Vietnam Cement Comprehensive Report Q2.2017
This report provides a comprehensive analysis of the global and Vietnam cement market including the historical data and forecast figures. The report further reveals market drivers, opportunities, restraints, and challenges to be faced in the Vietnam market.
In 2015, the Vietnam cement industry continued to oversupply with the using rate of 64% of the total production, excluding export value, and this situation seems to keep going on in the near future. However, the cement demand might change significantly due to the rising of infrastructure and real estate projects, but this is not guaranteed.
The quality of cement production depends on two factors: raw material and technology & equipment. Limestone used as raw material to manufacture portland cement have to satisfy the requirements of quality content of MgO and CaO. In terms of technology, manufacturing enterprises use rotary kiln dry method with two major equipment lines derived from the G7 countries and China. G7 machinery will provide higher productivity, however, materials play a more important role in deciding the quality of cement so small firms can consider Chinese equipment, while those from G7 countries are still the best choice for large enterprises.
Logistic is still a weakness of Vietnam cement companies. The linker supply in the North is redundant, while the demand in the South is increasing, which results to the transportation of linker from the North to the South. Difficulties in shipping process cause the transporting cost higher, making the cement price in the South more expensive than in the Middle and in the North. Besides, cement price in Vietnam is predicted to rise due to the climbing of material and energy cost, which may lead to the lower efficiency of the industry.
In the near future, direct sale to projects and industrial customers may become the main trend of the industry. There are 3 groups of cement supply in Vietnam: companies under VICEM accounting for 27% of total capacity in Vietnam, foreign enterprises and private companies with large scale. The internal competition is very stiff, with the development and dominance of large brands, smaller firms are facing bankruptcy or being merged to as they are not capable to compete with the big.
This report provides a comprehensive review about the global and Vietnam beverage industry based on specific and trustworthy data, particularly regarding:
In 2015, the Vietnam cement industry continued to oversupply with the using rate of 64% of the total production, excluding export value, and this situation seems to keep going on in the near future. However, the cement demand might change significantly due to the rising of infrastructure and real estate projects, but this is not guaranteed.
The quality of cement production depends on two factors: raw material and technology & equipment. Limestone used as raw material to manufacture portland cement have to satisfy the requirements of quality content of MgO and CaO. In terms of technology, manufacturing enterprises use rotary kiln dry method with two major equipment lines derived from the G7 countries and China. G7 machinery will provide higher productivity, however, materials play a more important role in deciding the quality of cement so small firms can consider Chinese equipment, while those from G7 countries are still the best choice for large enterprises.
Logistic is still a weakness of Vietnam cement companies. The linker supply in the North is redundant, while the demand in the South is increasing, which results to the transportation of linker from the North to the South. Difficulties in shipping process cause the transporting cost higher, making the cement price in the South more expensive than in the Middle and in the North. Besides, cement price in Vietnam is predicted to rise due to the climbing of material and energy cost, which may lead to the lower efficiency of the industry.
In the near future, direct sale to projects and industrial customers may become the main trend of the industry. There are 3 groups of cement supply in Vietnam: companies under VICEM accounting for 27% of total capacity in Vietnam, foreign enterprises and private companies with large scale. The internal competition is very stiff, with the development and dominance of large brands, smaller firms are facing bankruptcy or being merged to as they are not capable to compete with the big.
This report provides a comprehensive review about the global and Vietnam beverage industry based on specific and trustworthy data, particularly regarding:
- An overview of the international and domestic industry including the data about supply – demand, market shares, advantages and disadvantages, internal competition, sale strategies of retails as well as development trends of the industry in the future.
- Detail information, including current status and potentials of Vietnam market: the production – consumption, import – export, market shares, revenue structure, inventories and major brands in the market.
- Some forecasts in the near future and risks analysis when joining the industry.
- Risk analysis through SWOT and 5 – forces analyzing.
- Details about top enterprises in the market.
