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PLASTICS INDUSTRY REPORT Q2/2018

TABLE OF CONTENTS

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Part Page Part Page

Abbreviation 3 1. Industry development history 25

Executive summary 4 2. M&A activities in the industry 27

I. Business environment 6 3. Production 30

1. Macroeconomic situation 6 4. Consumption 38

2. Legal framework 11 5. Import export 42

II. World market 15 IV. Industry outlook and planning 47

1. Definition and classification 15 1. Outlook 47

2. Production value chain 17 2. Industry development planning 50

3. Production 19 V. Enterprise analysis 53

4. Consumption 22 1. Enterprise introduction 53

III. Vietnam market 25 2. Financial analysis 63

TABLE OF ABBREVIATIONS

TABLE OF ABBREVIATIONS

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Abbreviation Full name Abbreviation Full name

AEC ASEAN Economic Community GDVC General Department of Vietnam Customs

SE Selling expense GSO General Statistic Office of Vietnam

G&A expense General & Administrative expense Co. Ltd Limited Liability

EVFTA Vietnam-EU Free Trade Agreement NCA Non-current asset

FTA Free Trade Agreements PE Polyethylene

GDP Gross Domestic Products PP Polypropylene

BOD Board of Director PS Polystyrene

HIPS High Impact Polystyrene PVC Poly Vinyl Chloride

HPE High Density Polyethylene VPA Vietnam Plastic Association

LLDPE Low Density Polyethylene VTICVietnam Industry and Trade Information

Centre

SBV State Bank of Vietnam

EXECUTIVE SUMMARY

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• The plastics industry is one of the industries growing stably in the world over

the past 50 years.

• Currently, packaging plastics is the biggest segment with 26% of the total

output.

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• Vietnam’s plastics industry has a large number of enterprises

with nearly 4,000 ones and 200,000 of labor.

• Plastic production output in 2016 was estimated at nearly 6.63

million tonnes.

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Executive summary

• Currently, Vietnam’s plastic industry has to import materials from the

outside, with an import volume of 80%.

• The industry revenue has risen rapidly in the period of 2013 – 2016, with

a CAGR of 21.1% and an estimated consumption of 15.61 billion USD in

2017.

• The industry is facing trade deficit as import turnover exceeding greatly

export volume.

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TABLE OF CONTENTS

Part I. Business environment

1. Macroeconomic situation

2. Legal framework

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Part I. Business environment

1. Macroeconomic situation

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Source: VIRAC, GDVC

Source: VIRAC, GSO

USD/ person

USD billion

Plastic material imports and contribution to total turnover,

2010 – Q1/2018

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GDP growth rate by quarter, 2015 - Q1/2018

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Source: VIRAC, SBV

Part I. Business environment

1. Macroeconomic situation

Source: VIRAC, SBV

VND/USD exchange rate, 2013 – 3/2018

VND/CNY exchange rate, 1/2016-3/2018

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Source: VIRAC, EVN

Source: VIRAC, Indexmundi

Part I. Business environment

1. Macroeconomic situation

USD/barrel

VND/kWH

USD/MMBTU

Average price of crude oil and natural gas in the world, 2014 – 3/2018

Average electricity price, 2007 – 2017

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Source: VIRAC, GSO

Part I. Business environment

1. Macroeconomic situation

%

Source: VIRAC, GSO

Monthly CPI fluctuation, 2014 – 3/2018

Average interest rate, 2012 – Q1/2018e

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TABLE OF CONTENTS

Part I. Business environment

1. Macroeconomic situation

2. Legal framework

12

Part I. Business environment

2. Legal framework

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Part I. Business environment

2. Legal framework

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Part I. Business environment

2. Legal framework

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Part II. World market

1. Definition and classification

2. Production value chain

3. Production

4. Consumption

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TABLE OF CONTENTS

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Definition

Classification

Part II. World market

1. Definition and classification

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Part II. World market

1. Definition and classification

2. Production value chain

3. Production

4. Consumption

TABLE OF CONTENTS

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Source: VIRAC

Part II. World market

2. Production value chain

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Part II. World market

1. Definition and classification

2. Production value chain

3. Production

4. Consumption

TABLE OF CONTENTS

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Source: VIRAC, Plastic Europe

