VIETNAM CHEMICAL INDUSTRY REPORT...

VIETNAM CHEMICAL INDUSTRY REPORT Q2/2018

TABLE OF CONTENTS

Content Page Content Page

Abbreviations 4 2.5. Current status of the regional chemical industry 29

Summary 5 2.6. Some typical chemicals producing countries 31

1. Business environment 7 2.7. Key players in the industry 38

1.1. Macroeconomic Indicator 7 3. Vietnam market 42

1.2. Legal framework 12 3.1. Formation and development history 42

2. World market 16 3.2. Definition and classification 44

2.1. Raw materials 16 3.3. Input materials 47

2.2. Production 20 3.4. Production and consumption 51

2.3. Consumption 24 3.5. Import Export 54

2.4. Import Export 27 4. Major sector groups 56

2

TABLE OF CONTENTS

Content Page Content Page

4.1. Fertilizers and nitrogen compounds 56 6.1. Development planning of the chemical industry 154

4.2. Synthetic rubber and raw plastic resins 756.2. Development planning of the paint and printing

ink industry

161

4.3. Detergents 92 6.3. Development planning of the plastics industry 163

4.4. Paint and printing ink 106 6.4. Outlooks of world chemical industry 166

4.5. Plant protection products 116 6.5. Outlooks of Vietnam chemical industry 171

4.6. Basic chemicals 129 7. Business Analysis 174

4.7. Synthetic fiber 139 7.1. Enterprise introduction 174

5. Industry risk 149 7.2. Financial analysis 185

6. Outlooks and forecasts 154 8. Appendix of financial statements 193

3

Content

ABBREVIATIONS

ACFTA ASEAN – China Free Trade Agreement FP Fire protection

ADB Asian Development Bank PVN Vietnam Oil and Gas Group

AFTA ASEAN Free Trade Area STK Century Synthetic Fiber Corporation

AKFTA ASEAN – Korea Free Trade Agreement GDVC General Department of Vietnam Customs

PPPs Plant Protection Products GSO General Statistics Office of Vietnam

CPI Consumer Price Index FA Fixed Assets

CP NVL Raw Materials Expenses HCM Ho Chi Minh City

JSC Joint Stock Company TA Total Assets

FDI Foreign Direct Investment VFC Vietnam Fumigation Joint Stock Company

GDP Gross Domestic Product Vinachem Vietnam National Chemical Corporation

IIP Index of Industrial Production VPIA Vietnam Paint & Printing Ink Association

LAS Linear Alkylbenzen Sulfonate WTO World Trade Organization

LAS Supephotphat and Lam Thao chemicals

4

Summary

• Chemical industry has 8 sub-product categories including:

• Fertilizers and nitrogen compounds:

• Synthetic rubber and raw plastic resins:

• Detergents:

5

• Paint and printing ink

• Plant protection products:

• Basic chemicals:Content is intentionally removed for demo purpose

Summary

• Synthetic fiber:

• Technical machinery system of the chemical industry is largely

medium-sized compared to that of some countries in the region

• Almost all enterprises in the industry are small and medium-sized

and are facing up to fierce competition with multinational

corporations

• Vietnam chemical industry is still in strong development

6

Content is intentionally removed for demo purpose

TABLE OF CONTENTS

1. Business environment

1.1 Macroeconomic situation

1.2 Legal framework

7

9

GDP growth rate by quarter, 2015-Q1/2018

Sources: VIRAC, GSO

GDP by current price and GDP per capita, 2013-2017

Sources: VIRAC, GSO




Source: VIRAC, GSO

• Consumer price index (CPI) in the first quarter of 2018 had a lot of changes.



9

Monthly CPI fluctuations 2014 – 3/2018




Source: VIRAC,GDVC

Million USD

billion USD

Source: VIRAC,GDVC

10

Import and export of commodity, 2006 – Q1/2018

Vietnam's export of crude oil and coal, 2011 –

Q1/2018e


Vietnam’s export and import value in Q1/2018 was 108.43 billion USD

• The VND / USD exchange rate was quite stable and still supported by a plentiful supply of foreign currencies

Source: VIRAC, SBV Source: VIRAC, SBV



11

VND/USD exchange rate, 2013-3/2018 VND/CNY exchange rate, 2/2016 – 3/2018


TABLE OF CONTENTS



1.2 Legal framework

12


1.2 Legal framework – 1.2.1 General rules

Groups of policy on the chemical industry

13



1.2 Legal framework – 1.2.1 General rules

Impact evaluation of laws, circulars and decrees on the business activities in the sector.

14



1.2 Legal framework – 1.2.2 Impact of Free Trade Agreements

Impact evaluation of Trade Agreements on the Chemical industry

Vietnam's average tariffs under major trade agreements

Tariffs of Vietnam and Korea after AKFTA application

15


TABLE OF CONTENTS

2. World market

2.1 Raw materials

2.2 Production

2.3 Consumption

2.4 Import Export

2.5 Current status of the regional chemical industry

2.6 Some typical chemicals producing countries

2.7 Key players in the industry

16

• Major input materials for the chemical industry include petroleum, natural

gas/shale gas and coal,

2. World market

2.1 Raw materials

Million barrels/day

Source: VIRAC, EIA

Source: VIRAC, OPEC

17

Natural gas production volume by type worldwide, 2010 – 2040e

World crude oil supply and demand, 2006-2017e


2. World market

2.1 Raw materials

Million tons

Source: VIRAC, OPEC

17

Price movement of thermal coal, 1/2013-3/2018Global coal production and consumption, 2011-2016

