VIETNAM BUILDING MATERIALS INDUSTRY REPORT Q2/2018
Content Abbreviation 3 4 Vietnam market of paving bricks, tiles and stones 32 Executive summary 4 4.1 History of formation and development 33 1. Business environment 6 4.2 Value chain of the industry 34 1.1 Macroeconomic situation 7 4.3 Production - Consumption 36 1.2 Legal framework 10 4.4 Import export 50 2. Market overview 14 5 Industry development planning 57 2.1 Definition and classification 14 6 Enterprise analysis 62 2.2 Production process 20 6.1 Enterprise introduction 62 3 World market of paving bricks, tiles and stones 25 6.2 Financial analysis 66 3.1 Production - Consumption 25 2
Abbreviation CAGR Compounded Annual Growth Rate GSO General Statistics Office JSC Joint Stock Company GDVC General Department of Vietnam Customs EVFTA EU Vietnam Free Trade Agreement CI Corporate Income AB Adobe Brick TPP Trans-Pacific Partnership Agreement ODA Official Development Assistance BM Building Materials IMEX Import Export 3
Executive summary regional in character. Currently, 88% of baked clay bricks are produced in Asian countries, mainly in China, India and Bangladesh. Rapid urbanization, with an average rate of around 6% per year, accelerates the demand for construction brick. The output of clay and kaolin exploited in Q1/2018 was estimated at 1,415 thousand tons, decreasing by 10.5% compared to the same period in 2017. The output of natural quarry exploited in Q1/2018 was estimated at 4,686 million m³, increasing by 12.3% over the same period in 2017. Viet Nam's paving brick, tile and stone industry currently accounts for a relatively low share of the construction material sector and is quite 4
Executive summary Import turnover of brick and tile in Q1/2018 was estimated at USD 98 million, up 10.6% over the same period in 2017.. Adobe brick production volume in Q1/2018 reached 1.81 million pieces. Export turnover of stone tiles in Q1/2018 was estimated at USD 5.95 million, up 4.8% over the same period of 2017. However, according to some experts, in 2018, the market of building materials will suffer many challenges due to Brick and tile exports in Q1/2018 were estimated at USD 79.88 million, a slight increase of 10.6% over the same period of 2017. 5
Content 1. Business environment 1.1 Macroeconomic situation 1.2 Legal framework 6
1. Business environment 1.1 Macroeconomic situation GDP growth rate by quarter, 2015 - Q1/2018 Contribution to GDP of construction, 2013-2017 Source: VIRAC, GSO Source: VIRAC, GSO 7
1. Business environment 1.1 Macroeconomic situation VND billion Value of construction sector, 2012-6M/2017 Urbanization rate in Vietnam, 2005-2017 Source: VIRAC, GSO Source: VIRAC, GSO 8
1. Business environment 1.1 Macroeconomic situation Population growth in Vietnam, 2004-2017 Source: VIRAC, GSO Population pyramid, 2016 Source: VIRAC, GSO 9
Content 1. Business environment 1.1 Macroeconomic situation 1.2 Legal framework 10
1. Business environment 1.2 Legal framework General regulations related to activities of bricks, tiles and paving stone producing enterprises. 11
1. Business environment 1.2 Legal framework 12
1. Business environment 1.2 Legal framework Commodity code Description of goods Export tax 13
Content 2. Market overview 2.1 Definition and classification 2.2 Production process 14
2. Market overview 2.1 Definition and classification 15
2. Market overview 2.1 Definition and classification Characteristic comparison between ceramic and granite brick 16
2. Market overview 2.1 Definition and classification 17
2. Market overview 2.1 Definition and classification Characteristic comparison between Marbe and Granite stone 18
2. Market overview 2.1 Definition and classification Comparison between natural stone and artificial stone (Granite, Marble, quartz and mica) 19
Content 2. Market overview 2.1 Definition and classification 2.2 Production process 20
2. Market overview 2.2 Production process 21
2. Market overview 2.2 Production process Production process of baked clay tiles and bricks 22
2. Market overview 2.2 Production process Production process of ceramic tiles 23
2. Market overview 2.2 Production process Production process of non-baked bricks 24
Content 3. World market of paving bricks, tiles and stones 3.1 Production - Consumption 25
3. World market of paving bricks, tiles and stones 3.1 Production - Consumption - 3.1.1. Baked clay bricks Baked clay brick production in the world, 2015 Country Share Volume (billion pieces) Source: VIRAC, Gminsights Consumption of baked clay bricks per capita in some Asian countries, 2015 Source: VIRAC, Gminsights 26
