Market Overview 

The Vietnam aluminum market has been estimated to register a CAGR of over 7%, over the forecast period 2019 – 2024. The market is majorly driven by factors like growth of the construction industry and growing demand from the packaging sector.

The depreciating revenues from Bauxite-Alumina projects are acting as restraints to market growth.

The development of the Vietnam automotive industry is likely to act as an opportunity through the forecast period.

Key Market Trends

Construction Industry to Drive the Market

The Vietnamese construction sector is expected to have a positive output during the forecast period, with growth supported by regulatory reforms, high-value transport and energy products, and favorable economic conditions.

The country has plans for robust project pipelines, predominantly in the power and transport sector, to counter the logistics shortages. The government intends to seek foreign investments and private expertise, to cater to the technical requirements of these projects.

Due to its high strength-to-weight ratio, aluminum is extensively used in construction activities. This property enables buildings to bear the weight of heavy materials, such as glass, concrete, and composites. Therefore, aluminum is widely used in the construction of modern-day houses, buildings, office spaces, bridges, airports, train terminals, etc.  In 2018, the Vietnam government approved a new USD 921 million investment plan to boost the performance of its industrial parks from 2018 to 2020.

According to Dezan Shira & Associates, Vietnam is expected to meet 83% of its infrastructure needs by 2040, if it maintains its current investment trend. The country will require USD 605 billion for all infrastructure projects across all sectors, while according to current trends the investments are expected to reach USD 503 billion;, which is an investment gap of USD 102 billion.

Moreover, ongoing regulatory reforms are intended to privatize and break up state-owned enterprises and encourage private-sector participation in the infrastructure sector, for the continuous and ongoing urbanization process.

Therefore, as there is a continuous growth in the construction industry, a positive scope for the aluminum market is expected over the forecast period.

Aluminum Profiles Expected to Dominate the Market

Aluminum profiles provide an efficient and reliable solution for the construction purpose. They are manufactured from aluminum ingot or billet. These are used in the construction of industrial and commercial buildings, residential houses, power plants, public and sports complexes, etc.

These aluminum profiles are used as roof cladding, external walls, wall cladding, etc. They help in giving the building an advantage in thermal performance, building appearance, and acoustics.

As the aluminium possesses a unique combination of properties, which makes it extremely attractive and versatile construction material with universal application. Aluminium is the material that gives almost unlimited possibility to design different forms of profiles, such as L-profiles, flat bar profiles, round, rectangular and square tubes, T-profiles, and U-profiles. The modern equipment permits to produce high-tech custom profiles, precisely matching the drawings. 

Maximum dimensions of profiles vary depending on the aluminum alloy, wall thickness, and complexity of profile and tolerances.

These aluminium profiles are used in various applications, thus providing a vast market scope for aluminum profiles, which increases the potential of the aluminum market during the forecast period.

Competitive Landscape

The Vietnam aluminium market is fragmented in nature. The major companies include Showa Denko K.K., Dynacast, Norsk Hydro ASA, GARMCO, and Saigon International Co. Ltd.

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Table of Contents

1. INTRODUCTION

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS

4.1 Drivers

4.1.1 Growth of the Construction Industry
4.1.2 Growing Demand from the Packaging Sector
4.2 Restraints

4.2.1 Depreciating Revenues from Bauxite-Alumina Projects
4.3 Industry Value-Chain Analysis
4.4 Porters 5 Force Analysis

4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION

5.1 Product

5.1.1 Billet
5.1.2 Ingot
5.1.3 Aluminum Profiles
5.1.4 Fitting
5.1.5 Other Products
5.2 End-user Industry

5.2.1 Transportation
5.2.2 Construction
5.2.3 Electrical and Consumer Durables
5.2.4 Foils and Packaging
5.2.5 Machinery and Equipment
5.2.6 Other End-User Industries
6. COMPETITIVE LANDSCAPE

6.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share Analysis**
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles

6.4.1 GARMCO
6.4.2 AWEC Aluminium Products, s.r.o
6.4.3 SHOWA DENKO K.K.
6.4.4 Showa Leadfu Co. Ltd
6.4.5 Global Vietnam Aluminium Co. Ltd (RUBY)
6.4.6 Dynacast
6.4.7 TSUKUBA DIECASTING Co., Ltd
6.4.8 Saigon International Co. Ltd
6.4.9 Norsk Hydro ASA
*List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS

7.1 Development of the Vietnam Automotive Industry

MARKET SEGMENTATION

Product

Billet
Ingot
Aluminum Profiles
Fitting
Other Products

End-user Industry

Transportation
Construction
Electrical and Consumer Durables
Foils and Packaging
Machinery and Equipment
Other End-User Industries