players.

An illustrative example of such price fluctuations occurred in January 2023 when there was a notable rise in Naphtha prices, a key raw material in the production of naphthalene derivatives. This price increase directly impacted the cost of production, posing a significant challenge for market players in the Vietnam Naphthalene Derivatives Market.

In addition to crude oil, other raw materials used in the production of certain naphthalene derivatives, such as phthalic anhydride, have also experienced price fluctuations. The rising costs of these raw materials further contribute to the overall production cost, posing additional challenges to the market.

It is worth noting that the cost of raw materials, including oil and gas, accounts for approximately 60-70% of the total chemical production cost, including naphthalene derivatives. This underscores the high dependency of the naphthalene derivatives market on raw material prices, making it crucial for market players to monitor and manage this dependency effectively.

In conclusion, while the Vietnam Naphthalene Derivatives Market shows promising growth prospects, it is not without its challenges. The high dependency on raw material prices, particularly crude oil, poses a significant hurdle. Market players will need to devise comprehensive strategies to manage this dependency and effectively mitigate the impact of price fluctuations on their operations.

Key Market Trends

Growing Demand of Naphthalene Derivatives in Agriculture Industry

Naphthalene derivatives, available in both powder and liquid forms, are organic compounds derived from naphthalene, a hydrocarbon found in coal tar and petroleum. These versatile compounds have found widespread applications across various sectors, including textiles, construction, pharmaceuticals, and notably, agriculture.

In the agriculture industry, naphthalene derivatives play a vital role in the formulation of pesticides and fungicides. With their exceptional effectiveness, they help control a wide range of pests and diseases that can significantly impact crop yield, thereby ensuring food security.

Vietnam, with its primarily agrarian economy and a significant portion of the population engaged in farming, experiences a high demand for agricultural inputs, including pesticides and fungicides. The government's unwavering focus on enhancing agricultural productivity to achieve food self-sufficiency and export competitiveness further amplifies this demand.

Situated in the Asia-Pacific region, Vietnam stands as a promising market for naphthalene derivatives. This can be attributed to the region's robustly growing economy and the significant development of its agriculture sector. The flourishing agricultural landscape in Vietnam, coupled with the government's increased emphasis on improving farm productivity, continues to drive the demand for naphthalene derivatives.

Segmental Insights

Derivative Insights

Based on the category of derivative, the sulphonated naphthalene formaldehyde (SNF) segment emerged as the dominant player in the Vietnamese market for naphthalene derivatives in 2022. Sodium Naphthalene Sulphonate Formaldehyde (SNF), widely recognized as a superplasticizer in concrete manufacturing, plays a pivotal role in enhancing the workability and strength of concrete. With its exceptional properties, SNF has become an indispensable ingredient in the construction industry, catering to the increasing demand for high-quality construction materials in Vietnam's booming infrastructural development.

Apart from its significant role in concrete production, SNF finds applications in various other industries. It serves as a key component in the production of synthetic rubber, resins, and leather goods, contributing to the market's expansion and diversification.

One of the notable advantages of SNF is its cost-effectiveness. Compared to other superplasticizers, SNF offers similar performance benefits at a more affordable price point. This cost advantage has made it a preferred choice for numerous manufacturers, further solidifying its dominance in the market.

Furthermore, the government's increased focus on urbanization and industrialization, combined with the rapid infrastructure development in Vietnam, is expected to continue fueling the demand for SNF. As the country progresses, the need for efficient construction materials like SNF-enhanced concrete will remain on the rise.

End User Insights

The construction segment is projected to experience rapid growth during the forecast period. Naphthalene derivatives, particularly Sulphonated Naphthalene Formaldehyde (SNF), are extensively used as superplasticizers in concrete manufacturing. These superplasticizers play a crucial role in enhancing the workability and strength of concrete, making it an integral part of modern construction processes. By reducing water content and increasing fluidity, SNF ensures that concrete can be easily poured and shaped, resulting in more efficient construction practices.

In Vietnam, a country experiencing rapid economic growth, there has been a significant surge in infrastructure development. This includes the construction of residential, commercial, and public projects, which are driving the demand for high-quality construction materials. SNF-enhanced concrete has emerged as a preferred choice, thanks to its ability to improve concrete performance and durability.

As the naphthalene derivatives market continues to grow, manufacturers are continuously innovating to meet the increasing demand. Researchers are exploring new formulations and applications of SNF to further enhance its properties and ensure sustainable construction practices. This ongoing development in the field of naphthalene derivatives is crucial for meeting the evolving needs of the construction industry and supporting the infrastructure growth in Vietnam and beyond.


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Regional Insights

Central emerged as the dominant player in the Vietnam Naphthalene Derivatives Market in 2022, holding the largest market share in terms of value. The central region of Vietnam, known for its breathtaking landscapes and rich cultural heritage, has experienced remarkable industrial growth in recent years. This surge in development has fueled an ever-increasing demand for naphthalene derivatives, particularly in key sectors such as construction, textiles, and garments.

As the central region undergoes rapid infrastructural expansion, the utilization of naphthalene derivatives, such as the widely-used Sulphonated Naphthalene Formaldehyde (SNF), in concrete manufacturing has become even more pronounced. The booming construction activities in the area have directly influenced the surge in demand for these compounds, as they play a crucial role in enhancing the properties and durability of concrete structures.

Moreover the, the central region's strategic location serves as a major advantage, providing seamless access to both the northern and southern markets. This advantageous positioning positions the region as an ideal hub for the production and distribution of naphthalene derivatives, further bolstering its economic prospects and solidifying its importance in the industrial landscape.

