Could you introduce AkzoNobel’s operations in Vietnam?

OW: AkzoNobel has been operating in Vietnam since 1992, when the company began selling architectural paints in the country. Today, we have four manufacturing sites in Ho Chi Minh City, at Dong Nai (powder coatings), Binh Duong (decorative paints) and Bac Ninh (specialty coatings). The Ben Cat (Binh Duong) plant is our largest in the country supported by more than 300 employees. AkzoNobel Vietnam serves as a one-stop solution to the construction industry, with a complete offer of decorative paints, headed by our Dulux premium brand, and performance coatings, including wood, coil, packaging, powder, marine, and specialty coatings. With a rich history dating back to 1792 in Netherlands, AkzoNobel strives to be a pioneer in the industry by consistently innovating to deliver the most sustainable solutions for our customers.

What are the main demand trends in the powder and performance coatings, as well decorative paintings over the past year and how do you expect the market to behave in 2023?

NML: The region is experiencing robust economic growth, driven by a large population and a dynamic construction sector. Construction companies are looking at new, high-tech, green solutions to meet the needs of the growing urban housing market. The PEEB (Program for Energy Efficiency in Buildings), jointly developed by the Ministry of Construction and the The German Agency for International Cooperation (GIZ), is aimed at regulating energy efficiency in buildings. Architecture and decorative wood coatings remain the primary consumers of paints and varnishes, especially as Vietnam’s major cities continue their massive building booms thanks to years of economic growth. AkzoNobel is now one of the major players in architectural and industrial segments in the country. Beyond projects and real estate developments, we also focus our efforts on consumers, who continue to refresh and personalize their living spaces, despite the current economic slowdown.

OW: Based on recent findings, developing markets like APAC follow the footsteps of developed markets in replacing liquid coatings with powder ones. End-users in the automotive, construction and industrial applications shift to higher-performing powder coatings, encouraged by higher consumer purchasing power and superior product properties. Homeowners are also increasingly more concerned about eco-friendly paints. AkzoNobel offers anti-viral and anti-bacterial paints, as well as products that can repel tough stains. With the recovery of the Vietnamese economy, we believe that the premium paint segment will be the fastest growing.

What makes Vietnam an attractive manufacturing hub?

NML: Vietnam has a relatively stable government that has worked to improve business policies and labor laws, as well as prioritizing infrastructure investment. The European Parliament ratified the EU-Viet Nam Free Trade Agreement (EVFTA) and the EU-Viet Nam Investment Protection Agreement (EVIPA), frameworks which will be a driving force for Vietnamese industries in the new business world. AkzoNobel’s recent investments at our Amata and Dong Nai sites have also reaffirmed the company’s commitment in investing in Vietnam.

How is AkzoNobel’s portfolio evolving in line with a greater demand for sustainable products?

OW: We are growing our sustainability portfolio in the areas of health and well-being, specifically in terms of limiting bacterial growth on surfaces, optimizing living environments through colour, heat reflective coatings in providing cooler interior spaces. We are also developing longer-lasting paints and coatings to reduce the need for repair, clean, and repaint.

Do you have a final message?

OW: AkzoNobel looks at sustainability through a holistic lens. Globally, we are driven by four key 2030 ambitions: 50% less carbon emissions in our own operations and across the value chain (baseline 2018); 50% of revenue from sustainable solutions; moving towards 100% circular use of materials in our own operations; and providing skills training to more than 100,000 people in local communities. Beyond 2030, we aim to be carbon neutral by 2050. AkzoNobel is the first paints and coatings company to have its science-based sustainability targets officially validated by the Science Based Targets initiative (SBTi). Besides, AkzoNobel also has a leading position in other international recognized rankings and ratings, such as Sustainalytics, MSCI ESG Ratings, EcoVadis and Carbon Clean 200. We have also received the Terra Carta Seal in 2021, a major award recognizing global companies which are driving innovation and showing commitment to creating genuinely sustainable markets.