Vietnam Cement Market Report 2019

Date: 10th April2019
Dear Our Value Clients,
Re: The publication of Vietnam Cement Market Report 2019
FiinGroup has been issuing the annually updated Vietnam Cement
Market Report for the last seven years, providing the first and most
comprehensive report on this sector. Taking into account feedbacks
from our clients, in addition to the comprehensive analysis of the
market itself, we updated Vietnam Cement Market Report this year with
emphasis on demand from domestic market and key export destination
as well as detailed projection until 2030. In addition, we also included
in this issue the analysis on retail bagged cement prices for PCB30 and
PCB40 by region and key brands in each region.
The purpose of research work is to have an in-depth understanding of
Vietnam cement market and assessing potentiality of the market and
how to penetrate the market for current players. To assess the cement
outlook in 2019, key market drivers from both domestic market such as
infrastructure construction, real estate market and export markets are
focused.
In addition to our experience in this industry, we have conducted
various discussions and interviews with industry experts, VNCA, cement
manufacturers executive levels to grasp local insights and the practical
ways of doing cement business in Vietnam.
We understand that this is a targeted but also an open research. We would
be happy to provide any further information to address any questions that
you may have, for any specific sector or target business in Vietnam.
Should you have any questions, please contact me or our Manager, Mr. Hai
Khieu at +84 (24) 3562 6962 (ext. 121) or his email:
hai.khieu@fiingroup.vn.
Yours sincerely,
Le Xuan Dong
Director, Research and Consulting Services
FiinGroup Joint Stock Company
FiinGroup Joint StockCompany
Head Office
5th Floor, Anh Minh Building
36 Hoang Cau, Dong Da
Hanoi, Vietnam
Tel: +84 (24) 3562 6962
www.fiingroup.vn
Ho Chi Minh CityBranch
3rd Floor, Profomilk Plaza Bldg,
51-53 Vo Van Tan, Ward 6,
District 3, Ho Chi Minh,Vietnam
Tel: +84 (28) 3933 3586
2Financial Information | Business Information | Research and Consulting Services

Part Content Page
Executive Summary 5 – 7
1 Section 1: Supply and Demand Analysis 8 - 25
1.1 Demand Analysis 8 - 15
1.2 Supply Analysis 16 – 20
1.3 Forecast Analysis 21 – 25
2 Section 2: Competition landscape 26 - 38
2.1 Market Share 26 -31
2.2 Retail Cement Price Analysis 32 – 38
3 Section 3: Sector Financial Performance 39 – 46
4 Section 4: Market Potentials 47 – 53
Appendices 54 - 61
Appendix 1: Vietnam Macro-economic Situation 54 -57
Appendix 2: Listed Cement Companies’ Factsheet 58 – 61
Table of Content

Abbreviation
Content is removed for demo purpose

Executive Summary – What’s New?
We have completed the review of the cement
market in Vietnam. Information covered
includes market size and potentiality,
competition dynamics and profiles of major key
end-users and major players.
Below are the most critical findings that could
be important for your consideration.
1) Total clinker and cement sales volume
reached the high record in 2018 at xx.xmn
tons, driven by robust export activities.
Domestic market posted a strong growth
x.x% in 2018 to reach xx.xmn tons.
The market situation significantly improved in
2018. The market was supported by the
improved real estate market (including
residential, industrial and hospitality real
estate) and optimistic construction market.
Particularly, sales volume of apartments
expanded by over xx% in the 2018. Office rent
and occupancy rate of office segment were
also improved compared to the same period
last year.
By region, cement sales volume in the North
and South grew at x.x% and x.x% in 2018 while
the figure was only x.x% in the Central.
Cement sales volume growth in Vietnam
2013 2014 2015
Domestic cement sales
2016 2017 2018
Clinker & cement export

2) Designed capacity in Vietnam is expected
to surge in the next three years
Cement design capacity in Vietnam (mn. tons)
2017 2018 2019 2020 2021
New capacity

Section 1: Supply & Demand Analysis
Page
1.1 Demand Analysis 8 - 15
1.3 Forecast Analysis 21 - 25
Content