USD/ton

Source: VIRAC, Indexmundi

Source: VIRAC, BP Statistical Review


Today, coal is the main source of energy globally, providing one fourth of all primary energy

• World crude oil price in 2017 :

• Natural gas price:

18

2. World market

2.1 Raw materials


Sources: VIRAC, Indexmundi

USD/barrel

Price movements of crude oil and natural gas in the world, 2014 – 3/2018

TABLE OF CONTENTS

20

2. World market

2.1 Raw materials

2.2 Production

2.3 Consumption

2.4 Import Export




Source: VIRAC, BASF

2. World market

2.2 Production

billion

USD

Source: VIRAC, BASF

21

World production value of chemicals, 2010 - 2016e Structure of chemical production by region, 2015e


Source: VIRAC, Statista

2. World market

2.2 Production

In 2016, production volume of chemicals in all regions was estimated to

increase,


22

Production structure of chemical products worldwide, 2015

Chemical production growth by region, 2014 – 2020e



2. World market

2.2 Production

23

Forecast for annual production growth in chemical industry by field, 2016 - 2021e


TABLE OF CONTENTS

24

2. World market

2.1 Raw materials

2.2 Production

2.3 Consumption

2.4 Import Export




00)

00)

00)

25%

17%

13%

13%

Source: VIRAC, Statista Source: VIRAC, Statista

• In 2015, the whole world witnessed a decline in the global chemical industry;

2. World market

2.3 Consumption

billion USD

25

Global Chemical Industry's Revenue, 2007 - 2016eSales growth in chemical industry by region,

2015 – 2018F




2. World market

2.3 Consumption

billion Euro

billion

Euro

26

Top 10 most chemicals consuming countries, 2016

Revenue from chemical consumption by region, 2016


TABLE OF CONTENTS

27

2. World market

2.1 Raw materials

2.2 Production

2.3 Consumption

2.4 Import Export




• Because chemicals and chemical products play an important role in global commodity trade.


2. World market

2.4 Import Export

billion USD

billion USD

Source: VIRAC, World’s top exports

28

World chemicals exports, 2008 - 2017eWorld’s top chemical exporting countries, 2017


TABLE OF CONTENTS

29

2. World market

2.1 Raw materials

2.2 Production

2.3 Consumption

2.4 Import Export




30

2. World market



• Asia market has recently accounted for 45% of the world’s chemical production value and 61% of the world’s chemical consumption

TABLE OF CONTENTS

31

2. World market

2.1 Raw materials

2.2 Production

2.3 Consumption

2.4 Import Export




• China is the largest chemical producer in the world and also in the top 10 largest chemicals exporting countries.

2. World market

2.6 Some typical chemicals producing countries – 2.6.1 China

32


2. World market


Thousand

tons

Source: VIRAC, ICIS

33

PTA net import and export in China, 2014 - 6M/2016


• In 2016, China's chemical volume was adjusted to decline as the economy growth was on the downward trend.

2. World market


34


• The United States is the largest chemical producer in the world and is rapidly developing.

2. World market

2.6 Some typical chemicals producing countries – 2.6.2 The United States

35



2. World market

2.6 Some typical chemicals producing countries – 2.6.2 The United States

billion

USD

36

Revenue of American chemicals industry, 2008 – 2016e

Top largest US chemical companies by revenue, 2017e


Source: VIRAC, German Chemicals Industry Association

2. World market

2.6 Some typical chemicals producing countries – 2.6.3 Germany

Production volume of some chemicals in Germany, 2000 - 2015 (ton)

Source: VIRAC, Statista, Cefic

billion

Euro

37

Revenue from chemical production in Germany, 2008 - 2015Content is intentionally removed for demo purpose

TABLE OF CONTENTS

38

2. World market

2.1 Raw materials

2.2 Production

2.3 Consumption

2.4 Import Export




2016 continues to be a year of an exciting M & A activity, following the

development of 2015 with 650 M & A deals

Source: VIRAC, Deloitte, Statista

Billion USD

39

M&A activity in the global chemical industry, 2009 - 2017


2. World market


2. World market


40


billion USD


Leading countries in mergers and acquisitions, Q1/2017

Top 10 largest chemical companies in the world by revenue, 2017e


• BASF, Germany:

• Bayer, Germany:

• Dow Chemical, the United States:

41

2. World market



3. Vietnam market

3.1 Formation and development history

3.2 Definition and classification

3.3 Input materials

3.4 Production and consumption

3.5 Import Export

TABLE OF CONTENTS

42

Definition

Formation and development history of Vietnam chemical industry

3. Vietnam market


43


3. Vietnam market



3.3 Input materials


3.5 Import Export

TABLE OF CONTENTS

44

Source: VIRAC, GSO

Product group Input materials Main product Customer

3. Vietnam market


45


Sources: VIRAC, GSO

• In 2016, fertilizer and Nitrogen Compounds represent the largest

share of the chemical industry,

46

Fields 2011 2012 2013 2014 2015 2016

Revenue in the fields of chemical industry in Vietnam, 2011 – 2016e

Sources: VIRAC, GSO

Unit: trillion VND

Industry structure by revenue, 2016

3. Vietnam market



3. Vietnam market



3.3 Input materials


3.5 Import Export

TABLE OF CONTENTS

47

Main input material sources for chemicals production are coal,

petroleum, oil and gas and apatite.

