Predictions on coatings and printing ink industry for 2018

Ms. Nguyen Thi Lac Huyen at Launching Event of Paper Vietnam 2019

At the Launching Event of Paper Vietnam 2019 held at Royal Hotel Saigon on December 20, Ms. Nguyen Thi Lac Huyen - Chairwoman of Vietnam Paint – Printing Ink Association had an overview on 2017 situation and forecast for coatings and printing ink industry 2018.

According to Ms. Huyen, Vietnam's economic bright spot in 2017 has had a certain influence on the Coatings industry. According to the report of the Ministry of Planning and Investment, the important economic highlights include the growth contribution from 3 major economic sectors, in which production and construction industries play an important role; International trade recovered strongly with key export items such as garments, footwear, electronics, wood products, agricultural and fishery products. Besides, investment to maintain growth is quite good and consumer recovery is good as well.

The results of the 2017 coatings industry from Vietnam Paint and Ink Association showed that the coating industry achieved 572 million liters in 2017, of which decorative coatings accounted for the largest volume with 60%, followed by wood coatings with 21% and other kinds of coatings such as protective coatings (6%), powder coatings (4.5%), roll coatings and others. In terms of total coatings industry value, in 2017 the industry reached $ 1.934 million (excluding plaster), of which decorative coatings accounted for 55%, wood coatings accounted for 18% and other paints.

2017 is considered to be a remarkable year of capital construction and real estate industry, which is a strong push for decorative coatings, protective coatings and powder coatings industry. According to the Ministry of Planning and Investment, newly registered FDI capital in Vietnam reached 35.9 billion USD (44.4% increase compared to 2016). Real estate attracted US $ 3 billion, accounting for about 8.5% and ranking third after processing industry and electricity distribution industry.

Based on these grounds, the Association has made the forecast for 2018 coatings industry as below:

  1. With investment resources continuing to flow into infrastructure construction and real estate in all segments, it is expected that this will be the driving force for decorative coatings, protective coatings to maintain high growth rates of 12-15%.
  2. HAWA sets a target of 4 billion USD for domestic consumption and 10 billion USD for wood product export by 2020, forecasting that wood paint segment has a good growth rate of 8-10%.
  3. Tariff barriers, the entry of imports from China make it difficult to export colored galvanized steel sheets. However, domestic consumption is still positive, forecasting that the coil paint segment will grow at an average rate of about 5%.
  4. Global shipbuilding industry is weak and domestic orders are not big enough, forecasting that the marine paint segment is still unable to recover.

Coatings Expo Vietnam, The International Exhibition & Conference on Coatings and Printing Ink Industry held annually in Vietnam, is an ideal place to connect and enhance businesses. Please visit Coatings Expo Vietnam 2019 which will take place on 26 – 28 June 2019 at Saigon Exhibition and Convention Center (SECC) in Ho Chi Minh City!