EXECUTIVE SUMMARY
Business Environment
1.1 Macroeconomic Situation
Figure 1. GDP growth, 2011 - Q1/2017e
Figure 2. GDP by current price, 2014 - Q1/2017
Figure 3. Manufacturing index 2012 – Q1/2017e
Figure 4. VND/USD Exchange rate, 2015 – 4/2017
Figure 5. State budget Deficit, 2010 - 2016
Figure 6. FDI, 2014 - Q1/2017
Figure 7. FDI structure by industry, Q1/2017e
1.2. Legal Barriers
Table 1. FDI in Vietnam, 2010 – 9M/2016
Table 2. Environmental Protection Tax rate applied since Jan 1st, 2012
Table 3. Natural Resources Tax rate applied since Feb 1st, 2014
Table 4. Import Export Tariff applied since 2014
1.3 Free Trade Agreements
Figure 8. FDI 2006 – 3M/2017e
Industry Overview
2.1 Global Cement Industry Situation
2.1.1 Consumption
Figure 9. International cement consumption 2010-2016e
Figure 10. Structure of cement consumption, 2015
2.1.2 Production
Figure 11. International cement production 2010-2016e
Figure 12. Largest cement producers in the world by country, 2016e
Figure 13. Production by regions, 2015e
2.1.3 Export
Figure 14. Largest cement exporting country, 2015e
2.1.4 Import
Figure 15. Global cement import, 2010 – 2016e
Figure 16. Top 10 highest cement and clinker importers by nation, 2015
2.1.5 Price Movement
Figure 17. Movement of average cement price in the world, 2000 – 2016e
2.1.6 Production and Consumption Situation in typical countries
2.1.7 Production and Consumption Situation in ASEAN
2.1.8 Key Players in the industry
2.2 Vietnam Cement Industry Situation
2.2.1 History of Vietnam Cement Industry
2.2.2 Definition and Classification
2.2.3 Fundamental Manufacturing Process
2.2.4 Scale and Market Share
Figure 18. Allocation of manufacturing enterprises by region, 2015
Figure 19. Allocation of manufacturing system by region, 2016
Figure 20. Market shares by key players, 3M/2017e
2.2.5 Raw Materials
Figure 21. Demand – supply and energy loss, 2010 – 2016e
Figure 22. Structure of electricity consumption by industry, 2016
Figure 23. Structure of electricity consumption by 4 main industries, 2016
Figure 24. The average electricity price, 1/1/2007 – 31/12/2016
Figure 25. Coal reserves by region
Figure 26. Coal demand and supply forecast, 2015-2030
Table 5. Some fine limestone areas in North and Central
2.2.6 Production Technology
Table 6. Vertical Shaft Kilns vs. Rotary Kilns manufacturing technology in producing 1,000 tons of cement
Table 7. Cost Per Unit of buiding cement plant
Table 8. Cost Per Unit of typical projects
Table 9. Cost Per Unit of machinery from G7 vs. machinery from China
Table 10. Comparison of level of (Fr.Cao) in clinker heated in G7 and China Kiln
Table 11. Maintenance Costs of equipment from G7 and China
2.2.7 Supply and Demand
Figure 27. Domestic Production - Consumption, 2010 – 2016e
Figure 28. Cement Supply and Demand in the North, 2010 – 3M/2017e
Figure 29. Cement Supply and Demand in the Central, 2010 – 3M/2017e
Figure 30. Cement Supply and Demand in the South, 2010 – 3M/2017e
Table 12. Cement Production, 2010 – 2016e
2.2.8 Cement and Clinker Manufacturing
2.2.9 Consumption
Figure 31. Structure of consumption by region, 2010 – 3M/2017e
Figure 32. Cement consumption by month, 1/2015 – 3M/2017e
Figure 33. Cement consumption growth by region, 2010 – 2016e
2.2.10 Clinker and Cement Export
Figure 34. Top 6 largest cement exporting countries 2016e
Figure 35. Export of cement and clinker, 2010- 3M/2017e
