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PLASTICS RESIN AND SYNTHETIC RUBBER INDUSTRY REPORT Q2/2018
TABLE OF CONTENTS
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Abbreviations 3 1.. Industry scale 34
Executive summary 4 2. Raw plastic resins 36
I. Business environment 6 3. Synthetic rubber 47
1. Macroeconomic situation 6 4. Price-affecting factors 51
2. Legal framework 10 IV. SWOT analysis 53
II. Global market 14 V. Industry trend and planning 55
1. Definition and classification 14 1. Industry development trend 55
2. Value chain of the industry 18 2. Industry development planning 57
3. Raw plastic resins 21 VI. Enterprise analysis 60
4. Synthetic rubber 29 1. Enterprise introduction 60
III. Vietnam market 34 2. Financial analysis 63
Abbreviations
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Abbreviation Full Name Abbreviation Name
BR Butadien Rubber PET Polyethylene Terephthalate
CIS Commonwealth of independent states PP Polypropylene
ISRG International Rubber study group PS Polystyrene
HIPS High Impact Polystyrene PVC Poly Vinyl Chloride
HPE High Density Polyethylene SBR Styrene Butadien Rubber
LLDPE Low Density Polyethylene TPP Trans-Pacific partnership
NAFTA North America Free Trade Area VPA Vietnam plastic association
PE Polyethyelene
Executive summary
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• Primeval plastics and synthetic rubber are important input materials
for many industries, especially plastics and automobile industry.
• China takes the lead in thermoplastic production, with an output of
92.1 tons in 2016.
• In 2016, global sales of polymer-based products reached 851 billion
USD, up 6.2% compared to 2015.
• Global synthetic rubber production and consumption has been on the
upward trend in recent years, much greater than those of natural
rubber.
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Executive summary
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• Production of plastic materials and additives in Q1/2018 was
estimated at 208 thousand tons, of which main products are Poly
Acetal, polyethers and epoxy resins; polycarbonate, polyalkylether and
other polyesters, primary forms, etc.
• Imports of synthetic rubber in Q1/2018 was estimated at USD 146.7
million, up 5% over the same period in 2016, while synthetic rubber
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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 billion
Imports of plastic raw materials and percentage contribution to total turnover,
2010 – Q1/2018
GDP growth rate by quarter, 2015 - Q1/2018
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Part I. Business environment
1. Macroeconomic situation
Source: VIRAC, SBV
USD/VND exchange rate, 2013 – 3/2018
Source: VIRAC, SBV
CNY/VND exchange rate, 1/2016-3/2018
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M&A activities in plastics industry
Source: VIRAC
Part I. Business environment
1. Macroeconomic situation
Source: VIRAC, FIA
Vietnamese plastic enterprise’s SCG ownership, 2017
FDI attraction by sector, Q1/2018
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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
2. Legal framework
• The Ministry of Finance issued Circular No. 159/2012/TT-BTC regulating the application of the Law on Environmental Protection,
• Circular No. 107/2013/TT-BTC issued by the Ministry of Finance revises the preferential import tax rate for some commodities in the preferential import
tariff, which has been applied since 9/26/2013.
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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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TABLE OF CONTENTS
Part II. Global market
1. Definition and classification
2. Value chain of the industry
3. Raw plastic resins
4. Synthetic rubber
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Part II. Global market
1. Definition and classification – 1.1 Raw plastic resins
Classification by polymer effect with temperature
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Thermoplastic production share, 2015
Thermoset plastic production share, 2015
Source: VIRAC, ICIS
Source: VIRAC, ICIS
Part II. Global market
1. Definition and classification – 1.1. Plastic resins
Polymer usage structure, 2015
Source: VIRAC, ICIS
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Source: VIRAC, Rubbernews
Synthetic rubber production structure, 2015
Part II. Global market
1. Definition and classification – 1.2. Synthetic rubber
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• Synthetic rubber is a compound made from chemical reactions which is mainly
comprised of oil and gas.