Total sales volume of cement & clinker in Vietnam reached xx.x million tons, posting a y-
o-y growth of xx.x% in 2018
1.1 Demand Analysis
Figure 1: Total sales volume of cement & clinker in Vietnam, mn tons Figure 2: Annual sales growth of Vietnam cement industry
Source: FiinGroup from VNCA, General Customs Source: FiinGroup from VNCA, General Customs
TOTAL SALES
2013 20182014 2015
2016 2017
Clinker & cement export
CAGR 2013 – 2018 = x.x%
2013 2014 2015 2018
2016 2017
Clinker & cement export TOTAL

Domestic market has remained strong growth of x.x% in 2018…
1.1 Demand Analysis
Figure 3: Vietnam domestic cement sales volume by region, mn tons Figure 4: Vietnam domestic cement sales growth by region
Source: FiinGroup from VNCA Source: FiinGroup from VNCA
DOMESTIC MARKET
2013 2014 2015 2016 2017 2018
North South Central

…while cement & clinker export volume booming in 2018 with an sharp increase by xx.x%
compared to the previous year
1.1 Demand Analysis
Figure 5: Annual cement & clinker export volume, mn tons
Source: FiinGroup from VNCA & General Customs
EXPORT ACTIVITIES
CAGR 2013 – 2018 =xx.x%
Monthly cement & clinker export volume (thousand tons)

Clinker export price rises significantly to US$xx.x per ton while cement export price was
on the downward to US$xx.x per ton in February 2019
1.1 Demand Analysis
Figure 6: Monthly average clinker and cement export price, US$ per ton
Source: FiinGroup from General Customs
EXPORT ACTIVITIES

China remained Vietnam’s key clinker export destination during 2018
Section 1: Analysis on Vietnam Clinker & Cement Export
1.2 Analysis of Clinker Export from Vietnam | Major Markets
Figure 7: Monthly clinker export volume to major markets, thousand tons
Source: FiinGroup, General Customs
Nov-18 Dec-18 M-o-m
Growth
2017 2018 Y-o-y
Growth
China
Philippines
Bangladesh
Taiwan
Other
TOTAL
EXPORT ACTIVITIES

Philippines remained Vietnam’s key cement export destination in 2018
Section 1: Analysis on Vietnam Clinker & Cement Export
1.3 Analysis of Cement Export from Vietnam | Major Markets
Figure 8: Monthly import volume of major market, thousand tons
Source: FiinGroup, General Customs
Nov-18 Dec-18 M-o-m
Growth
2017 2018 Y-o-y
Growth
Philippines
China
Peru
South Africa
Others
TOTAL
EXPORT ACTIVITIES

Top 10 importers constituted over xx% of total export volume and value
1.1 Demand Analysis
Figure 9: Cement export volume (mn tons) and price (US$ per ton) of Top 10 importers, 2018
CLINKER
VOLUME - LHS PRICE - RHS
Source: FiinGroup from Customs
EXPORT ACTIVITIES

Content
Page
1.1 Demand Analysis 8 -15

Overview of Vietnam’s cement production capacity
Section 1: Supply & Demand Forecast Analysis
1.2 Supply Analysis
Figure 10: Breakdown of cement and clinker production capacity by economic zone, 2018
Source: FiinGroup
By # facilities
By clinker designed capacity By cement designed capacity

The majority of existing large-scaled cement manufacturing plants are located in (cont.)
1.2 Supply Analysis

1.2 Supply Analysis
Local private manufacturers have been aggressive developing new cement facilities while
foreign-owned players are strengthening their positions after M&A
Group of players FiinGroup’s comment Key manufacturers’ designed capacity (mn. tons), 2018
Local private
VICEM

2018 2019f 2020f 2021f
1.2 Supply Analysis
Designed capacity in Vietnam is expected to surge in the next three years
Figure 12: Clinker and cement designed capacity in Vietnam
Clinker
FORECAST
2017
Cement
FORECAST
2017
Source: FiinGroup
2018 2019 2020 2021

