Vietnam Aluminium Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Vietnam Aluminum Market Analysis

The Vietnam Aluminum Market size is estimated at USD 4.53 billion in 2025, and is expected to reach USD 7.30 billion by 2030, at a CAGR of greater than 10% during the forecast period (2025-2030).

Vietnam's aluminum industry is experiencing significant transformation driven by rapid industrialization and increasing foreign direct investment across multiple sectors. The Department of Industry reports approximately 377 automobile enterprises nationwide, with 169 FDI enterprises accounting for 46.43% of the total, highlighting the strong foreign investment presence in the manufacturing sector. This industrial expansion has created substantial opportunities for aluminum manufacturers, particularly in high-tech manufacturing and value-added products. The country's strategic position in global supply chains has attracted major international companies looking to diversify their manufacturing bases.

The aerospace and defense sectors are emerging as significant consumers of aluminum products in Vietnam. The country's aviation market is experiencing remarkable growth, with projections indicating the fleet size will reach 521 aircraft by 2030, growing at a CAGR of 9.6%. The defense sector is also showing promising growth, with the defense budget expected to reach USD 8.5 billion by 2027, driving demand for specialized aluminum alloys and components. This expansion is complemented by significant infrastructure development in the aviation sector, including the construction of new international airports and terminals.

The electronics manufacturing sector has become a crucial driver for aluminum demand, particularly in components and casings. According to the Department of Industry, electronics exports achieved a turnover of 114.4 billion in 2022, marking a 6% increase compared to 2021. The country has successfully positioned itself as a major electronics manufacturing hub, attracting investments from global technology companies. Major manufacturers like Samsung, Sharp, and Sonion have established production facilities in Vietnam, while companies such as Microsoft, Nintendo, and Dell are planning to set up production lines.

The packaging industry represents another significant growth avenue for aluminum consumption, with the sector projected to grow at 15-20% in the coming years. The industry structure comprises food packaging (30-50%), electronics packaging (5-10%), and pharmaceutical chemicals (5-10%) as of 2022. Vietnam has emerged as the second-largest US export market for consumer food products in Southeast Asia, creating substantial demand for metal packaging materials. The packaging sector's evolution is driven by changing consumer preferences, urbanization, and the growing emphasis on sustainable packaging solutions.

Vietnam Aluminum Market Trends

Substitution of Stainless Steel with Aluminum by Automotive Companies

The automotive industry's shift towards automotive aluminum adoption is driven by the metal's superior properties and increasing focus on fuel efficiency and emissions reduction. Automotive aluminum's lightweight characteristics make it an ideal replacement for stainless steel in various automotive components, including radiators, wheels, suspension components, bumpers, transmission bodies, engine cylinder blocks, and body components like hoods, doors, and frames. This transition is evidenced by recent industry developments, such as Chery's announcement in April 2024 to establish an $800 million joint venture with Vietnamese firm Geoleximco to build a manufacturing plant, marking the first Chinese EV manufacturer to establish operations in Vietnam.

The automotive sector's growth in Vietnam further supports this trend, with the Vietnam Automobile Manufacturers Association reporting production of 17,314 units between January 2022 and 2023, predominantly in passenger cars (14,036 units). The market has also attracted significant interest from European manufacturers, with Czech automobile brand Skoda entering in September 2023 through a joint venture with TC Motor, followed by German manufacturers BMW, Mercedes, and Volkswagen. Additionally, the National Automobile Development Strategy (2021-2050) aims to promote manufacturing and boost e-vehicle adoption, targeting a production capacity of 3.5 million vehicles between 2030 and 2040, which will further drive automotive aluminum demand as manufacturers prioritize lightweight metals for electric vehicles.

Growing Construction and Infrastructure Activities in the Country

Vietnam's construction and infrastructure sector is experiencing significant growth, as evidenced by the latest data from the General Statistics Office showing construction industry GDP reaching VND 388.199 trillion (USD 15 billion) in the fourth quarter of 2023, a substantial increase from VND 263.97 trillion in the previous quarter. This growth is supported by major development initiatives, including the Ha Long City social housing project announced in 2022, which represents an investment of VND 1.3 trillion (USD 52.3 million) and aims to provide housing for over 3,880 employees and low-income residents upon completion in the first quarter of 2026.

