Vietnam Cement Standard 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
Industry Overview
2.1 Global Cement Industry Situation
2.1.1 Consumption
Figure 8. International cement consumption 2010-2016e
Figure 9. Structure of cement consumption, 2015
2.1.2 Production
Figure 10. International cement production 2010-2016e
Figure 11. Largest cement producers in the world by country, 2016e
Figure 12. Production by regions, 2015e
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 13. Allocation of manufacturing enterprises by region, 2015
Figure 14. Allocation of manufacturing system by region, 2016
Figure 15. Market shares by key players, 3M/2017e
2.2.7 Supply and Demand
Figure 16. Domestic Production - Consumption, 2010 – 2016e
Figure 17. Cement Supply and Demand in the North, 2010 – 3M/2017e
Figure 18. Cement Supply and Demand in the Central, 2010 – 3M/2017e
Figure 19. Cement Supply and Demand in the South, 2010 – 3M/2017e
Table 5. Cement Production, 2010 – 2016e
2.2.10 Clinker and Cement Export
Figure 20. Top 6 largest cement exporting countries 2016e
Figure 21. Export of cement and clinker, 2010- 3M/2017e
Figure 22. Main export market, 3M/2017
Table 6. Cement manufacturers for export 2016
2.2.12 Price Movement
Figure 23. Cement price, 3/2017
Figure 24. Average cement price, 3/2017
2.3. SWOT Analysis
2.4 Industry Planning
2.5 Prospects and Forecasts
2.5.1 Industry Driving Forces
2.5.2 Driving forces for output industry
Figure 25. Forecast on construction and infrastructure
Figure 26. Population growth, 2010-2016
3. ENTERPRISE ANALYSIS
Table 7. Typical enterprises in 2015
3.1. Revenue and profit analysis
Figure 27. Net revenue growth, 2015 – 2016
Figure 28. Gross profit growth, 2015 - 2016
3.3. Financial strength
Figure 29. Repayment capacity ratios of enterprises 2015 – 2016
Figure 30. Solvency Ratios of enterprises 2015 - 2016
3.4 Return on investment
Figure 31. Profitability ratio of enterprises, 2015 - 2016
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
Industry Overview
2.1 Global Cement Industry Situation
2.1.1 Consumption
Figure 8. International cement consumption 2010-2016e
Figure 9. Structure of cement consumption, 2015
2.1.2 Production
Figure 10. International cement production 2010-2016e
Figure 11. Largest cement producers in the world by country, 2016e
Figure 12. Production by regions, 2015e
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 13. Allocation of manufacturing enterprises by region, 2015
Figure 14. Allocation of manufacturing system by region, 2016
Figure 15. Market shares by key players, 3M/2017e
2.2.7 Supply and Demand
Figure 16. Domestic Production - Consumption, 2010 – 2016e
Figure 17. Cement Supply and Demand in the North, 2010 – 3M/2017e
Figure 18. Cement Supply and Demand in the Central, 2010 – 3M/2017e
Figure 19. Cement Supply and Demand in the South, 2010 – 3M/2017e
Table 5. Cement Production, 2010 – 2016e
2.2.10 Clinker and Cement Export
Figure 20. Top 6 largest cement exporting countries 2016e
Figure 21. Export of cement and clinker, 2010- 3M/2017e
Figure 22. Main export market, 3M/2017
Table 6. Cement manufacturers for export 2016
2.2.12 Price Movement
Figure 23. Cement price, 3/2017
Figure 24. Average cement price, 3/2017
2.3. SWOT Analysis
2.4 Industry Planning
2.5 Prospects and Forecasts
2.5.1 Industry Driving Forces
2.5.2 Driving forces for output industry
Figure 25. Forecast on construction and infrastructure
Figure 26. Population growth, 2010-2016
3. ENTERPRISE ANALYSIS
Table 7. Typical enterprises in 2015
3.1. Revenue and profit analysis
Figure 27. Net revenue growth, 2015 – 2016
Figure 28. Gross profit growth, 2015 - 2016
3.3. Financial strength
Figure 29. Repayment capacity ratios of enterprises 2015 – 2016
Figure 30. Solvency Ratios of enterprises 2015 - 2016
3.4 Return on investment
Figure 31. Profitability ratio of enterprises, 2015 - 2016
