Vietnam Plastic resin and Synthetic rubber Comprehensive Report Q2/2016
Plastic resin and synthetic rubber are important input materials for many industries as it provides intermediate goods and added values for other industries, especially plastics and automobile industry. The inputs for Plastic resin and synthetic rubber (so called polymer, plastic) are products from oil industry, specifically naphtha from oil refineries or propane, ethane from processing factories, processing gas from crude oil and gas cracking.
In 2014, the total Plastic resin production was about 311 million tons with the average growth rate of 4.5% from 2010-2014. China is the biggest plastics materials producer in the world (26%), followed by Europe (20%) while Vietnam only takes up to 0.3% of production
In Vietnam, the refining and petrochemistry just started to develop and Dung Quat Refinery is the only operating one in the whole country. In addition, there are 2 joint- venture PVC factories (Vinachem- TPC Vina (Thailand) and Petrovietnam-Petronas), 1 DOP factory (Petrovietnam, Vinachem and LG), which is the support product for using PVC commonly used in building & construction. Total domestic production only met about 20% of domestic demand; hence the rest needs to be imported. Vietnam is one of the world’s largest plastic bag producers thanks to competitive advantage in low labor costs. In Vietnamese plastic industry’s structure, plastic packaging contributes the biggest proportion (36%), also it currently is sub-sector having the most noticeable export turnover (about 60%). The export turnover of plastic bags continuously rises with average pace of around 20%/year during recent years. By now, the majority of import tax of raw materials is 0%. Vietnam is one of few countries in Southeast Asia don’t levy import tax on polymers. Other nations also doing the same are Cambodia, Myanmar and Singapore, though these countries don’t hold such a large plastic industry as Vietnam. According to Vietnam Industry Research and Consultant (VIRAC), Korea continues to be the primary import market of Vietnam with the value is worth 125 million USD, decreasing slightly yoy (130 million USD, making the share of imports fall (from 32% to 30%). Coming second is Japan with import value stands at 85 million USD, seizing 20.7% of total import value. Other markets take up the insignificant proportion.
The in-depth research “Vietnam Plastic Resin and Synthetic Rubber industry report Q2/2016” carried out by Vietnam Industry Research and Consultant (VIRAC) illustrates the overall scenario of the Plastic Resin and Synthetic Rubber industry in Vietnam in order to provide an insight for a better understanding regarding the market. The report details the economic situation in general and the industry in particular with updated date and statistic until 2016, the movement of the price as well as the forecast for the upcoming future, covering all domains, including thermoplastics, elastomers, thermoset plastics. Analysis of big players in the industry is also elaborated by providing detailed financial analysis, applied technology, market share, etc herein to help companies position and define the competiveness in the market. For example, some typical producers are Hung Nghiep Formosa Company Limited (Taiwan), Petrolimex International Trading Joint Stock Company, Da Nang Chemicals and Plastic Joint Stock Company, Vietnam Plastic Corporation, An Loc Phat International JSC, Hiep Phat Hung Services Trading Company Limited, Opec Plastics Joint Stock Company (Opec Plastics), Da Nang Chemicals and Plastic Joint Stock Company, Nguyen Phat Trading Production Company Limited, Tin Phu Trading and Services Company Limited.
In 2014, the total Plastic resin production was about 311 million tons with the average growth rate of 4.5% from 2010-2014. China is the biggest plastics materials producer in the world (26%), followed by Europe (20%) while Vietnam only takes up to 0.3% of production
In Vietnam, the refining and petrochemistry just started to develop and Dung Quat Refinery is the only operating one in the whole country. In addition, there are 2 joint- venture PVC factories (Vinachem- TPC Vina (Thailand) and Petrovietnam-Petronas), 1 DOP factory (Petrovietnam, Vinachem and LG), which is the support product for using PVC commonly used in building & construction. Total domestic production only met about 20% of domestic demand; hence the rest needs to be imported. Vietnam is one of the world’s largest plastic bag producers thanks to competitive advantage in low labor costs. In Vietnamese plastic industry’s structure, plastic packaging contributes the biggest proportion (36%), also it currently is sub-sector having the most noticeable export turnover (about 60%). The export turnover of plastic bags continuously rises with average pace of around 20%/year during recent years. By now, the majority of import tax of raw materials is 0%. Vietnam is one of few countries in Southeast Asia don’t levy import tax on polymers. Other nations also doing the same are Cambodia, Myanmar and Singapore, though these countries don’t hold such a large plastic industry as Vietnam. According to Vietnam Industry Research and Consultant (VIRAC), Korea continues to be the primary import market of Vietnam with the value is worth 125 million USD, decreasing slightly yoy (130 million USD, making the share of imports fall (from 32% to 30%). Coming second is Japan with import value stands at 85 million USD, seizing 20.7% of total import value. Other markets take up the insignificant proportion.
