Currently, in Vietnam there are about 600 enterprises operating in the paint and coatings industry, of which foreign-invested enterprises account for about 70 enterprises. According to a report by VPIA (paint and ink association in Vietnam), domestic paints only account for 35% of the market share. Meanwhile, paint produced by foreign-invested enterprises accounts for more than 65% of the market share. The value of Vietnam's coatings industry is one of the industries with stable growth due to the very positive development of the construction sector, which is predicted to grow from 383 million USD in 2018 to 459 million USD in 2022.
In recent times, a number of domestic companies have also paid great attention to investing in modern lines, machinery and equipment to meet the increasing demands of the market. With the active participation of many leading paint and coating companies such as: AkzoNobel Nippon, Jotun, Toa, 4 Oranges,... Paint produced by foreign companies is more professional and has many types. Therefore, the paint market made by domestic companies and low quality paint accounts for only 35%. In general, the paint and coatings market has an advantage in favor of foreign companies.
AKZO NOBEL
AkzoNobel is a world leader in decorative and home paints for some of the most famous business brands. Operating in more than 150 countries. In addition, AKZO NOBEL company also provides automotive paint, marine, protective and yacht coatings, and powder coating. Together with AkzoNobel, businesses 4 Orange, Nippon, and Jotun compete in the high-end paint segment and accelerate investment or build distribution systems.
The company's net revenue in 2020 is approximately 2,000 billion and continues to grow 3 times to about 6,000 billion in 2022. Also in the period 2020-2022, profit after tax increased from 500 billion to 650 billion.
NIPPON PAINT
Originated in Japan in 1881. This is the number 1 company in Asia and top 4 globally. Currently present in 16 countries around the world, Nippon Paint is a pioneering expert in the field of discovering new technology. Through efforts to improve protective functions and create new color series.
According to the latest report, the net revenue of Nippon Paint company is growing but not strong compared to Akzo Nobel company, specifically in the period from 2020 it is 1200 billion, by 2022 it will only increase by 300 billion. Profit after tax decreased by 50 billion, in 2020 it was nearly 200 billion, by 2022 it was only 150 billion.
BEWIN & COATING
Bewin Joint Stock Company is a subsidiary of Dong A Paint Joint Stock Company with 10 years of experience in producing and trading paint with 3 paint brands such as Viglacera, Bewin, Behr. In 2020, BE&C decided to invest heavily in resources for facilities, invest in new technology lines and research to market technological strategic products suitable to needs and living environments.
Bewin & Coating Vietnam's net revenue gradually decreases between 2020 and 2023, from 190 billion to 140 billion. Also during this period, profit after tax fluctuates with a large amplitude, specifically nearly 3 billion in 2020, 14 billion in 2021, and only 316 million in 2022.
JOTUN
Jotun has entered the Vietnamese market since 1994. As one of the brands from Norway, Jotun is leading the market in the field of industrial paint. marine paint and at the same time develop strongly in the field of decorative paint.
The company's net revenue and profit after tax have grown positively over the years, from 2020 to 2022. Revenue increased from 2800 billion to 4000 billion. Profit after tax increased from 600 billion to 710 billion.
KOVA
Kova Paint Group is growing strongly with 12 member companies, 7 factories located in Vietnam and Southeast Asian countries, Europe, affirmed its position in the field of waterproofing paint in the domestic and international markets, especially the Singapore market. In addition, Kova also has traffic, industrial paint lines or specialized products to meet each individual's unique needs. Kova's biggest buzz in recent times is the world's first Nano technology from rice husks. Kova also successfully penetrated international markets such as China, Laos, Indonesia, Laos, Cambodia, ect.
Kova's net revenue from 2020 to 2022 grows at a stable rate from 1200 billion to 1400 billion. However, profit after tax shows signs of decreasing by about 150 billion, from 500 billion to 350 billion.
4 ORANGES
4 Oranges Co is a foreign-invested enterprise, with a production line with a capacity of 150 million liters of paint and 100,000 tons of putty per year, a system of 5,000 consulting, distribution and paint color mixing centers. 4 oranges is the leader in the decorative paint industry in Vietnam, with brands on the market such as Mykolor, Spec, Sonboss, Expo, Oexpo, Suporseal.
