Vietnam Lubricants Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS (2025 - 2030)

Vietnam Lubricants Market Analysis

The Vietnam Lubricants Market size is estimated at 324.57 million liters in 2025, and is expected to reach 420.19 million liters by 2030, at a CAGR of 5.3% during the forecast period (2025-2030).

Vietnam's manufacturing sector has emerged as a key driver of industrial growth, with the manufacturing value added increasing by 8.59% in 2021, supported by significant foreign direct investment inflows. The country attracted USD 22.5 billion in FDI for its manufacturing sector in 2021, representing 57.9% of total investment, highlighting its growing prominence as a regional manufacturing hub. Major investments in 2022, including Lego A/S's USD 1.3 billion project and Trina Solar's USD 275 million facility, demonstrate continued investor confidence in Vietnam's industrial capabilities. This manufacturing expansion has created substantial opportunities for industrial lubricants across various applications, from machinery maintenance to production processes.

The power generation sector in Vietnam is undergoing significant transformation, with substantial capacity additions across both conventional and renewable energy sources. In 2021, the country expanded its power generation infrastructure by adding 2.96 GW of non-renewable energy capacity and 4.36 GW of renewable energy capacity. The government's commitment to energy diversification is evident in its power development plan, which aims to nearly double the total installed power generation capacity to 146,000 megawatts by 2030. This expansion has led to increased demand for specialized turbine oil and transformer oil used in power generation equipment, particularly in turbines and generators.

The metallurgical and metalworking sector has shown robust growth, with Vietnam's steel production reaching 26.15 million tons in 2021. The sector's expansion is further supported by major infrastructure projects and growing domestic demand for steel products. Companies like Hoa Phat are investing in capacity expansion, with the second phase of the Hoa Phat Dung Quat Iron and Steel Production Complex expected to increase total capacity to 11 million tonnes per year by 2024. This growth in metal processing activities has driven demand for metalworking fluids and specialized industrial lubricants.

The industrial infrastructure landscape is evolving with the development of new industrial zones and manufacturing facilities. Recent developments include the Deep C 2 Hai Phong Industrial Zone and various other infrastructure projects that are attracting both domestic and international investments. The chemical manufacturing sector has shown particular dynamism, with companies like Trina Solar establishing new production facilities. These developments have created new demand centers for industrial oil and process oil, particularly in hydraulic systems, machinery maintenance, and process applications, while also driving the need for more sophisticated lubricants solutions to meet evolving technological requirements.

Vietnam Lubricants Market Trends

Growing Automotive Industry and Vehicle Population

The robust growth in Vietnam's automotive sector is serving as a primary driver for the automotive lubricants market. The passenger vehicle segment has shown remarkable momentum, with sales surging by 49.12% in 2022, reflecting the country's improving economic performance and shifting consumer preferences from motorcycles to passenger vehicles. This transformation is further supported by Vietnam's liberalized economic environment, which has resulted in import tax reductions on various products, making cars more affordable for the growing middle-class population. The increasing disposable incomes and perception of cars as a safer and more convenient mode of transportation continue to fuel this transition.

The commercial vehicle sector's steady expansion, particularly in mini trucks, is creating sustained demand for engine oil and transmission fluid. Mini trucks have emerged as growth engines for the commercial vehicles segment, becoming the preferred choice for most commercial activities—from transporting commodities and agricultural produce between markets to moving industrial goods between factories, warehouses, and stores. The availability of easy financing plans and a steady stream of regular business across sectors has made mini trucks an attractive option for commercial operators, thereby driving the demand for various lubricant products including engine oils, transmission fluids, and greases.

Industrial Manufacturing Expansion

Vietnam's manufacturing sector is experiencing substantial growth, supported by significant foreign direct investment and expansion of industrial facilities. In the first half of 2022, major investments such as Lego A/S's $1.3 billion project and Trina Solar's $275 million chemical production facility demonstrate the robust industrial growth trajectory. These investments are creating new demand channels for industrial lubricants, particularly in specialized applications such as hydraulic fluids, metalworking fluids, and industrial greases. The expansion of manufacturing capabilities across sectors including electronics, textiles, and automotive components is driving the need for high-performance lubricants that can ensure optimal equipment operation and maintenance.

The country's focus on developing high-value industrial sectors is reflected in the growth of basic metals production, motor vehicle manufacturing, and electronic components production. The industrial sector's advancement is particularly evident in the steel industry, where companies like Hoa Phat are expanding their production capabilities. The construction of the second phase of the Hoa Phat Dung Quat Iron and Steel Production Complex, which aims to increase total capacity to 11 million tonnes per year by 2024, exemplifies the scale of industrial expansion driving lubricant demand. This industrial growth is creating sustained demand for specialized lubricants designed for high-temperature operations, heavy-load applications, and precision manufacturing processes.

Power Generation Capacity Expansion

Vietnam's ambitious power sector development plans are creating significant opportunities for industrial lubricants. The country aims to nearly double its total installed power generation capacity to 146,000 megawatts by 2030, with a strong emphasis on renewable energy sources. This expansion includes comprehensive plans for both conventional and renewable energy facilities, each requiring specific types of lubricants for optimal operation. The development roadmap includes the construction of 11 new coal-fired power plants to raise coal-fired power capacity to 36 GW by 2030, alongside significant investments in renewable energy infrastructure.

