VIETNAM CEMENT INDUSTRY REPORT Q1/2018

Transcription

1 VIETNAM CEMENT INDUSTRY REPORT Q1/2018 1

2 Content Summary Current status of consumption and production in ASEAN Business environment Leading enterprises in the industry Macroeconomic situation Vietnam cement industry Legal framework History of Vietnam cement industry Trade agreements Definition and Classification Industry overview Basic production process World cement industry Scale and market share Production Input materials Consumption Production technology Export Supply-Demand Import Production of Clinker and Cement Price movement Consumption Current status of consumption and production in some typical countries Cement and clinker export 68 2

3 Content Inventories Driving forces of output industry development Price movement World forecast Distribution method Domestic forecast Transport method (logistic warehouse, seaport, specialized ship,...) Enterprise analysis Industry risk Profitability Main risks Performance efficiency SWOT analysis Financial strength forces analysis Return on investment Industry planning Appendix Cement industry planning Update of projects invested in the period Construction and real estate industry planning Portfolio of infrastructure projects in the period Outlook and forecast Financial statements Driving forces of industry development 100 3

4 Abbreviations ADB Asian Development Bank PPP Public Private Partner BOT Build Operate - Transfer GDVC General Department of Vietnam Customs EVN Vietnam Electricity Corporation GSO General Statistics Office of Vietnam FDI Foreign Direct Investment TKV Vietnam National Coal and Mineral Industries Holding Corporation Limited FIA Foreign Investment Agency VICEM Vietnam Cement Industry Corporation ICR International Cement Review VIRAC VIRAC Joint Stock Company VNCA Vietnam National Cement Association 4

5 Summary Vietnam cement market continues to have excess supply Cement quality is determined by two main factors: limestone materials and technology, equipment. Logistic is still the weak point of the cement companies in Vietnam. The perspective of cement demand can vary significantly based on the development of infrastructure projects and real estate cycles. 5

6 Summary Cement prices in the country are stable over the years, the lowest in the North, and the highest in the South Three groups of cement suppliers in Vietnam: Production expenses: Sales strategy: Because of the competition within the industry with large cement companies joining the market, small cement firms are forced into bankruptcy or merger because they are not competitive enough. 6

7 Content 1. Business environment 1.1 Macroeconomic situation 1.2 Legal framework 1.3 Trade agreements 7

8 1. Business environment 1.1 Macroeconomic situation Gross domestic product in 2017 is estimated to increase by 6.81% compared to 2016, GDP growth rate by quarter, Sources: VIRAC, GSO GDP by current price and GDP per capita, GDP per capita has increased strongly over the past few years. Sources: VIRAC, GSO 8

9 1. Business environment 1.1. Macroeconomic situation % Industrial production index of the manufacturing, Source: VIRAC, GSO VND/USD exchange rate, In 2017, the VND / USD exchange rate was quite stable around VND 22,400. Source: VIRAC, SBV 9

10 1. Business environment 1.1 Macroeconomic situation State revenues and expenditures VND trillion State revenues, VND trillion Government expenditures, 2017 Source: VIRAC, GSO Source: VIRAC, GSO 10

11 1. Business environment 1.1 Macroeconomic situation The rate of development of social investment capital increasing at current prices, The investment capital for society development by current prices for economic sectors, e Sources: VIRAC, GSO 11

12 1. Business environment 1.1 Macroeconomic situation Billion USD FDI capital, Foreign direct investment FDI attraction by sector, 2017 Sources: VIRAC, FIA Sources: VIRAC, FIA 12

13 Content 1. Business environment 1.1 Macroeconomic situation 1.2 Legal framework 1.3 Trade agreements 13

14 1. Business environment 1.2 Legal framework - Group of general regulations Decision No.1488/QD-TTg established stricter conditions for new entrants by establishing different technical requirements: Regulations on WHRPG (according to Decision No.1488/QĐ-TTg): 14

15 1. Business environment 1.2 Legal framework - Group of general regulations WHRPG system: Advantages Disadvantages WHRPG Funds: 15

16 1. Business environment 1.2 Legal framework - Group of price regulations Decree No. 177/2013 / ND-CP 16

17 1. Business environment 1.2 Legal framework - Group of price regulations Tax policy: 17

