Vietnam is currently witnessing a dynamic and competitive landscape in the paint and coating industry. With around 600 enterprises operating in this sector, including 70 foreign-invested enterprises, the Vietnam Paint and Ink Association (VPIA) report states that foreign-invested businesses have captured more than 65% of the paint market in Vietnam over the past five years, despite their relatively smaller number compared to domestic enterprises, which hold a 35% market share.
* Growth Potential of the Paint and Coating Industry:
Vietnam's paint and coating industry is predicted to grow from 383 million USD in 2018 to 459 million USD by the end of 2022. This growth is primarily driven by positive developments in the construction and real estate sector.
Despite being affected by the Covid-19 pandemic, Vietnam's economy maintained a significant growth rate of 2.91% in 2020, while many countries around the world experienced contractions. The expectation of economic stability and growth in the coming years serves as a necessary catalyst for the paint and coating industry in Vietnam.
Real estate is becoming a powerful driving force for the paint market in Vietnam. Domestic and foreign enterprises compete by offering high-quality, diverse paint types with various features and colors. This fosters healthy competition and an overall vibrant and positive outlook for the general development of the coating market in Vietnam.
* Challenges and Prospects:
Despite its considerable growth potential, the paint and coating industry in Vietnam faces several challenges. One significant issue is the presence of counterfeit and substandard products, which have not yet been subject to specific government control. The maximum fine for the production and distribution of counterfeit products is relatively small at 20 million VND, which is outweighed by the profits made by counterfeit producers.
Nevertheless, with growth potential and competition, Vietnam's paint and coating industry remains a developing sector with much untapped potential. The diverse participation of enterprises and leading manufacturing facilities has contributed to improving quality.
Source: VietnamCredit