Content
Page
1.1 Demand Analysis 8 -15

1.3 ForecastAnalysis
Our methodology to forecast cement demand and supply
DEMAND SIDE SUPPLY SIDE
 “Supply” is calculated as cement designed capacity.
 FiinGroup have database of all xx existing facilities in the country with
total cement designed capacity of xxx.xmn tons as of xxx 20xx.
 In addition, we observed and updated the status of all cement
projects in the Government’s Master Plan for the forecast analysis of
supply.
DEMAND SIDE SUPPLY SIDE
 “Supply” is calculated as clinker designed capacity.
 FiinGroup have database of all xx existing facilities in the country with
total clinker designed capacity of xx.xmn tons as of xxx 20xx.
 In addition, we observed and updated the status of all cement
projects in the Government’s Master Plan for the forecast analysis of
supply.
Our methodology to forecast clinker demand and supply

Vietnam is expected to face with continuous cement designed capacity surplus before
reaching the equilibrium in 20xx
CEMENT

Vietnam is expected to face shortage of clinker designed capacity from 2026
CLINKER

Vietnam cement manufacturers are operating with the utilization rate of xx%, which is
far lower than industry standard of xx%
Figure 15: Utilization rate of cement industry in Vietnam
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: FiinGroup

Section 2: Competition Landscape
Content
Page

Foreign-owned group increased significantly its market share via M&A while VICEM
remains its leading position with xx% of domestic sales volume in 2018
2.1 Market Share
DOMESTIC MARKET

Leveraging the leading position, VICEM achieved relatively high utilization rate of xx%,
which is higher than foreign-owned players’ figure in 2018
2.1 Market Share
Source: FiinGroup, VNCA
Figure 17: Domestic cement sales volume of selected of players, 2018
VICEM Foreign-owned
DOMESTIC MARKET
0
2
Domestic sales vol. (mn. tons)
4 6 8 10

For export market, private manufacturers are dominating the market, accounting for
xx.x% of cement & clinker export volume in 2018
2.1 Market Share
EXPORT MARKET

Top 10 exporters by volume in 2018
2.1 Market Share
Figure 19: Top 10 Exporters by Volume (mn tonnes), 2018
EXPORT MARKET

Top 10 exporters by volume in 2018 (cont’d)
2.1 Market Share
Source: FiinGroup from Customs
EXPORT MARKET

Content
Page

2.2 Retail Cement Price Analysis | Domestic cement price
Cement price follows upward trend at the end of 2018 in all 3 regions of Vietnam
Figure 20: Average cement price by region (US$ per ton)

2.2 Retail Cement Price Analysis | Average cement price in each region
Amongst regions in Vietnam, the South has the highest cement price
Figure 21: Average retail price of bag cement (by province), Dec 2018

2.2 Retail Cement Price Analysis | Average PCB30 price by region
In terms of average prices, the South continues to be the region with the highest PCB30
price
Figure 22: Average retail price of PCB30 bag cement by region (US$ per ton), Dec 2018
Source: FiinGroup
US$perton

2.2 Retail Cement Price Analysis | Average PCB30 price of major cement manufacturers
Cement PCB 30 price of key players in each region

2.2 Retail Cement Price Analysis | Average PCB40 price by region
Similar to PCB30, PCB40 prices were also the highest in the South
Figure 24: Average retail price of PCB40 bag cement by region (US$/ton), Dec 2018
Source: FiinGroup

2.2 Retail Cement Price Analysis | Average PCB40 price of major cement manufacturers
Cement PCB40 price of key players in each region
Figure 25: Price of PCB40 of key players in key provinces of each region, Dec 2018

Section 3: Sector Financial Performance
Content
Page
3 Sector Financial Performance 39 -46

• Our analysis on listed cement companies’ financial performance is empowered by the most comprehensive and insightful
financial database for Vietnam – our FiinPro Platform. At the time of this report, financial data for FY2018 is not available.
FiinGroup will update this part once the FY2018 data is available.
• Particularly, there are xx public cement companies in Vietnam (xx listed companies on HOSE & HNX, xx and xx companies
registered on UPCOM and OTC, respectively). Of which, 5-year (2013 – 2017) historical data is available for xx cement
companies. The analysis hereafter is based on these xx companies which accounted for approximately xx% of cement domestic
sales volume in 2018.
Methodology
3.1 Sector Financial Performance
Methodology

Figure 26: Key financial ratios – Sector average
Vietnam cement sector posted an improvement in financial performance in 2018