Coal

Source: VIRAC, GSO

3. Vietnam market

3.3 Input materials

Million tons

Source: VIRAC, Vinacomin

Million tons

48

Coal production and export in Vietnam, 2011 – Q1/2018e

Forecast for coal supply and demand, 2015 - 2030


Source: VIRAC, Vietnam National Chemical GroupSource: VIRAC, Vietnam National Chemical Group

Thousand tonsThousand tons

49

3. Vietnam market

3.3 Input materials

Ore demand for fertilizer forecast, 2015 - 2030Explored ore reserves in 2014


Apatite ore reserves are plentiful and the mining time is up to 25 years.

Petrochemical refining projects being implemented in VietnamPetroleum

Project StateCompletin

g year

Capacity

(barrel/day)

Source: VIRACOil and gas

3. Vietnam market

3.3 Input materials

50


3. Vietnam market



3.3 Input materials


3.5 Import Export

TABLE OF CONTENTS

51

Source: VIRAC,GSO

Source: VIRAC, GSO

Enterprise Person

3. Vietnam market


billion VND billion VND

Source: VIRAC,GSO

52

Number of enterprises and labor in chemical industry,2011 - 2016

Revenue and profit of chemical industry, 2010 - 2016 Total investment capital and fixed assets of chemical industry, 2011 - 2016


Source: VIRAC, GSO

Source: VIRAC, GSO

3. Vietnam market


trillion VND

trillion VND

53

Consumption value of chemical industry, 2011 – Q1/2018e

Production value of chemical industry, 2007 – 2018e


3. Vietnam market



3.3 Input materials


3.5 Import Export

TABLE OF CONTENTS

54

Source: VIRAC, GDVC

3. Vietnam market

3.5 Import Export

Source: VIRAC, GDVC

Source: VIRAC, GDVC

Million USD

55

Export market structure of chemicals and chemical

products, Q1/2018e

Import market structure of chemicals and chemical

products, Q1/2018e


Imports and exports of chemicals and chemical products,

Q1/2018e

4. Major sector groups

4.1 Fertilizers and nitrogen compounds

4.2 Synthetic rubber and raw plastic resins

4.3 Detergents

4.4 Paint and printing ink

4.5 Plant protection products

4.6 Basic chemicals

4.7 Synthetic fiber

TABLE OF CONTENTS

56


4.1 Fertilizers and nitrogen compounds – 4.1.1 Definition and classification

58

Structure of major fertilizers 2014

Source: VIRAC, GSO


Production process of nitrogenous fertilizer

NPK production

process

Production process of fused phosphate fertilizer

Source: VIRAC


4.1 Fertilizers and nitrogen compounds – 4.1.2 Basic production process

58


Materials


4.1 Fertilizers and nitrogen compounds – 4.1.3 Input materials

59


Company's name Production technology

Production technology

Source: VIRAC


4.1 Fertilizers and nitrogen compounds – 4.1.4 Production technology

60


Source: VIRAC, GSO

Production and consumption of domestic producers, Q1/2018e


4.1 Fertilizers and nitrogen compounds – 4.1.5 Production

62

Revenue of the fertilizer industry, 2010-2016

Domestic fertilizer production, 2010-Q1/2018e

Million tons

Source: VIRAC, GSOSource: VIRAC, GSO, MARD, GDVC


Source: VIRAC

Group No EnterpriseDesign capacity(Thousand tons/year)

Production capacity của Key players in the industry, 3/2018



62


Domestic fertilizer supply was mainly from large companies from Vinachem and PVN, which is particularly:

63




2,0

0,9

Fertilizer consumption tends to decrease over the years, which is due to Million tons

64

Sources: VIRAC, GSO, MARD

Fertilizer demand and consumption , 2012 – 3M/2018e


4.1 Fertilizers and nitrogen compounds – 4.1.6 Consumption


PetroVietnam Fertilizer and Chemicals CorporationPetroVietnam Camau Fertilizer Joint Stock

Company

Source: VIRAC


4.1 Fertilizers and nitrogen compounds – 4.1.7 Competitive Analysis in the Fertilizer Industry

66


Sources: VIRAC, GSOSources: VIRAC, GSO

67

Market share by revenue, 2016

billion VND

Revenue of fertilizer industry, 2010 - 2016


4.1 Fertilizers and nitrogen compounds – 4.1.7 Competitive Analysis in the Fertilizer Industry


Sources: VIRAC, GDVC, MARD

Thousand tons

Fertilizer import, 2012 – 2013M/2018ee

68

Fertilizer imports have fluctuated continuously over the years as the impact

of the domestic demand - supply and import and export tax policies as well

as major import markets.

Sources: VIRAC, MARD, GDVC

Structure of fertilizer import by type, 3M/2018e


4.1 Fertilizers and nitrogen compounds – 4.1.8 Import Export


Source: VIRAC, MARD, GDVC

Fertilizer imports from China have fallen sharply in the fertilizer import structure

Fertilizer import structure by country, 3M/2017 – 3M/2018



69



Million tonsFertilizer exports, 2012 – 3M/2018e



70


Exports have decreased continuously over the years since 2012, due to the competition with Chinese fertilizer in Korea and Cambodia. However, in 2017,

the output of fertilizer export has grown strongly with the export volume grew strongly in ASEAN countries such as Cambodia, Malaysia ...

