According to the Gas Review of the Japanese gas magazine, Vietnam's industrial gas market has grown steadily over the past few years. Although there are no strict statistics, according to Gas Review's research, the market size in 2018 is about 12 billion to 16 billion yen, with an annual growth rate of 6-7%.

Manufacturers from Japan, South Korea, China, Taiwan, Malaysia and Singapore are actively entering Vietnam, and the willingness of companies in the state-owned steel, oil, fertilizer and other sectors to enter the market is very strong. As a developing country, Vietnam not only has a large demand for oxygen, but also the growth in new areas is also very prominent and obvious, including electronic components, household appliances, medicines, food, general contracting and services, and MRI of hospitals has also begun. Popular, this makes the Vietnamese gas market diversified supply and demand, the main varieties include nitrogen, argon, carbon dioxide and helium.

As the number of medium-sized factories increases, the manufacturing industry is moving into deeper areas. This provides a broader market prospect for the industrial gas, welding materials and related equipment markets. The four Japanese gas companies that entered Vietnam were prominent. They were Vietnam Japan Gas Company (VJG), Air Water Vietnam, Iwatani Gas Vietnam and Vietnam Tomoe Gas Company, which were jointly invested by Dayang Rishen and Tomoe Shokai.

In November last year, the Vietnamese government set the GDP growth rate in 2019 to 6.6% to 6.8%. And announced that the GDP growth rate from January to September 2018 increased by 7% compared with the same period last year. Despite concerns about rising labor costs and rising inflation, the economy continues to maintain a good momentum, and the driving force behind economic growth is the entry of foreign capital. The big country that entered Vietnam is South Korea, with 4,000 companies, followed by Japan with about 1,900 companies.

Infrastructure investment includes highways, North-Soith Express Rail and Ho Chi Minh City subway construction plans, but the completion time of these plans has been greatly delayed. The Vietnamese government has not forced the promotion of these projects, which is also a factor in why such projects are delayed.

When Gas Review asked about the difficulties encountered by companies engaged in industrial gases in Vietnam, their responses were similar:

Inconsistent interpretation of legal provisions in different places and at different times

High pressure vessels and cylinders have not yet used color as a distinguishing mark

No concept for equipment maintenance

Such issues also exist during the certification and approval process. Also, high-pressure gas vehicles cannot pass through cities like Hanoi and Ho Chi Minh City, and traffic congestion and corruption are not limited to the industrial gas industry.

Despite this, due to the stable market expansion brought about by stable economic growth, Vietnam still has great appeal to gas and equipment manufacturers. In addition to the four gas companies listed above, Eto Oxygen, Messer, Air Liquide, Linde Group, etc. also began to enter the Vietnamese market. At present, Vietnam's Japanese Gas Company and Messer are competing for the title of Zui Da's industrial gas company in the Vietnamese market.

Steel, electric furnace, chemical and other industries have stable gas supply requirements. The demand for argon and carbon dioxide is unstable, and the dependence of argon on China is very high. This phenomenon is obvious in the north. However, the strengthening of environmental regulations today has led to a decline in the output of Chinese blast furnaces in winter, which has affected the production of argon. The source of carbon dioxide is mainly fertilizer producers, which use tail gas recovery and purification, but a large amount of fertilizer needs to be imported. When the market price of fertilizers is weak, production will stop. The petrochemical business has not been well established in Vietnam, so few by-product carbon dioxide gas is available. The same source of hydrogen is also scarce.

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