The in-depth research “Vietnam Plastic Resin and Synthetic Rubber industry report Q2/2016” carried out by Vietnam Industry Research and Consultant (VIRAC) illustrates the overall scenario of the Plastic Resin and Synthetic Rubber industry in Vietnam in order to provide an insight for a better understanding regarding the market. The report details the economic situation in general and the industry in particular with updated date and statistic until 2016, the movement of the price as well as the forecast for the upcoming future, covering all domains, including thermoplastics, elastomers, thermoset plastics. Analysis of big players in the industry is also elaborated by providing detailed financial analysis, applied technology, market share, etc herein to help companies position and define the competiveness in the market. For example, some typical producers are Hung Nghiep Formosa Company Limited (Taiwan), Petrolimex International Trading Joint Stock Company, Da Nang Chemicals and Plastic Joint Stock Company, Vietnam Plastic Corporation, An Loc Phat International JSC, Hiep Phat Hung Services Trading Company Limited, Opec Plastics Joint Stock Company (Opec Plastics), Da Nang Chemicals and Plastic Joint Stock Company, Nguyen Phat Trading Production Company Limited, Tin Phu Trading and Services Company Limited.
Abbreviation
Summary
I. Business environment
1. MACROECONOMICS SITUATION
Figure of Average GDP per capita, 2001-2014
Figure of Plastic resins’ import turnover and its contribution to total turnover
Figure of Exchange rates VND/USD, 2010-T1/2016
Figure of Inflation of Vietnam, 2006-2015 (%)
Figure of Capitals and shares in plastic companies of Siam Cement Capital co.
2. LEGAL FRAMEWORK
3. TRADE AGREEMENT
II. Global Market
1. DEFINITION AND CLASSIFICATION
Figure of Used polymer structure
Figure of Thermoplastic production shares
Figure of Thermoset plastic production share
Figure of Synthetic rubber production structure
2. CHAIN VALUE OF THE INDUSTRY
3. PRODUCTION CHAIN
Figure of Products gained from naphtha distillation
Figure of Products gained from Ethylene distillation
4. INPUT MATERIALS
Figure of Monomer input materials structure
Figure of Global ethylene supply and demand
Figure of Ethylene’s application
Figure of Ethylene production capacity and demand by region,2015
Figure of Global Ethylene price
Figure of Global ethylene trade
Figure of Global ethylene exports/ imports structure 2014
Figure of Ethylene import structure 2014
Figure of Global propylene supply
Figure of Propylene usage structure
Figure of Global Propylene trade
Figure of Propylene price
Figure of Global butadiene capability and production
Figure of Butadiene production structure by country 2015
Figure of Butadiene usage structure 2014
Figure of Butadien price
Figure of Butadiene demand by region 2014
Figure of Global benzene demand
Figure of Global Benzene usage structure 2014
5. PLASTIC RESIN
Figure of Global polymer production
Figure of Polymer production structure by country 2015
Figure of Polymer usage structure by area 2015
Figure of Average plastic consumption per capita2015
Figure of Global polymer demand
Figure of Polymer demand by region 2015
Figure of Polymer consumption structure by product
Figure of Global PP consumption by country 2015
Figure of PE consumption structure by country 2015
Figure of Fluctuation of polymer price
Figure of Global Polyolefin trade (PP, PE)
