VIETNAM WOOD INDUSTRY REPORT, Q2/2018

Size: px
Start display at page:

Download "VIETNAM WOOD INDUSTRY REPORT, Q2/2018"

Transcription

1 VIETNAM WOOD INDUSTRY REPORT, Q2/2018 1

2 Content Abbreviation History of formation and development 46 Executive summary Value chain Business environment Production Macroeconomic situation Consumption Legal framework Import export Industry planning and outlook Definition and classification Industry development planning Value chain Outlook World wood market 30 4 Enterprise analysis Production Enterprise introduction Trade Financial analysis Vietnam wood market 45 2

3 Content GSO General Statistics Office of Vietnam CO., LTD Company Limited GDVC General Department of Vietnam Customs IZ Industrial Zone EUTR EU Timber Regulation SBV State Bank of Vietnam CSIL Center for Industrial Studies IMEX Import Export JSC Joint Stock Company VA Value Added EVFTA EU Vietnam Free Trade Agreement 3

4 Executive summary Over the past 15 years, global wood chip trade has increased by nearly 75%, mainly due to the expansion of pulp production in China. China and Japan are the two largest woodchip importing countries, followed by Finland, Sweden and Turkey. Group of industrial wood (artificial boards) includes products such as plywood, wood chip and fiberboard. Artificial board is the product having the fastest growth rate, 4

5 Executive summary Vietnam's wood processing industry has become a major export commodity, ranking fourth only to coffee, seafood and machinery and spare parts. Production of wood chips in Q1/2018 is estimated at thousand tons, down 22% over the same period in In 2017, Vietnam's concentrated forestation area was estimated at thousand hectares, an increase of 1.2% compared to According to the Vietnam Chamber of Commerce and Industry (VCCI), the domestic high-end furniture market in 2017 is worth USD 2.5 billion, with 80% of European imports and 20% of domestic production. The industrial production index of wood processing industry is estimated at VND 266 trillion, up slightly by 8.2% compared to

6 Executive summary With the FTAs in effect since 2018, the timber industry will enter a new phase with many prospects for export growth. Vietnam wood industry has many advantages compared to those of other countries in the region due to The US is Vietnam's most important timber export market. US trade policy is moving in the direction of reducing trade deficit, trade protection, encouraging domestic production. 6

7 Content 1. Business environment 1.1 Macroeconomic situation 1.2 Legal framework 7

8 1. Business environment 1.1 Macroeconomic situation Production value of agriculture, forestry and fishery in Q1 (at comparative prices 2010), VND billion GDP growth rate by quarter, Q1/2018 Source: VIRAC, GSO Source: VIRAC, GSO GDP structure at current prices, Q1/2018e Source: VIRAC, GSO 8

9 1. Business environment 1.1 Macroeconomic situation USD billion Vietnam import-export value, Q1/2018 Most exported commodities, Q1/2018 Source: VIRAC, GDVC USD billion Source: VIRAC, GDVC, GSO 9

10 1. Business environment 1.1 Macroeconomic situation VND/USD exchange rate, /2018 Source: VIRAC, SBV 10

11 1. Business environment 1.1 Macroeconomic situation Oil prices World crude oil prices, /2018 USD/barrel Source: VIRAC, Indexmundi 11

12 1. Business environment 1.1 Macroeconomic situation Investment in wood exploitation and processing 12

13 Content 1. Business environment 1.1 Macroeconomic situation 1.2 Legal framework 13

14 1. Business environment 1.2. Legal framework Domestic policies 14

15 1. Business environment 1.2. Legal framework 15

16 1. Business environment 1.2. Legal framework 16

17 1. Business environment 1.2. Legal framework International policies 17

18 1. Business environment 1.2. Legal framework 18

19 1. Business environment 1.2. Legal framework 19

20 1. Business environment 1.2. Legal framework 20

21 1. Business environment 1.2. Legal framework 21

22 1. Business environment 1.2. Legal framework 22

23 1. Business environment 1.2. Legal framework Other regulations when exporting wood to European markets: 23

24 1. Business environment 1.2. Legal framework The impact of the Brexit event on Vietnamese timber exports 24

25 Content 2.1 Definition and classification 2.2 Value chain 2.3 World wood market 2.4 Vietnam wood market 25

26 2.1 Definition and classification 26

27 2.1 Definition and classification 27

28 Content 2.1 Definition and classification 2.2 Value chain 2.3 World wood market 2.4 Vietnam wood market 28

29 2.2 Value chain of the industry Value chain of wood industry 29

30 Content 2.1 Definition and classification 2.2 Value chain 2.3 World wood market 2.4 Vietnam wood market 30

31 2.3 World wood market Production 31

32 2.3 World wood market Production Million m³ Industrial wood production and consumption, Source: VIRAC, FAO Industrial wood production structure by region, 2016 Source: VIRAC, FAO 32

