Vietnam Plastic resin and Synthetic rubber Comprehensive Report Q3/2016
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.
I. Business environment
1. MACROECONOMIC SITUATION
Figure 1. GDP growth
Figure 2. Plastic resin’s import turnover and its contribution to total turnover
Figure 3. VND/USD exchange rate
Figure 4. CNY/USD exchange rate fluctuation in the first 6 months of 2016
Figure 5. Capitals and shares in plastic companies of Siam Cement Capital co.
2. LEGAL FRAMEWORK
3. TRADE AGREEMENTS
II. Global market
1. DEFINITION AND CLASSIFICATION
Figure 6. Used polymer structure
Figure 7. Thermoplastic production share
Figure 8. Thermoset plastic production share
Figure 9. Synthetic rubber production structure
2. CHAIN VALUE OF THE INDUSTRY
3. PRODUCTION CHAIN
Figure 10. Products gained from naphtha distillation
Figure 11. Products gained from Ethylene distillation
4. INPUT MATERIALS
Figure 12. Monomer input materials structure
Figure 13. Global ethylene supply and demand
Figure 14. Ethylene’s application
Figure 15. Ethylene production capacity and demand by region,2015
Figure 16. Global ethylene prices
Figure 17. Global ethylene trade
Figure 18. Global ethylene exports/ imports structure 2014
Figure 19. Ethylene import structure 2014
Figure 20. Global propylene supply
Figure 21. Propylene usage structure
Figure 22. Global Propylene trade
Figure 23. Propylene price
Figure 24. Global butadiene capability and production
Figure 25. Butadiene production structure by country 2015
Figure 26. Butadiene usage structure 2014
Figure 27. Butadien price fluctuation
Figure 28. Butadiene demand by region 2014
Figure 29. Global benzene demand
Figure 30. Global Benzene usage structure 2014
Figure 31. Europe benzene spot price spread to naphtha
5. PLASTICS RESIN
Figure 32. Global polymer production
Figure 33. Polymer production structure by country 2015
Figure 34. Polymer usage structure by area 2015
Figure 35. Average plastic consumption per capita 2015
Figure 36. Global polymer demand
Figure 37. Polymer demand by region 2015
Figure 38. Polymer consumption structure by product
Figure 39. Global PP consumption by country 2015
Figure 40. PE consumption structure by country 2015
Figure 41. Fluctuation of polymer price
Table 1. Global Polyolefin trade (PP, PE) 2014
Figure 42. Global polymer trade
Figure 43. PVC production and consumption in China
Figure 44. Europe’s polymer production
Figure 45. Polymer production in America
Figure 46. Polyolefin production and consumption in Malaysia
Figure 47. Polypropylene production and consumption in Thailand
6. SYNTHETIC RUBBER
Figure 48. Global rubber production and consumption
Figure 49. Rubber production structure in the world
Figure 50. Global rubber consumption structure
Figure 51. Global synthetic rubber production and consumption
Figure 52. The structure of synthetic rubber consumption by product
Figure 53. Synthetic rubber production and market shares
Figure 54. Synthetic rubber consumption and market shares by region
Figure 55. Global price volatility off natural rubber and synthetic rubber
Figure 56. Global synthetic rubber trade
Figure 57. Top 5 countries with the largest value of synthetic rubber import – export 2015
III. Vietnam’s market
1. PLASTICS RESIN
Table 2. Plastics capacity and water additives
Figure 58. Polymer output in Vietnam
Figure 59. Polypropylene supply and demand in Vietnam
Figure 60. Polymer consumed in Vietnam
Figure 61. Polymer consumption structure by sector in Vietnam
Figure 62. Polymer’s import in Vietnam
Figure 63. Polymer import structure by volume
Figure 64. Polymer import structure by value 2014
Figure 65. Import market structure of polymer by value, H1/2016
Figure 66. Average import price of some primary polymer’s types in Vietnam
Figure 67. Import market structure of polymer by value, H1/2016
Figure 68. Polymer export turnover
Figure 69. Export market structure of Polymer 2015
2. SYNTHETIC RUBBER
Figure 70. Synthetic rubber imports and exports
Figure 71. Export market structure of synthetic rubber 2015
Figure 72. Import market structure of synthetic rubber 2015
3. PRICE-AFFECTED FACTORS
Figure 73. Fluctuations of crude oil and monomer prices
Figure 74. Fluctuations of petroleum and monomer prices
IV. Industrial Risk
V. Prospect and forecast
1. THE WORLD MARKET’S PROSPECT
Figure 75. Global growth of demand for PP and PE 2014 – 2019
Table 3. Production projects of synthetic rubber ongoing and will deploy in Asia 2012 – 2016
2. VIETNAM MARKET’S PROSPECT
Table 4. Some petrochemical refinery projects are and will be deployed in Vietnam 2010 – 2020
Figure 76. Plastic consumption per capita
Figure 77. Export turnover of plastic industry
Table 5. Demand forecast for tires in Vietnam
3. INDUSTRY’S DEVELOPMENT TREND
Figure 78. Bioplastic producing ability over the world
4. INDUSTRY DEVELOPMENT PLANNING
5. SWOT ANALYSIS
VII. Business analysis
1. BUSINESS INTRODUCTION
2. FINANCIAL ANALYSIS
Figure 79. Net Revenue
Figure 80. Gross profit and gross profit margin
Figure 81. Selling expenses
Figure 82. General & administrative expenses
Figure 83. Asset structure
Figure 84. Capital Structure
Figure 85. Liquidity ratio
1. MACROECONOMIC SITUATION
Figure 1. GDP growth
Figure 2. Plastic resin’s import turnover and its contribution to total turnover
Figure 3. VND/USD exchange rate
Figure 4. CNY/USD exchange rate fluctuation in the first 6 months of 2016
Figure 5. Capitals and shares in plastic companies of Siam Cement Capital co.