Fertilizer exports by country, 3M/2018e


Fertilizer inventories tend to increase over the years

Increase in inventories is due to:

72

Source: VIRAC, GSO

Million tonsFertilizer inventory, 2010 - 2017e


4.1 Fertilizers and nitrogen compounds – 4.1.9 Inventories


Ure and DAP fluctuate the first 3 months of 2018

VND

73

Price movement, 2014 – 3/2018

Source: VIRAC, Trade Promotion Website - MOIT


4.1 Fertilizers and nitrogen compounds – 4.1.10 Price movement


72

Price forecasts


4.1 Fertilizers and nitrogen compounds – 4.1.10 Price movement



4.1 Fertilizers and nitrogen compounds – 4.1.11 Distribution method

Source: VIRAC

74


Currently, the market is distributed in three forms, including:

Method of transport: The logistics system is weak

Payment methods

75


4.1 Fertilizers and nitrogen compounds – 4.1.12 Payment and transport method


TABLE OF CONTENTS




4.3 Detergents



4.6 Basic chemicals

4.7 Synthetic fiber

76

17%

Source: VIRAC, ICIS


4.2 Synthetic rubber and raw plastic resins – 4.2.1 Definition and classification

77

Polymer structure used, 2015


Source: VIRAC, Rubbernews


4.2 Synthetic rubber and raw plastic resins – 4.2.1 Definition and classification

78

Structure of synthetic rubber production in the world, 2015



4.2 Synthetic rubber and raw plastic resins – 4.2.2 Basic production process



4.2 Synthetic rubber and raw plastic resins – 4.2.3 Input materials

81

Material structure for Monomers production, 2016

Source: VIRAC, IHS


• Ethylene prices :

• Propylene prices :

• Benzene prices :


4.2 Synthetic rubber and raw plastic resins – 4.2.3 Input materials

Source: VIRAC, Platts

USD/ton

81


Fluctuations in global benzene prices, 5/2017 – 5/2018Worldwide propylene prices, 5/2017 – 4/2018


Global ethylene prices, 5/2017 – 4/2018

USD/ton

USD/ton


Production of raw plastic resins

Production of synthetic rubber


4.2 Synthetic rubber and raw plastic resins – 4.2.4 Production technology

82


Sources: VIRAC Sources: VIRAC, GSO

83

Production of raw plastic resins in some provinces, Q1/2018


4.2 Synthetic rubber and raw plastic resins – 4.2.5 Production


Polypropylene supply and demand in Vietnam, 2010-

Q1/2018e

Production of raw plastic resins in the country, Q1/2018e

No Company name Sales (tons/year) Market share

85

PP production output and consumption of Binh Son Refining and Petrochemical,

2013 – 6M/2017

Sources: VIRAC, HCD Prospectus


4.2 Synthetic rubber and raw plastic resins – 4.2.6 Consumption

LLDPE, LDPE, HDPE, PP distribution from enterprises in 2014-2015 in the

Northern market


Polymer consumption in Vietnam, 2010 – Q1/2018e

85

Market share of plastic additives, 2017


4.2 Synthetic rubber and raw plastic resins – 4.2.6 Consumption

Source: VIRAC, GSO, MOIT

Source: VIRAC, GSO, MOIT


Import of plastic raw materials in Vietnam, 2010 – Q1/2018


4.2 Synthetic rubber and raw plastic resins – 4.2.7 Import Export

85

Source: VIRAC, GDVC

Content is intentionally removed for demo purposeImport market of plastic raw materials by volume, Q1/2018

Source: VIRAC, GDVC

86

Sources: VIRAC, GSO

Proportion of top importers of plastic raw materials, 9M/2017

Import structure of plastic raw materials by type, Q1/2018




Sources: VIRAC, GSO



85

Source: VIRAC, GDVC, UN Comtrade

Import - export of synthetic rubber, 2011 – Q1/2018e


Import market structure of synthetic rubber, 2017e



85

Source: VIRAC, GDVC

Source: VIRAC, GDVC

Export market structure of synthetic rubber, 2017e


89

Source: VIRAC, Plastics New Europe

USD/ton


4.2 Synthetic rubber and raw plastic resins – 4.2.8 Price movement

Polymer price fluctuations, 5/2015 – 4/2018


90

Source: VIRAC, IRSG

USD/ton



Fluctuations of natural rubber and synthetic rubber prices, Q1/2012 – Q4/2017




93


TABLE OF CONTENTS




4.3 Detergents



4.6 Basic chemicals

4.7 Synthetic fiber

94

• Detergents

Source: VIRAC, GSO


4.3 Detergents – 4.3.1 Definition and classification

95

Number of enterprises and labor in the industry, 2011 - 2016


Source: VIRAC


4.3 Detergents – 4.3.2 Production process

96



4.3 Detergents – 4.3.3 Raw materials

97



4.3 Detergents – 4.3.4 Production technology

98


Source: VIRAC, MOIT, GSO


4.3 Detergents – 4.3.5 Production

Product group Enterprise 2012 2013 2014 2015 2016 2017 Q1/2018e

Source: VIRAC, GSO

Thousand

tons

99

Production volume of detergents, 2012 – Q1/2018e

Production volume of detergents, 2010 – Q1/2018e


Source: VIRAC

No EnterpriseProduction capacity

(tons/year)Brand

• Washing powder is the main product accounting for more

than 90% of annual detergent production.


