Vietnam Steel Comprehensive Report Q3/2016
The steel industry is a heavy important industry in industry area in the world and creates the essential products in daily life. Therefore, the changes in the industry will directly impact to the field of industrial production and affect on economic growth.
In 5 years, the production and consumption of steel in the world has tended to increase with the highest level in 2014. However, in 2015, it went down. The reason was that the world’s no.1 steel market was China declined, supply exceeded demand so this country aimed to massively export to foreign markets with cheap price. This caused global market manipulation. The demand reduced and the supply was surplus, steel trade surplus of China is becoming a threat to the countries producing steel in the world.
While the global steel market was slowdown, the Indian steel industry had an annual steady growth, became the No. 3 in the largest steel producers in the world, after China and Japan.
In Vietnam, the domestic steel production volume grew continuously in 2011 – 2015, especially soared in 2015. Meanwhile, the domestic consumption volume grew unevenly in recent years. Besides, the number of enterprises steel production rose sharply in 2011, but reduced in 2012 and continued to increase in 2014.
The Vietnam steel industry is always in the imbalance situation with the excess of crude steel but the lack of other finished products. The machine and technology of domestic steel production was only on average compared to the world. It largely used the machines and technology from Chinese emissions leading to big energy consumption. The efficiency in economy – technology was low and the production cost was high. All of these make difficulty in competing with cheap imported steel from China.
Many trade agreements (TPP, AEC, …)will bring great opportunities for Vietnamese enterprises such as powerfully attract of foreign investment, promote technology transfer, improve corporate governance, increase business efficiency while expanding markets for export industries, including the steel industry. However, the Vietnamese steel companies also face challenges and difficulties in foreign markets while continuously facing commercial lawsuits and being levied the high Anti-Dumping and Anti-Subsidy from Canada, United States, … and fiercely competing on the “home” due to massive importing of steel products from abroad with the lower price than in domestic. Vietnam is in danger of becoming the consumption market of imported steel of giants in the global steel industry, especially China. Although the government has supported several measures such as tax increase for safeguard on steel products from abroad, but if the local firms are not actively investing in technology and innovating in the production, Vietnam’s steel market will soon belong to foreign firms.
In 5 years, the production and consumption of steel in the world has tended to increase with the highest level in 2014. However, in 2015, it went down. The reason was that the world’s no.1 steel market was China declined, supply exceeded demand so this country aimed to massively export to foreign markets with cheap price. This caused global market manipulation. The demand reduced and the supply was surplus, steel trade surplus of China is becoming a threat to the countries producing steel in the world.
While the global steel market was slowdown, the Indian steel industry had an annual steady growth, became the No. 3 in the largest steel producers in the world, after China and Japan.
In Vietnam, the domestic steel production volume grew continuously in 2011 – 2015, especially soared in 2015. Meanwhile, the domestic consumption volume grew unevenly in recent years. Besides, the number of enterprises steel production rose sharply in 2011, but reduced in 2012 and continued to increase in 2014.
The Vietnam steel industry is always in the imbalance situation with the excess of crude steel but the lack of other finished products. The machine and technology of domestic steel production was only on average compared to the world. It largely used the machines and technology from Chinese emissions leading to big energy consumption. The efficiency in economy – technology was low and the production cost was high. All of these make difficulty in competing with cheap imported steel from China.
Many trade agreements (TPP, AEC, …)will bring great opportunities for Vietnamese enterprises such as powerfully attract of foreign investment, promote technology transfer, improve corporate governance, increase business efficiency while expanding markets for export industries, including the steel industry. However, the Vietnamese steel companies also face challenges and difficulties in foreign markets while continuously facing commercial lawsuits and being levied the high Anti-Dumping and Anti-Subsidy from Canada, United States, … and fiercely competing on the “home” due to massive importing of steel products from abroad with the lower price than in domestic. Vietnam is in danger of becoming the consumption market of imported steel of giants in the global steel industry, especially China. Although the government has supported several measures such as tax increase for safeguard on steel products from abroad, but if the local firms are not actively investing in technology and innovating in the production, Vietnam’s steel market will soon belong to foreign firms.
