VIETNAM FERTILIZER INDUSTRY REPORT Q3/2018

Transcription

1 VIETNAM FERTILIZER INDUSTRY REPORT Q3/2018

2 Content Executive summary Main activities Business environment Supply demand Macroeconomic situation Import export Legal framework Price movement Industry overview Industry planning Situation of fertilizer industry in the world Enterprise analysis Supply demand Top 10 enterprises Vietnam fertilizer industry situation Target group of business results History of Vietnam fertilizer industry Target group of finance Definition and Classification Target group of cash flow Scale and Characteristics of market 25 2

3 Abbreviation ADB Asia Development Bank GSO General Statistics Office EVN Vietnam Electricity MOT Ministry of Transport FAO Food and Agriculture Organization MARD Ministry of Agriculture and Rural Development FAV Fertilizer Association Vietnam Vinacomin Vietnam National Coal and Mineral Industries Holding Corporation Limited FDI Foreign Direct Investment UN comtrade United Nations Database of Trade Statistics FIA Foreign Investment Agency VIRAC Vietnam Industry Research and Consultancy GDVC General Department of Vietnam Custom 3

4 Executive summary Fertilizer market continues to oversupply, estimated supply of nutrition by fertilizer ingredients increased to 3.4% while demand increased slightly by 0.6% Average supply exceeds the demand. Vietnam fertilizer production has focused on the single and mixed market for NPK and DAP Fertilizer imports have fluctuated continuously over the years Asia and the Americas are the largest fertilizer consuming regions in the world, Fertilizer prices tend to rise again due to high demand while supply is scarce and the impact of raw material costs and transportation (due to rising oil, gas and coal prices). Fertilizer consumption tends to decrease over the years Asian countries continue to be the main export markets of Vietnam. 4

5 Executive summary In particular, Cambodia continues to be the main export market, Fertilizers are in a saturated state, domestic firms have to compete fiercely with imports, while demand tends to fall, leading to downward pressure in the period. Fertilizer inventories tend to increase over the years, but the growth rate has been decreasing. 5

6 Content 1. Business environment 1.1 Macroeconomic situation 1.2 Legal framework 6

7 1. Business environment 1.1 Macroeconomic situation GDP in the first 6 months of 2018 is estimated to increase 7.08% over the same period last year, the highest increase of 6 months since GDP growth, M/2018 Source: VIRAC, GSO Monthly CPI fluctuation, /2018 Source: VIRAC, GSO 7

8 1. Business environment 1.1 Macroeconomic situation VND/CNY exchange rate, /2018 Source: VIRAC VND/USD exchange rate, 3/2015-6/2018 Source: VIRAC, SBV 8

9 1. Business environment 1.1 Macroeconomic situation Export- Import by quarter, Q1/2015 Q2/2018 USD million Structure of export commodities, 6M/2018 Source: VIRAC, GDVC Source: VIRAC, GDVC 9

10 Content 1. Business environment 1.1 Macroeconomic situation 1.2 Legal framework 10

11 1. Business environment 1.2 Legal framework - Group of regulations on production, trading and use of fertilizers Circular No. 36/2010/TT-BNNPTNT Decree No. 163/2013/ND-CP 11

12 1. Business environment 1.2 Legal framework - Group of regulations on production, trading and use of fertilizers Decree No. 202/2013/ND-CP 12

13 1. Business environment 1.2 Legal framework - Group of regulations on production, trading and use of fertilizers 13

14 1. Business environment 1.2 Legal framework - Group of regulations on taxes of fertilizer import and export 14

15 1. Business environment 1.2 Legal framework - Group of regulations on taxes of fertilizer import and export 15

16 1. Business environment 1.2 Legal framework - Group of regulations on taxes of fertilizer import and export 16

17 1. Business environment 1.2 Legal framework - Group of regulations on taxes of fertilizer import and export On June 2, 2018, the Ministry of Finance said that in the draft law to amend and supplement some articles of the 6 Laws on tax, fertilizer will be subject to VAT at the preferential tax rate of 5%. 17

18 Content 2. Industry overview 2.1 Situation of fertilizer industry in the world 2.2 Vietnam fertilizer industry situation 2.3 Industry planning 18

19 2. Industry overview 2.1 World fertilizer market Fertilizer supply-demand Million tons Demand by nutrient and nutrient supply, e Source: VIRAC, FAO 19