• Synthetic rubber is classified via multiple ways.
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TABLE OF CONTENTS
Part II. Global market
1. Definition and classification
2. Value chain of the industry
3. Raw plastic resins
4. Synthetic rubber
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Source: VIRAC, ICIS
Part II. Global market
2. Value chain of the industry
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Part II. Global market
2. Chain value of the industry
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• Oil refinery plants:
• The oil refinery technology with various raw material combination alters chemical features to generate desirable products.
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TABLE OF CONTENTS
Part II. Global market
1. Definition and classification
2. Value chain of the industry
3. Raw plastic resins
4. Synthetic rubber
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Source: VIRAC, Europe Plastic Source: VIRAC, Europe Plastic
Part II. Global market
3. Raw plastic resins – 3.1 Production
Million tons
Global plastic materials production, 2009 – 2016ePlastic materials production structure by region, 2016
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Part II. Global market
3. Raw plastic resins – 3.1 Production
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Part II. Global market
3. Raw plastic resins – 3.1 Production
Global polymer production capacity, 2016
Source: VIRAC, Cefic Chemdata International 2016
Million tons
Million tons
Source: VIRAC, Cefic Chemdata International 2016
Plastic resin production capacity by region, 2016
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Part II. Global market
3. Raw plastic resins – 3.2 Consumption
Global polymer sales, 2006 - 2016
USD billion
Source: VIRAC, Cefic Chemdata International 2016
Polymer sales by region, 2016
Source: VIRAC, Cefic Chemdata International 2016
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Source: VIRAC, VPA
Source: VIRAC, Statista
• Plastic resins have a wide variety of use cases for multiple sectors.
Part II. Global market
3. Raw plastic resins – 3.2 Consumption
Kg/person
Polymer consumption structure by sector 2015
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Global per capita plastic material consumption by region, 2015
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Source: VIRAC, ICIS
Source: VIRAC, AMI
Part II. Global market
3. Raw plastic resins – 3.2 Consumption
Million tons
Global polymer consumption demand, 2010 – 2016e
Polymer consumption demand by region, 2016
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Source: VIRAC, Platts
Source: VIRAC, IHS
Part II. Global market
3. Raw plastic resins – 3.2 Consumption
Source: VIRAC, ICIS
PE demand by region, 2016
PE consumption by type, 2016
PE consumption by use case, 2016
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TABLE OF CONTENTS
Part II. Global market
1. Definition and classification
2. Value chain of the industry
3. Raw plastic resins
4. Synthetic rubber
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Source: VIRAC, IRSG
Source: VIRAC, IRSG
Source: VIRAC, IRSG
Part II. Global market
4. Synthetic rubber – 4.1 Production and consumption
Thousand tonsGlobal rubber production and consumption, 2010 – 9M/2017 Rubber production structure in the world, 2010- 9M/2017
Global rubber consumption structure, 2010 – 9M/2017
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Source: VIRAC, IRSG
Source: VIRAC, IRSG
Part II. Global market
4. Synthetic rubber – 4.1 Production and consumption
Thousand tons
Global synthetic rubber production and consumption, 2010 - 9M/2017
The structure of synthetic rubber consumption by product, 2015
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Source: VIRAC, IRSG
Part II. Global market
4. Synthetic rubber – 4.1 Production and consumption
Thousand tonsGlobal synthetic rubber production, 2013 – 9M/2017
* EMEA: EU, Middle East and Africa
Global synthetic rubber production market share, 9M/2017
Source: VIRAC, IRSG
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Source: VIRAC, IRSG
Source: VIRAC, IRSG
Part II. Global market
4. Synthetic rubber – 4.1 Production and consumption
Thousand tonsSynthetic rubber consumption, 2013 – 9M/2017
Synthetic rubber consumption market, 9M/2017