3. World market of paving bricks, tiles and stones 3.1 Production - Consumption - 3.1.2. Adobe bricks Consumption of non-baked materials in the world 27
3. World market of paving bricks, tiles and stones 3.1 Production - Consumption - 3.1.3. Paving brick World production and consumption of ceramic tiles, 2011-2016 World ceramic tile production by region, 2016 Source: VIRAC, Ceramicworldweb Source: VIRAC, Ceramicworldweb 28
3. World market of paving bricks, tiles and stones 3.1 Production - Consumption - 3.1.3. Paving brick Top 10 largest paving tile producing countries in the world, 2016 Million m² Source: VIRAC, Ceramicworldweb World ceramic tile consumption by region, 2016 Top 10 largest paving tile consuming countries in the world, 2016 Million m² Source: VIRAC, Ceramicworldweb Source: VIRAC, Ceramicworldweb 29
3. World market of paving bricks, tiles and stones 3.1 Production - Consumption - 3.1.4. Paving stone Top 10 largest paving natural stone producing countries in the world, 2015 Source: VIRAC, Stone Ideas 30
3. World market of paving bricks, tiles and stones 3.1 Production - Consumption - 3.1.4. Paving stone 31
Content 4. Vietnam market of paving bricks, tiles and stones 4.1 History of formation and development 4.2 Value chain of the industry 4.3 Production - Consumption 4.4 Import export 32
4. Vietnam market of paving bricks, tiles and stones 4.1 History of formation and development 33
Content 4. Vietnam market of paving bricks, tiles and stones 4.1 History of formation and development 4.2 Value chain of the industry 4.3 Production - Consumption 4.4 Import export 34
4. Vietnam market of paving bricks, tiles and stones 4.2 Value chain of the industry Value chain of brick, tile and paving stone production in Vietnam 35
Content 4. Vietnam market of paving bricks, tiles and stones 4.1 History of formation and development 4.2 Value chain of the industry 4.3 Production - Consumption 4.4 Import export 36
4. Vietnam market of paving bricks, tiles and stones 4.3 Production - Consumption - 4.3.1. Production - Overview Number of enterprises and laborers in brick, tile and paving stone industry, 2010-2016 Source: VIRAC, GSO Allocation of the number of brick, tile and paving stone enterprises by region, 2010-2016 Source: VIRAC, GSO 37
4. Vietnam market of paving bricks, tiles and stones 4.3 Production - Consumption - 4.3.1. Production - Overview VND billion Revenue and profit of brick and tile industry, 2010-2016 Source: VIRAC, GSO Investment capital and fixed assets of brick, tile and paving stones industry, 2010-2016 VND billion Source: VIRAC, GSO 38
4. Vietnam market of paving bricks, tiles and stones 4.3 Production - Consumption - 4.3.1. Production Construction bricks and tiles Million pcs Production volume of baked clay bricks, 2010 - Q1/2018e Source: VIRAC, GSO Production capacity of some large enterprises in the industry, 2016 Source: VIRAC 39
4. Vietnam market of paving bricks, tiles and stones 4.3 Production - Consumption - 4.3.1. Production Construction bricks and tiles Million pcs Production of baked tiles, 2010 - Q1/2018e Source: VIRAC, GSO 40
4. Vietnam market of paving bricks, tiles and stones 4.3 Production - Consumption - 4.3.1. Production Construction bricks and tiles Million pcs Production volume of adobe bricks, 2010 - Q1/2018 Aggregate cement brick production capacity of some enterprises, 2017 Million pcs/year Source: VIRAC, MOC Source: VIRAC, MOC 41
4. Vietnam market of paving bricks, tiles and stones 4.3 Production - Consumption - 4.3.1. Production Paving brick Million m² Paving tiles production in Vietnam, 2011 - Q1/2018 Source: VIRAC, MOC Allocation of ceramic tile production capacity by region, 2015 Source: VIRAC, MOC 42
4. Vietnam market of paving bricks, tiles and stones 4.3 Production - Consumption - 4.3.1. Production Paving brick Capacity of large enterprises in tile industry, 2017 Million m²/year Production of Granite, 2016-2017 Source: VIRAC, MOC Source: VIRAC, MOC 43
4. Vietnam market of paving bricks, tiles and stones 4.3 Production - Consumption - 4.3.1. Production Paving stone No. Top 10 largest tile manufacturers in Ho Chi Minh City Enterprise Production capacity of paving stone in Vietnam, 1990 2020f Source: VIRAC, MOC 44
