Chemical stocks diverge as policy tailwinds favour some over others
Despite both being listed chemical companies, while those benefiting indirectly from electric vehicle promotion policies are drawing investor attention, those supplying chemicals for traditional industries remain overlooked.
HÀ NỘI — On the stock market, not all listed chemical firms are attracting equal investor attention.
A new context shaped by policies supporting electric vehicles, rising demand for essential chemicals and the introduction of the 2025 Chemical Law is generating divergent expectations across the industry.
While shares such as PAC of the Southern Battery Joint Stock Company (Pinaco) surged thanks to its links to the electric vehicle supply chain, most traditional chemical stocks remain subdued.
From July 11 to July 18, 2025, PAC rose by 34.3 per cent, hitting the daily ceiling in multiple sessions, following news that the company had become the exclusive supplier of control batteries for VinFast vehicles.
However, the contribution from this partnership amounted to just over VNĐ100 billion (US$3.8 million), a modest share of revenue, as Pinaco remains heavily reliant on petrol-fuelled vehicles and traditional distribution channels.
Additionally, the company faces the challenge of relocating its factory and launching new investments, with over VNĐ1 trillion planned, though progress is still at an early stage.
In contrast, major firms like Southern Basic Chemicals (CSV) and Đức Giang Chemicals Group (DGC) have received little market attention despite their stable production foundations.
While the VN-Index gained 8.7 per cent from the start of July to July 18, CSV shares edged down 0.7 per cent and DGC increased by only 1.7 per cent.
Đức Giang remains heavily dependent on yellow phosphorus, which is forecast to enter a more stable growth phase rather than posting further breakthroughs.
CSV, meanwhile, is facing headwinds due to the relocation of three chemical plants from Biên Hòa to Nhơn Trạch, temporarily affecting its production capacity.
Nevertheless, medium- and long-term prospects remain supported by key developments. According to SHS Securities, demand for caustic soda in Việt Nam is projected to rise by 12 per cent annually from 2025 to 2030, especially as the Boxite–Alumin project comes online from 2028.
With its strength in the chlorine–caustic soda segment, CSV could stand to benefit. However, investor sentiment remains cautious amid ongoing restructuring and scattered investments across many chemical firms.
On the policy front, the newly passed 2025 Chemical Law offers a positive outlook for the sector. The law lays the foundation for transforming the chemical industry into a modern, foundational sector, through regulations on strategic development, special support for key investment projects, categorisation of chemical management and comprehensive digital transformation.
In particular, new rules on chemical lifecycle management, production safety, information disclosure, and the responsibilities of regulatory agencies aim to increase transparency, reduce administrative burdens and create a more favourable investment environment.
However, the impact of the Chemical Law on chemical stocks may take time to materialise, as most firms are still in the early stages of new investment or addressing internal challenges.
As a result, the performance outlook for chemical stocks remains highly differentiated, depending on each firm’s market position, adaptability to policy changes, and pace of investment and product restructuring. — VNS