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TABLE OF CONTENTS
Part III. Vietnam market
1. Industry scale
2. Raw plastic resins
3. Synthetic rubber
4. Price-affecting factors
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No Product
Capacity
(ton/year) Producer
Source: VIRAC
Plastic resin and additives production capacity, 2015
Part III. Vietnam market
1. Industry scale
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TABLE OF CONTENTS
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Part III. Vietnam market
1. Industry scale
2. Raw plastic resins
3. Synthetic rubber
4. Price-affecting factors
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Source: VIRAC, BSR
Source: VIRAC, VPA
Raw plastic resins production, 2010 – Q1/2018e
Thousand tons
Thousand tons
Raw plastic resins and additives production in some
provinces/cities, Q1/2018
Source: VIRAC, VITIC
Polypropylene supply - demand in Vietnam, 2010 – Q1/2018e
Part III. Vietnam market
2. Raw plastic resins – 2.1 Production
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No. Company Sales (ton/year) Market share
LLDPE, LDPE, HDPE, PP distribution figures in the northern market,
2014-2015
Part III. Vietnam market
2. Raw plastic resins – 2.1 Production
Source: VIRAC, HCD
Source: VIRAC, HCD Source: VIRAC, GSO
PP production and consumption of Binh Son Oil
Refinery, 2013 - 6M/2017
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Source: VIRAC, MOIT, GSO
Source: VIRAC, MOIT, GSO
Thousand
tons
Part III. Vietnam market
2. Raw plastic resins – 2.2 Consumption
Polymer consumption in Vietnam, 2010 – Q1/2018e
Market share of plastic additives, 2017
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Source: VIRAC, GDVC
Source: VIRAC, GDVC
Thousand
tons
USD
million
Plastic resins imports, 2010 – Q1/2018
Part III. Vietnam market
2. Raw plastic resins – 2.3 Import export
Plastic material importing market, Q1/2018
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Source: VIRAC, GDVC
Part III. Vietnam market
2. Raw plastic resins – 2.3 Import export
Source: VIRAC, GDVC
Top largest raw plastic resins importing enterprises, Q1/2018
Plastic material import structure by type, Q1/2018
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Part III. Vietnam market
2. Raw plastic resins – 2.3 Import export
Source: VIRAC, GDVC
Imports of some polymer types, 2012 – Q1/2018e
Polymer
type
2012 2013 2014 2015 2016 2017 Q1/2018
Volume
(ton)
Value
(USD
thousand)
Volume
(ton)
Value
(USD
thousand)
Volume
(ton)
Value
(USD
thousand)
Volume
(ton)
Value
(USD
thousand)
Volume
(ton)
Value
(USD
thousand)
Volume
(ton)
Value
(USD
thousand)
Volume
(ton)
Value
(USD
thousand)
PE
PP
PVC
PET
EVA
PS
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Part III. Vietnam market
2. Raw plastic resins – 2.3 Import export
Source: VIRAC, GDVC
Source: VIRAC, GDVC
Top largest PE importing enterprises, Q1/2018
Top largest PP importing enterprises, Q1/2018
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Source: VIRAC, GDVC
Part III. Vietnam market
2. Raw plastic resins – 2.3 Import export
USD
million
Source: VIRAC, GDVC
Polymer exporting value, 2012 – Q1/2018
Polymer importing market structure by value, Q1/2018
Source: VIRAC, GDVC
Polymer importing market structure by volume, Q1/2018
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Source: VIRAC, GDVC
USD millionPP & PE export value, 2012 – Q1/2018
Source: VIRAC, GDVC
Part III. Vietnam market
2. Raw plastic resins – 2.3 Import export
Source: VIRAC, GDVC
Top 10 largest plastic materials importing enterprises, Q1/2018
Plastic resins export structure by type, Q1/2018
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Source: VIRAC, GDVC
Source: VIRAC, GDVC
Part III. Vietnam market
2. Raw plastic resins – 2.3 Import export
Top largest PP importing enterprises, Q1/2018
Top largest PP exporting enterprises, Q1/2018
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TABLE OF CONTENTS
Part III. Vietnam market
1. Industry scale
2. Raw plastic resins
3. Synthetic rubber
4. Price-affecting factors
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Source: VIRAC, UN Comtrade, GDVC
Part III. Vietnam market
3. Synthetic rubber – 3.1 Import export
USD million
Synthetic rubber import and export, 2011 – Q1/2018e
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Part III. Vietnam market
3. Synthetic rubber – 3.1 Import export
