Vietnam Caustic Soda Market Research Report: Forecast (2026–2032)

Vietnam Caustic Soda Market Size: Forecast (2026-2032)

The Vietnam Caustic Soda Market size is valued at around 332.85 thousand tons in 2025 and is projected to reach 367.89 thousand tons by 2032. Along with this, the market is estimated to grow at a CAGR of around 1.44% during the forecast period, i.e., 2026-32.

Vietnam Caustic Soda Market Outlook:

Vietnam’s caustic soda industry is positioned for steady upward growth, supported by rapid industrialization, infrastructure expansion, and increasing demand from core downstream sectors. For instance, the Vietnam News Agency (VNA) highlighted that national industrial output rose by 8.7% year-on-year in mid-2024, with chemical and basic material production playing a central role in this recovery. Likewise, rising demand from alumina refining, pulp & paper, textiles, and PVC manufacturing continues to boost caustic soda consumption, as these industries depend on the chemical for neutralization and bleaching processes. Additionally, government initiatives to strengthen domestic chemical production and raw-material security are fostering long-term resilience. For reference, the Ministry of Industry and Trade (MOIT) has prioritized investment in core chemical clusters in the northern and southern provinces, aimed at reducing import dependence.

Similarly, Vinachem, Vietnam’s leading state-owned chemical group, has reported stable revenue growth in 2024 and has been modernizing chlor-alkali facilities to enhance production efficiency. However, challenges persist. Domestic supply meets only about half of total demand, prompting Vietnam to import large volumes of sodium hydroxide each year, about 62 million kg in 2023, according to the World Bank’s WITS trade database. High electricity costs and the need to co-produce chlorine make production balancing difficult. Furthermore, environmental compliance rules introduced under Vietnam’s 2025 Chemical Law are expected to tighten quality and safety standards, raising operational costs.

Vietnam Caustic Soda Market Recent Developments:

• April 2025: Stavian Group (Vietnam) and HDF Energy (France) signed a Memorandum of Understanding in April 2025 to jointly explore hydrogen-power solutions at Stavian's caustic soda (and other petrochemical) plants, deploying HDF's HyPower fuel-cell technology, aimed at decarbonizing caustic soda production.

• August 2025: Long Son Petrochemicals Co., Ltd., backed by Siam Cement Group (SCG), restarted its USD5 billion integrated petrochemical complex in southern Vietnam after a ten-month halt. This revival strengthens Vietnam's chemical infrastructure, boosts demand for upstream inputs like caustic soda, and supports domestic supply stability within the growing petrochemical chain.

Vietnam Caustic Soda Market Scope:

Vietnam Caustic Soda Market Drivers:

Government Support and Manufacturing Expansion

Vietnam’s Caustic Soda Industry is gaining momentum through policy incentives and industrial expansion programs. For instance, the Vietnam Chemical Law 2025, approved by the National Assembly, introduces stricter safety standards and investment facilitation for chemical producers, aiming to raise national chemical output by 15–20% by 2030. Additionally, the Ministry of Industry and Trade (MOIT) has outlined plans for three major chemical manufacturing clusters in Hai Phong, Nghi Son, and Ba Ria–Vung Tau, each designed to support large-scale chlor-alkali facilities.

For reference, Duc Giang Chemical Group JSC broke ground on a USD47 million caustic soda plant in 2025, while Southern Basic Chemicals JSC upgraded its electrolysis lines, raising capacity from 40,000 to 50,000 tons annually. Likewise, Vedan Vietnam Enterprise Co., Ltd. completed construction of a specialty-chemical plant with an annual output of 20,000 metric tons of caustic soda, which reflects growing industrial demand and supportive policy confidence, jointly accelerating domestic caustic soda production and reducing Vietnam’s 50% import reliance.

Growing Focus on Water Treatment and Environmental Compliance

Vietnam’s increasing emphasis on industrial wastewater management and clean-water infrastructure is a major growth driver for this market. For instance, the Ministry of Natural Resources and Environment (MONRE) reported in 2024 that over 70% of Vietnam’s industrial zones were upgrading to meet national wastewater standards, requiring large volumes of caustic soda for pH control and neutralization.