33 2.3 World wood market Production Industrial wood production structure by product, Source: VIRAC, FAO 33

34 2.3 World wood market Production Top largest industrial wood producing countries in the world, 2016 Top largest industrial wood consuming countries in the world, 2016 Source: VIRAC, FAO Source: VIRAC, FAO 34

35 2.3 World wood market Production Global wood products production, Source: VIRAC,CSIL 35

36 2.3 World wood market Production 36

37 2.3 World wood market Trade USD billion Global trade value of wood products, Source: VIRAC,CSIL 37

38 2.3 World wood market Trade Top the world's largest wood processing and exporting countries by volume, 2015 Source: VIRAC, Forestryconnect 38

39 2.3 World wood market Trade Source: VIRAC, Trade map 39

40 2.3 World wood market Trade Global wood chips trade, Source: VIRAC, Trade map Structure of wood chips import in the world, 2016 Source: VIRAC, Trade map 40

41 2.3 World wood market Trade tructure of world wood chip exports, 2016 Content is intentionally removed Average for price demo of wood purpose chips exported by some large countries, Source: VIRAC, Trademap 41

42 2.3 World wood market Trade Global industrial wood trade, Source: VIRAC, FAO Top largest industrial wood importing countries in the world, 2016 Top largest industrial wood exporting countries in the world, 2016 Source: VIRAC, FAO Source: VIRAC, FAO 42

43 2.3 World wood market Trade USD billion Global furniture trade, F Source: VIRAC,CSIL 43

44 2.3 World wood market Trade Top 10 largest wooden furniture exporters in the world, 2016 Source: VIRAC, Trademap Top 10 largest wooden furniture importers in the world, 2016 Source: VIRAC, Trademap 44

45 Content 2.1 Definition and classification 2.2 Value chain 2.3 World wood market 2.4 Vietnam wood market 45

46 2.4 Vietnam market History of formation and development of the industry History of wood processing industry in Vietnam 46

47 2.4 Vietnam market Value chain of Vietnam wood industry Value chain of wood processing industry in Vietnam 47

48 2.4 Vietnam market Production Number of enterprises and employees in wood industry, Source: VIRAC, GSO Allocation of timber enterprises by region, Source: VIRAC, GSO 48

49 2.4 Vietnam market Production Total revenue and profit of the wood industry, Source: VIRAC, GSO Investment capital and fixed assets of the industry, Scale of wood enterprises by investment and by labor, 2015 VND trillion Source: VIRAC, GSO Source: VIRAC, GSO 49

50 2.4 Vietnam market Production VND billion Production value of wood processing industry, e Source: VIRAC, GSO 50

51 2.4 Vietnam market Production Wood chip industry Allocation of wood chip producers by area,

52 2.4 Vietnam market Production Wood chip production output in Vietnam, Q1/ tons Source: VIRAC, GSO 52

53 2.4 Vietnam market Production Artificial board industry (industrial wood) 1000 m³ Artificial board production, Q1/2018 Source: VIRAC, GSO 53

54 2.4 Vietnam market Production 54

55 2.4 Vietnam market Production Classification of enterprises by source of capital,

56 2.4 Vietnam market Production Structure of wooden furniture production by product type, Q1/ items Wooden product production, Q1/2018 Source: VIRAC, GSO Source: VIRAC, GSO 56

57 2.4 Vietnam market Consumption Domestic consumption market of wood and wood products Content Giá trị Consumption is intentionally đồ gỗ Việt Nam tại thị removed trường nội địa, 2006 for 2016e demo purpose Source: VIRAC, Vietnam Timber and Forest Product Association 57

58 2.4 Vietnam market Consumption Top largest timber enterprises in 2016 Source: VIRAC, Tổng cục Thuế 58

59 2.4 Vietnam market Consumption Consumption value of wood chips, Q1/2018 Consumption value of artificial boards, Q1/2018 Source: VIRAC, GSO Source: VIRAC, GSO 59

60 2.4 Vietnam market Consumption VND billion Consumption value of wooden furniture, Q1/2018 Source: VIRAC, GSO 60

61 2.4 Vietnam market Import export Export Export share of furniture in Vietnam and some South East Asian countries by market, 2016 Source: VIRAC, GDVC, Vietnam Timber and Forest Product Association Structure of wood and wood products exported by category, 2017 Source: VIRAC, GDVC, Vietnam Timber and Forest Product Association 61

62 2.4 Vietnam market Import export Export USD billion Export value of wood and wood products of Vietnam, Q1/2018 Source: VIRAC, GDVC Structure of export markets for wood and wood products Q1/2018 Source: VIRAC, GDVC 62

