Vietnam Aluminum Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Vietnam Aluminum Market Trends and Insights

Auto-sector Lightweighting Push

Automotive aluminum demand is reinforced by 858 IATF 16949-certified suppliers that integrate Vietnam into regional vehicle platforms. EV production uses nearly 30% more aluminum per unit than conventional models for battery enclosures and thermal systems, and Vietnam targets 50% electric urban vehicles by 2030. Local content policies fuel component outsourcing, while commercial fleets adopt aluminum parts to maximize payload and comply with emission norms. The World Bank estimates the EV transition could generate 6.5 million manufacturing jobs by 2050, a scenario that sustains metal demand across casting, extrusion, and flat-rolled supply chains. As OEMs expand capacity, the Vietnam aluminum market benefits from rising billet and ingot off-take, incentivizing new secondary smelters.

Booming Public and Green-Building Construction

Public spending of USD 30 billion in 2024 on transport and power facilities injected near-term demand for curtain walls, roofing, and structural extrusions. Green-certified buildings rose to 430 in Q1 2024, with EDGE and LEED accounting for 75.69% of certifications, favoring aluminum for its recyclability and thermal efficiency. Power Development Plan VIII earmarks USD 135 billion through 2030, driving aluminum demand for high-voltage structures and solar frames. Ho Chi Minh City’s USD 11.5 billion highway program and USD 1.2 billion of transport upgrades boost extruded profile consumption.

Rebound in Packaging Demand (Food-Drink and Pharmaceuticals)

Extended Producer Responsibility rules mandating 22% recycling of aluminum packaging from January 2024 create compliance-driven orders for can-sheet and foil. HEINEKEN Vietnam’s 850-tonne can-to-can pilot validated closed-loop recovery and spurred investment in rolling capacity. Beverage demand grows as per-capita consumption converges toward ASEAN averages, while pharma blister packs require high-barrier foil in an expanding healthcare sector. Vietnam’s 93% collection rate for beverage cans contrasts with only 1% domestic remelting into new cans, underscoring untapped value for the Vietnam aluminum market. Investors eye secondary smelters near industrial clusters to capitalize on scrap surpluses and CBAM-induced premium for low-carbon feedstock.

Expansion of Domestic Bauxite and Alumina Projects

Đắk Nông and Lâm Đồng contain 5.4 billion tonnes of reserves, or four times the aluminum resources of the U.S. and China combined. THACO’s USD 4 billion Tây Nguyên complex will raise alumina output by 4 million tonnes annually, while Hóa Chất Đức Giang’s USD 2.3 billion venture mines 14.4 million tonnes of ore per year. TKV plans to lift Lâm Đồng’s capacity to 2 million tonnes of alumina and build the country’s first 500,000-tonne primary smelter, closing a critical value-chain gap. Mastery of Bayer process technology and dry-red-mud handling reduces environmental risk and licensing costs. These projects will anchor feedstock security and decrease billet import dependence, bolstering the Vietnam aluminum market in the long run.

High Electricity Tariffs and Carbon-Pricing Exposure

Aluminum smelting requires constant low-cost power, yet Vietnam’s average industrial tariff rose in 2024, compressing margins and limiting capacity use to 30-40% in some plants^{[1]Vũ Kim Ngan et al., “Border Carbon Adjustment Mechanisms and Impacts on Vietnam,” iisd.org}. The EU’s Carbon Border Adjustment Mechanism affects USD 307.66 million of aluminum exports and could trim shipments by 4%, translating into USD 12 million revenue loss per year. Power Development Plan VIII calls for market-based pricing, pressuring electrolysis projects unless they secure renewables. Exporters must cut carbon intensity or pay CBAM fees that erode the Vietnam aluminum market’s cost advantage.

Import Dependence for Primary Metal and Billets

Vietnam performs five of six aluminum value-chain stages but lacks commercial-scale primary smelting, creating reliance on imported ingots from Malaysia, China, and the Middle East. Chinese alloy ingots accounted for 7.9% of imports, totaling 95,700 tonnes in 2024. U.S. investigations into Chinese transshipment through Vietnam resulted in antidumping duties of 14.15% on cooperative exporters and 41.84% on non-compliant firms^{[2]U.S. Department of Commerce, “Aluminum Extrusions From the Socialist Republic of Vietnam,” federalregister.gov}. A 25% U.S. Section 232 tariff applies to USD 479 million of Vietnamese aluminum exports, eroding competitiveness and deterring billet importers. Until domestic smelting comes online, the Vietnam aluminum market remains vulnerable to external shocks.

Segment Analysis

By Processing Type: Extrusions Drive Infrastructure Demand

Extrusions commanded 40.01% of the Vietnam aluminum market in 2024 on the back of sustained demand for window frames, curtain walls, and vehicle profiles. Rising infrastructure outlays valued at USD 95.8 billion through 2027 keep extrusion mills running at high throughput, while strict LEED and EDGE criteria reward anodized and thermally broken systems. Compliance with U.S. antidumping orders incentivizes process upgrades among cooperative exporters, reinforcing quality leadership. Castings are projected to grow at a 14.16% CAGR to 2030 as automakers localize lightweight components for EV platforms. 

Certification under IATF 16949 remains a prerequisite for OEM supply and underpins Vietnam’s ranking as ASEAN’s second-largest certified base. Producers like Mien Hua Precision generate 60% of sales domestically and export the remainder to Japan, the U.S., and Australia, reflecting the country’s expanding mid-stream competitiveness.

Note: Segment shares of all individual segments available upon report purchase

By End-user Industry: Automotive Leads Market Transformation

The automotive sector accounted for 25.74% of 2024 demand, a share expected to expand as VinFast, THACO, and TC Group scale EV programs. Vietnam's aluminum market size for automotive applications is projected to outpace total growth as each electric two-wheeler requires 1.3 times the aluminum used in gasoline models. Building and construction is set to rise at a 13.21% CAGR to 2030, fueled by new highways, high-rise projects, and green-building policies that privilege recyclable materials.

Construction’s fast 13.21% CAGR signals a shifting demand mix toward long-cycle infrastructure. Pharmaceutical blister foil and beverage cans gain regulatory tailwinds from EPR compliance, raising the stakes for secondary smelters and foil mills. Extended use cases in marine, rail, and renewable energy broaden demand and hedge against cyclical shocks in any single sector.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Upstream resources cluster in the Central Highlands, where 5.4 billion tonnes of bauxite support alumina complexes at Lâm Đồng and Đắk Nông that shipped USD 1 billion of product in 2024. Northern industrial parks near Hanoi specialize in extrusions and flat-rolled products supplying electronics and auto plants, while southern hubs around Ho Chi Minh City house long-standing extrusion groups such as Long Vân.

Regional trade geopolitics influence flows: Vietnam supplied 7.9% of China’s secondary ingot imports in 2024 and benefited from supply diversification away from China in the U.S. market despite a 25% tariff. ASEAN neighbors create both competition and collaboration opportunities: Thailand boasts 1,947 certified auto suppliers, Malaysia dominates alloy ingot exports to China, and Indonesia is commissioning new smelters that could tilt regional supply dynamics.

Capacity utilization disparities persist: while mid-stream processors near Hanoi run close to 90%, some upstream plants in the Central Highlands averaged 70% utilization in 2024 due to power costs and logistics bottlenecks. Infrastructure improvements, including road and rail upgrades financed under Power Development Plan VIII, are expected to ease inland transport and unlock latent capacity by 2027, reinforcing growth prospects for the Vietnam aluminum market.