Additionally, the Vietnam Water Supply and Sewerage Association estimates that urban water demand will reach 12 million m³/day by 2030, driving higher chemical use for purification. Consequently, industrial users typically consume 5–10 kg of caustic soda per cubic meter of wastewater treated. Furthermore, new wastewater treatment projects in Binh Duong and Hai Phong, worth over USD300 million collectively, are expanding demand for water-treatment chemicals, directly boosting caustic soda consumption nationwide.

Vietnam Caustic Soda Market Trends:

Increasing Focus on Technological Upgradation and Process Automation

The Vietnam Caustic Soda Industry is witnessing a steady shift toward digitalization and automation to improve operational efficiency, product quality, and cost management. Chemical manufacturers are adopting advanced process control systems, AI-based monitoring tools, and automated safety mechanisms to optimize production and reduce waste. For instance, in June 2025, Duc Giang Chemical Group JSC implemented a real-time production monitoring system across its caustic soda units, enabling predictive maintenance and reducing downtime.

Similarly, Tan Ky Mineral Processing Joint Stock Company introduced smart control systems for energy-efficient electrolysis, helping lower operational costs and environmental impact. This trend reflects Vietnam’s broader move toward Industry 4.0 in manufacturing, ensuring safer, cleaner, and more productive chemical operations across the country.

Growing Shift Toward Sustainable and Eco-Friendly Production

Sustainability has become a key priority for Vietnam’s caustic soda producers as global and national regulations on environmental protection tighten. Companies are increasingly investing in cleaner production methods, such as membrane cell technology, to reduce carbon emissions and minimize chemical waste. In late 2024, Long Son Petrochemicals Co., Ltd. announced a collaboration with a Japanese technology partner to adopt low-energy chlor-alkali processes, aiming to cut greenhouse gas emissions by 20% by 2027.

Additionally, local firms are integrating wastewater recycling and renewable energy use within their facilities to align with Vietnam’s Green Growth Strategy 2030. For instance, Vietnam Chemical Group (Vinachem) disclosed that under its environmental program, chemical-industry units are targeting 2% annual electricity-saving and focusing on waste-treatment, recycling, and greenhouse gas reduction within production facilities. This shift toward sustainable production not only strengthens export potential but also enhances the industry’s global competitiveness in the environmentally responsible chemical segment.

Vietnam Caustic Soda Market Challenges:

Import Dependence and Limited Domestic Capacity

Vietnam’s Caustic Soda Market faces a persistent challenge of import dependence; as domestic output continues to lag behind industrial demand. According to the World Bank’s WITS trade database, Vietnam imported around 62 million kilograms of solid caustic soda in 2023, valued at over USD50 million. Meanwhile, local production roughly meets only about 50% of national demand. The country relies heavily on imports from China, Japan, and South Korea, making it vulnerable to freight cost fluctuations and regional supply disruptions.

Although producers like Southern Basic Chemicals JSC and Vedan Vietnam are expanding capacity, infrastructure limitations and high electricity costs constrain faster growth. This dependency increases production costs for downstream industries, including pulp and paper, alumina refining, and PVC manufacturing.

Vietnam Caustic Soda Market (2026-32) Segmentation Analysis:

The Vietnam Caustic Soda Market Report and Forecast 2026-2032 offers a detailed analysis of the market based on the following segments:

Based on Product Type

• Liquid Caustic Soda
• Solid Caustic Soda

Liquid caustic soda holds a dominant position, holding about 55% market share in the Vietnam Caustic Soda Market due to its wide usage across major industries such as pulp and paper, textiles, aluminum processing, and water treatment. It is preferred by manufacturers because it is easier to handle, transport, and mix during production compared to the solid form. The continuous demand from large industrial plants that require steady chemical input for daily operations also supports its leading share.

In 2025, key producers like Duc Giang Chemical Group JSC and Long Son Petrochemicals Co., Ltd. expanded their liquid caustic soda output to cater to rising industrial consumption, especially in the Southeast region. Moreover, the availability of strong logistics infrastructure and bulk storage facilities further boosts its use. As a result, liquid caustic soda continues to dominate the market and is expected to maintain its lead through 2032, driven by growing industrialization and export opportunities.

