Chemical industry: Waiting for the push from new law to break through

Top 3 pillars of Vietnamese industry

On the morning of April 1, in Hanoi, the Department of Chemicals (Ministry of Industry and Trade) held a workshop: "Promoting the development of Vietnam's chemical industry". Deputy Minister of Industry and Trade Truong Thanh Hoai chaired the workshop.

Deputy Minister Truong Thanh Hoai chaired the workshop Promoting the development of the chemical industry. Photo: NH

Presenting a report on the development of policies to promote the development of the Vietnamese chemical industry at the workshop, Mr. Pham Huy Nam Son - Deputy Director of the Department of Chemicals - said: Chemicals are present in most areas of social life. With the advancement of science and technology, the chemical industry has continued to research and produce many effective products and solutions, playing an increasingly important role in the industrial and economic development of each country.

'It can be said that the more developed and civilized society becomes, the more important the role and position of chemicals become' - Mr. Pham Huy Nam Son affirmed and said: According to research, it is estimated that each car needs to use about 350 kg of plastic - a product from the chemical industry. Modern, synthetic materials from petrochemical products in modern new-generation aircraft such as the Boeing 787 Dreamliner account for more than half of the main structure from the chemical industry.

In addition, according to the global analysis report of Oxford Economics, the chemical industry is the 5th largest manufacturing sector globally, directly creating 1.1 trillion USD in added value, contributing to global GDP.

'In particular, it is estimated that for every USD 1 generated from the chemical industry, an additional USD 4.20 will be generated in other sectors of the economy. The above figures show the position, role and importance of chemicals in life and economic development' - Mr. Pham Huy Nam Son affirmed.

In Vietnam, according to the representative of the Department of Chemicals - Ministry of Industry and Trade, among the 10 largest industries in the country according to the secondary sub-sector, the chemical industry is ranked in the third group, accounting for 2-5% of the GDP of the entire industry. The growth rate of the industry's industrial production value is about 10-11%/year; the labor force is about 2.7 million workers, accounting for nearly 10% of the labor force in the entire industry and labor productivity is 1.36 times higher than the average labor productivity of the industry.

Deputy Minister of Industry and Trade Truong Thanh Hoai said that Vietnam's chemical industry still has a lot of potential and opportunities for development. Photo: NH

Some areas in the chemical industry have basically met domestic demand such as fertilizers, pesticides, tires, common paints, and cleaning products. The types and structure of products in the chemical industry are also assessed to be increasingly diverse, providing input materials for many other industries such as electronics, metallurgy, textiles, footwear, etc.

Domestically produced chemical products have become more diverse in types. Illustration photo

Need to break through to be worthy

Although significant achievements have been made, according to the assessment of the Department of Chemicals, the scale and development speed of the chemical industry are not commensurate with its role and development potential. Many types of raw materials and chemical products still depend on imports. Investment resources for the chemical industry are limited. The investment structure is unreasonable, so there are not many products with high added value. The value chain of chemical products in the global region has not been formed.

The Chemical Law No. 06/2007/QH12 was passed by the 12th National Assembly, 2nd Session on November 21, 2007, effective from July 1, 2008, which is the rapid and timely institutionalization, realization and concretization of the Party and State's guidelines and policies.

The promulgation of the Chemical Law is an important milestone in the process of building and establishing an official and unified legal framework for chemical activities nationwide. However, after nearly 18 years of implementation, the 2007 Chemical Law has also revealed shortcomings and limitations. To develop the chemical industry, the Ministry of Industry and Trade is building the Chemical Law (amended).

Currently, according to the Department of Chemicals, the Law on Chemicals (amended) has undergone many rounds of consultation and is expected to be approved by the National Assembly at the 9th Session of the 15th National Assembly taking place in May-June 2025.

Affirming that the Law on Chemicals (amended) plays an important role in the development of the chemical industry in the coming time, speaking at the workshop, Deputy Minister of Industry and Trade Truong Thanh Hoai said that the Vietnamese chemical industry still has a lot of potential and development opportunities, accordingly the Law on Chemicals (amended) will be a very good opportunity, creating a breakthrough for the chemical industry to develop in the coming time, contributing positively to economic growth.

However, in order for the Chemical Law to have a positive impact on the development of the chemical industry, Deputy Minister Truong Thanh Hoai said that the opinions and contributions to the development of the Chemical Law (amended) from the business community are extremely important, because when the law is enacted, the main beneficiaries and affected subjects will be the business community.

Based on the contributions of business representatives, the Chemical Law will be amended and supplemented, creating a solid and sustainable foundation for the development of the chemical industry.

According to the Department of Chemicals - Ministry of Industry and Trade, in recent years, the Vietnamese chemical industry has maintained a stable growth rate over the years (average 10 - 11%/year), domestically produced chemical products have become more diverse in types, quality has improved, gradually approaching products in the region.

Nguyen Hoa

Source: https://congthuong.vn/nganh-hoa-chat-cho-cu-hich-tu-luat-moi-de-but-pha-380902.html