Source: FiinGroup
The analysis is conducted based on financial data of 17 listed cement companies. As of April 2019, financial data of unlisted cement companies for FY2018 has not yet available. FiinGroup
will update Section 3: Sector Financial Performance once the information isavailable.
Figure 27: Profitability of listed cement companies in Vietnam
Improved profitability thanks to increasing price and strong domestic demand
Figure 28: EBITDA margin of listed cement companies, 2017 vs. 2018
2011
2012 2013 2014 2015 2016 2017 2018

Zoom in cost structure
0%
5%
10%
Figure 29: Cost structure of listed cement companies
15%
-5%
2012 2013 2014 2015 2016 2017 2018
Source: FiinGroup

Source: FiinGroup
Figure 30: Financial leverage of listed cement companies
Zoomed in D/E ratio of whole cement industry

Source: FiinGroup
Figure 31: Financial leverage of selected listed cement companies
D/E ratios of selected cement manufacturers in Vietnam

Source: FiinGroup
Figure 32: Financial leverage of selected listed cement companies
D/E ratios snapshot in 2018

Section 4: Market Potential
Content
Page
4 Market Potential 47 -53

4.1 Market Potential
Cement and clinker sales volume in Vietnam is forecasted to follow strong momentum in
2019 thanks to strong domestic demand and bright outlook of export market

Source: FiinGroup, GSO
4.1 Market Potential | Domestic Demand
Domestic cement sales was supported by strong growth of Vietnam construction and real
estate market in 2018
Figure 33: Total construction value in Vietnam, US$bn

Figure 34: Infrastructure projects’ investment value, US$bn
Source: FiinGroup
Figure 35: # Infrastructure projects in Vietnam
Source: FiinGroup
4.1 Market Potential | Domestic Demand
The exposure of investment in development of transportation system

Figure 36: Cement designed capacity & domestic sales volume in China,
mn tons
Source: FiinGroup
Figure 37: Domestic sales growth & utilization rate of China
Source: FiinGroup
4.1 Market Potential | Export
China is the biggest cement market with sales volume reaching over 2.3 billion tons per
year, accounting for 60% of cement volume of all the world
2012 2013 2016 2017 20182014 2015
Domestice sales volume CapacityDesigned capacity

Figure 38: Philippines’ construction statistics from approved building
permits, PHP bn
Source: FiinGroup, Philippines Statistics Authority
Figure 39: Philippines’ construction growth by segment
Source: FiinGroup
Philippines continues to be key destination for Vietnam clinker and cement export

Clinker demand from Bangladesh is expected to remain high in 2019
Figure 40: Cement designed capacity and production volume in Bangladesh, mn tons
Source: FiinGroup

Appendices
Content
Page
Appendix 1 Vietnam Macroeconomic Situation 54 -57
Appendix 2 Listed Cement Companies’Factsheet 58 – 61

Source: FiinGroup, GSO
Figure 42: Registered foreign direct investment in Vietnam (US$bn)
Source: FiinGroup, MPI
Appendix 1
Vietnam Macroeconomic Situation
In 2018, Vietnam recorded the highest GDP growth since 2011, surpassing the target of
x.x%
Figure 41: Vietnam real GDP growth and CPI

Source: FiinGroup from General Statistics Office of Vietnam
Appendix 1
The proportion of investment and development over total expenditure has been on the
upward trend since 20xx
Figure 43: State capital investment expenditure (VNDbn)

Figure 44: EVN’s retail electricity tariff for manufacturing sectors in Vietnam, VND/kWh
Source: FiinGroup
Appendix 1
With the hike of x.x% in retail electricity tariff, cement manufacturers announced to
increase domestic cement price by US$x – x.x per ton by early April 20xx

Appendices
Appendix 1 Vietnam Macroeconomic Situation
Appendix 2 Listed Cement Companies’ Factsheet
Content