Source: VIRAC, Plastic Europe

Part II. World market

3. Production

Million tons

Million tons

Plastic production in some countries, 2015

World plastic production, 2011 - 2016

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Source: VIRAC, PAGEV

Part II. World market

3. Production

Plastic production in some regions, 2015

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Part II. World market

1. Definition and classification

2. Production value chain

3. Production

4. Consumption

TABLE OF CONTENTS

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Source: VIRAC, PLASTICS

Part II. World market

4. Consumption

Million tons

Source: VIRAC, PLASTICSSource: VIRAC, PLASTICS

Kg/person

Plastic consumption by region, 2015

World plastic consumption, 2011 - 2015e

Plastic consumption per capita by region/country, 2015

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Source: VIRAC, Statista

Source: VIRAC, Plastic Europe

Part II. World market

4. Consumption

CAGR in plastic consumption in some regions,

2015 – 2019f

Global plastic consumption by application, 2016

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TABLE OF CONTENTS

Part III. Vietnam market

1. Industry development history

2. M&A activities in the industry

3. Production

4. Consumption

5. Import export

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Part III. Vietnam market

1. Industry development history

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TABLE OF CONTENTS

Part III. Vietnam market

1. Industry development history

2. M&A activities in the industry

3. Production

4. Consumption

5. Import export

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Part III. Vietnam market

2. M&A activities in the industry

SCG's ownership in Vietnam plastic enterprises, 2018

Source: VIRAC

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Part III. Vietnam market

2. M&A activities in the industry

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TABLE OF CONTENTS

Part III. Vietnam market

1. Industry development history

2. M&A activities in the industry

3. Production

4. Consumption

5. Import export

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Source: VIRAC, GSO

Part III. Vietnam market

3. Production

Number of plastic enterprises by region,

2010 - 2016

Number of enterprises and labor in the industry, 2010 - 2016

Source: VIRAC, GSO

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Part III. Vietnam market

3. Production

Million

tons

Source: VIRAC, GSO

Source: VIRAC, VPA

Plastic production, 2009 – 2018e

Plastic production structure, Q1/2018

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Polymer

typeApplication

Part III. Vietnam market

3. Production

Thousand

tons

Production of plastic packaging, 2009 – Q1/2018

Source: VIRAC

Application by type of polymer

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Source: VIRAC, GSO

Part III. Vietnam market

3. Production

Thousand

tons

Production output of household plastics, 2009 – Q1/2018e

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Part III. Vietnam market

3. Production

Thousand

tons

Source: VIRAC, GSO

Production output of construction plastics, 2009 – Q1/2018e

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Part III. Vietnam market

3. Production

Source: VIRAC tổng hợp

Ton

Design capacity of plastic pipes of some large enterprises in the industry, 2017

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Source: VIRAC, GSO

Part III. Vietnam market

3. Production

Thousand

tons

Production of technical plastics and other plastics,

2009 – Q1/2018e

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Industrial production value of plastic

and rubber components, 2011 -

2016VND

billion

Source: VIRAC, SIDEC

Some large enterprises producing engineering plastics

Company Revenue 2016

(VND billion)

Main products Partner

Source: VIRAC, SIDEC

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TABLE OF CONTENTS

Part III. Vietnam market

1. Industry development history

2. M&A activities in the industry

3. Production

4. Consumption

5. Import export

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Part III. Vietnam market

4. Consumption

USD

billion

Plastic consumption, 2013 – Q1/2018e

Source: VIRAC, VPA

Source: VIRAC, VPA

Kg/person/year

Consumption of plastic per capita in Vietnam, 1989 - 2016

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Part III. Vietnam market

4. Consumption

Source: VIRAC, VPA

Source: VIRAC, VPA

Scale of plastic packaging business listed

Scale of plastic packaging market in Vietnam, 2012 – 2016f

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Part III. Vietnam market

4. Consumption

Source: VIRAC, VPA

Number of shops and dealers of plastic pipe manufacturers, 2017

Source: VIRAC, VPA

Plastic pipe consumption market share in Vietnam, 2016

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TABLE OF CONTENTS

Part III. Vietnam market

1. Industry development history

2. M&A activities in the industry

3. Production

4. Consumption

5. Import export

43

Source: VIRAC, GDVC

Part III. Vietnam market

5. Import export – 5.1 Import

USD million

Import market structure of plastic products, 3M/2018

Imported plastic products, 2010 – Q1/2018

Source: VIRAC, GDVC

Source: VIRAC, GDVC

USD

million

Import of plastic products by month, 2017 - 2018

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Source: VIRAC, GDVC

Part III. Vietnam market

5. Import export – 5.2 Export

USD million

Export turnover of plastic products, 2010 – Q1/2018

Structure of exporting enterprises of plastic products, 2013 – Q1/2018

Source: VIRAC, GDVC

Plastic products export by month, 2017 – 2018

USD million

Source: VIRAC, GDVC

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Source: VIRAC, GDVC

Source: VIRAC, GDVC

Part III. Vietnam market

5. Import export – 5.2 Export

Structure of export plastic products, Q1/2018

Export market structure of plastic products, Q1/2018

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Source: VIRAC, GDVC

Part III. Vietnam market

5. Import export – 5.2 Export

Top exporters of plastics and plastic products Q1/2018

Top importers of plastics and plastic products, Q1/2018

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Part IV. Industry outlook and planning