Figure of Global polymer trade
Figure of PVC production and consumption in China
Figure of Europe polymer production
Figure of Polymer production in America
Figure of Polyolefin production and consumption in Malaysia
Figure of Polypropylene production and consumption in Thailand
6. SYNTHETIC RUBBER
Figure of Global rubber production and consumption
Figure of Rubber production structure in the world
Figure of Global rubber consumption structure
Figure of Global synthetic rubber production and consumption
Figure of The structure of synthetic rubber consumption byproduct
Synthetic rubber production and market shares
Figure of Synthetic rubber consumption and market shares by region
Figure of Global price volatility of natural rubber and synthetic rubber
Figure of Global synthetic rubber trade
Figure of Top 5 countries with the largest value of synthetic rubber import – export 2015
III. Vietnam’s market
1. PLASTIC RESIN
Table of Plastics capacity and water additives
Figure of Polymer output in Vietnam
Figure of Polypropylene (PP) supply and demand in Vietnam
Figure of Polymer quantity consumed in Vietnam
Figure of Polymer consumption structure by sector in Vietnam
Figure of Polymer outputs and import turnover in Vietnam
Figure of Polymer import structure by volume
Figure of Polymer import structure by value 2014
Figure of Average import price of some primary polymer’s types in Vietnam
Figure of Import market structure of Polymer by outputs 2014
Figure of Import market structure of Polymer by values 2014
Figure of Polymer export turnover
Figure of Export market structure of Polymer 2015
2. SYNTHETIC RUBBER 63-64
Figure of Synthetic rubber imports and exports
Figure of Export market structure of synthetic rubber 2015
Figure of Import market structure of synthetic rubber 2015
3. PRICE-AFFECTED FACTORS
Figure of Fluctuations of crude oil and monomer prices
Figure of Fluctuations of petroleum and monomer prices
IV. Industrial risks
V. Prospect and forecast
1. THE WORLD’S MARKET PROSPECT
Figure of Global growth of demand for PP and PE 2014 – 2019
Table of Production projects of synthetic rubber ongoing and will deploy in Asia 2012 – 2016
2. VIETNAM MARKET’S PROSPECT
Table of Some petrochemical refinery projects are and will be deployed in Vietnam 2010 - 2020
Figure of Plastic consumption per capita
Figure of Export turnover of plastic industry
Table of Demand forecast for tires in Vietnam
3. INDUSTRY DEVELOPMENT PLAN
Figure of Bioplastic producing ability over the world
4. INDUSTRY DEVELOPMENT PLANNING
5. SWOT ANALYSIS
VII. Business analysis
1. BUSINESS INTRODUCTION
2. FINANCIAL ANALYSIS
Figure of Revenue and gross profit 2014
Figure of Selling and G&A expenses 2014
Figure of Asset structure
Figure of Structure of capital source
Figure of Working capital turnover
Figure of Current ratio and quick ratio (times)
Figure of Revenue and gross profit 2014
Figure of Selling expenses and G&A expenses
Figure of Asset structure 2014
Figure of Capital source’s structure 2014
Table of Indicators of profit margins 2014
Summary
I. Business environment
1. MACROECONOMICS SITUATION
Figure of Average GDP per capita, 2001-2014
Figure of Plastic resins’ import turnover and its contribution to total turnover
Figure of Exchange rates VND/USD, 2010-T1/2016
Figure of Inflation of Vietnam, 2006-2015 (%)
Figure of Capitals and shares in plastic companies of Siam Cement Capital co.