4.3 Detergents – 4.3.5 Production

100


Source: VIRAC, GSO


4.3 Detergents – 4.3.6 Consumption

billion VND

101

Consumption value of detergents, 2010 – Q1/2018e


Company

Total

investment

(Million USD)

Unilever'

s capital

contribut

ionLocation Business area

Source: VIRAC


4.3 Detergents – 4.3.7 Competitive Analysis (P&G and Unilever)

102

Companies in Unilever Vietnam


Brands of Unilever in Vietnam



103




104


Comparison between P&G and Unilever



105


Source: VIRAC, GDVC


4.3 Detergents – 4.3.8 Import Export

Source: VIRAC, GDVC

106

Million USDImport value of detergents, Q1/2018e

Import market structure of detergents, Q1/2018e


• Currently, most of the companies in the detergent sector distribute the

product through two main channels, the modern channel (MT) through the

supermarket system and the traditional channel (GT) through agents.,


4.3 Detergents – 4.3.9 Distribution method

107


MỤC LỤC




4.3 Detergents



4.6 Basic chemicals

4.7 Synthetic fiber

108

Definition and classification

Classification


4.4 Paint and printing ink – 4.4.1 Definition and classification

109



4.4 Paint and printing ink – 4.4.2 Production process

110

Production process of paint and printing ink

Source: VIRAC


Raw materials for paint production

Main materials for printing ink production include pigments, adhesives, solvents and additives.


4.4 Paint and printing ink – 4.4.3 Raw materials

111


Source: VIRAC, GSO

Company name Production capacity Brand

Source: VIRAC

Vietnam paint industry has experienced an average growth rate of 20%

in recent years.


4.4 Paint and printing ink – 4.4.4 Production

112

Number of enterprises and labor in the paint and printing ink

industry, 2011 - 2016


Source: VIRAC, GSO


4.4 Paint and printing ink – 4.4.4 Production

Thousand tons

Ton

Source: VIRAC, GSO

113

Production volume of paint, 2013 – Q1/2018e

Production volume of printing ink, 2010 – Q1/2018e


Source: VIRAC, VPIA


4.4 Paint and printing ink – 4.4.5 Consumption

billion

VND

Source: VIRAC, GSO

116

Paint consumption structure by field, 2015

Consumption value of paint and printing ink, 2010 – Q1/2018e



4.4 Paint and printing ink – 4.4.6 Competitive analysis in the industry

117


Vietnam Paint market in 2017


4.4 Paint and printing ink – 4.4.6 Competitive analysis in the industry

117


• Domestic paint production capacity has met most of the demand, but the

amount of ink shortage is quite large,

Source: VIRAC, UN comtrade


4.4 Paint and printing ink – 4.4.7 Import Export

Source: VIRAC, UN Comtrade, ITC

Million USD

118

Source: VIRAC, UN comtrade

Export market structure of paints and printing ink, 2017e

Import and export of paints and printing ink of

Vietnam, 2011 – 2017e

Import market structure of paints and printing ink, 2017e


TABLE OF CONTENTS




4.3 Detergents



4.6 Basic chemicals

4.7 Synthetic fiber

119

Plant protection products (PPPs)

Classification:

Effect of PPPs


4.5 Plant protection products – 4.5.1 Definition and classification

120


Source: VIRAC


4.5 Plant protection products – 4.5.2 Production process

Source: VIRAC

121


Input materials


4.5 Plant protection products – 4.5.3 Raw materials

No Product group Main material

122



4.5 Plant protection products – 4.5.4 Production

Source: VIRAC, GSO

Thousand

tons

Source: VIRAC, GSO

123

Number of enterprises and labor in the industry,

2011 - 2016

Production volume of pesticides, 2013 – Q1/2018e


Source: VIRAC, GSO

Source: VIRAC, Agromonitor


4.5 Plant protection products – 4.5.4 Production

124

Structure of pesticide consumption, 2016e

Structure of pesticide production, Q1/2018e


Source: VIRAC


4.5 Plant protection products – 4.5.5 Consumption

Source: VIRAC, GSO

125

billion VNDConsumption value of pesticides, 2012 – Q1/2018eMarket share of pesticides in Vietnam, 2016e


Source: VIRAC


4.5 Plant protection products – 4.5.5 Consumption

Source: VIRAC

126

Consumption structure of pesticides by product group, Q1/2018eConsumption of pesticides by plant group, 2016


The level of investment in marketing and distribution plays a decisive role in creating

competitive advantage:

No Company name Branch Tier 1 agent


4.5 Plant protection products – 4.5.6 Competitive analysis

Distribution channel size of some companies in the industry

127


Research and development play an important role in creating competitive advantage

Competitive situation in the industry


4.5 Plant protection products – 4.5.6 Competitive analysis

128



4.5 Plant protection products – 4.5.7 Import Export

Source: VIRAC, ITC

129

Million USD

Source: VIRAC, GDVC, ITC

Import and export of pesticides and raw materials,

2011 - 2017e

Export structure of export of pesticides by volume, 2017



4.5 Plant protection products – 4.5.7 Import Export

Source: VIRAC, GDVC

130

Import market of pesticides and raw materials,

Q1/2018e


Million USD

Source: VIRAC, GDVC, ITC

Export value of pesticides in Vietnam to some countries,

2011 - 2016


4.5 Plant protection products – 4.5.8 Payment and shipping method

131


TABLE OF CONTENTS




4.3 Detergents



4.6 Basic chemicals

4.7 Synthetic fiber

132

133

Basic chemicals are divided into two main branches which are inorganic and organic.


