Vietnam announces Prime Minister’s decision setting development targets for the domestic chemical industry until 2030

On June 16, 2022, the Vietnamese government promulgated Prime Minister’s Decision 726/QG-TTg on the Strategy for the Development of the Chemical Industry to 2030, which sets out a vision for 2040. This Decision sets out strategies, development goals, policies, tasks, and measures in the chemical sector including basic chemicals, petrochemicals, rubber, pharmaceuticals, fertilizers, pesticides, rubber, industrial gases, cleaning agents and batteries.

Goals

The goals set in this decision for the period up to 2030 are as follows:

• The domestic chemical industry will complete its industrial structure and enhance the production of raw materials for production, as well as consumer goods and materials for other industries. In particular, it will focus on the development of important chemical fields such as basic chemicals, petrochemicals, rubber, pharmaceuticals, and fertilizers.
• The industry will enter the world and surrounding area production and supply networks to promote the effective use of natural resources, the application of state-of-the-art technology, the improvement of competitiveness, and the accumulation of capital in the chemical sector.
• The industry will appropriately distribute domestic production capabilities to regions and sectors, and effectively promote the activities of centralized industrial parks and large-scale chemical manufacturing zones.

In addition, the vision for 2040 includes the development of various chemical fields using state-of-the-art technologies to produce products that meet international standards. At the same time, the Decision seeks to contribute to entry into the global market, effective use of energy, equal competition, training of skilled technicians, domestic expansion of R&D, design, and manufacturing, and the development of the Vietnamese economy. The specific targets to achieve these goals are as follows:

• The chemical industry will grow at an annual rate of 10-11% up to 2030 and 7-8% up to 2040.
• Achieve a chemical industry share of 4-5% of total production in all industrial sectors by 2030, and maintain that share until 2040.
• Achieve growth rates of 10-12% per annum from 2021 to 2030, and 8-11% per annum from 2031 to 2040 in the fields of petrochemicals, pharmaceuticals, rubber, and basic chemicals.
• Achieve growth rates of 3-5% per annum from 2021 to 2030 and 4-6% per annum from 2031 to 2040 in the fields of fertilizers, pesticides, batteries (primary and secondary), cleaning agents, industrial gases, tires, and paints and printing inks.

In addition, by 2030, the industry will maintain levels that meet domestic demand for fertilizers such as urea, phosphorus, and NPK, pesticides, tires, industrial gases, paints and printing inks, detergents, cleaning agents, and batteries in general, and develop export markets. The industry will also produce basic organic chemical products, specialty paints, and storage batteries to meet part of domestic demand by 2040. The following table shows the targets for achieving domestic demand broken down by specific products.

Meanwhile, with regard to the average export growth rate of chemical products, the industry will aim to achieve an annual rate of 9.0-11.0% for the period from 2021 to 2030 and an annual growth rate of 7.5-9.0% for the period from 2030 to 2040.

Measures for realization

There are two measures to achieve the above targets.

• Form centralized chemical industrial zones and logistics centers.
• Revise the system and policy for the management of investment activities in the chemical industry.

In addition to this, this Decision also proposes development policies and specific measures for each chemical field in detail.

The original text of this Decision can be downloaded from the following URL:
https://vanban.chinhphu.vn/?pageid=27160&docid=205956