18 1. Business environment 1.2 Legal framework - Group of price regulations 18

19 1. Business environment 1.2 Legal framework - Group of environmental and resources regulations Environmental Protection Tax applied since 1/2012 No Parameter Concentration C (mg/m³) A B1 B2 Taxable Items Unit Tax rate raised by National Assembly (VND/unit) Tax rate raised by the Standing Committee Natural Resources Tax applied since 2/1/2014 Environmental Protection Tax (EPT) Type of resource Taxation (%) Applicable rate (%) tax Natural Resources Tax (NRT) 19

20 1. Business environment 1.2 Legal framework - Group of environmental and resources regulations However, the tax rate on the resources has been reacted strongly by the business 20

21 1. Business environment 1.2 Legal framework - Group of Export Tax Regulations The Ministry of Finance issued Decree No.122/2016/ND/CP dated 1 September 2016 Materials: Clinker and cement: Import and Export Tariffs applied since 2016 No Item Export tax rate (%) Import tax rate (%) Decree No.122/2016/ND/CP 21

22 Content 1. Business environment 1.1 Macroeconomic situation 1.2 Legal framework 1.3 Trade agreements 22

23 1. Business environment 1.3 Trade agreements Impact from the WTO EVFTA - Vietnam EU Free Trade Agreement signed in early

24 1. Business environment 1.3 Trade agreements RCEP - Regional Comprehensive Economic Partnership 24

25 Content 2. Industry overview 2.1 World cement industry 2.2 Vietnam cement industry 2.3 Industry risk 2.4 Industry planning 2.5 Outlook and forecast 25

26 2.1 World cement industry Production Million tons Global Cement Production, e Cement production by region 2015e Source: VIRAC, Statista Cement production in Asia is leading the world, 26

27 2.1 World cement industry Production Cement production output of some countries, 2017 Top largest cement producing countries, 2017e No Country Production volume (million tons) Sources: VIRAC, Statista Sources: VIRAC, Statista China is currently the largest cement producer in the world, 27

28 2.1 World cement industry Consumption Million tons Global Cement Consumption, e Consumption structure of cement worldwide, 2016 Source: VIRAC, Global Cement Source: VIRAC, International Cement Review 28

29 2.1 World cement industry Export Cement exports in the world in recent years have grown relatively slowly and fluctuated much over the years. million tons Volume and value of global cement exports, M/2017e USD billion Source: VIRAC, Uncomtrade, ITC Export structure of cement worldwide by type, 2016 Source: VIRAC, World s top exports 29

30 2.1 World cement industry Export Export structure of cement by region, 2016 Source: VIRAC, World s top exports Export structure of cement, 2016e USD million Top largest cement exporting countries by value, 2016e Source: VIRAC, World s top exports Source: VIRAC, World s top exports 30

31 2.1 World cement industry Import Global cement imports, e Source: VIRAC, Un Comtrade World's top largest cement importing countries, 2016 America is the largest importer of cement in the world in 2016, million tons Source: VIRAC, Statista 31

32 2.1 World cement industry Price movement USD/ton Average cement price movement worldwide, e Source: VIRAC, Bloomberg 32

33 2.1 World cement industry Current status of consumption and production in some typical countries China: million tons China's cement production volume, 6/2016-6/2017 The United States: Source: VIRAC, Statista Cement and clinker production volume in the US, Thousand tons 2017e Source: VIRAC, USGS 33

34 2.1 World cement industry Current status of consumption and production in some typical countries India: Thousand tons Cement production volume in India, 7/2016-6/2017e Thailand: Source: VIRAC, Tradingeconomics.com Taiwan: Cement production volume in Thailand, 7/2016-6/2017 Thousand tons Source: VIRAC, Tradingeconomics.com 34

35 2.1 World cement industry Current status of consumption and production in ASEAN D Sources:VIRAC, Cemtech 35

36 2.1 World cement industry Leading enterprises in the industry Lafarge Holcim is a merger between two groups which are Holcim (Switzerland) and Lafarge No. Largest cement enterprises on the world, 2017 Company name Revenue in 2017 Profit in 2017 Capacity(mil lion tons/year) Sources: VIRAC collects 36

37 Content 2. Industry overview 2.1 World cement industry 2.2 Vietnam cement industry 2.3 Industry risk 2.4 Industry planning 2.5 Outlook and forecast 37

38 2.2 Vietnam cement industry History of Vietnam cement industry Cement industry is one of the earliest established industries in Vietnam (along with coal, textile, railway...) 38

39 2.2 Vietnam cement industry Definition and Classification Definition: Clinker Cement Classification Vietnam commonly used standards on cement today: 39

