Developing social

Chlor-alkali products indispensable for everything from infrastructure to our usual lifestyles. AGC Chemicals Vietnam manufactures and sells vinyl chloride and sells caustic soda in Vietnam, a country with domestically rising demand. In the following, the interviewee is asked about the efforts conducted in the company and future plans.

Expand Vietnamese industries through the chlor-alkaline operations

Chlor-alkaline products, mainly including caustic soda and chlorine
Pick Up

AGC has a high share in the group of chlor-alkaline products that mainly include caustic soda and chlorine manufactured through brine electrolysis. AGC's expansion is not limited to Japan, as we have expanded internationally from an early stage. In fact, we began operating electrolysis plants in Thailand and Indonesia in the 1960s and the 1980s, respectively. In response to rising demand in the Southeast Asia market, AGC expanded into Vietnam, acquiring a local vinyl chloride manufacturer in 2014. Today, AGC is the No. 1 caustic soda manufacturer in Southeast Asia and has built a significant presence.

InterviewDang Tung Lam

AGC Chemicals Vietnam Group Leader

Meeting the increasing demand for vinyl chloride in Vietnam

AGC Chemicals Vietnam, the company I work for, manufactures and sells vinyl chloride and sells caustic soda in Vietnam. Our predecessor, Phu My Plastics and Chemicals Co., Ltd. (PMPC), was the leading vinyl chloride manufacturer in Vietnam. By going under the umbrella of AGC in 2014, the volume of the company's production increased by a factor of 1.5 in two years. Since then, we have caught up growing demand for vinyl chloride in Vietnam.

Our mission is to supply the necessary materials to customers involved in infrastructure and construction in Vietnam and to offer optimal solutions for infrastructure development. Demand for vinyl chloride in Vietnam is around 800kilo metric tons annually, which is larger than in other countries. However, demand for caustic soda is about 400kilo metric tons annually. This figure is smaller than that in other Southeast Asian nations. Yet, with insufficient domestic supply, Vietnam needs to rely on import.
In 2022, we started a new business of caustic soda. We are expanding our businesses to sufficiently supply both vinyl chloride and caustic soda.

Vinyl chloride and caustic soda are indispensable for building infrastructure. Enhance production capacity

Our products such as vinyl chloride and caustic soda are indispensable for building social infrastructure and developing lifeline facilities. Supply needs to be increased in accordance with rising demand. Vietnam lacks the resources to support the chemicals business and heavy industries.

This is attributable to the deeply rooted influences of the Vietnam War. While other regions that competed with the country had already entered economic growth in the 1970s or 1980s, Vietnam took more time until it could start to open its economy. The war deprived the country of an opportunity to develop domestic industries.

Today, Vietnam is committed to the framework of free trade and can readily import all kinds of products through tariff-free trade. This creates a difficulty in competing against cheap imported goods, with fewer opportunities to expand our production capacity due to a shortage of resources.

We have two kinds of execution way to overcome this severe competition.
First, AGC Chemicals Vietnam has the localized solutions to keep a strong tie with the loyal customers. For example, our brand name is well known in the market, Vietnamese oriented staffs’ skill in the specific domestic transaction can maintain good relationship with customers, well understanding their requirements and we also willing to cooperate for solving their problem regarding to materials supply matters. From 2020 we have started bulk delivery to customer that help customer saving cost as well as enhanced quality control process at their side. Second, AGC has big supply capability of PVC in SEA region. We can receive the support from our Thailand and Indonesia affiliates for increasing PVC supply in Vietnam. Constantly we have kept increasing our PVC market share by this import method.

Vinyl chloride resin, our staple product, is used as a raw material for many different products, as shown below.
[Livingware] Sheets for making furniture, raincoats, synthetic leather, shoes, etc.
[Farm supplies] Irrigation pipes, agricultural cover film, saltern covers, etc.
[Medical supplies] Blood transfusion tubes, blood/drip infusion bags, etc.

Our main products are conduit used for water supply and drainage pipes and electric cables, and sheets used for flooring and other applications. AGC Chemicals Vietnam has the top share in the domestic sales of vinyl chloride.

Meet the growing needs in accordance with market size, to achieve SDGs

By supplying vinyl chloride for manufacturing water pipes, we have brought clean water to more people in urban and rural areas. We indirectly support society in many different fields. For example, we offer reasonably priced household appliances, reduce the consumption of timber preservation forests and contribute to the national process for infrastructure development.

As long as Vietnam continues to supply resources indispensable for industrial infrastructure, we have the potential to operate our unique business in such industries as petrochemistry, steel and automobile manufacturing.
The size of the market for vinyl chloride in Vietnam has amounted to 800kilo metric tons annually, while that of caustic soda has reached 400kilo metric tons (dry). To achieve Vietnam’s target for infrastructure development, the figure will continue to increase or remain at a high level over the next 10 to 15 years.

Through the business, we aim to contribute to Vietnam's future growth.
・Secure the availability and sustainable management of water and hygiene for all people
・Develop resilient infrastructure and promote comprehensive and sustainable industrialization
・Promote the development of sustainable and resilient cities and farm villages
・Ensure safety in living and working environments
・Ensure a reasonable allocation of jobs versus population in each region

By achieving these SDGs, we will make our presence felt to an even greater extent.