Figure 36. Main export market, 3M/2017
Table 13. Cement manufacturers for export 2016
2.2.11 Inventory
Figure 37. Inventories, 2010-3M/2017e
2.2.12 Price Movement
Figure 38. Cement price, 3/2017
Figure 39. Average cement price, 3/2017
2.2.13 Distribution Channels
2.2.14 Logistic System
Table 14. List of harbors and ports of cement enterprises
2.3 Industry Risks
2.3.1 Major Risks
Table 15. List of delayed and cancelled plants in the Master plan
Figure 40. Structure of implementation progress of constructions, 2010 – 2015
2.3.2 SWOT Analysis
2.3.3 5-Forces Analysis
2.4 Industry Planning
2.4.1 Cement Planning
2.4.2 Construction and Real Estate Industrial planning
2.5 Prospects and Forecasts
2.5.1 Industry Driving Forces
2.5.2 Driving forces for output industry
Figure 41. Forecast on construction and infrastructure
Figure 42. Population growth, 2010-2016
2.5.3 Global Forecast – MOIT
2.5.4 Domestic Forecast
Figure 43. Forecast of Cement industry, 2016f - 2020f
3. ENTERPRISE ANALYSIS
Table 16. Typical enterprises in 2015
3.1. Revenue and profit analysis
Figure 44. Net revenue growth, 2015 – 2016
Figure 45. Gross profit growth, 2015 - 2016
3.2 Operation ratios
Figure 46. Receivables turnover of enterprises 2015 - 2016
Figure 47. Inventory turnover of enterprises 2015 – 2016
Figure 48. Asset utilization rate of enterprises 2015 – 2016
3.3. Financial strength
Figure 49. Repayment capacity ratios of enterprises 2015 – 2016
Figure 50. Solvency Ratios of enterprises 2015 - 2016
3.4 Return on investment
Figure 51. Profitability ratio of enterprises, 2015 - 2016
Appendix
4.1 Update cement projects in the period 2011 - 2030
4.2 List of infrastructure projects period 2010 - 2030
4.3 Financial statements
Business Environment
1.1 Macroeconomic Situation
Figure 1. GDP growth, 2011 - Q1/2017e
Figure 2. GDP by current price, 2014 - Q1/2017
Figure 3. Manufacturing index 2012 – Q1/2017e
Figure 4. VND/USD Exchange rate, 2015 – 4/2017
Figure 5. State budget Deficit, 2010 - 2016
Figure 6. FDI, 2014 - Q1/2017
Figure 7. FDI structure by industry, Q1/2017e
1.2. Legal Barriers
Table 1. FDI in Vietnam, 2010 – 9M/2016
Table 2. Environmental Protection Tax rate applied since Jan 1st, 2012
Table 3. Natural Resources Tax rate applied since Feb 1st, 2014
Table 4. Import Export Tariff applied since 2014
1.3 Free Trade Agreements
Figure 8. FDI 2006 – 3M/2017e
Industry Overview
2.1 Global Cement Industry Situation
2.1.1 Consumption
Figure 9. International cement consumption 2010-2016e
Figure 10. Structure of cement consumption, 2015
2.1.2 Production
Figure 11. International cement production 2010-2016e
Figure 12. Largest cement producers in the world by country, 2016e
Figure 13. Production by regions, 2015e
2.1.3 Export
Figure 14. Largest cement exporting country, 2015e
2.1.4 Import
Figure 15. Global cement import, 2010 – 2016e
Figure 16. Top 10 highest cement and clinker importers by nation, 2015
2.1.5 Price Movement
Figure 17. Movement of average cement price in the world, 2000 – 2016e
2.1.6 Production and Consumption Situation in typical countries
2.1.7 Production and Consumption Situation in ASEAN
2.1.8 Key Players in the industry
2.2 Vietnam Cement Industry Situation
2.2.1 History of Vietnam Cement Industry
2.2.2 Definition and Classification
2.2.3 Fundamental Manufacturing Process
2.2.4 Scale and Market Share
Figure 18. Allocation of manufacturing enterprises by region, 2015