20 Content 2. Industry overview 2.1 Situation of fertilizer industry in the world 2.2 Vietnam fertilizer industry situation 2.3 Industry planning 20

21 2. Industry overview 2.2 Vietnam Fertilizer Industry History of Industry Development 21

22 2. Industry overview 2.2 Vietnam Fertilizer Industry Definition and Specification Classified according to the nutrient requirements of plants Classified according to source Structure of major fertilizers

23 2. Industry overview 2.2 Vietnam Fertilizer Industry Definition and Specification Name of fertilizer Chemical composition Characteristic Type of suitable land 23

24 2. Industry overview 2.2 Vietnam Fertilizer Industry Definition and Specification Name of fertilizer Chemical composition Characteristic Type of suitable land 24

25 2. Industry overview 2.2 Vietnam Fertilizer industry Scale and characteristic of market Fertilizer industry revenue, VND billion Share by revenue, 2016 Source: VIRAC, GSO Source: VIRAC, GSO 25

26 2. Industry overview 2.2 Vietnam Fertilizer industry Main activities 26

27 2. Industry overview 2.2 Vietnam Fertilizer industry Main activities 27

28 2. Industry overview 2.2 Vietnam Fertilizer Market Supply demand Million tons Supply - Demand, M/2018e Million tons Production and consumption of domestic producers, M/2018e Source: VIRAC, GSO, MARD, GDVC Source: VIRAC, GSO, MARD, GDVC 28

29 2. Industry overview 2.2 Vietnam Fertilizer Market Supply demand Million tons Fertilizer production, M/2018e Source: VIRAC, GSO 29

30 2. Industry overview 2.2 Vietnam Fertilizer Market Supply demand The impact of tax policies on domestic production 30

31 2. Industry overview 2.2 Vietnam Fertilizer Market Supply demand On June 2, 2018, the Ministry of Finance said that in the draft law to amend and supplement some articles of the 6 Laws on tax, fertilizer will be subject to VAT at the preferential tax rate of 5%. 31

32 2. Industry overview 2.2 Vietnam Fertilizer Market Supply demand Fertilizer production capacity of big domestic enterprises, 6/2018 Source: VIRAC 32

33 2. Industry overview 2.2 Vietnam Fertilizer Market Supply demand Factory Capacity Source: VIRAC 33

34 2. Industry overview 2.2 Vietnam Fertilizer Market Supply demand Million tons Demand and consumption of fertilizer, M/2018e Source: VIRAC, GSO, MARD 34

35 2. Industry overview 2.2 Vietnam Fertilizer Market Import export Fertilizer imports have fluctuated continuously over the years as a result of domestic demand - supply and import and export tax policies as well as major import markets. Thousand tons Fertilizer imports, M/2018e Source: VIRAC, GDVC, MARD 35

36 2. Industry overview 2.2 Vietnam Fertilizer Market Import export Thousand tons Fertilizer imports, 6M/2017 / 6M/2018e Source: VIRAC, MARD, GDVC Fertilizer imports by type, 6M/2018e Source: VIRAC, MARD, GDVC 36

37 2. Industry overview 2.2 Vietnam Fertilizer Market Import export Import structure of fertilizer by countries, 6M/2018 Source: VIRAC, MARD, GDVC 37

38 2. Industry overview 2.2 Vietnam Fertilizer Market Import export Prices of some types of imported fertilizer 6M/2018 Unit: USD Type of fertilizer Average unit price 6M/2018 Content is intentionally Source: GDVC removed for demo purpose Structure of importing fertilizer enterprises, 6M/2018 Source: GDVC 38

39 2. Industry overview 2.2 Vietnam Fertilizer Market Import export Million tons Fertilizer exports, M/2018e Source: VIRAC, MARD, GDVC 39

40 2. Industry overview 2.2 Vietnam Fertilizer Market Import export Fertilizer exports by country, 6M/2018e Fertilizer exports by country, 6M/2017-6M/2018e Thousand tons Source: VIRAC, GDVC Source: VIRAC, GDVC 40

41 2. Industry overview 2.2 Vietnam Fertilizer Market Import export Vietnam fertilizer exports by type, 6M/2017 Temporary import for export by type, 6M/2017 Type of fertilizer Share Type of fertilizer Share Source: VIRAC, GDVC Fertilizer exports by origin, 6M/2018 Source: VIRAC, GDVC 41

