Silicone Oil in Vietnam- Vietnam's Industrial Development & Silicone Oil

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Cover Photo cited from: https://pixabay.com/zh/photos/sea-fish-pen-sunrise-sunset-1014710/

In recent years, Vietnam has continuously promoted reform and opening up, accelerated integration into the global economy, and maintained overall stable development of the national economy.

From 2016 to 2019, the average annual growth rate of GDP reached over 6.5%. In 2020, under the impact of the COVID-19, Vietnam's economy

The growth rate has decreased to 2.91%, but it is still one of the few countries worldwide that maintain positive growth. Vietnam in the first half of 2021. Although the economy has been affected by the fourth round of the epidemic, it has remained basically stable, with GDP increasing by 5.64% year-on-year. However, the epidemic quickly spread

Extending to Ho Chi Minh City and key economic provinces in the south, impacting various industrial parks, causing a large number of enterprises to shut down and suspend production, and some industries. The supply chain of the industry has been disrupted, logistics and transportation have been severely hindered, and the economy has suffered a heavy blow. In the third quarter, Vietnam's GDP decreased by 6.17% year-on-year. Dragging down the economic growth rate in the first three quarters to 1.42%, bringing difficulties to the annual economic growth. In October 2021, Vietnam was affected by the epidemic. Unlock and accelerate resumption of work and production. By the end of the year, the annual GDP had grown by 2.58%.

Key Industries in Vietnam

Vietnam has developed agricultural and fishing industry. Vietnam is rich in rice, rubber, pepper, coconut, Pitaya, watermelon, mango, cashew nuts, tea, coffee and other agricultural products. In 2021, despite a reduction of 38300 hectares in planting area, Vietnam produced 43.88 million tons of rice, an increase of nearly 1.1 million tons year-on-year. Other major agricultural products include 4.43 million tons of corn, 1.22 million tons of sweet potatoes, 6.7 million tons of sugarcane, 10.7 million tons of cassava, 426900 tons of peanuts, 59200 tons of soybeans, and 18.4 million tons of various vegetables. In 2021, Vietnam exported approximately 6.2 million tons of rice, with an export value of 3.2 billion US dollars; The export value of vegetables and fruits is 3.52 billion US dollars. The national forest area is approximately 10.17 million hectares. In 2021, a new afforestation area of 277800 hectares was added, and 18.1 million cubic meters of timber were mined. Vietnam has abundant fishery resources, with 1200 types of fish and 70 types of shrimp along the coast. It is rich in various fish species such as red fish, mackerel, and cod. The annual fish production in the central coastal areas, the southern eastern coastal areas, and the Gulf of Siam can reach hundreds of thousands of tons. In 2021, Vietnam's total aquatic products reached 8.726 million tons, a year-on-year increase of 1%.

Vietnam also has good industries. In 2021, Vietnam's industrial output increased by 4.82%. The output value of the processing and manufacturing industry increased by 6.37%, and electricity production

The production value of the distribution industry increased by 5.24%, the production value of the water supply, sewage, and garbage treatment industries increased by 4%, and the production value of the mining industry decreased by 6.21%. The main industrial products include electronic products, computers, mobile phones, mechanical equipment, automobiles, motorcycles, textiles and clothing, petroleum and natural products, rubber products, plastic products, etc.

1. The automotive industry. As of the end of 2021, there are approximately 360 automobile related production enterprises in China, including 50 automobile assembly enterprises, 45 chassis, body, and luggage production enterprises, 214 automobile parts production enterprises, and multiple other related enterprises. In 2021, Vietnam's automobile consumption was 410000 vehicles. Vietnamese automotive companies mainly assemble imported components, with a low localization rate of only 5-10%. In 2018, VINFAST Company in Vietnam launched its first domestically produced car.

2. Electronic industry. In recent years, the leading role of Vietnam in the production and export of mobile phones, computers, and components has gradually become prominent. In 2021, Vietnam's exports of mobile phones and components reached 57.5 billion US dollars, while exports of electronics, computers, and components reached 50.8 billion US dollars, totaling around 108.2 billion US dollars, accounting for 32% of the total export volume. Large enterprises such as Samsung, LG, Microsoft, and Foxconn have all invested and established factories in Vietnam. Among them, Samsung's investment amount is nearly 18.5 billion US dollars. In 2021, Vietnam's Samsung revenue is about 74.2 billion US dollars, and its export value is 65.5 billion US dollars, accounting for about 20% of Vietnam's total foreign exports.

3. Oil and gas industry. In 2021, Vietnam extracted 11 million tons of crude oil and 7.09 billion cubic meters of natural gas. There are two refineries in Vietnam with crude oil refining capacity, namely Yishan and Rongju refineries, with a designed processing capacity of 16.5 million tons/year, which can meet 70% of Vietnam's demand for refined oil.

Applications of Silicone Oil in Vietnam Industry

For agricultural and fishing industry, silicone oil is usually applied in crop protection and food processing. It is since the tropical climates in Vietnam, the silicone oil could be used as the protection agent of the corps to be mixed into some solvent to protect the crops in fields. Silicone oil could be also used to defoam the foams during food processing procedures.

In automotive industry, silicone oil could be used to make films or the components of the cars like the parts that attach to window glass. Silicone oil could be also processed further to more downstream products to isolate heats in car.

In electronic industry, silicone oil is more used in protecting the machine, used as lubricant or the physical applications. Also, not only for silicone oil, other silicon products like silicon wafers are also widely used in chips and other semi-conductors.

For oil and gas industry, silicone oil is sometimes used to make the hoses that transport the oil and the gas. In some special occasions, silicone oil would be added into some resources since it will stabilize the product’s properties.