Striving for a chemical industry growth rate of 10-11% per year.
The Strategy for the Development of Vietnam's Chemical Industry to 2030, with a Vision to 2040 (the Strategy), focuses on the rapid and sustainable development of the chemical industry, applying modern, environmentally friendly technologies , and aiming for green growth and a circular economy …
The strategy has set targets, striving to achieve an average annual growth rate of 10-11% for the chemical industry and a share of approximately 4-5% of the total industrial sector by 2030.
By 2040, the chemical industry's growth rate is projected to average 7-8% per year, and its share of the entire industrial sector is expected to remain at around 4-5%.
Specifically, the group of petrochemical, pharmaceutical, technical rubber, and basic chemical products is expected to grow at 10-12% per year during the 2021-2030 period, and average 8-11% per year during the 2031-2040 period. The group of fertilizers, plant protection chemicals, electrochemical power products, detergents, industrial gases, tires, and paints/inks is expected to grow at 3-5% per year during the 2021-2030 period, and average 4-6% per year during the 2031-2040 period.
By 2030, maintain domestic demand for urea, phosphate, and NPK fertilizers, plant protection products, tires, industrial gases, common paints and inks, detergents, and common batteries, and develop export markets. Meet a portion of domestic demand for ammonium sulfate fertilizers. Increase the average domestic demand for petrochemical products to 40%, plant protection active ingredients to 30%, basic chemicals to 70%, technical rubber to 40%, and batteries to 75%.
By 2040, the goal is to partially meet domestic demand for basic organic chemicals, specialty paints, and high-tech batteries; to increase the average domestic demand for petrochemical products to 60%, plant protection chemicals to 50%, basic chemicals to 80%, technical rubber to 50%, and batteries to 80%; and to strive for an average export growth rate of 9-11% per year during the 2021-2030 period, and an average growth rate of 7.5-9% per year during the 2030-2040 period.
Developing the chemical industry towards a modern, foundational industry.
According to the Strategy, Vietnam's chemical industry will develop as a modern, foundational industry with a relatively complete structure comprising 10 sub-sectors: fertilizers, pesticides, pharmaceuticals, petrochemicals, basic chemicals (including explosive precursors and industrial explosives), rubber products, electrochemistry, detergents, paints and inks, and industrial gases. The strategy focuses on developing several key sub-sectors: basic chemicals, petrochemicals, technical rubber, pharmaceuticals, and fertilizers.
Reorganize existing production facilities towards a more concentrated and large-scale approach; maintain and develop factories with advanced technology; minimize the establishment of new facilities and gradually eliminate small-scale production facilities that use outdated technology, have low resource efficiency, produce poor quality products, and cause environmental pollution, etc.
Promote innovation, restructuring, and improve the business efficiency of state-owned enterprises in the chemical industry; enhance the efficiency of state capital utilization in state-owned enterprises; and overcome scattered, inefficient, and fragmented investments.
The State only holds controlling stakes in enterprises operating in key fundamental areas such as chemical industrial park infrastructure, chemical business zone infrastructure, priority chemical sub-sectors, large-scale investments, or sub-sectors related to national defense and security; it encourages private investment in the chemical sector, maximizes the utilization of domestic social investment, and develops domestic private enterprises to truly become an important driving force for the development of the chemical industry.
The policy of attracting FDI in the chemical industry should shift strongly from quantity to quality, focusing on key areas and priorities, encouraging FDI projects to invest in priority sectors and products, projects using advanced, modern, environmentally friendly technologies, and projects that bring high socio-economic benefits.
The chemical industry should be developed in a concentrated manner, in accordance with the advantages of each region and locality, not spread evenly across administrative boundaries, while ensuring environmental protection, national defense, and security. The formation and effective operation of concentrated industrial zones and clusters, and large-scale chemical complexes should be pursued to attract chemical production projects, projects using chemicals in other fields, and chemical logistics centers in locations with sufficient land, far from residential areas, near deep-water ports, and with convenient transportation connections. Circular technologies should be encouraged, and unused products and waste from one factory should be used as raw materials for other factories…
Source: Ministry of Industry and Trade Electronic Information Portal