2. LEGAL FRAMEWORK
3. TRADE AGREEMENTS
II. Global market
1. DEFINITION AND CLASSIFICATION
Figure 6. Used polymer structure
Figure 7. Thermoplastic production share
Figure 8. Thermoset plastic production share
Figure 9. Synthetic rubber production structure
2. CHAIN VALUE OF THE INDUSTRY
3. PRODUCTION CHAIN
Figure 10. Products gained from naphtha distillation
Figure 11. Products gained from Ethylene distillation
4. INPUT MATERIALS
Figure 12. Monomer input materials structure
Figure 13. Global ethylene supply and demand
Figure 14. Ethylene’s application
Figure 15. Ethylene production capacity and demand by region,2015
Figure 16. Global ethylene prices
Figure 17. Global ethylene trade
Figure 18. Global ethylene exports/ imports structure 2014
Figure 19. Ethylene import structure 2014
Figure 20. Global propylene supply
Figure 21. Propylene usage structure
Figure 22. Global Propylene trade
Figure 23. Propylene price
Figure 24. Global butadiene capability and production
Figure 25. Butadiene production structure by country 2015
Figure 26. Butadiene usage structure 2014
Figure 27. Butadien price fluctuation
Figure 28. Butadiene demand by region 2014
Figure 29. Global benzene demand
Figure 30. Global Benzene usage structure 2014
Figure 31. Europe benzene spot price spread to naphtha
5. PLASTICS RESIN
Figure 32. Global polymer production
Figure 33. Polymer production structure by country 2015
Figure 34. Polymer usage structure by area 2015
Figure 35. Average plastic consumption per capita 2015
Figure 36. Global polymer demand
Figure 37. Polymer demand by region 2015
Figure 38. Polymer consumption structure by product
Figure 39. Global PP consumption by country 2015
Figure 40. PE consumption structure by country 2015
Figure 41. Fluctuation of polymer price
Table 1. Global Polyolefin trade (PP, PE) 2014
Figure 42. Global polymer trade
Figure 43. PVC production and consumption in China
Figure 44. Europe’s polymer production
Figure 45. Polymer production in America
Figure 46. Polyolefin production and consumption in Malaysia
Figure 47. Polypropylene production and consumption in Thailand
6. SYNTHETIC RUBBER
Figure 48. Global rubber production and consumption
Figure 49. Rubber production structure in the world
Figure 50. Global rubber consumption structure
Figure 51. Global synthetic rubber production and consumption
Figure 52. The structure of synthetic rubber consumption by product
Figure 53. Synthetic rubber production and market shares
Figure 54. Synthetic rubber consumption and market shares by region
Figure 55. Global price volatility off natural rubber and synthetic rubber
Figure 56. Global synthetic rubber trade
Figure 57. Top 5 countries with the largest value of synthetic rubber import – export 2015
III. Vietnam’s market
1. PLASTICS RESIN
Table 2. Plastics capacity and water additives
Figure 58. Polymer output in Vietnam
Figure 59. Polypropylene supply and demand in Vietnam
Figure 60. Polymer consumed in Vietnam
Figure 61. Polymer consumption structure by sector in Vietnam
Figure 62. Polymer’s import in Vietnam
Figure 63. Polymer import structure by volume
Figure 64. Polymer import structure by value 2014
Figure 65. Import market structure of polymer by value, H1/2016
Figure 66. Average import price of some primary polymer’s types in Vietnam
Figure 67. Import market structure of polymer by value, H1/2016
Figure 68. Polymer export turnover
Figure 69. Export market structure of Polymer 2015
2. SYNTHETIC RUBBER
Figure 70. Synthetic rubber imports and exports
Figure 71. Export market structure of synthetic rubber 2015
Figure 72. Import market structure of synthetic rubber 2015
3. PRICE-AFFECTED FACTORS
Figure 73. Fluctuations of crude oil and monomer prices
Figure 74. Fluctuations of petroleum and monomer prices
IV. Industrial Risk
V. Prospect and forecast
1. THE WORLD MARKET’S PROSPECT
Figure 75. Global growth of demand for PP and PE 2014 – 2019
Table 3. Production projects of synthetic rubber ongoing and will deploy in Asia 2012 – 2016
2. VIETNAM MARKET’S PROSPECT
Table 4. Some petrochemical refinery projects are and will be deployed in Vietnam 2010 – 2020
Figure 76. Plastic consumption per capita
Figure 77. Export turnover of plastic industry
Table 5. Demand forecast for tires in Vietnam
3. INDUSTRY’S DEVELOPMENT TREND
Figure 78. Bioplastic producing ability over the world
4. INDUSTRY DEVELOPMENT PLANNING
5. SWOT ANALYSIS
VII. Business analysis
1. BUSINESS INTRODUCTION
2. FINANCIAL ANALYSIS
Figure 79. Net Revenue
Figure 80. Gross profit and gross profit margin
Figure 81. Selling expenses
Figure 82. General & administrative expenses
Figure 83. Asset structure
Figure 84. Capital Structure
Figure 85. Liquidity ratio