Recent Developments

  • In January 2023, LG Chem, a leading chemical company, and Vietnam National Chemical Corporation (Vinachem) have announced an exciting collaboration. Together, they are working towards the development of innovative naphthalene derivative-based products specifically tailored for the Vietnamese market.
  • This collaboration aims to address the growing demand for sustainable and durable solutions that meet the increasing requirements of high-performance naphthalene derivative products in Vietnam. By leveraging their expertise and resources, LG Chem and Vinachem are committed to delivering cutting-edge products that will contribute to the advancement of various industries in the country.

Key Market Players

  • BASF Vietnam, Sika Ltd. (Vietnam)
  • HS., Co., Ltd.
  • CRP Corporation
  • Mapei Vietnam Co., Ltd.
  • Bosseal Company Limited

 By Derivative

By End User

By Region

  • Sulphonated Naphthalene Formaldehyde (SNF)
  • Phthalic Anhydride
  • Alkyl Naphthalene Sulfonated Salts (ANS)
  • Naphthalene Sulphonic Acid
  • Others
  • Textile
  • Construction
  • Pharmaceutical
  • Paints & Coatings
  • Others
  • Northern
  • Central
  • Southern

 

Report Scope:

In this report, the Vietnam Naphthalene Derivatives Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • Vietnam Naphthalene Derivatives Market, By Derivative:

o   Sulphonated Naphthalene Formaldehyde (SNF)

o   Phthalic Anhydride

o   Alkyl Naphthalene Sulfonated Salts (ANS)

o   Naphthalene Sulphonic Acid

o   Others

  • Vietnam Naphthalene Derivatives Market, By End User:

o   Textile

o   Construction

o   Pharmaceutical

o   Paints & Coatings

o   Others

  • Vietnam Naphthalene Derivatives Market, By Region:

o   Northern

o   Central

o   Southern

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Vietnam Naphthalene Derivatives Market.

Available Customizations:

Vietnam Naphthalene Derivatives Market report with the given market data, Tech Sci 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 Naphthalene Derivatives 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]               

Table of content

1.    Product Overview

1.1.  Market Definition

1.2.  Scope of the Market

1.2.1.     Markets Covered

1.2.2.     Years Considered for Study

1.2.3.     Key Market Segmentations

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Applications

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary

3.1.  Overview of the Market

3.2.  Overview of Key Market Segmentations

3.3.  Overview of Key Market Players

3.4.  Overview of Key Regions/Countries

3.5.  Overview of Market Drivers, Challenges, Trends

4.    Vietnam Naphthalene Derivatives Market Outlook

4.1.  Market Size & Forecast

4.1.1. By Value

4.2.  Market Share & Forecast

4.2.1. By Derivative (Sulphonated Naphthalene Formaldehyde (SNF), Phthalic Anhydride, Alkyl Naphthalene Sulfonated Salts (ANS), Naphthalene Sulphonic Acid, Others)

4.2.2. By End User (Textile, Construction, Pharmaceutical, Paints & Coatings, Others)

4.2.3. By Region

4.2.4. By Company

4.3.  Market Map

4.3.1. By Derivative

4.3.2. By End User

4.3.3. By Region

5.    Northern Naphthalene Derivatives Market Outlook

5.1.  Market Size & Forecast          

5.1.1. By Value

5.2.  Market Share & Forecast

5.2.1. By Derivative

5.2.2. By End User

6.    Central Naphthalene Derivatives Market Outlook

6.1.  Market Size & Forecast          

6.1.1. By Value

6.2.  Market Share & Forecast

6.2.1. By Derivative

6.2.2. By End User

7.    Southern Naphthalene Derivatives Market Outlook

7.1.  Market Size & Forecast          

7.1.1. By Value

7.2.  Market Share & Forecast

7.2.1. By Derivative

7.2.2. By End User

8.    Market Dynamics

8.1.  Drivers

8.2.  Challenges

9.    Market Trends & Developments

9.1.  Recent Developments

9.2.  Product Launches

9.3.  Mergers & Acquisitions

10.  Policy & Regulatory Landscape

11.  Vietnam Economic Profile

12.  Competitive Landscape

12.1.          BASF Vietnam, Sika Ltd. (Vietnam)

12.1.1.  Business Overview

12.1.2.  Company Snapshot

12.1.3.  Products & Services

12.1.4.  Current Capacity Analysis

12.1.5.  Financials (In case of listed)

12.1.6.  Recent Developments

12.1.7.  SWOT Analysis

12.2.          HS., Co., Ltd.

12.3.          CRP Corporation

12.4.          Mapei Vietnam Co., Ltd.

12.5.          Bosseal Company Limited

13.  Strategic Recommendations

14.  About us & Disclaimer

Figures and Tables

Frequently asked questions

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The market size of the Vietnam Naphthalene Derivatives Market was estimated to be USD31.26 million in 2022.

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The sulphonated naphthalene formaldehyde (SNF) segment demonstrated significant dominance in 2022. This is due to its versatility, cost-effectiveness, and reliance by growing industries.

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Central dominated the market with a revenue share in 2022. The region's industrial growth, infrastructure development, strategic location, and government policies contribute to its dominant position.

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Growing demand of naphthalene derivatives in pharmaceutical and construction industries are the major drivers for the Vietnam Naphthalene Derivatives Market.

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Sakshi Bajaal

Business Consultant
Press Release

Vietnam Naphthalene Derivatives Market to Grow with a CAGR of 3.42% through 2028

Jan, 2024

Surge in research and development activities is expected to drive the Vietnam Naphthalene Derivatives Market growth in the forecast period, 2024-2028.