Construction of Norwegian paint maker JOTUN’s new $100 million water-based and powder coatings factory is expected to be completed this summer in Hiep Phuoc Industrial Park of Ho Chi Minh City. It will have a capacity of 85 million litres of water-based paints and 10,000 tonnes of powder coatings.
“The construction of a new factory in Vietnam is on budget and on schedule,” noted a 2020 JOTUN report.
JOTUN added that the pandemic caused significant declines in sales activity in the second quarter of 2020, especially in Southeast Asia and the Middle East where JOTUN has a strong market presence. However, by quickly implementing business continuity measures at company factories and offices and utilising digital technologies to strengthen relationships with key stakeholders, the company posted another year of positive results in the decorative paints segment.
The Vietnamese paint and coating industry has seen huge investments in capacity expansions in recent years, including leading multinational paint and coating producers such as AkzoNobel, JOTUN as well as regional players like 4 Oranges Co., Ltd. and Toa Paints.
According to the Vietnam Paint-Printing Ink Association, foreign paint makers account for 65 per cent of the market.
Foreign paint and coating makers covers all kinds such as painting airports, ships, and coatings of galvanised steel and wood. With advantages in technology and finance, foreign paint producers are a common choice for the architectural and general industrial coating segment that accounts for more than 62 per cent of the Vietnamese paint and coating market on a volume basis.
Under Vietnam’s plan for developing the paint and ink industry until 2020 with a vision to 2030, the average growth rate in production value of the paint and ink industry reaching 14 per cent in the period from 2021 to 2030 and the proportion of production value of the paint and ink segment in the whole chemical sector will increase from 11 per cent in 2012, 11.5 per cent in 2020, and 12 per cent in 2030.
In Vietnam, JOTUN has been in the market since 1993. Initially, the company entered only with imported products, operating mainly in the field of industrial paint and marine works. However, it veered towards decorative paint a decade later when it was one of the first paint makers in Vietnam to introduce state-of-the-art colour mixing technology.