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PLASTICS INDUSTRY REPORT Q2/2018

TABLE OF CONTENTS

2

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

3

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

4

• 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.

Content is intentionally removed for demo purpose

• 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.

5

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.


TABLE OF CONTENTS

Part I. Business environment

1. Macroeconomic situation

2. Legal framework

6



7

Source: VIRAC, GDVC

Source: VIRAC, GSO

USD/ person

USD billion

Plastic material imports and contribution to total turnover,

2010 – Q1/2018


GDP growth rate by quarter, 2015 - Q1/2018

8

Source: VIRAC, SBV



Source: VIRAC, SBV

VND/USD exchange rate, 2013 – 3/2018

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


9

Source: VIRAC, EVN

Source: VIRAC, Indexmundi



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


10

Source: VIRAC, GSO



%

Source: VIRAC, GSO

Monthly CPI fluctuation, 2014 – 3/2018

Average interest rate, 2012 – Q1/2018e


11

TABLE OF CONTENTS



2. Legal framework

12


2. Legal framework


13


2. Legal framework


14


2. Legal framework


Part II. World market

1. Definition and classification

2. Production value chain

3. Production

4. Consumption

15

TABLE OF CONTENTS

16

Definition

Classification




17




3. Production

4. Consumption

TABLE OF CONTENTS

18

Source: VIRAC




19




3. Production

4. Consumption

TABLE OF CONTENTS

20

Source: VIRAC, Plastic Europe



3. Production

Million tons

Million tons

Plastic production in some countries, 2015

World plastic production, 2011 - 2016


21

Source: VIRAC, PAGEV


3. Production

Plastic production in some regions, 2015


22




3. Production

4. Consumption

TABLE OF CONTENTS

23

Source: VIRAC, PLASTICS


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


24

Source: VIRAC, Statista



4. Consumption

CAGR in plastic consumption in some regions,

2015 – 2019f

Global plastic consumption by application, 2016


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

25

26




27

TABLE OF CONTENTS




3. Production

4. Consumption

5. Import export

28



SCG's ownership in Vietnam plastic enterprises, 2018

Source: VIRAC


29




30

TABLE OF CONTENTS




3. Production

4. Consumption

5. Import export

31

Source: VIRAC, GSO


3. Production

Number of plastic enterprises by region,

2010 - 2016

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

Source: VIRAC, GSO


32


3. Production

Million

tons

Source: VIRAC, GSO

Source: VIRAC, VPA

Plastic production, 2009 – 2018e

Plastic production structure, Q1/2018


33

Polymer

typeApplication


3. Production

Thousand

tons

Production of plastic packaging, 2009 – Q1/2018

Source: VIRAC

Application by type of polymer

Source: VIRAC, GSOContent is intentionally removed for demo purpose

34

Source: VIRAC, GSO


3. Production

Thousand

tons

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


35


3. Production

Thousand

tons

Source: VIRAC, GSO

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


36


3. Production

Source: VIRAC tổng hợp

Ton

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


37

Source: VIRAC, GSO


3. Production

Thousand

tons

Production of technical plastics and other plastics,

2009 – Q1/2018e


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

38

TABLE OF CONTENTS




3. Production

4. Consumption

5. Import export

39


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


40


4. Consumption

Source: VIRAC, VPA

Source: VIRAC, VPA

Scale of plastic packaging business listed

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


41


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


42

TABLE OF CONTENTS




3. Production

4. Consumption

5. Import export

43

Source: VIRAC, GDVC


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


44

Source: VIRAC, GDVC


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


45

Source: VIRAC, GDVC

Source: VIRAC, GDVC



Structure of export plastic products, Q1/2018

Export market structure of plastic products, Q1/2018


46

Source: VIRAC, GDVC



Top exporters of plastics and plastic products Q1/2018

Top importers of plastics and plastic products, Q1/2018


TABLE OF CONTENTS

Part IV. Industry outlook and planning

1. Outlook

2. Industry development planning

47

48


1. Outlook


49


1. Outlook


50

TABLE OF CONTENTS


1. Outlook


51

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




52




TABLE OF CONTENTS

Part V. Enterprise analysis

1. Enterprise introduction

2. Financial analysis

53

54

Tien Phong Plastic Joint-Stock Company (NTP)




55

Binh Minh Plastic Joint Stock Company (BMP)




56

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




57

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




58

Dong Nai Plastic Joint Stock Company (DNP)




59

Dong A Plastic Group Joint Stock Company (DAG)




60

Rang Dong Plastic Joint Stock Company (RDP)




61

Saigon Plastic Packaging Joint Stock Company (SPP)




62

Tan Dai Hung Plastic Joint Stock Company (TPC)




63

TABLE OF CONTENTS



2. Financial analysis

64


2. Financial analysis – Profitability

VND billion

Source: VIRAC

Net revenue, 2016 - 2017


65




66



VND billion

Source: VIRAC

Gross profit, 2016 - 2017


67



Source: VIRAC

Gross profit margin, 2016 - 2017


68




69


2. Financial analysis – Solvency

Solvency, 2016 - 2017

Source: VIRAC


70


2. Financial analysis – Solvency

Days of sales outstanding, 2016 - 2017

Days' sales in inventory, 2016 - 2017

Source: VIRAC

Source: VIRAC


71


2. Financial analysis – The ability to pay

Self-financing rate, 2016 - 2017

Source: VIRAC


72


2. Financial analysis – Performance efficiency

Source: VIRAC

Selling expenses/Net revenue ratio, 2016 - 2017


Source: VIRAC

73



Administrative expenses/Net revenue ratio, 2016 – 2017


74



Source: VIRAC

Source: VIRAC

Total asset turnover, 2016 - 2017

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

75


2. Financial analysis – Rate of return

%Profit ratio, 2016 - 2017


76


2. Financial analysis – Rate of return


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

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

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