42 2. Industry overview 2.2 Vietnam Fertilizer Market Price movement Ure and DAP prices have been fluctuating much in the first three months of 2018, specifically: VND Price movement, /2018 * Price movements of main products (highest price) from Tran Xuan Soan market Source: VIRAC, VIETRADE- MOIT 42

43 2. Industry overview 2.2 Vietnam Fertilizer Market Price movement 43

44 Content 2. Industry overview 2.1 Situation of fertilizer industry in the world 2.2 Vietnam fertilizer industry situation 2.3 Industry planning 44

45 2. Industry overview 2.3 Industry planning Decision No. 6868/QD-BTC approving the master plan for the development of the fertilizer production system and distribution system in the period, with a view to Planning the fertilizer production system 45

46 2. Industry overview 2.3 Industry planning 2. Planning the fertilizer distribution system 3. Group of support solutions 46

47 2. Industry overview 2.3 Industry planning 47

48 Content 3. Enterprise analysis 3.1 Top 10 enterprises 3.2 Target group of business results 3.3 Target group of finance 3.4 Target group of cash flow 48

49 3. Enterprise analysis 3.1 Top 10 enterprises Top 10 businesses with largest revenue in 2017 Enterprise name Address Chartered capital (VND million) Total assets (VND million) Net revenue (VND million) Source: VIRAC 49

50 3. Enterprise analysis 3.1 Top 10 enterprises Phu My Fertilizer Plant - PetroVietnam Fertilizer and Chemicals Corporation 50

51 3. Enterprise analysis 3.1 Top 10 enterprises Binh Dien Fertilizer Joint Stock Company BFC s fertilizer plants Source: VIRAC 51

52 3. Enterprise analysis 3.1 Top 10 enterprises Ca Mau Petroleum Fertilizer Joint Stock Company 52

53 3. Enterprise analysis 3.1 Top 10 enterprises Lam Thao Fertilizers and Chemicals Joint Stock Company 53

54 3. Enterprise analysis 3.1 Top 10 enterprises Ha Bac Nitrogenous Fertilizer & Chemicals Joint Stock Company 54

55 3. Enterprise analysis 3.1 Top 10 enterprises DAP VINACHEM Joint Stock Company 55

56 3. Enterprise analysis 3.1 Top 10 enterprises Quảng Bình Import Export Company 56

57 3. Business analysis 3.1 Top 10 businesses Southwest Petrovietnam Fertilizer and Chemicals Corporation Southeast Petrovietnam Fertilizer and Chemicals Corporation Central Petrovietnam Fertilizer and Chemicals Corporation North Petrovietnam Fertilizer and Chemicals Corporation 57

58 Content 3. Enterprise analysis 3.1 Top 10 enterprises 3.2 Target group of business results 3.3 Target group of finance 3.4 Target group of cash flow 58

59 3. Enterprise analysis 3.2 Target group of business results VND billion Net revenue Source: VIRAC 59

60 3. Enterprise analysis 3.2 Target group of business results 60

61 3. Enterprise analysis 3.2 Target group of business results VND billion Gross profit margin, Source: VIRAC 61

62 3. Enterprise analysis 3.2 Target group of business results Self-financing rate, Source: VIRAC 62

63 3. Enterprise analysis 3.2 Target group of business results Selling expenses, Source: VIRAC Administrative expenses, Source: VIRAC 63

64 Content 3. Enterprise analysis 3.1 Top 10 enterprises 3.2 Target group of business results 3.3 Target group of finance 3.4 Target group of cash flow 64

65 3. Enterprise analysis 3.3 Target group of finance Fixed asset turnover, Source: VIRAC 65

66 3. Enterprise analysis 3.3 Target group of finance Day Days in inventory, Producing enterprises Trading enterprises Source: VIRAC 66

67 3. Enterprise analysis 3.3 Target group of finance Day Days of sales outstanding, Source: VIRAC 67

68 3. Enterprise analysis 3.3 Target group of finance Profit Ratio, Source: VIRAC 68

69 Content 3. Enterprise analysis 3.1 Top 10 enterprises 3.2 Target group of business results 3.3 Target group of finance 3.4 Target group of payment 69

70 3. Enterprise analysis 3.4 Target group of payment Index of payment, Source: VIRAC 70

71 REPORT DISCLAIMER 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 organisation, 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.,) 6 th Floor, Anh Minh Building, 36 Hoang Cau, O Cho Dua, Dong Da, Hanoi, Vietnam Website: viracresearch@virac.com.vn Tel:

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