4.6 Basic chemicals – 4.6.1 Definition and classification


Source: VIRAC


4.6 Basic chemicals – 4.6.2 Production process

Production process of caustic soda - chlorine

134


Input materials

Sulfur price fluctuations, 9/2014 – 2/2017


4.6 Basic chemicals – 4.6.3 Raw materials

135

Source: VIRAC, ICIS


Source: VIRAC

Fluctuation of raw material prices


4.6 Basic chemicals – 4.6.3 Raw materials

136

Average electricity price, 7/2007 – 3/2018



4.6 Basic chemicals – 4.6.4 Production technology

137


Product Manufacturer

Production

capacity

(tons/year)

Market

share

Source: VIRAC, GSO


4.6 Basic chemicals – 4.6.5 Production

138

Number of enterprises and labor in the industry, 2011 - 2016


Production capacity of basic chemicals of some enterprises, 2017

Source: VIRAC collects

Source: VIRAC, GSO


4.6 Basic chemicals – 4.6.5 Production

Thousand

tons

139

Production of basic chemicals, 2013 – Q1/2018e


billion VND


4.6 Basic chemicals – 4.6.6 Consumption

Source: VIRAC, GSO

140

Comsumption value of basic chemicals, 2011 – Q1/2018e

Content is intentionally removed for demo purposeImpact of chlorine products

Impact of soda products

Million USD


4.6 Basic chemicals – 4.6.7 Import Export

Source: VIRAC, GDVC

142

Source: VIRAC, GDVC

Source: VIRAC, GDVC

Import-export turnover of basic chemicals, 2011 –

Q1/2018e

Import market structure of basic chemicals, Q1/2018eExport market structure of basic chemicals, Q1/2018e


Imports and exports of basic chemicals

TABLE OF CONTENTS




4.3 Detergents



4.6 Basic chemicals

4.7 Synthetic fiber

143

• Synthetic fiber


4.7 Synthetic fiber – 4.7.1 Definition and classification

144


Source: VIRAC, STK

Filament fiber production


4.7 Synthetic fiber – 4.7.2 Production process

145



4.7 Synthetic fiber – 4.7.3 Raw materials

146

PTA, MEG, PET Chip and PSF price fluctuation in Asia, 3/2016 – 3/2018e


Source: VIRAC, TextileBeacon

Production Technology of STK

Production technology of PVTEX DINH VU

No MachineryMachine

brandManufacture Origin

Source: VIRAC, STK


4.7 Synthetic fiber – 4.7.4 Production technology

147

Some types of fiber production machinery



4.7 Synthetic fiber – 4.7.5 Production

Company name Capacity(tons/year) Product Product segment

Ton

Source: VIRAC, GSO Source: VIRAC, STK

Source: VIRAC, STK

148

Production capacity of some companies in the Vietnam textile industry

Market share by actual production capacity, 2014Production output of Synthetic fiber, 2011 – Q1/2018e


Source: VIRAC, GSO


4.7 Synthetic fiber – 4.7.6 Consumption

Tonbillion VND

149

Volume and consumption value of Synthetic fiber,

2011 – Q1/2018e



4.7 Synthetic fiber – 4.7.7 Import Export

Source: VIRAC, STK

Source: VIRAC, GDVC

Million

USD

150

Market share by export value, 2015eImport-export turnover of Synthetic fiber, 2009 – 2017e


Source: VIRAC, UN Comtrade Source: VIRAC, UN Comtrade


4.7 Synthetic fiber – 4.7.7 Import Export

151

Export market structure of Synthetic fiber, 2017eImport market structure of Synthetic fiber, 2017e


Sale and payment methods


4.7 Synthetic fiber – 4.7.8 Payment and shipping method

152


Part V. Industry risk

TABLE OF CONTENTS

153

Risk of policy and law

Risk of exchange rate and interest rate.

5. Industry risk

154


Risk of environmental pollution

Risk of input material price

Risks in the process of transporting, storing and preserving chemical products and risks of labor safety due to the dangerous and harmful nature of these

products..

5. Industry risk

155


Risk of economic integration

Economic risk

Competitive risk

Financial risk

Risk of supply and demand

5. Industry risk

156


Risk of technology

Industry risk

5. Industry risk

157


Part VI. Outlooks and forecasts

1. Development planning for the chemical industry

2. Development planning for the printing and ink industry

3. Development planning for the plastics industry

4. Outlooks of world chemical industry

5. Outlooks of Vietnam chemical industry

TABLE OF CONTENTS

158

155

According to Decision No. 1621 / QD-TTg of the Prime Minister promulgated on September 18, 2013 approving the development plan of chemical industry

of Vietnam to 2020, by 2030.

6. Outlooks and forecasts

6.1 Development planning for the chemical industry


156




157




MOIT issued Decision No. 8989 / QD-BCT dated 25/08/2015 approving the restructuring plan of Vietnam chemical industry, 10 areas of restructuring in the

chemical industry include fertilizer, petrochemicals, plant protection chemicals, basic chemicals, chemical electricity, industrial gas, rubber, detergents, paint

- printing ink.



