Industry proceeds for the fiscal 1988 are expected to increase remarkably as they did in the previous year with 4.9% increase in revenue and 18.8% increase in profit (ordinary profit) from the previous year. The conditions of material industry are especially favorable and chemical industry is also expected to prosper as it did in the previous year. Problems this prospering chemical industry is facing are introduced in this report. Firstly, it is necessary to improve productivity by adopting more information and promoting factory automation in order to strengthen competition. The future of chemical industry depends on the introduction of information. Secondly, as demands of users are becoming more diversified, and cycles of products shorter, shortening of development terms is essential. It is necessary, therefore, to predict the demands of users in advance and seek after custom products. Thirdly, selection of product bases is required; it might be necessary to consider producing some product items abroad. Moreover, it is desirable to increase investments in investigation and pursue creativity putting much stress on basic investigations. 2 figs., 11 tabs.