In 2018, the GDP value of the mining and quarrying sector was estimated at 408 trillion Vietnamese dong. Nevertheless, the production volume of chemical products has stagnated in the previous years due to delays in infrastructure development and hence slow expansion in the chemical sector. Thus, mineral products, chemical products and base metals were among the top five import goods in Vietnam in 2018. In that year, chemical imports from the European Union amounted to about 2.8 billion euros, which was significantly higher than the export of the respective products from Vietnam to the European Union.
In 2018, the chemicals sector had the highest profit growth with 103.7 percent while profits from the natural resources sector declined by 27 percent. Since the agriculture sector is essential to Vietnam’s economy, agricultural chemicals are highly needed. Therefore, there are several agrochemical suppliers among the leading chemical companies in Vietnam. On the other hand, coal and crude oil production still has potential to grow to meet the consumption needs in the country as the energy demand for coal-fired and gas power was forecasted to increase by 2030.
In 2018, M&A deals in the chemicals sector amounted to a value of about 169 million U.S. dollars and 189 million U.S. dollars in the basic resources sector. According to Vietnam’s Industrial Development Strategy towards 2035, the chemical industry will prioritize base chemicals, petrochemicals and the manufacturing of plastics and rubber until 2025 with a shift in focus towards the development of pharmaceutical chemicals after 2025.