162


No Project Location

Investment information

Capacity

(Thousand

tons/year)

Investment

capital(Million

USD)

Investment

time

Source: VIRAC



163


No Project Location


Capacity(Thousand tons/year)

Investment

capital(Mill

ion USD)

Investmen

t time

Source: VIRAC



164


TABLE OF CONTENTS







165

TT Project Location Unit CapacityInvestment

time


6.2 Development planning for the printing and ink industry

166


TABLE OF CONTENTS







167

168

According to Decision No. 1621 / QD-TTg of the Prime Minister promulgated on September 18, 2013 approving the development plan of chemical industry

of Vietnam to 2020, by 2030,


6.3 Development planning for the plastics industry


165

Sources: VIRAC, MOIT

No. Projects Location


Capacity(1.000

tons/year)

Investment capital

(million USD)Investment time

Refining and petrochemical projects, 2011 - 2020


6.3 Development planning for the plastics industry


TABLE OF CONTENTS







169

European chemical industry: Low oil prices help reduce difficulties

Asian chemical industry: Supply exceeds demand and grows slowly


6.4 Outlooks of world chemical industry

170


Middle East Chemical Industry: Increase in competition pressure

Latin American chemical industry: Recovering from economic growth



171


Increasing competition requires dynamic response

Cooperative relations with customers

Frequently meet the ever-changing legal regulations



172


Data processing is continuously updated in real time

Prepare for changes in distribution channels



173


TABLE OF CONTENTS







174

• For fertilizer group:

• For petrochemical group (synthetic rubber and raw plastic resins)

• For detergent group:

• For paint and printing ink group


6.5 Outlooks of Vietnam chemical industry

175


• Pesticides:

• Basic chemicals:

• Synthetic fiber:

176


6.5 Outlooks of Vietnam chemical industry

Part VII. Business Analysis

1. Enterprise introduction

2. Business Analysis

TABLE OF CONTENTS

177

Company name Address

Net revenue

2017(billion

VND)

Total assets

(billion VND)

Charter

capital

(billion

VND)

CountryCustomer

segmentationBusiness area


7.1 Enterprise introduction

178




PetroVietnam Camau Fertilizer Joint Stock Company

179


PetroVietnam Fertilizer and Chemicals Corporation



180




Lam Thao Fertilizers & Chemicals Joint Stock Company

181


Binh Dien Fertilizer Joint Stock Company



182




Southern Basic Chemicals JSC

183


LIX Detergent Joint Stock Company



184




Duc Giang Detergent and Detergent Joint Stock Company

185




Saigon Plant Protection Joint Stock Company

186


Dry Cell And Storage Battery Joint Stock Company



187


Part VII. Business Analysis

1. Enterprise introduction


TABLE OF CONTENTS

188

-


7.2 Financial analysis

billion VND

189

Source: VIRAC

Net revenue, 2016 - 2017


-



billion VND

189

Source: VIRAC

Gross profit margin, 2016 - 2017


Cost of sales



billion VND

190

Source: VIRAC

Cost of sales, 2016 - 2017


Enterprise cost management



billion VND

191

Source: VIRAC

Enterprise cost management, 2016 - 2017




193

Source: VIRAC

Source: VIRAC

Solvency, 2016 - 2017

Profit Ratio, 206 - 2017




194

Source: VIRAC

Payment ratio, 2016 - 2017




195

Source: VIRAC

Inventory turnover, 2016 - 2017Content is intentionally removed for demo purpose

Part VIII. Appendix of financial statements

TABLE OF CONTENTS

196

194

APPENDIX

PETROVIETNAM FERTILIZER AND CHEMICALS CORPORATION (DPM)

INCOME STATEMENTUnit: VND

BALANCE SHEETUnit: VND

CASH FLOW STATEMENTUnit: VND

Indicator 2016 2017

ASSETS

A. CURRENT ASSETS

I. Cash and cash equivalents

II. Short-term financial investments

III. Short-term receivables

IV. Inventories

V. OTHER CURRENT ASSETS

B - LONG TERM ASSETS

II. Fixed assets

III. Real estate investment

V. Long-term financial investments

TOTAL ASSETS

C - LIABILITIES

I. Current liabilities

II. Long-term liabilities

D - OWNER'S EQUITY

I. Investment capital of owners

II. Surplus equity

III. Retained earnings

IV. Minority interest

TOTAL LIABILITIES AND OWNER’S EQUITY

Indicator2016 2017

1. Net Revenue from Sales and services provided

2. Cost of goods sold

3. Gross Profit from sales and services provided

4. Financing income

5. Financial expenses

6. Sales expenses

7. Administrative expenses

8. Net profits from operating activities

9. Other profit

10. Profit / loss from joint venture companies

11. Gross profit before tax

12. Profit After Enterprise Income Tax

13. Profit after tax of shareholders of holding

company

Indicator 2016 2017

I. Net Cash Flow From Operating activities

II. Net Cash Flow From Investing activities

III. Net Cash Flow From Financial activities

Net Cash Flow during the fiscal period

Opening cash and cash equivalents

Impact of exchange rate changes in foreign currency

Closing cash and cash equivalents


195

APPENDIX

Binh Dien Fertilizer JSC (BFC) (BFC)