The construction sector's expansion is further complemented by innovative infrastructure projects, such as the 2023 agreement between TotalEnergies ENEOS and Golden Victory Vietnam Co. Ltd to develop a 4.6-megawatt peak solar photovoltaic system in Nam Dinh Province. Aluminum alloy's position as the second most utilized metal in construction, particularly in applications such as building windows, curtain walls, roofing and cladding, solar shades, solar panels, railings, and shelves, makes it a crucial material for these developments. The metal's inherent properties of lightweight construction and corrosion resistance have made it increasingly indispensable in modern construction projects, driving sustained demand across the construction metals sector. Additionally, the growing use of aluminum fabrication techniques in infrastructure projects highlights the importance of aluminum sheet in achieving efficient and sustainable construction solutions.

Segment Analysis: By Processing Type

Extrusions Segment in Vietnam Aluminum Market

The aluminum extrusion segment dominates the Vietnam aluminum market, holding approximately 40% of the market share in 2024. This significant market position is driven by the extensive use of aluminum extrusions in various industries, particularly in the construction and automotive sectors. The segment's prominence is supported by the growing demand for aluminum profiles in construction applications, including frameworks for windows, doors, and curtain walls. Additionally, the industrial sector's increasing utilization of aluminum extrusions for cable channel systems, heat sinks, air conditioning components, cabinets, and furniture further strengthens its market leadership. The versatility of aluminum extrusions in providing high bending and torsional stiffness despite their low net weight makes them particularly valuable for structural applications in Vietnam's rapidly developing infrastructure projects.

Castings Segment in Vietnam Aluminum Market

The aluminum casting segment is projected to experience the highest growth rate of approximately 14% during the forecast period 2024-2029. This remarkable growth is primarily attributed to the increasing adoption of aluminum castings in the automotive industry, particularly for components like transmission and driveline housings, road wheels, body structures, cylinder heads, and engine blocks. The segment's growth is further fueled by the rising demand for die-casting, which allows manufacturers to produce mass-quantity products with complex, intricate details that exactly match original design specifications. The expansion of Vietnam's automotive manufacturing sector, coupled with the establishment of new production facilities by major international manufacturers, is expected to significantly boost the demand for aluminum castings in the coming years.

Remaining Segments in Processing Type

The flat rolled products, forgings, and pigments and powders segments collectively contribute to the diverse applications of aluminum products in Vietnam's industrial landscape. Flat rolled products are essential in the automotive, food and beverage, and construction industries, particularly for manufacturing sheets, plates, and foils. The forgings segment plays a crucial role in producing high-quality components for aerospace, defense, and automotive applications, offering superior strength and durability compared to castings. Meanwhile, the pigments and powders segment serves specialized applications in coatings, printing inks, and aerospace fuel applications, contributing to the market's overall versatility and application range.

Segment Analysis: End-User Industry

Automotive Segment in Vietnam Aluminum Market

The automotive segment dominates the Vietnam aluminum market, holding approximately 26% market share in 2024. This significant market position is driven by the increasing adoption of aluminum in vehicle manufacturing to reduce weight and improve fuel efficiency. The Vietnamese domestic automotive industry has shown remarkable growth with several favorable government policies helping reduce costs and increase output. Major developments include Hyundai's new car factory with a 100,000-unit capacity and BYD's plans to build a plant for car parts production. According to the Vietnam Automobile Manufacturers' Association (VAMA), the industry has experienced substantial growth in vehicle sales, particularly in passenger cars and commercial vehicles, further driving aluminum demand in automotive applications such as engine components, transmission bodies, wheels, suspension components, and body structures.

Building and Construction Segment in Vietnam Aluminum Market

The building and construction segment is projected to witness the fastest growth rate of approximately 13% during 2024-2029. This robust growth is attributed to Vietnam's remarkable development in infrastructure and construction activities, supported by government initiatives to improve infrastructure quality. The construction industry has emerged as one of East Asia's fastest-growing sectors, with significant investments in housing projects and industrial developments. Major projects driving this growth include the Ho Chi Minh City eco-smart city project by Lotte Group and Capital Land Development's residential developments. The segment's growth is further supported by the increasing use of aluminum composite materials in windows, curtain walls, roofing, cladding, solar shading, solar panels, and various architectural applications, making it a crucial driver of aluminum demand in Vietnam.

Remaining Segments in End-User Industry

The other significant segments in the Vietnam aluminum market include packaging, electrical and electronics, industrial, and aerospace and defense sectors. The packaging segment maintains strong growth potential due to Vietnam's position as the second-largest US export market for consumer food products in Southeast Asia. The electrical and electronics segment benefits from Vietnam's emergence as one of the world's top 15 electronics exporting countries. The industrial sector shows steady growth through applications in chemical reactors, petroleum refining units, and oil and gas pipelines. The aerospace and defense sector, while smaller, continues to develop with Vietnam's expanding aviation market and increasing defense modernization efforts.