Net revenue from 2020 to 2022 remains virtually unchanged, maintaining about 3,300 billion. Profit after tax decreased by nearly 100 billion.
KCC
KCC Vietnam Company Limited, belongs to KCC Corporation chemical group, headquartered in Korea. In addition to the headquarters, KCC currently has 13 factories in Korea and 12 factories and branches in other countries around the world such as Singapore, Malaysia, China, India, Turkey and Vietnam. KCC Vietnam Company's products include industrial paint, fireproof paint, waterproof paint, marine and drilling rig paint, container paint, automotive paint, aluminum paint, decorative paint and Epoxy paint.
The company's net revenue increased by about 300 billion in 2020-2022. However, profit after tax will decrease significantly from 110 billion in 2020 to only 20 billion in 2022.
TOA
Toa Thailand Paint Group has over 60 years of experience as the top paint brand in Thailand and is the leading manufacturer of technological paints in Southeast Asia. They have operations and production in various fields, including paint and coating materials, chemicals, petrochemicals, and car paint technology. TOA Paint has been exporting to Vietnam since the 1990s and officially established TOA Paint Vietnam Co., Ltd. in 1995. Currently, TOA Paint Vietnam has a wide distribution network with over 1,200 stores in 63 provinces and cities.
In 2020, their net revenue was nearly 1,000 billion and is expected to increase by approximately 300 billion by 2022. This trend has been gradually increasing and stable for the past three years. However, their profit after tax has been fluctuating, with a significant range from 9 billion in 2020 to 51 billion in 2021, and then decreasing to 37 billion in 2022.
VALSPAR
Valspar, a brand with a history spanning two centuries in the US, is renowned for its supply of coatings for beverage cans and machinery, including major brands such as Coca-Cola and Budweiser. Its reach extends to various parts of the world, with Valspar Vietnam being established in 2002 and operating a factory in Dong Nai. In addition to providing interior and exterior paint for projects, Valspar Vietnam specializes in coatings for exported wooden furniture. While the company's net revenue is projected to gradually increase from 1000 billion to 1500 billion in the period of 2020-2022, its profit after tax has shown a clear decline from 80 billion to 15 billion.
HAI PHONG
Hai Phong Paint, established in 1960 and completed equitization in 2004, is a leading enterprise in the paint manufacturing industry in Vietnam. The company's main products include ship paint, container paint, traffic and construction paint, industrial paint, AC-ZN galvanized paint, civil paint, and SHP WB fireproof paint.
Similar to Valspar company, Hai Phong Paint's net revenue is expected to grow gradually and steadily from 850 billion to 1200 billion between 2020 and 2022. However, there has been a sharp decrease in profit after tax, dropping from 105 billion in 2020 to 33 billion in 2022.
SHERWIN-WILLIAMS
Sherwin-Williams Company was founded in 1866, with coverage in more than 120 countries, providing the best paint and coating products to the world. The company's Sherwin-Williams branded products are sold exclusively through a chain of more than 5,000 company-operated stores and facilities in the United States, Canada, the Caribbean and Latin America.
Similar to the case of Valspar and Hai Phong paint. Net revenue grows steadily by about 400 billion from 2020-2022, but profit after tax decreases by about 40 billion.
DONG A
With 15 years of development, Dong A Paint Joint Stock Company is a pioneer in the field of water paint in Vietnam. A Dong Paint uses advanced technology with quality imported raw materials, so Dong A Paint achieves high perfection, competing directly with foreign brands. Brands belonging to Son Dong A Joint Stock Company are Viglacera, Behr, Bewin,...
The company's net revenue decreased by about 20 billion from 150 billion in 2020 to 130 billion in 2022. Profit after tax fluctuated at a large margin. During the period 2020-2021, an increase of nearly 10 billion, from 2021-2022, a decrease of nearly 20 billion.
In general, net revenue and profit after tax of companies in the paint and coatings industry will recover well in 2022 after suffering the consequences of the Covid 19 pandemic. However, with the current state of political conflict between Countries will also challenge not only the coatings industry but also many other fields. However, Vietnam has the advantage of penetrating deeply into the global value chain, which is gradually shifting to our country. According to economic experts, the water-based paint business is still very potential thanks to the current huge construction demand. The profit margin that this industry brings is quite good and stable. In particular, this is a long-term business with strong growth.
Source: Vietdata's paint industry report in 2023