2. LEGAL FRAMEWORK
3. TRADE AGREEMENT
II. Global Market
1. DEFINITION AND CLASSIFICATION
Figure of Used polymer structure
Figure of Thermoplastic production shares
Figure of Thermoset plastic production share
Figure of Synthetic rubber production structure
2. CHAIN VALUE OF THE INDUSTRY
3. PRODUCTION CHAIN
Figure of Products gained from naphtha distillation
Figure of Products gained from Ethylene distillation
4. INPUT MATERIALS
Figure of Monomer input materials structure
Figure of Global ethylene supply and demand
Figure of Ethylene’s application
Figure of Ethylene production capacity and demand by region,2015
Figure of Global Ethylene price
Figure of Global ethylene trade
Figure of Global ethylene exports/ imports structure 2014
Figure of Ethylene import structure 2014
Figure of Global propylene supply
Figure of Propylene usage structure
Figure of Global Propylene trade
Figure of Propylene price
Figure of Global butadiene capability and production
Figure of Butadiene production structure by country 2015
Figure of Butadiene usage structure 2014
Figure of Butadien price
Figure of Butadiene demand by region 2014
Figure of Global benzene demand
Figure of Global Benzene usage structure 2014
5. PLASTIC RESIN
Figure of Global polymer production
Figure of Polymer production structure by country 2015
Figure of Polymer usage structure by area 2015
Figure of Average plastic consumption per capita2015
Figure of Global polymer demand
Figure of Polymer demand by region 2015
Figure of Polymer consumption structure by product
Figure of Global PP consumption by country 2015
Figure of PE consumption structure by country 2015
Figure of Fluctuation of polymer price
Figure of Global Polyolefin trade (PP, PE)
Figure of Global polymer trade
Figure of PVC production and consumption in China
Figure of Europe polymer production
Figure of Polymer production in America
Figure of Polyolefin production and consumption in Malaysia
Figure of Polypropylene production and consumption in Thailand
6. SYNTHETIC RUBBER
Figure of Global rubber production and consumption
Figure of Rubber production structure in the world
Figure of Global rubber consumption structure
Figure of Global synthetic rubber production and consumption
Figure of The structure of synthetic rubber consumption byproduct
Synthetic rubber production and market shares
Figure of Synthetic rubber consumption and market shares by region
Figure of Global price volatility of natural rubber and synthetic rubber
Figure of Global synthetic rubber trade
Figure of Top 5 countries with the largest value of synthetic rubber import – export 2015
III. Vietnam’s market
1. PLASTIC RESIN
Table of Plastics capacity and water additives
Figure of Polymer output in Vietnam
Figure of Polypropylene (PP) supply and demand in Vietnam
Figure of Polymer quantity consumed in Vietnam
Figure of Polymer consumption structure by sector in Vietnam
Figure of Polymer outputs and import turnover in Vietnam
Figure of Polymer import structure by volume
Figure of Polymer import structure by value 2014
Figure of Average import price of some primary polymer’s types in Vietnam
Figure of Import market structure of Polymer by outputs 2014
Figure of Import market structure of Polymer by values 2014
Figure of Polymer export turnover
Figure of Export market structure of Polymer 2015
2. SYNTHETIC RUBBER 63-64
Figure of Synthetic rubber imports and exports
Figure of Export market structure of synthetic rubber 2015
Figure of Import market structure of synthetic rubber 2015
3. PRICE-AFFECTED FACTORS
Figure of Fluctuations of crude oil and monomer prices
Figure of Fluctuations of petroleum and monomer prices
IV. Industrial risks
V. Prospect and forecast
1. THE WORLD’S MARKET PROSPECT
Figure of Global growth of demand for PP and PE 2014 – 2019
Table of Production projects of synthetic rubber ongoing and will deploy in Asia 2012 – 2016
2. VIETNAM MARKET’S PROSPECT
Table of Some petrochemical refinery projects are and will be deployed in Vietnam 2010 - 2020
Figure of Plastic consumption per capita
Figure of Export turnover of plastic industry
Table of Demand forecast for tires in Vietnam
3. INDUSTRY DEVELOPMENT PLAN
Figure of Bioplastic producing ability over the world
4. INDUSTRY DEVELOPMENT PLANNING
5. SWOT ANALYSIS
VII. Business analysis
1. BUSINESS INTRODUCTION
2. FINANCIAL ANALYSIS
Figure of Revenue and gross profit 2014
Figure of Selling and G&A expenses 2014
Figure of Asset structure
Figure of Structure of capital source
Figure of Working capital turnover
Figure of Current ratio and quick ratio (times)
Figure of Revenue and gross profit 2014
Figure of Selling expenses and G&A expenses
Figure of Asset structure 2014
Figure of Capital source’s structure 2014
Table of Indicators of profit margins 2014
