plastics industry report q1/2018€¦ · executive summary 5 • the plastics industry is one of...

1

PLASTICS INDUSTRY REPORT Q1/2018

TABLE OF CONTENTS

2

Part Page Part Page

Table of abbreviation 4 4. Input materials 26

Executive Summary 5 5. Production 34

I. Business environment 6 6. Consumption 37

1. Macroeconomics 6 7. Import - Export 40

2. Legal Framework 11 8. Situations in some typical countries 44

3. Trade Agreements 14 9. Production in some regions 49

II. The world’s market 18 10. Key players in the industry 51

1. Definition and classification 19 III. The Vietnam’s market 53

2. Chain value of the industry 20 1. History and the development of the industry 53

3. Machinery/ Technology 22 2. Machinery/Technology 55

TABLE OF CONTENTS

3

Part Page Part Page

3. M&A activities in the industry 57 1. Prospects 84

4. Inputs 60 2. Forecast 87

5. Production 64 3. Industrial development plan 91

6. Consumption 71 VI. Enterprise analysis 94

7. Import - Export 74 1. Enterprises introduction 94

8. Competitive analysis 77 2. Financial analysis 99

IV. Industrial risks 81 VII. Appendix 106

V. Prospects and forecasts 84

TABLE OF ABBREVIATIONS

TABLE OF ABBREVIATIONS

4

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

5

• 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.

6

TÓM TẮT BÁO CÁO

• 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.

• An Phat (AAA) is a leading enterprise in terms of exporting plastic

products as of 9M/2017 and producing packages in Vietnam.

CONTENT

Part 1. Business environment

1. Macroeconomics

2. Legal Framework

3. Trade Agreements

7

Part I. Business environment

1. Macroeconomics

8

Source: VIRAC, GDVC

Source: VIRAC, GSO

USD/person/year

USD billion

GDP per capita, 2013 – 2017

Plastic material imports and contribution to total turnover,

2010 – 2017


9

Source: VIRAC, SBV

Source: VIRAC, SBV


1. Macroeconomics

VND/USD exchange rate, 2013 – 12/2017

VND/CNY exchange rate, 1/2016-12/2017


10

Source: VIRAC,, MOIT

Source: VIRAC, Indexmundi


1. Macroeconomics

USD/barrel

VND/kWh

Average price of crude oil and natural gas in the world, 2014 – 12/2017

Average electricity price, 2007 – 2017


11

Source: VIRAC, GSO


1. Macroeconomics

%

Monthly CPI fluctuation, 2014 – 2017

Lending interest rate, 2011 – 2017e


12

CONTENT


1. Macroeconomics

2. Legal Framework

3. Trade Agreements

13


2. Legal framework


14


2. Legal framework


15


2. Legal framework


16

CONTENT


1. Macroeconomics

2. Legal Framework

3. Trade Agreements

17

Impact of AEC to Vietnamese plastic businesses


3. Trade agreements


18

The impact of TPP to Vietnam's plastics industry

Regional Comprehensive Economic Partnership (RCEP) and the plastics industry in Vietnam


3. Trade agreements


19

Vietnam Korea Free Trade Agreement (VKFTA) and Japan-Vietnam Economic Partnership Agreement (VJEPA)

Vietnam-EU Free Trade Agreement (EVFTA)


3. Trade agreements


CONTENT

Part II. The world’s market

1. Definition and classification

2. Value chain of the industry

3. Machinery/ Technology

4. Inputs

5. Production

6. Consumption

7. Export - Import

8. Situation in some typical countries

20

21

Definition

Classification




22

CONTENT





4. Inputs

5. Production

6. Consumption

7. Export - Import


23



Source: VIRAC


24

CONTENT





4. Inputs

5. Production

6. Consumption

7. Export - Import


25

Source: VIRAC, BPF

• There are many technologies used to produce plastics. The British Plastics Federation mentions some methods like the following:

Methods Main materials Main products

Blown Film

Extrusion- Blow

Profile bar extrusion

Injection Blow Molding

Injection Molding

Injection– Blow - Stretch

Recycling


3. Machinery/Technology


26

5 most common methods to produce plastics are :