Indicator 2016 2017

ASSETS

A. CURRENT ASSETS




IV. Inventories



II. Fixed assets



TOTAL ASSETS

C - LIABILITIES



D - OWNER'S EQUITY


II. Surplus equity




Indicator2016 2017




4. Financing income


6. Sales expenses



9. Other profit





company

Indicator 2016 2017









196

APPENDIX

PetroVietNam CaMau Fertilizer Joint Stock Company (DCM)




Indicator 2016 2017

ASSETS

A. CURRENT ASSETS




IV. Inventories



II. Fixed assets



TOTAL ASSETS

C - LIABILITIES



D - OWNER'S EQUITY


II. Surplus equity




Indicator2016 2017




4. Financing income


6. Sales expenses



9. Other profit





company

Indicator 2016 2017









197

APPENDIX

Lamthao Fertilizers and Chemicals Joint Stock Company (LAS)




Indicator 2016 2017

ASSETS

A. CURRENT ASSETS




IV. Inventories



II. Fixed assets



TOTAL ASSETS

C - LIABILITIES



D - OWNER'S EQUITY


II. Surplus equity




Indicator2016 2017




4. Financing income


6. Sales expenses



9. Other profit





company

Indicator 2016 2017









198

APPENDIX

DUC GIANG DETERGENTS AND CHEMICALS JOINT STOCK COMPANY (DGC)




Indicator 2016 2017

ASSETS

A. CURRENT ASSETS




IV. Inventories



II. Fixed assets



TOTAL ASSETS

C - LIABILITIES



D - OWNER'S EQUITY


II. Surplus equity



TOTAL LIABILITIES AND OWNER’S

EQUITY

Indicator2016 2017




4. Financing income


6. Sales expenses



9. Other profit





company

Indicator 2016 2017




Lưu chuyển tiền thuần trong kỳ





199

APPENDIX

Dry Cell And Storage Battery Joint Stock Company (PAC)




Indicator 2016 2017

ASSETS

A. CURRENT ASSETS




IV. Inventories



II. Fixed assets



TOTAL ASSETS

C - LIABILITIES



D - OWNER'S EQUITY


II. Surplus equity



TOTAL LIABILITIES AND OWNER’S

EQUITY

Indicator2016 2017




4. Financing income


6. Sales expenses



9. Other profit





company

Indicator 2016 2017









200

APPENDIX

VIETNAM FUMIGATION JOINT STOCK COMPANY (VFG)




Indicator 2016 2017

ASSETS

A. CURRENT ASSETS




IV. Inventories



II. Fixed assets



TOTAL ASSETS

C - LIABILITIES



D - OWNER'S EQUITY


II. Surplus equity




Indicator2016 2017




4. Financing income


6. Sales expenses



9. Other profit





company

Indicator 2016 2017









201

APPENDIX

LIX DETERGENTS JOINT STOCK COMPANY (LIX)




Indicator 2016 2017

ASSETS

A. CURRENT ASSETS




IV. Inventories



II. Fixed assets



TOTAL ASSETS

C - LIABILITIES



D - OWNER'S EQUITY


II. Surplus equity




Indicator2016 2017




4. Financing income


6. Sales expenses



9. Other profit





company

Indicator 2016 2017









202

APPENDIX

SOUTHERN BASIC CHEMICALS JSC (CSV)




Indicator 2016 2017

ASSETS

A. CURRENT ASSETS




IV. Inventories



II. Fixed assets



TOTAL ASSETS

C - LIABILITIES



D - OWNER'S EQUITY


II. Surplus equity




Indicator2016 2017




4. Financing income


6. Sales expenses



9. Other profit




13. Profit after tax of shareholders of holding company

Indicator 2016 2017









203

APPENDIX

SAIGON PLANT PROTECTION JOINT STOCK COMPANY (SPC)




Indicator 2016 2017

ASSETS

A. CURRENT ASSETS




IV. Inventories



II. Fixed assets



TOTAL ASSETS

C - LIABILITIES



D - OWNER'S EQUITY


II. Surplus equity




Indicator 2016 2017




4. Financing income


6. Sales expenses



9. Other profit




13. Profit after tax of shareholders of holding company

Indicator 2016 2017









REPORT DISCLAIMER

207

Report disclaimer

This document has been prepared in good faith on the basis of information available at the date of publication without any independent verification. VIRAC has

produced this report for private circulation to professional clients only. All information and statistical data herein have been obtained from sources we believe to

be reliable and made to ensure the accuracy of the contents of the pages of the report at the time of preparation. Such information has not been independently

verified and VIRAC makes no representation or warranty, whether express or implied, of any kind with respect to the document and its contents, information and

materials. The content found in this report is proprietary to VIRAC and is provided solely for your personal and non-commercial use. You agree that you will not

use this report for any purpose that is unlawful and that you will not reproduce the report or redistribute it outside your organization, or place it on a website for

public access without the express written permission of VIRAC.

SHOULD YOU NEED ANY ASSISTANCE, PLEASE CONTACT US:

VIETNAM INDUSTRY RESEARCH AND CONSULTANCY (VIRAC JSC.,)

6Mh Floor, Anh Minh Building, 36 Hoang Cau, O Cho Dua, Dong Da, Hanoi, Vietnam

Website: http://virac.com.vn/

Email: [email protected] | Tel: +84 463289520

http://virac.com.vn/

mailto:[email protected]

Thank you !

VIETNAM CHEMICAL INDUSTRY REPORT...

Documents

Transcript of VIETNAM CHEMICAL INDUSTRY REPORT...