As well as doubling capacity at its powder coatings facility in Dong Nai, the company also intends to open a new office in Ho Chi Minh City.
The new production line in Dong Nai will be ready in November and will be supported by a 20 per cent increase in workforce aiming to serve local and further afield markets in the region.
"Vietnam has proven to be strategic market for AkzoNobel in Southeast Asia and we are strongly committed to expanding our position," says Alan Alex, business manager for AkzoNobel's Powder Coatings business in Southern Asia.
"With focused investment, we aim to sustain our high double-digit growth in the domestic market in Vietnam, as well as Southern Asia overall."
Commenting on the investment, Conrad Keijzer, AkzoNobel's executive committee member responsible for performance coatings, added: "These investments ensure that we are well positioned to meet customer demand going forward."
China slow down sees suppliers investing more in SE Asia
As South East Asia increasingly promises lucrative opportunities for the cosmetics industry, international players like AkzoNobel are really starting to invest their efforts in the likes of Vietnam, Thailand, India, and Indonesia.
In fact, prior to its announcment regarding Vietnam, AkzoNobel confirmed its plan for a €30 million in a Thailand based facility during the summer.
"Thailand is a key market for our growth strategy and this investment will enable us to further strengthen our position as a leading supplier, both within Thailand and as a hub to support the supply network through the region," says Conrad Keijzer, a member of the company's executive committee for performance coatings.
The project, supported by the Thailand Board of Investment, is a 120,000m2 site in Chonburi which will focus on performance coatings for various industries.
Production is due to start in the third quarter of 2016, and is earmarked for an initial capacity of 45,000 tons per year.