Figure 19. Allocation of manufacturing system by region, 2016
Figure 20. Market shares by key players, 3M/2017e
2.2.5 Raw Materials
Figure 21. Demand – supply and energy loss, 2010 – 2016e
Figure 22. Structure of electricity consumption by industry, 2016
Figure 23. Structure of electricity consumption by 4 main industries, 2016
Figure 24. The average electricity price, 1/1/2007 – 31/12/2016
Figure 25. Coal reserves by region
Figure 26. Coal demand and supply forecast, 2015-2030
Table 5. Some fine limestone areas in North and Central
2.2.6 Production Technology
Table 6. Vertical Shaft Kilns vs. Rotary Kilns manufacturing technology in producing 1,000 tons of cement
Table 7. Cost Per Unit of buiding cement plant
Table 8. Cost Per Unit of typical projects
Table 9. Cost Per Unit of machinery from G7 vs. machinery from China
Table 10. Comparison of level of (Fr.Cao) in clinker heated in G7 and China Kiln
Table 11. Maintenance Costs of equipment from G7 and China
2.2.7 Supply and Demand
Figure 27. Domestic Production - Consumption, 2010 – 2016e
Figure 28. Cement Supply and Demand in the North, 2010 – 3M/2017e
Figure 29. Cement Supply and Demand in the Central, 2010 – 3M/2017e
Figure 30. Cement Supply and Demand in the South, 2010 – 3M/2017e
Table 12. Cement Production, 2010 – 2016e
2.2.8 Cement and Clinker Manufacturing
2.2.9 Consumption
Figure 31. Structure of consumption by region, 2010 – 3M/2017e
Figure 32. Cement consumption by month, 1/2015 – 3M/2017e
Figure 33. Cement consumption growth by region, 2010 – 2016e
2.2.10 Clinker and Cement Export
Figure 34. Top 6 largest cement exporting countries 2016e
Figure 35. Export of cement and clinker, 2010- 3M/2017e
Figure 36. Main export market, 3M/2017
Table 13. Cement manufacturers for export 2016
2.2.11 Inventory
Figure 37. Inventories, 2010-3M/2017e
2.2.12 Price Movement
Figure 38. Cement price, 3/2017
Figure 39. Average cement price, 3/2017
2.2.13 Distribution Channels
2.2.14 Logistic System
Table 14. List of harbors and ports of cement enterprises
2.3 Industry Risks
2.3.1 Major Risks
Table 15. List of delayed and cancelled plants in the Master plan
Figure 40. Structure of implementation progress of constructions, 2010 – 2015
2.3.2 SWOT Analysis
2.3.3 5-Forces Analysis
2.4 Industry Planning
2.4.1 Cement Planning
2.4.2 Construction and Real Estate Industrial planning
2.5 Prospects and Forecasts
2.5.1 Industry Driving Forces
2.5.2 Driving forces for output industry
Figure 41. Forecast on construction and infrastructure
Figure 42. Population growth, 2010-2016
2.5.3 Global Forecast – MOIT
2.5.4 Domestic Forecast
Figure 43. Forecast of Cement industry, 2016f - 2020f
3. ENTERPRISE ANALYSIS
Table 16. Typical enterprises in 2015
3.1. Revenue and profit analysis
Figure 44. Net revenue growth, 2015 – 2016
Figure 45. Gross profit growth, 2015 - 2016
3.2 Operation ratios
Figure 46. Receivables turnover of enterprises 2015 - 2016
Figure 47. Inventory turnover of enterprises 2015 – 2016
Figure 48. Asset utilization rate of enterprises 2015 – 2016
3.3. Financial strength
Figure 49. Repayment capacity ratios of enterprises 2015 – 2016
Figure 50. Solvency Ratios of enterprises 2015 - 2016
3.4 Return on investment
Figure 51. Profitability ratio of enterprises, 2015 - 2016
Appendix
4.1 Update cement projects in the period 2011 - 2030
4.2 List of infrastructure projects period 2010 - 2030
4.3 Financial statements