Appendix 2
Listed Cement Companies’ Factsheet
VICEM BIM SON
VND Billions 2014 2015 2016 2017 2018
Net sales
Cost of Sales
Gross Profit
GP Margin %
Overhead Expenses
Sales & Marketing
S&M %
Administration
Admin %
EBIT
EBIT Margin %
EBITDA
EBITDA Margin %
Financial Expense
Interest Expense
Profit/(Loss) before tax
Net Profit/(Loss) after tax
Net Profit Margin %
Cash Flow From
Operation
CFO/Sales %
Current Assets
Accounts receivable
Non-Current Assets
HA TIEN 1
Total Assets
Current Liabilities
Accounts payable
Borrowings
Non-Current Liabilities
Borrowings
Total Liabilities
Net Assets
Debt/ Total Assets %
Total Assets
Current Liabilities
Accounts payable
Borrowings
Borrowings
Total Liabilities
Net Assets
VND Billions 2014 2015 2016 2017 2018
Net sales
Cost of Sales
Gross Profit
GP Margin %
Overhead Expenses
Sales & Marketing
S&M %
Administration
Admin %
EBIT
EBIT Margin %
EBITDA
EBITDA Margin %
Financial Expense
Interest Expense
Net Profit Margin %
Cash Flow From
Operation
CFO/Sales %
Current Assets
Accounts receivable
Non-Current Assets

BUT SON CEMENT
VND Billions 2014 2015 2016 2017 2018
Net sales
Cost of Sales
Gross Profit
GP Margin %
Overhead Expenses
Sales & Marketing
S&M %
Administration
Admin %
EBIT
EBIT Margin %
EBITDA
EBITDA Margin %
Financial Expense
Interest Expense
Net Profit Margin %
Cash Flow From
Operation
CFO/Sales %
Current Assets
Accounts receivable
Non-Current Assets
HOANG MAI CEMENT
Total Assets
Current Liabilities
Accounts payable
Borrowings
Borrowings
Total Liabilities
Net Assets
Total Assets
Current Liabilities
Accounts payable
Borrowings
Borrowings
Total Liabilities
Net Assets
VND Billions 2014 2015 2016 2017 2018
Net sales
Cost of Sales
Gross Profit
GP Margin %
Overhead Expenses
Sales & Marketing
S&M %
Administration
Admin %
EBIT
EBIT Margin %
EBITDA
EBITDA Margin %
Financial Expense
Interest Expense
Net Profit Margin %
Cash Flow From
Operation
CFO/Sales %
Current Assets
Accounts receivable
Non-Current Assets
Appendix 2

VICEM HAI VAN
VND Billions 2014 2015 2016 2017 2018
Net sales
Cost of Sales
Gross Profit
GP Margin %
Overhead Expenses
Sales & Marketing
S&M %
Administration
Admin %
EBIT
EBIT Margin %
EBITDA
EBITDA Margin %
Financial Expense
Interest Expense
Net Profit Margin %
Cash Flow From
Operation
CFO/Sales %
Current Assets
Accounts receivable
Non-Current Assets
CAN THO CEMENT
Total Assets
Current Liabilities
Accounts payable
Borrowings
Borrowings
Total Liabilities
Net Assets
Total Assets
Current Liabilities
Accounts payable
Borrowings
Borrowings
Total Liabilities
Net Assets
VND Billions 2014 2015 2016 2017 2018
Net sales
Cost of Sales
Gross Profit
GP Margin %
Overhead Expenses
Sales & Marketing
S&M %
Administration
Admin %
EBIT
EBIT Margin %
EBITDA
EBITDA Margin %
Financial Expense
Interest Expense
Net Profit Margin %
Cash Flow From
Operation
CFO/Sales %
Current Assets
Accounts receivable
Non-Current Assets
Appendix 2

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‹#›
Contact us
Dong Le, CFA
Director, Research and Consulting Services
M: +84 (024) 3562 6962 (ext. 110)
T: +84 (0) 912 057 529
E: dong.le@fiingroup.vn
W: www.fiingroup.vn
Hai Khieu
Manager, Research and Consulting Services
T: +84 (024) 3562 6962 (ext. 120)
M: +84 (0) 966 510 388
E: hai.khieu@fiingroup.vn
W: www.fiingroup.vn
Head Office
5th Floor, Anh Minh Building
36 Hoang Cau Street
Hanoi, Vietnam
+ 84 (24) 3562 6962
Ho Chi Minh City Branch
3rd Floor, Profomilk Plaza Bldg
51-53 Vo Van Tan, District 3
Ho Chi Minh City, Vietnam
+ 84 (28) 3933 3586

Vietnam Cement Market Report 2019

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