According to the World Bank’s survey for 2018, Vietnam is currently one of the most dynamic emerging markets in East Asia. With improvement of household infrastructure and a strong resurgence of the agricultural sector (source- World Bank), Vietnam is seeing steady economic growth. Consequently, Vietnam’s pipe extrusion market has shown an upwards trend primarily for pipe products used in agricultural applications such as drip irrigation pipe, with the piping market for household applications such as PVC pipe, estimated to follow suit.
Vietnam’s piping market for agricultural applications
A number of factors have contributed to Vietnam’s rising drip irrigation pipe extrusion market, apart from its already developing agricultural sector.
Government policies
The Vietnamese Government has invested roughly $5.3 billion in irrigation infrastructure, during the last four decades (Source- Wikipedia). This policy has
inevitably lead to the improvement of the country’s living standards, as well as its agricultural sector.
Weather fluctuation & drought
Vietnamese farmers have faced a variety of weather related issues in the last decade, especially in the Central Highlands region where they face severe drought and irrigation water depletion.
According to deputy director of the Central Highlands Agriculture and Forestry Science Institute, four large rivers running through the region have had reduced flow by 40 percent. Meanwhile, underground water wells in the Central Highland provinces show severe water levels reduction by 3 to 5 meters in the last ten years. Moreover, rainfall in the region has been steadily decreasing by roughly 70 percent, every year(Source- Talk Vietnam).
It should therefore come as no surprise that the top three ranking regions of Vietnam’s Google searches for the search topic “drip irrigation”, are Gia Lai, Dak Lak and Lam Dong, all belonging in the Central Highlands region (Source- Google Trends).
Press coverage
Success stories of Vietnamese farmers incorporating modern agriculture technologies such as drip irrigated greenhouses and crop yield increase due to drip irrigation technology, have lately seen extensive press coverage(Source- Vietnam News:1,2,3). This spreads awareness regarding the advantages and profit potential of drip irrigation and relative methods, resulting in an upwards pipe extrusion market trend.
Vietnam’s piping market for housing development
Vietnam’s rapid economic growth has been fueling its property development and housing market, which have also been booming (Source- Financial Times, South China Morning Post). The rising middle class spread throughout the country, as well as its growing middle to high class located in central cities such as Ho Chi Minh, have led to the growth of the property & housing development market. This makes Vietnam a highly potential market for PVC and PPE pipe, used extensively in housing development & construction, providing local pipe extrusion manufacturers with great market opportunity.
Commercial exhibitions in Vietnam
The numerous trade shows and professional exhibitions of interest to plastics manufacturers and drip irrigation pipe extrusion producers hosted in Vietnam attest to its vibrant pipe extrusion market:
- VietnamPlas Expo 2018: The 18th Vietnam International Plastics & Rubber Industry Exhibition
- VietWater 2018: Water & wastewater industry show
- HortEx Vietnam 2018: Horticultural and Floricultural Production and Processing Technology
- Agri Vietnam 2019: The international trade show on agricultural machinery, equipment and technologies
- Plastics & Rubber Vietnam 2019: International plastics and rubber technology and materials exhibition and conference
DRTS will be attending this year’s VietnamPlas Expo 2018. Contact us to request a meeting with one of our experts, or visit us in Hall A, Booth 337 and discover the latest in pipe production lines and extrusion technology.
