Vietnam Cement Standard Report Q3/2016
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
1. BUSINESS ENVIRONMENT
1.1 Macroeconomic Situation
Figure 1. GDP Growth, 2010 – 6months/2016
Figure 2. CPI, 2014 – 6/2016
Figure 3. Foreign exchange reserves
Figure 4. VND/USD Exchange rates
Figure 5. State budget deficit
Figure 6. State investment at compared prices by kinds of economic activity
Figure 7. State investment at current prices by kinds of economic activity
Figure 8. FDI in Vietnam, 2010 – 6 months/2016
Figure 9. FDI structure by sectors, 6 months/2016
1.2 Legal Barriers
Table 1. Demand forecasts for 2011 – 2030
Table 2. Concentration level of some parameters
Table 3. Environmental Protection Tax rate applied since Jan 1st, 2012
Table 4. Natural Resources Tax rate applied since Feb 1st, 2014
Table 5. Import Export Tariff applied since 2014
2. INDUSTRY OVERVIEW
2.1 Global Cement Industry Situation
2.1.1 Consumption
Figure 11. Cement consumption in the world
Figure 12. Cement consumption by country, 2014
2.1.2 Production
Figure 13. Global cement production
Figure 14. Production by regions, 2014
Figure 15. Largest cement producers in the world by country, 2014
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 Supply-Demand
Figure 33. Domestic production – consumption, 2010 – 6 months/2016e
Figure 34. Cement supply – demand, 2010 - 2015
Figure 35. Cement Supply and Demand in the Central, 2010 – 6 months/2016e
Figure 36. Cement Supply and Demand in the North, 2010 – 6 months/2016e
Figure 37. Cement Supply and Demand in the South, 2010 – 6 months/2016e
2.2.5 Clinker and Cement Export
Figure 42. Top 6 biggest cement exporter worldwide 2015e
Figure 43. Export of cement and clinker, 2010 – 6 months/2016e
Figure 44. Major export market, 6 months/2015 – 6 months/2016
Figure 45. Cement manufacturers for export
Table 14. Major importers
2.2.6 Price Movement
Figure 47. Cement price, 6/2016
Figure 48. Average cement price, 6/2016
2.3 Industry Planning
2.3.1 Cement Industrial Planning
2.3.2 Construction and Real Estate Industrial Planning
2.4 Industry Driving Force
2.4.1 Cement Industry Driving Force
2.4.2 Output Industry (Real estate,..) Driving Forces
3. ENTERPRISE ANALYSIS
Table 17. Top typical enterprises, 2015
3.1 Revenue and Profit analysis
Figure 53. Business situation of cement enterprises 2015
Figure 54. Net profit and profit growth of enterprises 2015
3.2 Operation Ratios
Figure 55. Receivables turnover of enterprises 2014 – 2015
Figure 56. Inventory turnover of enterprises 2014 – 2015
Figure 57. Asset utilization rate of enterprises 2015
3.3 Financial Strength
Figure 58. Repayment capacity ratios of enterprises 2015
Figure 59. Solvency Ratios of enterprises 2015
3.4 Management Effectiveness
Figure 60. ROA and ROE ratios of companies in the industry 2014 -2015
1. BUSINESS ENVIRONMENT
1.1 Macroeconomic Situation
Figure 1. GDP Growth, 2010 – 6months/2016
Figure 2. CPI, 2014 – 6/2016
Figure 3. Foreign exchange reserves
Figure 4. VND/USD Exchange rates
Figure 5. State budget deficit
Figure 6. State investment at compared prices by kinds of economic activity
Figure 7. State investment at current prices by kinds of economic activity
Figure 8. FDI in Vietnam, 2010 – 6 months/2016
Figure 9. FDI structure by sectors, 6 months/2016
1.2 Legal Barriers
Table 1. Demand forecasts for 2011 – 2030
Table 2. Concentration level of some parameters
Table 3. Environmental Protection Tax rate applied since Jan 1st, 2012
Table 4. Natural Resources Tax rate applied since Feb 1st, 2014
Table 5. Import Export Tariff applied since 2014
2. INDUSTRY OVERVIEW
2.1 Global Cement Industry Situation
2.1.1 Consumption
Figure 11. Cement consumption in the world
Figure 12. Cement consumption by country, 2014
2.1.2 Production
Figure 13. Global cement production
Figure 14. Production by regions, 2014
Figure 15. Largest cement producers in the world by country, 2014
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 Supply-Demand
Figure 33. Domestic production – consumption, 2010 – 6 months/2016e
Figure 34. Cement supply – demand, 2010 - 2015
Figure 35. Cement Supply and Demand in the Central, 2010 – 6 months/2016e
Figure 36. Cement Supply and Demand in the North, 2010 – 6 months/2016e
Figure 37. Cement Supply and Demand in the South, 2010 – 6 months/2016e
2.2.5 Clinker and Cement Export
Figure 42. Top 6 biggest cement exporter worldwide 2015e
Figure 43. Export of cement and clinker, 2010 – 6 months/2016e
Figure 44. Major export market, 6 months/2015 – 6 months/2016
Figure 45. Cement manufacturers for export
Table 14. Major importers
2.2.6 Price Movement
Figure 47. Cement price, 6/2016
Figure 48. Average cement price, 6/2016
2.3 Industry Planning
2.3.1 Cement Industrial Planning
2.3.2 Construction and Real Estate Industrial Planning
2.4 Industry Driving Force
2.4.1 Cement Industry Driving Force
2.4.2 Output Industry (Real estate,..) Driving Forces
3. ENTERPRISE ANALYSIS
Table 17. Top typical enterprises, 2015
3.1 Revenue and Profit analysis
Figure 53. Business situation of cement enterprises 2015
Figure 54. Net profit and profit growth of enterprises 2015
3.2 Operation Ratios
Figure 55. Receivables turnover of enterprises 2014 – 2015
Figure 56. Inventory turnover of enterprises 2014 – 2015
Figure 57. Asset utilization rate of enterprises 2015
3.3 Financial Strength
Figure 58. Repayment capacity ratios of enterprises 2015
Figure 59. Solvency Ratios of enterprises 2015
3.4 Management Effectiveness
Figure 60. ROA and ROE ratios of companies in the industry 2014 -2015