Based on Application

• Pulp and Paper
• Organic Chemicals
• Inorganic Chemicals
• Soap and Detergents
• Alumina Refining
• Water Treatment
• Textile Processing
• Food & Beverage Industry 

The Pulp and Paper industry holds the dominant position in the Vietnam Caustic Soda Market, accounting for about 40% of the overall consumption. Caustic soda is a key chemical used in pulp digestion, bleaching, and recycling processes, making it essential for paper manufacturing. For instance, major producer, VINAPACO (Vietnam Pulp & Paper Ltd), reportedly has production capacity ranging between 200,000 to 300,000 tons of paper & pulp per year, which has increased a substantial demand for caustic soda in the country.

Consequently, in 2023, the pulp, paper, and board industry reached about USD2 billion. The rapid growth of Vietnam’s packaging and printing sectors, fueled by rising e-commerce activity and exports, has significantly increased the need for high-quality paper products.

Leading Players of the Vietnam Caustic Soda Market:

• Tan Ky Mineral Processing Joint Stock Company

Headquartered in Nghe An Province, Tan Ky Mineral Processing Joint Stock Company is a prominent producer of industrial chemicals and minerals in Vietnam. The company is known for its wide range of high-quality caustic soda products used in paper, textile, and metal processing industries. In 2025, Tan Ky enhanced its production efficiency by integrating automated control systems in its chemical plants, helping improve purity levels and energy utilization. The company also expanded its export network to Southeast Asian countries, strengthening Vietnam’s presence in the regional chemical market.

• PetroVietnam Ca Mau Fertilizer Joint Stock Company (PVCFC)

Based in Ca Mau City, PetroVietnam Ca Mau Fertilizer Joint Stock Company (PVCFC) is a leading subsidiary of the Vietnam Oil and Gas Group. While primarily known for fertilizer manufacturing, the company plays a key role in the caustic soda segment through its chemical byproduct utilization and integrated production systems. In late 2024, PVCFC began upgrading its chlor-alkali units to enhance caustic soda output and ensure a sustainable raw material supply for downstream industries. The company’s focus on circular production and resource optimization supports both environmental and industrial development goals in southern Vietnam.

• Vedan Vietnam Enterprise Co., Ltd.

Located in Dong Nai Province, Vedan Vietnam Enterprise Co., Ltd. is one of the country’s largest chemical and food additive manufacturers. The company produces caustic soda primarily for use in food processing, textile dyeing, and wastewater treatment applications. In 2025, Vedan introduced a quality-improvement program aimed at achieving higher consistency and eco-friendly manufacturing standards. The initiative involved adopting modern electrolysis technologies to reduce emissions and waste generation. Vedan’s focus on sustainable chemistry and process innovation has solidified its position as a key contributor to Vietnam’s growing caustic soda market.

Long Son Petrochemicals Co., Ltd., Chemtech Vietnam Co., Ltd., Viet Tri Chemical Joint Stock Company, Duc Giang Chemical Group JSC, Stavian Group, and Others are the key players in the Vietnam Caustic Soda Market.

Vietnam Caustic Soda (2026-32): Regional Projection

The Southeast region, which includes major industrial provinces such as Ba Ria–Vung Tau, Dong Nai, Binh Duong, and Ho Chi Minh City, serves as Vietnam’s industrial and petrochemical hub. This area hosts several large-scale manufacturing facilities and chemical complexes, including Long Son Petrochemicals Co., Ltd., Chemtech Vietnam Co., Ltd., and numerous downstream industries that heavily rely on caustic soda for production processes.

The region’s advanced infrastructure, proximity to ports, and access to raw materials and export routes further strengthen its dominance. Continuous industrialization, especially in sectors like textiles, paper, food processing, and water treatment, ensures sustained demand for caustic soda in the Southeast region, making it the primary contributor to Vietnam’s overall market share.

Gain a Competitive Edge with Our Vietnam Caustic Soda Market Report

• Vietnam Caustic Soda Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Vietnam Caustic Soda Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

*Reports Delivery Format - Market research studies from MarkNtel Advisors are offered in PDF, Excel and PowerPoint formats. Within 24 hours of the payment being successfully received, the report will be sent to your email address.