27

Source: VIRAC, PlasticinsightSource: VIRAC, Plasticinsight

Source: VIRAC, Plasticinsight



USD billion

USD million Thousand tons

Plastic machinery/ equipment production value in some typical countries, 2016

Shares of plastics machinery production in the world 2015

Top 10 most imported countries of injection machines

in 2016


28

CONTENT





4. Inputs

5. Production

6. Consumption

7. Export - Import


29

Raw materials for the production of plastic are plastic resin, recycled plastic, and also additives

Recycled plastic beads production procedure


4. Inputs – 4.1 Definition and classification


30

Plastic resins production procedure


4. Inputs – 4.1 Definition and classification


31

Source: VIRAC, Europe PlasticSource: VIRAC, Europe Plastic


4. Inputs – 4.2 Plastic resin

Million tons

Global plastic resins production, 2009 – 2016e Plastic resins production’s share by countries in 2016


32

Source: VIRAC, ICIS

Source: VIRAC, ICIS


4. Inputs – 4.2 Plastic resin

Million tons

Global demand for plastic resins, 2010 – 2016e

Demand for plastic resins by regions, 2015


33

• Recycled materials:

Source: ITC, UN Comtrade

Source: ITC, UN Comtrade


4. Inputs – 4.3 Recycled plastics

USD million

Recycled plastic material, 2012 – 2016e

Recycled plastic material‘s export structure in the world, 2016Content is intentionally removed for demo purpose

• Additives:

34


4. Inputs – 4.4 Additives


35

Source: VIRAC, UN Comtrade

Source: VIRAC, UN ComtradeSource: Plastics Engineering


4. Inputs – 4.4 Additives

USD billion

USD millionThousand tons

Consumption of plastics additives by region, 2016

Top 5 countries with highest additives export value

in the world, 2016

Additives consumption value in the plastics industry

in the world, 2013 – 2021f


36

CONTENT





4. Inputs

5. Production

6. Consumption

7. Export - Import


37

Source: VIRAC, Plastics Europe

Source: VIRAC, Plastic Europe


5. Production

Million tons

Million tons

Global plastics production, 2011– 2016

Production of some countries in the world, 2015


38



5. Production

Production by region, 2015


39

CONTENT





4. Inputs

5. Production

6. Consumption

7. Export - Import


40

Source: VIRAC

Source: VIRAC


6. Consumption

Million tons

Kg/person

Source: VIRAC

Global plastics consumption, 2011 – 2015e

Consumption per capita structure by regions/countries, 2015

Plastic consumption by region, 2015


41

Source: VIRAC, Statista



6. Consumption

Global plastic consumption by application, 2016

CAGR in plastic consumption in some regions,

2015 – 2019f


42

CONTENT





4. Inputs

5. Production

6. Consumption

7. Export – Import


43


7. Export - import

Billion USD

Plastic export - import , 2012 – 2016E


44


Source: VIRAC, ITC, UN Comtrade


7. Export - import

USD billion

Export – Import value of popular plastic products, 2016e


45

Source: VIRAC

Code Description

Code of exports according to the products classification system


7. Export - import


46

Source: VIRAC, ITC, UN Comtrade


7. Export - import

USD million

Top plastic im-exporters, 2016e


47

CONTENT





4. Inputs

5. Production

6. Consumption

7. Export – Import


48

Source: VIRAC, StatistaSource: VIRAC



8. Situation in some typical countries – 8.1 China

USD billion

USD billion

Million tons

Plastic export - import value of China, 2016

Chinese plastics industry’s revenue, 2014 – 2019f

Chinese production 4/2015 – 12/2017


49

Source: VIRAC, Deutsche Bank Research

Source: VIRAC, PlasticEurope


8. Situation in some typical countries – 8.2 Germany

Source: VIRAC, GTAI

Plastic volume growth rate, 2011 - 2016

Top 5 countries with the highest plastic consumption value

in Europe, 2015

FDI structure in plastic by project of some countries, 2014


50

Source: VIRAC, Statista.

