OVERVIEW VIETNAM COATINGS MARKET 

There are about 600 enterprises operating in Vietnam’s paint and coating industry, 70 of which are foreign-invested companies. According to a report by VPIA (Vietnam Paint and Ink Association), in the past 5 years, paint manufactured by FDI company has accounted for more than 65% of the Vietnamese market despite their small quantity, while that of domestic companies accounted for only 35% of market share.

Market segment and their value in the VN paint

The Vietnamese market can be classified into four distinct groups. High-end segment, upper-middle segment, lower-middle segment and low-end or mass segment, High-end paint in architectural and industrial segment account for nearly 35% of the total Vietnamese coatings market on value basis. Upper-middle and lower-middle segments account for 23% and 15% of the market share. The low-end segment accounts for the remainder 27% of the total market (2022)

Consumption of Vietnam Coatings  from 2021 – 2023

Paint industry consumption in 2023 reached 454 million liters, equivalent to 1,559 million USD.

Paint industry consumption output has continuously decreased in the past 3 years, from 2021 to 2023. decreased by 12% in the period 2021–2022, and 21% in the period 2022–2023. Corresponding revenue also decreased sharply, down 8% in the period 2021-2022 and 19% in the period 2022-2023.

Coatings Industry Structure by Volume in 2023

The Vietnamese coating industry has six large and small segments. Mainly in the decorative segment, it accounts for nearly 53% of the total volume of Vietnamese coatings and Wood paint accounts for 18%.

Coatings Industry Structure by Revenue in 2023

Although decorative paint accounts for 53% of output but only 46% of revenue, wood paint accounts for 18% of output but only 16% of revenue, and powder coating accounts for 4% of output but only 2% of revenue. Meanwhile, marine and protective paint account for only 6% of output but 10% of total revenue, and coil paint accounts for 6% of output but 7% of revenue.

Market Trend

The bio-based coatings market is projected to grow from USD 11.5 billion in 2022 to USD 18.2 billion by 2027, at a CAGR of 9.5% between 2022 and 2027.