40 2.2 Vietnam cement industry Basic production process 40

41 2.2 Vietnam cement industry Basic production process 41

42 2.2 Vietnam cement industry Scale and market share Manufacturing enterprises allocation by region, 2016e Source: VIRAC, GSO Chain allocation by area,

43 2.2 Vietnam cement industry Scale and market share Consumption market share of key enterprises, 2017e There are three main groups of cement suppliers in Vietnam: Source: VIRAC, VNCA 43

44 2.2 Vietnam cement industry Input materials Original production expenses (This division is based on clinker price structure of some leading companies) VND/ton Source: VIRAC 44

45 2.2 Vietnam cement industry Input materials Current status of the electricity industry Billion kwh Supply-Demand and Power loss, e Source: VIRAC, EVN 45

46 2.2 Vietnam cement industry Input materials Structure of electricity consumption 8/2017e Structure of electricity consumption for 4 major industries, 2016 Source: VIRAC, EVN Source: VIRAC, EVN 46

47 2.2 Vietnam cement industry Input materials Electricity prices in Vietnam are quite low compared to those in other countries in the Asia-Pacific region. Average electricity price, 1/ /2017 Source: VIRAC, EVN Average electricity price in some countries, 2016 Country Average electricity price (VND/kwh) (* Prices are in VND) Source: VIRAC, Eurocham 47

48 2.2 Vietnam cement industry Input materials The status of the coal industry Coal reserves by area, 2016 Since being a coal exporting country many years ago, in 2014, Vietnam had to import to serve domestic production needs. Forecast for coal supply-demand in the period f million tons 48

49 2.2 Vietnam cement industry Input materials Coal reserves are becoming less and more difficult to exploit : Industry profit declines: 49

50 2.2 Vietnam cement industry Input materials Status of limestone resources in Vietnam Type Unit Source: VIRAC, TKV 50

51 2.2 Vietnam cement industry Input materials Effect of limestone quality on clinker and cement quality Some good limestone areas in the North and Central Mine Content(%) 51

52 2.2 Vietnam cement industry Production technology Comparison between rotary kiln and vertical kiln technology when producing 1,000 tons of cement About raw materials and fuel: Indicator Dry method (ton) Rotary kiln Wet method (ton) Vertical kiln (ton) Indicator Dry method (ton) Rotary kiln Wet method (ton) Vertical kiln (ton) Source: VIRAC (*) Counts for all dust blowers not working Source: VIRAC 52

53 2.2 Vietnam cement industry Production technology Total investment rate in machinery and equipment of cement production line General introduction In which Investment rate Construction expenses Equipment expenses Source: VIRAC, Ministry of Construction 53

54 2.2 Vietnam cement industry Production technology Notes: 54

55 2.2 Vietnam cement industry Production technology Total investment rate for typical projects Project Year Time Origin of equipment Capacity (million tons of VND/USD exchange rate China, Vietnam G7 (EU, Japan) cement/year ) Total fixed investment (USD million) Total fixed investment (VND billion) Total investment rate per ton of cement at the time of project implementation VND million USD (*) Direct investigation Source: VIRAC 55

56 2.2 Vietnam cement industry Production technology Total investment rate for typical projects (continued) Project Year Time Origin of equipment Capacity (million tons of VND/USD exchange rate China, Vietnam G7 (EU, Japan) cement/year ) Total fixed investment (USD million) Total fixed investment (VND billion) Total investment rate per ton of cement at the time of project implementation VND million USD (*) Direct investigation Source: VIRAC 56

57 2.2 Vietnam cement industry Production technology 57

58 2.2 Vietnam cement industry Production technology Comparison between the investment rate of machinery and equipment derived from G7 and from China About capacity No Name of main equipment Design capacity (ton/hour) G7 Actual capacity (ton/hour) Design capacity (ton/hour) China Actual capacity (ton/hour) Source: VIRAC 58

59 2.2 Vietnam cement industry Production technology About investment rate No Name of main equipment Investment rate on quipment of G7 (VND thousand/ton) Investment rate on quipment of China (VND thousand/ton) Source: VIRAC 59

60 2.2 Vietnam cement industry Production technology Causes: For raw grinding system: Comparison of free lime (Fr.Cao) in clinker fired from Chinese kiln and G7 kiln Measurement time Fr.CoO level in clinker fired from G7's kiln (%) Fr.CoO level in clinker fired from Chinese kiln (%) For kiln: For clinker cooling system & transportation: Source: VIRAC For coal grinding system: 60

