Export activities “are stated” to save Vietnam cement scenario in years to come

Share this on: Hanoi, Jun 13 2018 - 09:42 AM
Export activities “are stated” to save Vietnam cement scenario in years to come

In 2017, domestic consumption sustained its growth at 1.4% while export activity drove the market with export volume surging up to 19.7 million tonnes, posting robust growth of 27.7% y-o-y. Of which, top 10 cement exporters contributed 69.4% and 65.2% of total export volume and value respectively in 2017.


To evaluate the effect of cement exporting activities, we would zoom-in the profitability of top 10 cement exporters (Data FY 2016), which is empowered by the most comprehensive and insightful financial database for Vietnam – our Biinform database. Among top 10 cement exporters, VICEM ranked the 1st place in terms of net sales, which was far higher than the second-up – Vissai Group (US$251 mn).

         >>> Click here to check out full Vietnam Cement Market 2018 Report

Figure 1 Net Sales of Top 10 Cement Exporters in Vietnam (US$mn), 2016

         >>> Check out detailed company reports of: Vicem - Vissai - Nghi Son - Long Son - Phuc Son - Thang Long - Cong Thanh - Ha Long - Xuan Thanh - VCM

 

PROFITABILITY RATIO OF TOP 10 CEMENT EXPORTERS IN VIETNAM

Figure 2 Operating Profit Margin (OPM) and Net Profit Margin (NPM) of Top 10 Cement Exporters, 2016

Regarding to profitability ratio, there are 04 companies posing higher OPM and Net profit margin NPM, of which Nghi Son and Phuc Son illustrated greatest NPM of 13.5% and 11.2% respectively, followed strictly by VICEM (11.1%). It is worth noting that all the top companies still concentrate on strengthening their presence in domestic market since 80% of total Vietnam cement demand derived from local market (2016). Meanwhile, other remaining companies showed under-average performance, especially Cong Thanh, VCM and Thang Long with negative figures due to its sluggish domestic consumption. In conclusion, export activities have shed the light on the gloomy scenario of Vietnam cement industry, however, it was not strong enough to lift up the market, which is indicated by the poor performance of majority top cement exporters.   

You can find more information in our sixth comprehensive report on Vietnam Cement market, featuring the most up-to-date information on cement projects as well as practical investment opportunities, risks, and mitigation measures. Please click here!

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Contact our Cement Specialist team:

Dong Le

Director, Biinform

Dong.le @stoxplus.com

 

Hai Khieu

Assistant Manager, Biinform

Hai.khieu@stoxplus.com



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