EXECUTIVE SUMMARY
Part I. Business environment
1. MACROECONOMIC SITUATION
Chart 1. GDP growth
Chart 2. The rate of urbanization in Vietnam, 2004-2016 (%)
Chart 3. 10 largest imported items from China, 2015
Chart 4. CNY/VND rate, 2010-2015
Chart 5. VND/USD rate, 2010 - 1/2016
Chart 6. Interest rate
Chart 7. Coal price movement
Chart 8. Average electricity price
Chart 9. Volume of coal production and export of Vietnam
2. LEGAL FRAMEWORK
Chart 10. The route of official safeguard levy
Part II. World market
1. DEFINITION AND CLASSIFICATION
2. MANUFACTURING PROGRESS
Picture 1. Manufacturing progress of steel
Picture 2. Closed process model in production
3. PRODUCTION
Chart 10. Global steel production, 2011 – H1/2016
Chart 11. Steel production by region, 2015
Chart 12. Production in some countries, 2015
Chart 13.Top 10 Largest producing countries, 2015
Chart 14. Steel production by sectors, 2014
4. CONSUMPTION
Chart 15. Global steel consumption, 2011 - 2017E
Chart 16. Steel consumption by regions, 2011 – 2015
Chart 17. Steel consumption proportion by regions, 2015
Chart 18. Steel consumption per capita, 2015
Table 1. The growth rate of steel consumption by sector across areas 2014 – 2016 (%)
Part III. Vietnam’s market
1. HISTORY OF FORMATION AND DEVELOPMENT
2. INDUSTRIAL VALUE CHAIN
Picture 3. Long steel’s value chain
Picture 4. Flat steel’s value chain
Chart 19. Added value in the world’s flat steel industry
3. PRODUCTION
Chart 20. The number of enterprises and labor in steel industry
Chart 21. Number of enterprises in region
Chart 22. Production structure by products H1/2016
Chart 23. Production volume
Table 2. Some steel projects are expected to go into production in 2015
4. CONSUMPTION
Chart 24. Volume of consumed steel
Chart 25. Structure of steel consuming market in H1/2016
Chart 26. Construction steel consumption, 2011 – H1/2016
Chart 27. Market share of construction steel 5T/2016
Chart 28. Galvanised iron sheet consumption
Chart 29. Galvanised iron sheet market shares, 5M/2016
Chart 30. Pipes market share 5M/2016
Chart 31. Consumption of pipes
5. IMPORT - EXPORT
Chart 32. Steel import volume and value, 2011 – H1/2016
Chart 33. Steel import structure, H1/2016
Chart 34. Steel import turnover from China, 2010 – 5/2016
Chart 35. Export volume and turnover of iron and steel
Chart 36. Structure of export market of iron and steel 5M/2016
6. PRICE MOVEMENT
Chart 37. The domestic steel construction price by region
Part IV. Prospects and forecasts
1. INDUSTRIAL DEVELOPMENT PLANNING
Part V. Enterprise analysis
1. ENTERPRISE INTRODUCTION
2. FINANCIAL ANALYSIS
Chart 38. Net revenue and growth
Chart 39. Gross profit and gross profit margin
Chart 40. Selling expenses and Selling expenses/Net value
Chart 41. G&A expenses and G&A expenses/Net revenue
Chart 42. Assets structure
Chart 43. Financial costs
Chart 44. Capital structure
Part VI. Appendix of financial statements
Part I. Business environment
1. MACROECONOMIC SITUATION
Chart 1. GDP growth
Chart 2. The rate of urbanization in Vietnam, 2004-2016 (%)
Chart 3. 10 largest imported items from China, 2015
Chart 4. CNY/VND rate, 2010-2015
Chart 5. VND/USD rate, 2010 - 1/2016
Chart 6. Interest rate
Chart 7. Coal price movement
Chart 8. Average electricity price
Chart 9. Volume of coal production and export of Vietnam
2. LEGAL FRAMEWORK
Chart 10. The route of official safeguard levy
Part II. World market
1. DEFINITION AND CLASSIFICATION
2. MANUFACTURING PROGRESS
Picture 1. Manufacturing progress of steel
Picture 2. Closed process model in production
3. PRODUCTION
Chart 10. Global steel production, 2011 – H1/2016
Chart 11. Steel production by region, 2015
Chart 12. Production in some countries, 2015
Chart 13.Top 10 Largest producing countries, 2015
Chart 14. Steel production by sectors, 2014
4. CONSUMPTION
Chart 15. Global steel consumption, 2011 - 2017E
Chart 16. Steel consumption by regions, 2011 – 2015
Chart 17. Steel consumption proportion by regions, 2015
Chart 18. Steel consumption per capita, 2015
Table 1. The growth rate of steel consumption by sector across areas 2014 – 2016 (%)
Part III. Vietnam’s market
1. HISTORY OF FORMATION AND DEVELOPMENT
2. INDUSTRIAL VALUE CHAIN
Picture 3. Long steel’s value chain
Picture 4. Flat steel’s value chain
Chart 19. Added value in the world’s flat steel industry
3. PRODUCTION
Chart 20. The number of enterprises and labor in steel industry
Chart 21. Number of enterprises in region
Chart 22. Production structure by products H1/2016
Chart 23. Production volume
Table 2. Some steel projects are expected to go into production in 2015
4. CONSUMPTION
Chart 24. Volume of consumed steel
Chart 25. Structure of steel consuming market in H1/2016
Chart 26. Construction steel consumption, 2011 – H1/2016
Chart 27. Market share of construction steel 5T/2016
Chart 28. Galvanised iron sheet consumption
Chart 29. Galvanised iron sheet market shares, 5M/2016
Chart 30. Pipes market share 5M/2016
Chart 31. Consumption of pipes
5. IMPORT - EXPORT
Chart 32. Steel import volume and value, 2011 – H1/2016
Chart 33. Steel import structure, H1/2016
Chart 34. Steel import turnover from China, 2010 – 5/2016
Chart 35. Export volume and turnover of iron and steel
Chart 36. Structure of export market of iron and steel 5M/2016
6. PRICE MOVEMENT
Chart 37. The domestic steel construction price by region
Part IV. Prospects and forecasts
1. INDUSTRIAL DEVELOPMENT PLANNING
Part V. Enterprise analysis
1. ENTERPRISE INTRODUCTION
2. FINANCIAL ANALYSIS
Chart 38. Net revenue and growth
Chart 39. Gross profit and gross profit margin
Chart 40. Selling expenses and Selling expenses/Net value
Chart 41. G&A expenses and G&A expenses/Net revenue
Chart 42. Assets structure
Chart 43. Financial costs
Chart 44. Capital structure
Part VI. Appendix of financial statements
