Vietnam has registered one of the fastest economic growths in the South East Asia region. Rapid economic expansion and increased consumption have come as a boon to domestic ink producing companies. It is no surprise that the Vietnamese ink industry has registered one of the healthiest growths among the South East Asian countries in recent years.

Overview of the Vietnamese ink industry

Catered by half a dozen multinational ink producers and a score of domestic ink producers, Vietnam’s ink industry has registered high single-digit growths during the last five years.

While consumption of offset inks is in decline in developed countries, production and consumption of offset ink in Vietnam are growing, although by low percentage points. However, slow demand in the consumption of offset inks is offset by growth in the production and consumption of gravure and flexo inks used for packaging of foods, metal and plastic containers.

According to various estimates, there are more than 2,000 printing companies in Vietnam, mostly dedicated to industrial packaging and label printing.

Speaking at a seminar in December 2019, Nguyen Thi Lac Huyen, chairwoman of the Vietnam Paint and Printing Ink Association, reported, “The Vietnamese ink industry has been growing at 10% a year on average. The products not only meet domestic demand but are also increasingly exported. Ink producers in the country have constantly improved their technologies and developed high-tech inks such as nano ink and grafted gravure ink.”

According to Smithers Pira, a worldwide authority on the print, packaging and paper supply chains, the Asia Pacific region is still the largest emerging market for flexible packaging with Vietnam, China, and India showing the highest growth rates.

The demand for flexible packaging solutions, which offer convenience and superior product protection at a minimum total cost and a low environmental impact, will drive the future development of the market. The increasing demand for sustainable packaging solutions with optimized recyclability will shape the future of the industry while calling for close exchange and collaboration along the whole flexible packaging value chain.

Economic Growth to Foster Ink Production and Consumption

Production and consumption of ink have a high degree of correlation with economic growth. Vietnamese economic growth in recent years has enabled domestic and global ink producers to achieve steady numbers as the country’s economic growth has been one of the highest in the region.

The country’s shift from a centrally planned to a market economy has transformed it from one of the poorest in the world into a lower middle-income country. Vietnam now is one of the most dynamic emerging countries in the East Asia region.

According to early April released Asian Development Bank (ADB) annual economic publication, “Asian Development Outlook 2020,” the Vietnamese economy’s fundamentals remain resilient. If the pandemic is contained within the first half of 2020, growth should rebound to 6.8% in 2021 - ADB’s pre-COVID-19 forecast for Vietnam in 2020 - and remain strong over the medium and long-term.

Major Ink Producers in Vietnam

Vietnam has almost all the multinational ink producers. These companies have entered Vietnam during the last one and a half decades, either in association with already existing companies or by setting up subsidiaries.

Along with these global ink producers, the country has several domestic producers, who have ventured into ink production in the last two decades. Though smaller than the global producers, these domestic producers are confined to catering niche geographies and segments.

• Toyo Ink Vietnam: A 100% subsidiary of Toyo Ink, Toyo Ink Vietnam has its office and production base in Ho Chi Minh and Dong Nai in Vietnam. The company plays an active role in the production and selling of printing inks and printing related materials. Toyo Ink Vietnam was established in 2004;

In 2013, the company commenced commercial production from its new plant-based at Amata Industrial Park, located in Bien Hoa city in the southern province of Dong Nai. The company had invested a total of $7.5 million for this plant;

• DIC Vietnam: DIC Global has been operating in Vietnam since 2006 (the company also had operations in the country between 1961 and 1975). The company has a production facility in Binh Duong province in the country. Spread over an area of 7,000 square meters, this facility produces gravure, offset and flexo inks for the Vietnamese market;

• Siegwerk Vietnam: Siegwerk has been operating in Vietnam since 2012.

The company held the groundbreaking ceremony in November 2019 of a new blending center in Binh Duong province, in Vietnam. Spread over a total area of 20,000 square meters with a total investment of €4 million, the center is expected to start operation in the fourth quarter of 2020. With this expansion, the company will significantly strengthen its domestic business in the country while extending its position across the overall Asian region.

• Daihan Ink: Daihan Ink is among the oldest ink producers in South Korea, and is an exception to the dominance of Japanese ink producers in Vietnam. The company commenced commercial production from its Van Truang Industrial Zone (Bac Giang province) based production plant in October 2016.

• Khang Viet: Established in 2006, Khang Viet Printing Inks is a leading domestic producer of gravure, flexo and offset inks. The company’s production facility is located at Duc Hoa over an area of 25,000 square meters with a total installed capacity of 25,000 tons per annum.

• Sakata INX Vietnam: Established in Vietnam in 2004 as a subsidiary of Japan’s Sakata INX Group, Sakata Inx Vietnam operates two production plants in the country, located at Thuan An town of the southern province Binh Duong.

In 2015, the company invested $7 million (taking the overall investment in Vietnam to $21.5 million) at its production facility, which is located at Vietnam Singapore Industrial Park, to increase its printing ink capacity from 10,000 tons to 13,000 tons per year.