63 2.4 Vietnam market Import export Export Structure of contribution to export of wood and wood products of Vietnam, Q1/2018 USD million Export value of wood furniture and wood products of Vietnam, Q1/ Q1/2018 Export of wood and wood products by month, Source: VIRAC, GDVC Source: VIRAC, GDVC Source: VIRAC, GDVC 63

64 2.4 Vietnam market Import export Export USD million Wood exports to the US market, 2011 Q1/2018 Wood product exports to the US market, Source: VIRAC, GDVC Source: VIRAC, GDVC 64

65 2.4 Vietnam market Import export Export Export turnover of wood and wood products to China, Q1/2018 USD million Source: VIRAC, GDVC Value of Vietnamese wood products exported to China Unit: USD million Commodity Source: VIRAC, GDVC 65

66 2.4 Vietnam market Import export Export USD million Export turnover of wood and wood products to Europe, Q1/2018 Source: VIRAC, GDVC Export share of wood and wood products to Europe by country, Q1/2018 Source: VIRAC, GDVC 66

67 2.4 Vietnam market Import export Export Top exporters of wood and wood products to Europe, Q1/2018 Major commodities exported to the EU, Q1/2018 (Unit: USD thousand) USD thousand Source: VIRAC, GDVC Source: VIRAC, GDVC 67

68 2.4 Vietnam market Import export Export Strengths Weaknesses 68

69 2.4 Vietnam market Import export Export Opportunities Threats 69

70 2.4 Vietnam market Import export Export Wood chip exports by volume, USD million Source: VIRAC, GDVC, Vietnam Timber and Forest Product Association Wood chip exports by value, Source: VIRAC, GDVC, Vietnam Timber and Forest Product Association 70

71 2.4 Vietnam market Import export Export Top largest wood chip exporting enterprises, 2017 Structure of wood chip export markets by volume, 2017 Structure of wood chip export markets by value, 2017 Source: VIRAC, GDVC Source: VIRAC, GDVC Source: VIRAC, GDVC 71

72 2.4 Vietnam market Import export Export USD million Export value of all kinds of boards in Vietnam, Source: VIRAC, GDVC, Vietnam Timber and Forest Export of boards Product in Vietnam, Association Source: VIRAC, GDVC, Vietnam Timber and Forest Product Association 72

73 2.4 Vietnam market Import export Export Export volume and value of wooden products, Export value of wooden furniture, Source: VIRAC, GDVC, Vietnam Timber and Forest Product Association Source: VIRAC, GDVC, Vietnam Timber and Forest Product Association 73

74 2.4 Vietnam market Import export Export Export market structure of wooden furniture, 2017 Source: VIRAC, GDVC, Vietnam Timber and Forest Product Association Top 10 largest wooden furniture exporters, 2017 Source: VIRAC, GDVC, Vietnam Timber and Forest Product Association 74

75 2.4 Vietnam market Import export Import Import of wood and wood products of Vietnam, Q1/2018 USD million Source: VIRAC, GDVC Import market structure of wood and wood products Q1/2018 Source: VIRAC, GDVC 75

76 Content 3. Industry planning and outlook 3.1 Industry development planning 3.2 Outlook 76

77 3. Industry planning and outlook 3.1. Industry development planning Industry development planning 77

78 Content 3. Industry planning and outlook 3.1 Industry development planning 3.2 Outlook 78

79 3. Industry planning and outlook 3.2. Outlook 79

80 3. Industry planning and outlook 3.2. Outlook 80

81 Content 4. Enterprise analysis 4.1 Enterprise introduction 4.2 Financial analysis 81

82 4. Enterprise analysis 4.1. Enterprise introduction Company Total assets (VND billion) Revenue (VND billion) General information Shing Mark Vina Co., Ltd. Nitori Vietnam Processing Enterprise San Lim Furniture Vietnam Co., Ltd Poh Huat Vietnam JSC Woodworth Wooden (Vietnam) Co., Ltd An Cuong Wood JSC Timber Industries Co., Ltd. Rochdale Spears Co., Ltd. Johnson Wood Joint Stock Company 82

83 Content 4. Enterprise analysis 4.1 Enterprise introduction 4.2 Financial analysis 83

84 4. Enterprise analysis 4.2. Financial analysis Gross profit margin,

85 4. Enterprise analysis 4.2. Financial analysis Cost of sales/net revenue ratio General and administrative expenses/net revenue ratio 85

86 4. Enterprise analysis 4.2. Financial analysis. Self-financing ratio, Fixed assets turnover,

87 4. Enterprise analysis 4.2. Financial analysis Average charge, Inventory days,

88 4. Enterprise analysis 4.2. Financial analysis Solvency, Return ratio,

89 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:

90 Thank you!