Source: VIRAC, ACC


8. Situation in some typical countries – 8.3 The United States

Million tons

American plastic production, 2010-2015 Rubber and plastic production growth in America, 2016e-2020f


51

Source: VIRAC , JPIF

Source: JPIF, VIRAC Source: JPIF, VIRAC


8. Situation in some typical countries – 8.4 Japan

Billion tons

Source: VIRAC , JPIF Source: VIRAC , JPIF

Japanese plastic production, 2012 -6/2017

The proportion of plastic production by product, 6/2017


CONTENT

Part III. The Vietnam’s market

1. History of development and establishment


3. M&A activities

4. Inputs

5. Production

6. Consumption

7. Export - Import

8. Competitive analysis

52

53

Part III. Vietnam’s market

1. History of establishment and development


54

CONTENT




3. M&A activities

4. Inputs

5. Production

6. Consumption

7. Export - Import


55




2. Machinery /Technology

USD million

Export - Import of the plastic and rubber industry,

2009 – 2016e

Structure of the machinery importing market in the plastics

Industry, 2016e


56

CONTENT




3. M&A activities

4. Inputs

5. Production

6. Consumption

7. Export - Import


57


3. M&A activities

Invested capital and claims in plastic companies of the

Siam Cement Corporate, 2016

Source: VIRAC


58


3. M&A activities


59

CONTENT




3. M&A activities

4. Inputs

5. Production

6. Consumption

7. Export - Import


60

Source: VIRAC, BSR

Source: VIRAC, VPA


4. Inputs – 4.1 Imported sources

Production output of plastic materials and additives, 2010 - 2017

Million tons

Million tons

Production output and consumption of Binh Son

Petrochemical Refinery, 2013 - 6T / 3017

61

Source: VIRAC ,Bloomberg



EUR/ton Polymer price movements, 5/2015 – 9/2017

62

Source: VIRAC, TCHQ

Source: VIRAC, TCHQ



Million

tons

Million

USD

Plasric material import, 2010 – 2017

Plastic raw material importers by output, 2017

Source: VIRAC, TCHQ

Plastic raw material importers by value, 2017

63

Source: VIRAC, TCHQ

Source: VIRAC, TCHQ

Scrap plastic import turnover, 2012 – 2017



Million USD

Source: VIRAC, TCHQ

Top importers of plastic raw materials, 9T / 2017

Import structure of plastic materials by type, 2017

64

CONTENT




3. M&A activities

4. Inputs

5. Production

6. Consumption

7. Export - Import


65

Source: VIRAC, GSO


5. Production

Number of business and labor, 2010 - 2016

Number of plastics enterprises by region, 2010 – 2016Content is intentionally removed for demo purpose

66

Source: VIRAC, GSO


5. Production

Million tons

Plastic production output, 2009 – 2017e

Plastics production structure, 2017


67

Type of

PolymerApplication


5. Production

Thousand tons

Plastic packaging production output,

2009 – 2017


68

Source: VIRAC, GSO


5. Production

Thousand tons

Household plastic production output, 2009 – 2017e


69

Production output of construction plastics, 2009 - 2017e

Thousand tons

Source: VIRAC, GSO


5. Production


70

Phần III. Thị trường Việt Nam

5. Sản xuất

Source VIRAC

Ton

Plastic pipe design capacity of key enterprises, 2017

71

Production of plastics and other plastics,

2009 - 2017e

Thousand tons

Source: VIRAC, GSO


5. Production


72

CONTENT




3. M&A activities

4. Inputs

5. Production

6. Consumption

7. Export - Import


73


6. Consumption

USD billion

Sales of the plastics industry, 2013 – 2017e

Source: VIRAC

Source: VIRAC, VPAS

Content is intentionally removed for demo purpose Plastic consumption per capita, 1989 – 2016

