Stats: Saudi PP notably loses share in Vietnam; who’s filling the gap?

Saudi Arabia has long been one of Vietnam’s top PP suppliers, consistently ranking among the top three. However, its market share has steadily declined due to growing competition from local and Northeast Asian producers, particularly China, which offers PP resin at more competitive prices and with shorter lead times.

A Vietnamese trader noted that Saudi Arabia’s PP offers remain high, making it difficult for them to compete. He said, “Saudi producers’ prices have remained high in recent years, leading to a gradual loss of market share in Vietnam as more competitive offers have emerged from local suppliers, China, and South Korea. Today, they only sell to a few loyal customers, while most buyers reject their prices.”

Meanwhile, Vietnam’s overall PP imports in 2024 surged 13% from a year earlier, reaching the highest volume since 2018. For detailed figures on tonnage and more, visit ChemOrbis Stats Wizard Pro.

Saudi Arabia loses over 70% of market share in 7 years

Back in 2018, Saudi Arabia was Vietnam’s leading PP supplier, holding over 20% of the market, according to ChemOrbis Stats Wizard Pro. However, the country later lost its top position to South Korea before being further overtaken by China, which has remained in second place for the past two years.

Saudi Arabia’s market share plummeted by approximately 71% year over year, reaching just 5.8% in 2024. This sharp erosion reflects intensifying competition from Northeast Asian producers, which have expanded production capacity, taken geographical advantages, and improved logistics efficiency to capture a larger share of Vietnam’s PP pie.

S. Korea expands, China rapidly enters the equation

By providing prime PP resin with high production capability, South Korea dethroned Saudi Arabia as Vietnam’s top PP supplier in 20219 and has maintained its lead ever since. ChemOrbis Stats Wizard Pro shows that its presence in Vietnam significantly grew by around 57% in the past seven years, reaching 31.2% in 2024.

Notably, Chinese-origin PP has achieved an impressively growing market share in Southeast Asia and Vietnam over time. In 2018, China was barely noticeable among PP-exporting countries to Vietnam. However, its market share has since surged nearly fivefold, reaching 25.2% in 2024, narrowing the gap with South Korea to just 6%. Meanwhile, Saudi Arabia has been left far behind, now accounting for less than a quarter of China’s share.

Low prices, shorter lead times favor Chinese origin

China has continuously expanded its PP capacity in recent years, driven by its goal of becoming a net exporter of the polymer. This has prompted more Chinese sellers to target nearby Vietnam with competitive offers. With typically low prices and shorter lead times, Chinese PP has become increasingly attractive to Vietnamese buyers, particularly in comparison to Saudi Arabian origin.

During the week ending March 7, offers for homo-PP raffia and inj. from China stood at $930-960/ton, still forming the low end of Vietnam’s import range. Meanwhile, weak downstream demand in Vietnam has made buyers reluctant to purchase high-priced materials, further opening windows for low offers from China.

In the meantime, Vietnam has remained China’s leading PP buyer since 2016, as per ChemOrbis data. The country’s import volume of PP from China reached an all-time high in 2024, with value being reported at nearly $385 million—a nearly twofold increase from the previous year.