Vietnam Construction Chemicals Market Outlook 2028

Vietnam Construction Chemicals Market Overview

• The Vietnam construction chemicals market is valued at USD 422.86 million, based on a five-year historical analysis. This market is driven primarily by the rapid pace of urbanization and increased government investment in infrastructure projects such as residential buildings, commercial spaces, and large-scale infrastructure developments. The demand for sustainable and eco-friendly construction solutions also propels the growth of the market, with significant traction for high-performance admixtures, waterproofing chemicals, and sealants.

• Hanoi and Ho Chi Minh City are the dominant regions in the Vietnam construction chemicals market. The dominance of these cities stems from their rapidly expanding urban infrastructure, which is fuelled by large-scale investments from both the government and private sectors. These cities are witnessing a surge in demand for construction materials, particularly for industrial, residential, and commercial developments, positioning them as key hubs for construction chemical suppliers.
• Vietnam enforces stringent safety regulations for construction materials, including chemicals. The Ministry of Construction updated its safety guidelines in 2022, requiring manufacturers to comply with standards that prioritize worker safety and environmental protection. Non-compliance can result in project delays and financial penalties, pushing companies to adopt safer and higher-quality chemicals in their projects.

Vietnam Construction Chemicals Market Segmentation

By Product Type: The Vietnam construction chemicals market is segmented by product type into admixtures, waterproofing chemicals, sealants, concrete repair mortars, and flooring compounds. Admixtures hold the dominant market share in the product type segmentation due to their widespread use in enhancing concrete performance in residential, commercial, and infrastructure projects. The growing demand for high-strength, durable, and sustainable buildings is boosting the demand for advanced chemical admixtures, particularly in fast-growing urban centers like Hanoi and Ho Chi Minh City.

Table: Vietnam Construction Chemicals Market Share by Product Type (2023)

By End-Use: TheVietnam's construction chemicals market is segmented by end-use into residential construction, commercial buildings, industrial facilities, and infrastructure projects. Infrastructure projects dominate the market in terms of end-use. The Vietnamese government's significant investments in infrastructure development, including highways, bridges, and public utilities, have increased the demand for high-performance construction chemicals such as waterproofing and sealants, which are vital for these projects longevity and efficiency.

Table: Vietnam Construction Chemicals Market Share by End-Use (2023)

Vietnam Construction Chemicals Competitive Landscape

The Vietnam construction chemicals market is dominated by major players with strong footholds in the region. These companies provide a range of products that cater to the growing demand for sustainable and high-performance materials. Additionally, collaborations with government and private sectors further reinforce their positions in the market.

Vietnam Construction Chemicals Market Analysis

Market Growth Drivers

• Urbanization and Infrastructure Growth: Vietnam is experiencing rapid urbanization, with over 40 million people residing in urban areas as of 2024. By 2023, the government had allocated around $30 billion towards infrastructure development, primarily in cities like Hanoi and Ho Chi Minh. This urban expansion drives demand for construction chemicals, particularly in projects like roads, bridges, and urban housing. Infrastructure spending has also been fueled by the countrys National Urban Development Program, which targets the development of sustainable cities and smart infrastructure solutions.
• Rise in Government Projects: The Vietnamese government is heavily investing in public infrastructure. In 2023, around $17 billion was earmarked for projects including highways, ports, and railways. The Vietnam Ministry of Planning and Investment reports that a significant portion of these funds is directed towards public housing and urban infrastructure. This rise in government-led projects is creating increased demand for high-quality construction chemicals to meet regulatory standards and durability requirements.
• Growing Demand for Green Buildings: Vietnam's Green Building Council reports that by 2024, there were over 150 certified green buildings across the country, with an emphasis on commercial and residential properties. With increasing environmental concerns and stringent government regulations, the demand for environmentally friendly construction materials has surged. Major urban centers like Ho Chi Minh City and Da Nang are mandating the use of low-VOC (volatile organic compounds) construction chemicals to comply with new environmental standards.

Market Challenges

• Lack of Skilled Labor in Construction: The Vietnamese construction sector continues to face a significant shortage of skilled labor. As of 2023, the country had a shortfall of about 400,000 workers in the construction industry, according to Vietnam's General Statistics Office. This shortage impacts the application of advanced construction chemicals, which require precision and expertise in usage, leading to project delays and lower quality in some infrastructure developments.
• Regulatory Compliance: Vietnams regulatory framework for construction materials, including chemicals, is complex. Builders must comply with a variety of environmental and safety standards, which increases the cost and time required to meet project deadlines. According to the Ministry of Natural Resources and Environment, compliance costs for construction companies increased by 10% in 2023 as stricter environmental regulations were enforced.

Vietnam Construction Chemicals Market Future Outlook

Over the next five years, the Vietnam construction chemicals market is expected to experience significant growth driven by government investment in infrastructure projects, growing urbanization, and the rising demand for eco-friendly and sustainable construction materials. The expansion of Vietnam's industrial and residential sectors is also anticipated to fuel the market for high-performance chemicals like sealants, adhesives, and waterproofing solutions.

Market Opportunities:

• Growing Focus on Sustainable and Low-VOC Products: Vietnam is witnessing a rise in demand for low-VOC products as industries adapt to eco-friendly practices. The Ministry of Environment and Natural Resources has reported a 30% increase in the adoption of low-VOC materials in the construction sector by 2023. Companies that innovate and produce low-emission construction chemicals are poised to capture market share, as the government intensifies regulations on environmentally harmful substances.
• Investment in Urban Development Projects: Government and private-sector investments in urban development projects have been strong drivers for the construction chemicals market. Vietnams infrastructure investments totaled $150 billion in 2023, with a significant share focused on urban development. New projects for urban housing, metro systems, and smart cities demand a wide array of construction chemicals, especially in waterproofing and sealant applications.