4. Vietnam market of paving bricks, tiles and stones 4.3 Production - Consumption - 4.3.2. Consumption - Construction bricks and tiles Consumption of baked clay bricks, 2010 - Q1/2018e Source: VIRAC, GSO, MOC Consumption of baked tiles, 2010 - Q1/2018e Source: VIRAC, GSO, MOC 45
4. Vietnam market of paving bricks, tiles and stones 4.3 Production - Consumption - 4.3.2. Consumption - Adobe bricks Billion pcs QTC Demand for bricks, 2012-2020F Consumption share of aggregate cement bricks, 2017 Source: VIRAC, MOC Source: VIRAC, Khanh Minh Tiles 46
4. Vietnam market of paving bricks, tiles and stones 4.3 Production - Consumption - 4.3.2. Consumption - Paving brick Million m² Consumption of paving bricks, 2011 - Q1/2018e Source: VIRAC, MOC 47
4. Vietnam market of paving bricks, tiles and stones 4.3 Production - Consumption - 4.3.2. Consumption - Paving brick Consumption share of paving bricks, 2015 VND billion Top paving bricks enterprises with the highest revenue, 2016-2017 Source: VIRAC, MOC Source: VIRAC, Tổng cục thuế 48
4. Vietnam market of paving bricks, tiles and stones 4.3 Production - Consumption - 4.3.2. Consumption - Paving stone Million m³ Consumption of paving stone, 2011 - Q1/2018e VND/m² Prices of granite and marble Source: VIRAC, MOC Source: VIRAC, MOC 49
Content 4. Vietnam market of paving bricks, tiles and stones 4.1 History of formation and development 4.2 Value chain of the industry 4.3 Production - Consumption 4.4 Import export 50
4. Vietnam market of paving bricks, tiles and stones 4.4 Import export Export market structure of bricks and tiles 2017e Source: VIRAC, GDVC,Uncomtrade USD million Exports of bricks and tiles 2010 - Q1/2018 Source: VIRAC, GDVC,Uncomtrade 51
4. Vietnam market of paving bricks, tiles and stones 4.4 Import export Top 10 largest exporting enterprises in Q1/2018 Source: VIRAC, GDVC 52
4. Vietnam market of paving bricks, tiles and stones 4.4 Import export 4.4.1. Export USD million Export value of paving stone, 2011 - Q1/2018e Source: VIRAC, Uncomtrade Export market structure of paving stone, 2017 Source: VIRAC, Uncomtrade 53
4. Vietnam market of paving bricks, tiles and stones 4.4 Import export 4.4.2. Import Import market structure of bricks and tiles, 2017 USD million Import value of bricks and tiles, 2010 - Q1/2018e Source: VIRAC, Uncomtrade Source: VIRAC, Uncomtrade, GDVC 54
4. Vietnam market of paving bricks, tiles and stones 4.4 Import export 4.4.2. Import Import market structure of bricks and tiles, 2017e Top 10 largest importing enterprises Q1/2018 Source: VIRAC, Uncomtrade, GDVC Source: VIRAC, Uncomtrade, GDVC 55
4. Vietnam market of paving bricks, tiles and stones 4.4 Import export 4.4.2. Import Import value of paving stone, 2011 - Q1/2018e Source: VIRAC, Uncomtrade Import market structure of paving stone, 2017 Source: VIRAC, Uncomtrade 56
Content 5. Industry development planning 57
5. Industry development planning Planning on demand for building materials to 2020 No Product Unit Domestic demand 2015 2020 58
5. Industry development planning 59
5. Industry development planning 60
5. Industry development planning 61
CONTENT 6. Enterprise analysis 6.1 Enterprise introduction 6.2 Financial analysis 62
6. Enterprise analysis 6.1 Enterprise introduction Enterprise Revenue in 2016 (VND Billion) Total assets in 2016 (VND Billion) General information 63
6. Enterprise analysis 6.1 Enterprise introduction Name Revenue in 2016 (VND Billion) Total assets in 2016 (VND Billion) General information 64
6. Enterprise analysis 6.1 Enterprise introduction Name Revenue in 2016 (VND Billion) Total assets in 2016 (VND Billion) General information 65
CONTENT 6. Enterprise analysis 6.1 Enterprise introduction 6.2 Financial analysis 66
6. Enterprise analysis 6.2 Enterprise analysis Gross profit margin, 2015-2016 Source: VIRAC 67
6. Enterprise analysis 6.2 Enterprise analysis Sales expenses/net nevenue ratio Source: VIRAC 68
6. Enterprise analysis 6.2 Enterprise analysis Administrative expenses/net revenue ratio Source: VIRAC 69
6. Enterprise analysis 6.2 Enterprise analysis Self-financing rate, 2015-2016 Source: VIRAC 70
6. Enterprise analysis 6.2 Enterprise analysis Payment ratio, 2015-2016 Source: VIRAC 71
6. Enterprise analysis 6.2 Enterprise analysis Day Average days of sales in inventory, 2015-2016 Source: VIRAC 72
6. Enterprise analysis 6.2 Enterprise analysis Days of sales outstanding, 2015-2016 Source: VIRAC Fixed asset turnover, 2015-2016 Source: VIRAC 73
6. Enterprise analysis 6.2 Enterprise analysis Profit ratio, 2015-2016 Source: VIRAC 74
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