Kg/person/year

74


6. Tiêu thụ

Source: VIRAC, VPA

Source: VIRAC, VPA

Scales of listed plastic packaging enterprises

Vietnam’s plastic packaging market scale, 2012 – 2016f

75


6. Tiêu thụ

Source: VIRAC, VPA

Outlets and agencies of plastic pipe manufacturers, 2017

Source: VIRAC, VPA

Vietnam’s plastic pipe consumption market share, 2016

76

CONTENT




3. M&A activities

4. Inputs

5. Production

6. Consumption

7. Export - Import


77

Source: VIRAC, TCHQ

Part III. Vietnamese market

7. Import –export – 7.1 Import

Million USD

Plastic product import markets, 2017

Plastic product import, 2010 - 2017e

Source: VIRAC, TCHQ

Source: VIRAC, TCHQ

Million

USD

Plastic product import by month, 2016 - 2017

78

Source: VIRAC, TCHQ


7. Import –export – 7.2 Export

Million USD

Plastic export turnover, 2010 – 2017

Plastic exporting enterprise structure, 2013 – 2017

Source: VIRAC, TCHQ

Plastic product export by month, 2016 – 2017

Million USD

Source: VIRAC, TCHQ

79

Source: VIRAC, TCHQ

Source: VIRAC, TCHQ



Plastic product export by type, 2017

Plastic product export market, 2017

80

Source: VIRAC, TCHQ



81

CONTENT




3. M&A activities

4. Inputs

5. Production

6. Consumption

7. Export - Import


82




83

Competitive strategiess of some famous brands in the plastics industry




84




CONTENT

Part IV. Industrial risks

85

86

Environment risks:


Risks of takeover


87

Health risks


Competitive risks


88



CONTENT

Part V. Prospects and Forecasts

1. Prospects

2. Forecasts

3. Industry planning

89

90

Prospects

Part V. Prospects and forecasts

1. Prospects


91


1. Prospects


92

CONTENT


1. Prospects

2. Forecasts


93


2. Forecasts – 2.1 Global market


94

Source: VIRAC


2. Forecasts – 2.2 Vietnam’s market


95

Source: VIRAC


2. Forecasts – 2.2 Vietnam’s market

Thousand tons

Forecast for plastic production output, 2011 – 2020f


96

CONTENT


1. Prospects

2. Forecasts


97

Project Location

Capacity

(tons/year)

Total

investment

(USD million)

List of projetcs on plastic materials

Source: VIRAC, MOIT

Project Location

2016 - 2020

Number

Investment capital

(USD million)

List of projetcs on mold and equipment manufacture

Source: VIRAC, MOIT




98




CONTENT

Part VI. Enterprise Analysis

1. Enterprises Introduction

2. Financial Analysis

99

100

Tien Phong Plastic Joint-Stock Company (NTP)

Part V. Enterprise analysis

1. Enterprise introduction


101

Binh Minh Plastic Joint Stock Company (BMP)




102

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




103

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




104

Dong Nai Plastic Joint Stock Company (DNP)




105

Dong A Plastic Group Joint Stock Company (DAG)




106

Rang Dong Plastic Joint Stock Company (RDP)




107

Saigon Plastic Packaging Joint Stock Company (SPP)




108

Tan Dai Hung Plastic Joint Stock Company (TPC)




109

CONTENT

Part VI. Enterprise Analysis

1. Enterprises Introduction

2. Financial Analysis

110

Net revenue, 2015 - 2016


2. Financial analysis- Profitability

VND billion

Source: VIRAC


111

Revenue structure of Dong Nai Plastics, 2016

Source: VIRAC, DNP




112

Source: VIRAC

Gross profit, 2015 - 2016VND billion




113

Source: VIRAC

Gross profit margin, 2015 - 2016




114




115

Solvency, 2015 - 2016

Source: VIRAC


2. Financial analysis- Solvency


116

Account receivable turnover, 2015 - 2016

Inventory rotation, 2015 - 2016


2. Financial analysis- Solvency

Source: VIRAC

Source: VIRAC


117

Total Debt/Total Assets, 2015 - 2016

Source: VIRAC


2. Financial analysis- The ability to repay


118

Total debt/equity, 2015 - 2016


2. Financial analysis- The ability to repay

Source: VIRAC


119

G&A expenses/Net Revenue, 2015 - 2016

Selling Expenses/Net Revenue, 2015 - 2016


2. Financial analysis- Performance

Source: VIRAC

Source: VIRAC


120

Fix Asset Turnover, 2015 - 2016

Total Asset Turnover, 2015 - 2016


2. Financial analysis- Performance

Source: VIRAC

Source: VIRAC


121

NTP BMP AAA NNG DNP DAG RDP SPP TPC

Average of

the industry

2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016

ROA

ROE

ROS

Profit after

tax

Net revenue

Total asset

Equity


2. Financial analysis- Rate of return


Report Disclaimer

Report Disclaimer

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