Vietnam aluminum market is anticipated to grow at a high CAGR in the
forecast period 2024-2028, owing to the Growing applications of
Aluminum in building/construction industry. The market in the nation is also
anticipated to benefit from the numerous uses of Aluminum due to its low cost,
better weight to strength ratio, resistance to corrosion, formability, and
dampness, among other properties. Aluminum characteristics include softness, non-magnetism, elasticity,
and a density that is around one-third that of steel, which is lower than that
of most common metals. Around 1.4 million metric tonnes of Aluminum were produced in Vietnam, in
2020. Compared to 2010, when Vietnam produced about 12,000 tonnes of Aluminum,
this was a huge rise.
Rising product incorporation in the automotive & transportation
industry is growing trned in the market
Despite being utilised in autos for a long time, Aluminum is now seen in
more new cars. For its ability to lower emissions and improve fuel efficiency,
this metal is highly favoured by engineers and designers in the automotive
industry. Manufacturers of electric vehicles use this metal to lighten the car
and increase its operating range. Due to its lightweight nature and similar
physical characteristics to stainless steel, vehiles manufractures like
Mercedes and BMW are replacing it more frequently. According to estimates, the above-mentioned
fundamentals are fuelling the market expansion.
Increasing Popularity of Secondary Aluminum
Aluminum can be recycled into many different substance, including
tractor-trailers and automotive bodywork. However, the aAluminum cans typically
turn into new cans made of the same metal by recycling. Moreover, recycling
secondary Aluminum doesn't degrade the metal's purity, allowing for endless
recycling. The ongoing demand for these cans contributes to the rising metal
consumption. Recycling cans relieves pressure on landfills and conserves
energy and natural resources. Nearly 95% less energy is utilised to produce new
cans from recycled metal than is required to produce cans from bauxite ore.
Only 5% of the energy needed to make new Aluminum is needed to produce recycled
Aluminum. Additionally, any leftover from the production process can be
melted down and repurposed repeatedly. Since of this, over 75% of the Aluminum
created is still in use currently.
Additionally, during the projection period for the aluminum market, the
growing emphasis on purchasing goods made from sustainably produced materials
is anticipated to further push metal recycling operations and to enhance market
growth.
Risining Demand of Automotive Industry
Modern automobiles use more and more Aluminum as the automotive industry
places an increasing emphasis on CO2 emissions reduction, fuel efficiency, and
design flexibility. Utilising Aluminum helps an automobile weigh less overall,
across a variety of components, by several kilogrammes. In February 2023, a total
of 17,314 automobiles were being produced in the nation, according to the
Vietnam Automobile Manufacturers Association, with passenger cars accounting
for the largest portion (14,036 units), followed by commercial vehicles (3,174
units), and special purpose vehicles (104 units).
The automotive sector in Vietnam is quickly expanding and it depends
primarily on domestic sales. All currently produced models are made from
knock-down kits, and all are created by international brands abroad. The
Vietnamese government safeguards native production by levying substantial
import duties on automobiles. Despite being a part of the ASEAN Free Trade Area,
Vietnam makes an exception for imported cars. As part of ASEAN agreements, the
30% import tax has been eliminated as of January 1, 2018. The Vietnamese
automotive market isn't considered competitive enough to support exports at
this time. 85% of cars sold in Vietnam as of April 2018 were made domestically
from ( Completely Knocked Down ) CKD kits.
The Vietnamese government has established aggressive goals for the
sector, hoping to boost localization rates to 60% by 2025 and become a regional
centre for the manufacture and export of automobiles. Additionally, the
government has made plans to support the use of renewable energy sources and
invest in the advancement of electric vehicles (EVs), which may open up new
business opportunities for the sector.
In conclusion, the rising domestic demand, government assistance, and
the expansion of the EVs category will all contribute to the Vietnamese
automotive industry's continued growth in 2023, due to which aAluminum industry
will grow as well.
Growing Applications of Aluminum in Building/Construction Industry
In September 2021, the Vietnamese government approved the nation's road
construction plan for the years 2021–2030. The plan aims to increase the number
of motorways from 3,841 kilometres in 2021 to over 5,000 km by 2030. Now they want
to build 172 national highways with a combined length of 29,795 kilometres by
the year 2030, up from 5,474 kilometres in that year. Additionally, nation plans
to build 3,034 kilometres of coastline roadways to link 28 cities and
provinces. For istance, Lotte Eco Smart City (USD900m) is one of the top
construction projects in Vietnam that will be completed in the third quarter of
2022. It will include the construction of a mixed-use complex on a 7.45ha block
of land in Ho Chi Minh City. Construction was expected to end in Q1 2023.
Investments Made in Residential Sector by the Government
- There are currently 278 other projects being worked on, totaling 13.8
million square metres and 276,000 units. To meet the need for affordable
housing, some real estate developers planned to construct homes in 2022 which
costed VND 1 billion (about USD 44,150) per unit.
- Real estate developer Hung Thinh Corp., construction material
manufacturer Dong Tam Group, and wood producer Truong Thanh Furniture Corp.
announced an affordable housing project at the start of Q1 of 2022 to satisfy
the rising demand for inexpensive housing.
