Paint and printing ink companies are advised to develop effective business strategies

Nathan Group’s paint factory. — Photo

HANOI – Paint and ink companies need to develop effective business strategies to cope with fierce competition from foreign rivals in terms of price and quality, trade experts suggest.

Vương Bắc Đẩu, deputy chairman of the Vietnam Coatings and Printing Ink Association, said Vietnam is one of the potential locations for foreign investors to relocate production facilities from China, including those in the coatings and printing ink industry.

This not only brings opportunities and challenges to domestic enterprises, because enterprises from some neighboring countries such as China will also transfer their production bases to Vietnam, the vice chairman told us

He said that Vietnamese printing ink companies, especially offset ink companies, have encountered many difficulties due to their reliance on imported raw materials and competitive pressure from other companies in the region.

He said competitive pressure comes not only from technology but also from output, because foreign competitors have strong financial capabilities, so domestic companies cannot compete.

At the same time, the biggest challenge faced by companies in the wood paint field is that their scale and output cannot be compared with Chinese manufacturers, resulting in their failure to occupy a large market share.

Pham Trong Hieu, chairman of Hanoi HF Group Joint Stock Company, said that in the face of fierce competition in the local market, if companies increase product prices, they will lose market share.

At the same time, imported raw materials are also directly affected by the unstable situation in the world. For example, the price of titanium dioxide (a white pigment used in more than 90% of paint products) jumped from 10% to 15%, while the price of acrylic resin (a common ingredient in latex paint) also increased.

At the same time, the policy level should also be more open to help domestic industrial enterprises solve loan difficulties and create market advantages for key industries related to the coating and ink industries.

Trade experts said that in this context, in addition to the efforts of enterprises, government support is also necessary.

National policies should also be more open to help solve the problem of loan difficulties for domestic coatings and ink industry enterprises, and create market advantages for key links such as coatings and inks.

Last year, due to the sluggish real estate market, the paint industry experienced negative growth, with output falling by 10% to 35%. Đẩu said the output of the printing ink industry also fell by 10-15% last year.

This year, the paint industry is showing signs of recovery amid the government’s efforts to ease financial difficulties and boost the real estate market, he said, adding that wood paint and industrial paint are expected to increase by 20 percent.

Decorative coatings, electrostatic powder coatings and coil coatings will see a slight recovery of around 10%. The printing ink industry is showing signs of recovery and is expected to grow by 10%.

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