1. Outlook

2. Industry development planning

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Part IV. Industry outlook and planning

1. Outlook

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Part IV. Industry outlook and planning

1. Outlook

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TABLE OF CONTENTS

Part IV. Industry outlook and planning

1. Outlook

2. Industry development planning

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Project Location

Capacity

(tons/year)

Total

investment

(USD million)

List of projects on plastic materials

Source: VIRAC, MOIT

Project Location

2016 - 2020

Number

Investment capital

(USD million)

List of projects on mold and equipment manufacture

Source: VIRAC, MOIT

Part IV. Industry outlook and planning

2. Industry development planning

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Part IV. Industry outlook and planning

2. Industry development planning

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TABLE OF CONTENTS

Part V. Enterprise analysis

1. Enterprise introduction

2. Financial analysis

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Tien Phong Plastic Joint-Stock Company (NTP)

Part V. Enterprise analysis

1. Enterprise introduction

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Binh Minh Plastic Joint Stock Company (BMP)

Part V. Enterprise analysis

1. Enterprise introduction

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An Phat Plastic and Green Environment Joint Stock Company(AAA)

Part V. Enterprise analysis

1. Enterprise introduction

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Ngoc Nghia Industry-Service-Trading Joint Stock Company (NNG)

Part V. Enterprise analysis

1. Enterprise introduction

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Dong Nai Plastic Joint Stock Company (DNP)

Part V. Enterprise analysis

1. Enterprise introduction

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Dong A Plastic Group Joint Stock Company (DAG)

Part V. Enterprise analysis

1. Enterprise introduction

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Rang Dong Plastic Joint Stock Company (RDP)

Part V. Enterprise analysis

1. Enterprise introduction

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Saigon Plastic Packaging Joint Stock Company (SPP)

Part V. Enterprise analysis

1. Enterprise introduction

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Tan Dai Hung Plastic Joint Stock Company (TPC)

Part V. Enterprise analysis

1. Enterprise introduction

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TABLE OF CONTENTS

Part V. Enterprise analysis

1. Enterprise introduction

2. Financial analysis

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Part V. Enterprise analysis

2. Financial analysis – Profitability

VND billion

Source: VIRAC

Net revenue, 2016 - 2017

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Part V. Enterprise analysis

2. Financial analysis – Profitability

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Part V. Enterprise analysis

2. Financial analysis – Profitability

VND billion

Source: VIRAC

Gross profit, 2016 - 2017

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Part V. Enterprise analysis

2. Financial analysis – Profitability

Source: VIRAC

Gross profit margin, 2016 - 2017

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Part V. Enterprise analysis

2. Financial analysis – Profitability

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Part V. Enterprise analysis

2. Financial analysis – Solvency

Solvency, 2016 - 2017

Source: VIRAC

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Part V. Enterprise analysis

2. Financial analysis – Solvency

Days of sales outstanding, 2016 - 2017

Days' sales in inventory, 2016 - 2017

Source: VIRAC

Source: VIRAC

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Part V. Enterprise analysis

2. Financial analysis – The ability to pay

Self-financing rate, 2016 - 2017

Source: VIRAC

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Part V. Enterprise analysis

2. Financial analysis – Performance efficiency

Source: VIRAC

Selling expenses/Net revenue ratio, 2016 - 2017

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Source: VIRAC

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Part V. Enterprise analysis

2. Financial analysis – Performance efficiency

Administrative expenses/Net revenue ratio, 2016 – 2017

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Part V. Enterprise analysis

2. Financial analysis – Performance efficiency

Source: VIRAC

Source: VIRAC

Total asset turnover, 2016 - 2017

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Part V. Enterprise analysis

2. Financial analysis – Rate of return

%Profit ratio, 2016 - 2017

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Part V. Enterprise analysis

2. Financial analysis – Rate of return

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Report Disclaimer

Report Disclaimer

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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

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