Vietnam Net Global reports:
Japan-based Nippon Paint Group has released its new three-year strategy in which it announced its intention to build a resin factory in Hanoi. “We already have a paint factory in Vietnam which started operations a few years ago and the addition of the resin factory will strengthen our supply chains in Asia,” a company representative said.
Nippon Paint Vietnam has been in the domestic market for over 25 years, as one of the country’s premier paint brands. Here, Nippon Paint has built and put into operation three factories in Hanoi, its neighboring province of Vinh Phuc and the southern province of Dong Nai specializing in the production of decorative and industrial paints.
The Vietnamese paint and coatings industry has registered huge investments in expanding its capabilities in recent years, including major multinational paint and coating producers such as AkzoNobel, JOTUN as well as regional players such as than 4 Oranges Co., Ltd. and Toa Paints.
According to the Vietnamese Association of Paint Inks, foreign paint manufacturers account for 65% of the market.
Foreign paint and coating manufacturers cover all types such as painting of airports, ships, and galvanized steel and wood coatings. With technological and financial advantages, foreign paint producers are a popular choice for the architectural and industrial coatings segment in general, which accounts for over 62% of the Vietnamese paint and coatings market by volume.
Under Vietnam’s plan to develop the paint and ink industry until 2020 with a vision until 2030, the average growth rate of the production value of the paint industry and ink reaching 14% in the period from 2021 to 2030 and the proportion of the production value of the paint and ink segment in the entire chemical sector will increase from 11% in 2012, 11 , 5% in 2020 and 12% in 2030.
Last year, big player Jotun celebrated the launch of Essence Easy Clean, a new mid-range interior product in Vietnam, Thailand, Malaysia, Singapore and Indonesia.
In its 2020 report, the Norwegian paint company reported on its investments in production capacity and research and development (R&D) facilities during the year. The investments were mainly related to new production facilities in Vietnam and Egypt, the modernization of facilities in Norway and the Czech Republic, the construction of a new regional headquarters and an R&D facility in Dubai, and to the finalization of the same in Norway. Set to be completed this summer, construction of JOTUN’s new $ 100 million water-based and powder coatings plant is taking place in Hiep Phuoc Industrial Park in Ho Chi Minh City. City, with a capacity of 85 million liters of water-based paints and 10,000 tons of powder. coatings.
“The construction of a new factory in Vietnam is on budget and on schedule,” the report notes.
He added that the pandemic caused a significant drop in business activity in the second quarter of 2020, especially in Southeast Asia and the Middle East, where JOTUN has a strong market presence. However, by rapidly implementing business continuity measures in the company’s factories and offices and using digital technologies to strengthen relationships with key stakeholders, the company has recorded another year of positive results. in the decorative paints segment.
In Vietnam, Jotun has been in the market since 1993. Initially, the company entered only with imported products, mainly operating in the field of industrial painting and marine works. However, he turned to decorative painting a decade later, when he was one of the first paint manufacturers in Vietnam to introduce advanced color mixing technology.
The expansion of companies into ASEAN markets with extensive experience indicates potential growth in foreign investment, infrastructure development and public services, as well as ever increasing urbanization, according to the group. This is expected to stimulate demand for decorative paint and coating products and non-decorative paints and coatings.
In recent years, some domestic companies have become very competitive, including Kova Paint Group, Dong Tam, Alphanam, Hoa Binh, among others. These national companies even dominate the market in small towns and rural areas.
For example, by choosing a product line aimed at the popular segment but manufactured in accordance with Japanese standards and advanced technology, the locally invested Alphanam Group set out to refresh the Vietnamese paints and coatings market.
The demand for civil constructions such as residential houses and apartment buildings remains essential for Alphanam. Kansai-Alphanam launched two sets of interior and exterior paint products for the popular segment with modern technology, fresh colors, guaranteed quality and durability by Japanese standards.
While industry experts believe that the brand is one of the most important factors in the paint market, the issue of price and suitability for the climatic conditions of each region is of growing concern. especially for large projects. This is an opportunity for the national paint manufacturers to seize.
According to the current value of production, building coatings occupy a large share at 54 percent, while industrial coating products have been in increasing demand due to industrialization.
Nguyen Thi Hoe, chairman of the board of Kova, confirmed that the domestic market is extremely competitive and cannot deny the advantages of foreign paints. However, Kova’s position in the market is currently strong and her paintings are deemed worthy enough to compete, Hoe said. Kova attracts consumers with a series of new features such as fire resistance, antibacterial paint, dustproof and even bulletproof.
Kova started to dominate the retail non-decorative waterproofing market in Vietnam five years ago, but its first factory was established in Hanoi in 1998. In 2007, Kova also entered the non-decorative protective coatings market. with its metal paints and coating products and the following year the company expanded to Cambodia. Currently, Kova comprises nine member companies and five high capacity paint and coatings manufacturing plants; four are located in Vietnam and one in Cambodia.