61 2.2 Vietnam cement industry Production technology About maintenance costs Comparison between maintenance costs of China and G7 devices Unit: VND No Name of main equipment G7 China Source: VIRAC Conclusion: 61

62 2.2 Vietnam cement industry Supply-Demand million tons Cement supply - demand, e * Supply = total output of cement production; Demand = domestic cement consumption + export output of cement, clinker Source: VIRAC, VNCA 62

63 2.2 Vietnam cement industry Production of Clinker and Cement million tons Cement production volume, e Source: VIRAC, VNCA Large cement projects since the beginning of 2017 Project City / Province Capacity (million tons/year) Investment time Expected completion Source: VIRAC 63

64 2.2 Vietnam cement industry Production of Clinker and Cement Large enterprises in the North in 2017 Group Company Capacity (million tons) Large enterprises in the Central in 2017 Group Conpany Capacity (million tons) Large enterprises in the South in 2017 Group Conpany Capacity (million tons) Source: VIRAC Source: VIRAC Source: VIRAC 64

65 2.2 Vietnam cement industry Consumption million tons Consumption structure by region, e Source: VIRAC, VNCA 65

66 2.2 Vietnam cement industry Consumption million tons Production - Consumption of the North, e Source: VIRAC, VNCA million tons Production - Consumption of the Central, e million tons Production - Consumption of the South, e Source: VIRAC, VNCA Source: VIRAC, VNCA 66

67 2.2 Vietnam cement industry Consumption million tons Monthly cement consumption, 1/ /2017 % Cement consumption growth by region, Source: VIRAC, VNCA Source: VIRAC, VNCA 67

68 2.2 Vietnam cement industry Cement and clinker export World s top 6 largest cement exporting countries 2016e million tons Source: VIRAC, VNCA, Uncomtrade 68

69 2.2 Vietnam cement industry Cement and clinker export million tons Cement clinker exports, e Source: VIRAC, VNCA 69

70 2.2 Vietnam cement industry Cement and clinker export Thousand tons Cement clinker exports, 1/ /2017e Source: VIRAC, GDVC The situation of cement export in the upcoming time is forecasted to be more difficult as China's excess cement production and export prices are low, thus creating fierce competition for Vietnamese export cement. 70

71 2.2 Vietnam cement industry Cement and clinker export In 2017, the main export markets for cement and clinker are Bangladesh and the Philippines. Export markets for cement and clinker, e million tons Source: VIRAC, GDVC 71

72 2.2 Vietnam cement industry Cement and clinker export The cement exporters of Vietnam are divided into 2 types: Cement manufacturers: million tons/year Capacity of cement manufacturers for export in 2016 Trading company : Source: VIRAC, VNCA 72

73 2.2 Vietnam cement industry Cement and clinker export The enterprises export cement directly, 2017 In 2017, for the export of cement directly, Vicem Ha Long, Nghi Son and Thang Long are the three largest exporting enterprises, Sources: VIRAC, VNCA Exporters of clinker directly, 2017 Sourcces: VIRAC, VNCA 73

74 2.2 Vietnam cement industry Inventories million tons Stock of cement, e Source: VIRAC, GSO, VNCA Inventories in the period increased sharply. 74

75 2.2 Vietnam cement industry Price movement Cement price in Vietnam is much lower than that of other countries in the region and the world average price. USD/ton Cement price, 2016 Source: VIRAC, ICR 75

76 2.2 Vietnam cement industry Price movement Generally in 2017, cement prices are stable compared to 2016 because the price of raw materials and inputs, production costs are stable so the cement manufacturing factories hold cement price stably. Cement price, 2016 VND thousand/ton Sale price of cement at some cement companies, 2017 VND thousand/ton Retail price of cement in the areas, 2017 Source: VIRAC, Department of Price Management Source: VIRAC, Department of Price Management 76

77 2.2 Vietnam cement industry Price movement USD/ton Export price of cement and clinker, 6/ /2017 Export price Source: VIRAC, Department of Price Management 77

78 2.2 Vietnam cement industry Distribution method Sales through the main distributor Sales through the project distributor Source: VIRAC 78

79 2.2 Vietnam cement industry Transport method Source: VIRAC 79

80 2.2 Vietnam cement industry Transport method List of seaports belonging to cement plants No. Harbor Seaport Company Challenges: Source: VIRAC, Bộ GTVT 80