Source: VIRAC, GDVC
Source: VIRAC, GDVC
Export market structure of synthetic rubber, 2017e
Import market structure of synthetic rubber, 2017e
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Part III. Vietnam market
3. Synthetic rubber – 3.1 Import export
Source: VIRAC, GDVC
Source: VIRAC, GDVC
Top 10 largest synthetic rubber exporters
Top 10 largest synthetic rubber importers
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TABLE OF CONTENTS
Part III. Vietnam market
1. Industry scale
2. Raw plastic resins
3. Synthetic rubber
4. Price-affecting factors
52
Part III. Vietnam market
4. Price-affecting factors
Source: VIRAC, Indexmundi
USD/barrel USD/mmbtu
Source: VIRAC, Plastic Europe
USD/ton
World crude oil average price, 2014 -4/2018
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Part IV. SWOT analysis
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Strengths Weaknesses
Opportunities Challenges
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Part IV. SWOT analysis
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TABLE OF CONTENTS
Part V. Industry trend and planning
1. Industry development trend
2. Industry development planning
Source: VIRAC, European Bioplastic
Part V. Industry trend and planning
1. Industry trend
Bioplastic production capacity in the world,
2012 - 2018F
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TABLE OF CONTENTS
Part V. Industry trend and planning
1. Industry development trend
2. Industry development planning
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Part V. Industry trend and planning
2. Industry development planning
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Part V. Industry trend and planning
2. Industry development planning
Source: VIRAC, MOIT
No. Project name Location
Investment information
Capacity (1.000
ton/year)
Capital (USD
million)Investment time
Oil refinery projects, 2011 - 2020
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Part VI. Enterprise analysis
1. Enterprise introduction
2. Financial analysis
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Part VI. Enterprise analysis
6.1 Enterprise introduction
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Company Logo
Total asset
(VND
billion)
Revenue
(VND billion)General information
Tpc Vina Plastics
and Chemicals Co.,
Ltd
AGC Vietnam
Chemicals Co., Ltd
Polysterene
Vietnam Co., Ltd
Tin Kim Plastics JSC
Toyo Ink
Compounds
Vietnam Co., Ltd
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Part VI. Enterprise analysis
6.1 Enterprise introduction
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Company Logo
Total asset
(VND
billion)
Revenue
(VND billion)General information
Resinoplast
Vietnam Co., Ltd
Dainichi Color
Vietnam Co., Ltd
Viet Thai
PLASTCHEM Joint
Venture Co., Ltd
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TABLE OF CONTENTS
Part VI. Enterprise analysis
1. Enterprise introduction
2. Financial analysis
Net revenue, 2015 - 2016
Part VI. Business analysis
6.2 Financial analysis – Business performance
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Gross profit, 2015 - 2016
Part VI. Business analysis
6.2 Financial analysis – Business performance
65
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Self-financing rate, 2015 - 2016
Part VI. Business analysis
6.2 Financial analysis – Business performance
66
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Financial expenses, 2015 - 2016
Part VI. Business analysis
6.2 Financial analysis – Business performance
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Total assets ratio, 2015 - 2016
Part VI. Business analysis
6.2 Financial analysis – Financial indicators
68
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Fixed assets ratio, 2015 - 2016
Part VI. Business analysis
6.2 Financial analysis – Financial indicators
69
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Total debt / equity, 2015 - 2016
Part VI. Business analysis
6.2 Financial analysis – Financial indicators
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Profit ratio, 2015 - 2016
Part VI. Business analysis
6.2 Financial analysis – Financial indicators
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Payment indicators of enterprises, 2015 - 2016
Part VI. Business analysis
6.2 Financial analysis – Payment indicators
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