- In the first nine months of 2022, Vietnam attracted over USD15.4 billion
in foreign investment, up 16.2% from the same period in 2021. Real estate
investment continues to rank second among industries drawing the greatest
foreign direct investment, accounting for about USD3.5 billion and 18.7% of the
overall investment.
- For a total of about USD 119 million, Keppel Land and Phu Long Real
Estate Joint Stock Company agreed to purchase 49% of each of three land plots
in Bac An Khanh Urban Area (Hoai Duc, Hanoi) to build a housing project that
will include 1.020 apartments and 240 shophouses. A 30-hectare housing
development in Ho Chi Minh City is also being sold off, according to Keppel
Land.
- Gamuda Property is buying a 5.6-hectare development property area in
Binh Duong New City for close to USD 54 million.
- Vietnam started building the USD 320 million CADIA Quy Nhonmixed-use
development project in July 2022. On a 0.52-hectare location in the province of
Binh Dinh, the project will consist of two multipurpose high-rises with a
combined height of 40 stories. The building process started in Q2 2022 and will
be finished in Q4 2024. To suit the needs of the local population's way of
life, this project aims to provide a range of facilities, including commercial,
residential, and other facilities.
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Recent Developments
- The results of the second
review of the application of anti-dumping measures on some Chinese Aluminum
products were released in January 2023 by the Ministry of Industry and
Trade of Vietnam. Vietnam will enact anti-dumping actions against a number
of imported bars, rods, and forms made of Aluminum, alloy, and non-alloy
that are categorised under different HS codes, whether they have undergone
surface treatment or other processing.
- The Aluminum Stewardship
Initiative (ASI) declared in March 2022 that TBC Ball Beverage Can Vietnam
Limited had been certified in accordance with the ASI Performance Standard
(Provisional) and Chain of Custody Standard for ethical Aluminum
production, sourcing, and stewardship for its production facility outside
of Ho Chi Minh City, Vietnam.
Market Segmentation
The Vietnam alaluminum market is
segmented into type, application, processing method, region, and company. Based
on type, the market can be fragmented into rolled products, extruded products,
bus wire, and wire rods. Based on application, the market can
be categorized into transport, building & construction, electrical
engineering, consumer goods, foil & packaging, machinery & equipment,
and others. Based on processing method, the market can be segmented into flat
rolled, castings, extrusions, forgings, pigments & powder, and rod &
bar. Based on region, the market is segmented into Northern Vietnam, Central Vietnam, and
Southern Vietnam.
Market Player
Some of the major market players in the
Vietnam aluminum market are Dynacast Vietnam, Garmco Metals Vietnam Co., Ltd,
Global Vietnam Aluminum Co. Ltd (RUBY), Resonac Holdings Corporation, Showa
Leadfu Co. Ltd, State Power Investment Corporation (SPIC), TBC Ball Beverage
Can Vietnam Limited, and Tsukuba Diecasting Co. Ltd.
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Attribute
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Details
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Base Year
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2022
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Historic Data
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2018 – 2021
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Estimated Year
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2023
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Forecast Period
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2024 – 2028
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Quantitative Units
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Revenue in USD Million and CAGR for 2018-2022 and 2024-2028
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Report Coverage
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Revenue forecast,
company share, growth factors, and trends
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Segments Covered
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Type
Application
Processing Method
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Regional Scope
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Vietnam
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Country Scope
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Northern Vietnam, Central Vietnam, and Southern Vietnam
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Key Companies Profiled
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Dynacast International
Inc, Garmco Metals Vietnam Co., Ltd, Global Vietnam Aluminum Co. Ltd (RUBY),
Resonac Holdings Corporation, Showa Leadfu Co. Ltd, State Power Investment
Corporation (SPIC), TBC Ball Beverage Can Vietnam Limited, and Tsukuba
Diecasting Co. Ltd
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Customization Scope
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10% free report customization with purchase. Addition or alteration to
country, regional & segment scope.
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Pricing and Purchase Options
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Avail customized
purchase options to meet your exact research needs. Explore purchase options.
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Delivery Format
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PDF and Excel
through Email (We can also provide the editable version of the report in
PPT/Word format on special request)
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Report Scope:
In this report, the Vietnam aaluminum
market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- Vietnam
Aluminum Market, By
Type:
o
Rolled Products
o
Extruded Products
o
Bus Wire
o
Wire Rods
- Vietnam
Aluminum Market, By
Application:
o
Transport
o
Building & Construction
o
Electrical Engineering
o
Consumer Goods
o
Foil & Packaging
o
Machinery & Equipment
o
Others
- Vietnam
Aluminum Market, By
Processing Method:
o Flat Rolled
o Castings
o Extrusions
o Forgings
o Pigments & Powder
o Rod & Bar
- Vietnam
Aluminum Market, By Region:
o Northern Vietnam
o Central Vietnam
o Southern Vietnam
Competitive Landscape
Company Profiles: Detailed
analysis of the major companies present in the Vietnam aluminum market.
Available Customizations:
Vietnam aluminum market report with the
given market data, Tech Sci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed
analysis and profiling of additional market players (up to five).
The Vietnam aluminum market is an
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report or want to confirm the date of release, please contact us at
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