81 Content 2. Industry overview 2.1 World cement industry 2.2 Vietnam cement industry 2.3 Industry risk 2.4 Industry planning 2.5 Outlook and forecast 81

82 2.3 Industry risk Main risks - Supply exceeds demand - Input materials - Coal subsidies no longer have preferential prices 82

83 2.3 Industry risk Main risks - The government no longer provides loan guarantees to cement producers - Tightening of road tonnage increases transportation costs 83

84 2.3 Industry risk Main risks The master plan is adjusted to ensure the future of the Vietnamese cement industry List of plants ceased and postponed from the master plan No Owner Plant Capacity (million tons) - Risk from debt structure 84

85 2.3 Industry risk Main risks - Impact from the progress of the construction industry in Vietnam Progress structure of construction projects Source: VIRAC 85

86 2.3 Industry risk Main risks Internal causes of construction industry: Delay and increase costs in construction works in Vietnam 86

87 2.3 Industry risk SWOT analysis Advantage: Limitation: 87

88 2.3 Industry risk SWOT analysis Opportunities: Challenges: 88

89 2.3 Industry risk forces analysis 89

90 2.3 Industry risk forces analysis No Main enterpri ses Product distinguish Valuation Target markets Distribution channel Supply Ability The intention of the sales strategy 90

91 Content 2. Industry overview 2.1 World cement industry 2.2 Vietnam cement industry 2.3 Industry risk 2.4 Industry planning 2.5 Outlook and forecast 91

92 2.4 Industry planning Cement industry planning Decision No. 1488/QD-TTg of the Prime Minister approving the planning on development of Vietnam cement industry. 92

93 2.4 Industry planning Cement industry planning Year Cement demand (million tons) 93

94 2.4 Industry planning Construction and real estate industry planning Decision No:356/QD-TTg planning on development of Vietnam's land road transport till 2020 and orientation to

95 2.4 Industry planning Construction and real estate industry planning Decision No. 445 / QD-TTg approving the adjustment of orientations for master planning for development of Vietnam's urban system up to 2025 with a vision to

96 2.4 Industry planning Construction and real estate industry planning 96

97 2.4 Industry planning Construction and real estate industry planning Decision No. 2127/QD-TTg approving National housing development strategy up to 2020 with vision to 2030: 97

98 2.4 Industry planning Construction and real estate industry planning Outlook of the construction and real estate industry: 98

99 Content 2. Industry overview 2.1 World cement industry 2.2 Vietnam cement industry 2.3 Industry risk 2.4 Industry planning 2.5 Outlook and forecast 99

100 2.5 Outlook and forecast Driving forces of industry development 100

101 2.5 Outlook and forecast Driving forces of output industry development Forecast for value of construction and infrastructure, f Source: VIRAC Population growth, e Source: VIRAC, GSO 101

102 2.5 Outlook and forecast World forecast Ministry of Industry and Trade 102

103 2.5 Outlook and forecast World forecast Ministry of Industry and Trade Market trend of the cement industry is determined by the development trend of the construction industry. USD million The value of the global cement industry, 2017e e Source: VIRAC, IMARC 103

104 2.5 Outlook and forecast Domestic forecast Forecast for supply and demand, domestic prices 104

105 2.5 Outlook and forecast Domestic forecast million tons Forecast for cement industry, 2017e e Source: VIRAC 105

106 2.5 Outlook and forecast Domestic forecast Forecast for M&A trend: 106

107 2.5 Outlook and forecast Domestic forecast M&A activities of cement industry in 2017: 107

108 Content 3. Enterprise analysis 3.1 Profitability 3.2 Performance efficiency 3.3 Financial strength 3.4 Return on investment 108

109 3. Enterprise analysis 3.1 Typical enterprises in 2015 Top 10 cement enterprises with the highest revenue in 2016 Name of enterprise Classification Address 1 Ha Tien 1 Cement Joint Stock Company Charter capital (VND million) Revenue in 2016 (VND million) 2 The Vissai Cement Corporation 3 Nghi Son Cement Company 4 VICEM Hoang Thach Cement Company Limited 5 Bim Son Cement Joint Stock Company 6 VICEM But Son Cement Joint Stock Company 7 Thang Long Cement Joint Stock Company 8 9 VICEM Hoang Mai Cement Joint Stock Company Quang Ninh Cement and Construction Joint Stock Company 10 Sai Son Cement Joint Stock Company Source: VIRAC 109

110 3. Enterprise analysis Ha Tien 1 Cement Joint Stock Company Ha Tien 1 Cement Joint Stock Company 110