The country's commitment to renewable energy, targeting 50% of power supply from solar and wind energy by 2045, is driving demand for specialized lubricants designed for wind turbines and solar power equipment. This transition is complemented by significant investments in the energy sector, with Vietnam allocating over $691 million in 2022 for energy development, including the construction of four hydropower plants scheduled for completion by 2025. The diverse power generation portfolio, ranging from conventional thermal plants to wind farms and solar installations, is creating sustained demand for various types of industrial lubricants, including turbine oils, hydraulic fluids, and high-performance greases designed for specific power generation applications.

Infrastructure Development Initiatives

Vietnam's comprehensive infrastructure development agenda, anchored by the Prime Minister-approved road development plan for 2021-2030, is creating substantial demand for construction lubricants and heavy equipment lubricants. The expansion of transportation infrastructure is driving the need for various types of construction machinery and equipment, each requiring specific lubricant solutions for optimal performance. This infrastructure push is complemented by the development of new industrial zones and urban development projects, creating a sustained demand for construction equipment and associated lubricant products.

The development of major infrastructure projects, including the Quang Tri Power Plant project and various industrial zones like Deep C 2 Hai Phong Industrial Zone and Core5 Hai Phong, is generating significant demand for heavy equipment lubricants. These projects require a wide range of construction machinery, from excavators and bulldozers to cranes and concrete pumps, each necessitating specific types of lubricants for their operation and maintenance. The continuous nature of these infrastructure developments, combined with the government's commitment to modernizing the country's infrastructure network, ensures a steady demand for construction equipment lubricants, including hydraulic fluids, gear oils, and heavy-duty greases.

Segment Analysis: By End-User Industry

Automotive Segment in Vietnam Lubricants Market

The automotive segment continues to dominate the Vietnam lubricants market, commanding approximately 71% of the total market share in 2024. This substantial market position is primarily driven by the high proportion of engine oil and transmission fluid usage in motor vehicles compared to any other application. The segment's dominance is reinforced by Vietnam's large motorcycle population, growing passenger vehicle sales, and expanding commercial vehicle fleet. The increasing preference for passenger vehicles among Vietnamese consumers, coupled with the country's improving economic performance, has significantly contributed to the high demand for automotive lubricants. Additionally, the strong recovery in sales of motor vehicles, particularly in the passenger vehicle segment, has further strengthened the automotive segment's position in the lubricants market.

Power Generation Segment in Vietnam Lubricants Market

The power generation segment is emerging as a key growth driver in Vietnam's lubricants market, with projections indicating robust expansion through 2024-2029. This growth is primarily fueled by Vietnam's ambitious plans to nearly double its total installed power generation capacity to 146,000 megawatts by 2030. The segment's expansion is further supported by the country's strategic focus on developing renewable energy sources, with targets to raise solar and wind energy contribution to 50% of Vietnam's power supply by 2045. The increasing investments in new power projects, including both conventional and renewable energy facilities, are creating substantial demand for specialized lubricants used in power generation equipment. The sector's growth is also bolstered by ongoing maintenance requirements of existing power infrastructure and the expansion of thermal power facilities across the country.

Remaining Segments in Vietnam Lubricants Market End-User Industry

The remaining segments in the Vietnam lubricants market include heavy equipment, metallurgy and metalworking, and other industrial applications, each serving distinct market needs. The heavy equipment segment plays a crucial role in supporting Vietnam's construction and infrastructure development projects, with demand driven by the country's ongoing urbanization and industrial expansion. The metallurgy and metalworking segment's consumption is closely tied to the nation's growing steel production and manufacturing activities, particularly in the automotive and construction sectors. Other industrial applications encompass various sectors such as textile manufacturing, food processing, and chemical production, contributing to the diverse application landscape of industrial lubricants in Vietnam.

Segment Analysis: By Product Type

Engine Oils Segment in Vietnam Lubricants Market

Engine oils dominate the Vietnam lubricants market, accounting for approximately 69% of the total market volume in 2024. This significant market share is primarily attributed to the high-volume requirements and low drain interval characteristics of engine oils, as they are extensively used in high-temperature and high-pressure applications. The segment's dominance is further strengthened by the robust automotive sector in Vietnam, particularly in the passenger vehicle segment which has shown strong growth in recent years. Engine oil consumption is mostly supported by the servicing requirements of the current on-road passengers and commercial vehicles, with the automotive segment holding nearly 89% of engine oil consumption, followed by the heavy equipment industry and power generation sectors.

Transmission & Gear Oils Segment in Vietnam Lubricants Market

The transmission and gear oils segment is projected to exhibit strong growth in the Vietnam lubricants market, with an expected growth rate of approximately 5% during 2024-2029. This growth is primarily driven by the increasing demand from the automotive sector, particularly from commercial vehicles which account for a significant portion of transmission fluid consumption. The segment's growth is further supported by the rising adoption of automatic transmission fluid over manual transmission fluid, which has increased oil change service intervals. The expansion in hybrid vehicle adoption, which requires both ATF and electric components, is also contributing to the segment's growth trajectory. Additionally, the power generation industry and other industrial sectors are creating substantial demand for gear oil.

Remaining Segments in Product Type Segmentation

The Vietnam lubricants market encompasses several other important segments including hydraulic fluids, metalworking fluids, and greases, each serving specific industrial and automotive applications. Hydraulic fluids play a crucial role in heavy equipment industries and manufacturing sectors, while metalworking fluids are essential in the growing metal manufacturing and processing industries. The greases segment maintains its significance in various applications ranging from automotive bearings to industrial machinery maintenance. These segments collectively contribute to the market's diversity and cater to the specific lubrication needs of Vietnam's expanding industrial base, with each segment showing steady growth patterns aligned with their respective end-user industries.