111 3. Enterprise analysis The Vissai Cement Corporation The Vissai Cement Corporation 111

112 3. Enterprise analysis Nghi Son Cement Company Nghi Son Cement Company 112

113 3. Enterprise analysis VICEM Hoang Thach Cement Company Limited VICEM Hoang Thach Cement Company Limited 113

114 3. Enterprise analysis Bim Son Cement Joint Stock Company Bim Son Cement Joint Stock Company 114

115 3. Enterprise analysis VICEM But Son Cement Joint Stock Company VICEM But Son Cement Joint Stock Company 115

116 3. Enterprise analysis Thang Long Cement Joint Stock Company Thang Long Cement Joint Stock Company 116

117 3. Enterprise analysis VICEM Hoang Mai Cement Joint Stock Company VICEM Hoang Mai Cement Joint Stock Company 117

118 3. Enterprise analysis Quang Ninh Cement and Construction Joint Stock Company Quang Ninh Cement and Construction Joint Stock Company 118

119 3. Enterprise analysis Ha Tien 1 Cement Joint Stock Company Sai Son Cement Joint Stock Company 119

120 Content 3. Enterprise analysis 3.1 Profitability 3.2 Performance efficiency 3.3 Financial strength 3.4 Return on investment 120

121 3. Enterprise analysis 3.1. Profitability VND million Net revenue growth, Source: VIRAC 121

122 3. Enterprise analysis 3.1. Profitability VND million Gross profit growth, Source: VIRAC 122

123 Content 3. Enterprise analysis 3.1 Profitability 3.2 Performance efficiency 3.3 Financial strength 3.4 Return on investment 123

124 3. Enterprise analysis 3.2 Performance efficiency Total asset turnover, Unit: times Fixed asset turnover, Unit: times Source: VIRAC Source: VIRAC 124

125 3. Enterprise analysis 3.2 Performance efficiency Inventory turnover, Unit: times Source: VIRAC 125

126 Content 3. Enterprise analysis 3.1 Profitability 3.2 Performance efficiency 3.3 Financial strength 3.4 Return on investment 126

127 3. Enterprise analysis 3.3. Financial strength Payment ratio, Source: VIRAC 127

128 3. Enterprise analysis 3.3. Financial strength Solvency, Source: VIRAC 128

129 Content 3. Enterprise analysis 3.1 Profitability 3.2 Performance efficiency 3.3 Financial strength 3.4 Return on investment 129

130 3. Enterprise analysis 3.4 Return on investment % Profit ratio, Source: VIRAC 130

131 Content 4. Appendix 4.1 Update of projects invested in the period Portfolio of infrastructure projects in the period Financial statements 131

132 4. Appendix 4.1 Update of projects invested in the period No Project Address Investor Capacity (ton/year) (only rotary kiln) Progress 132

133 4. Appendix 4.1 Update of projects invested in the period No Project Address Investor Capacity (ton/year) (only rotary kiln) Progress 133

134 4. Appendix 4.1 Update of projects invested in the period No Project Address Investor Capacity (ton/year) (only rotary kiln) Progress 134

135 4. Appendix 4.1 Update of projects invested in the period No Project Address Investor Capacity (ton/year) (only rotary kiln) Progress 135

136 Content 4. Appendix 4.1 Update of projects invested in the period Portfolio of infrastructure projects in the period Financial statements 136

137 4. Appendix 4.2 Portfolio of infrastructure projects in the period No Seaport City / Province Economic zone Value (USD Status million) Period 137

138 4. Appendix 4.2 Portfolio of infrastructure projects in the period No Power plant and transmission grid City / Province Economic zone Value (USD million) Status Period 138

139 4. Appendix 4.2 Portfolio of infrastructure projects in the period No Railway City / Province Economic zone Status Status Period 139

140 4. Appendix 4.2 Portfolio of infrastructure projects in the period No Bridge and road City / Province Economic zone Value (USD million) Status Period 140

141 4. Appendix 4.2 Portfolio of infrastructure projects in the period No Water supply and wastewater treatment City / Province Economic zone Value (USD million) Status Period 141

142 4. Appendix 4.2 Portfolio of infrastructure projects in the period No Petroleum pipeline City / Province Economic zone Value (USD million) Status Period 142

143 Content 4. Appendix 4.1 Update of projects invested in the period Portfolio of infrastructure projects in the period Financial statements 143

144 4. Appendix 4.3 Financial statements - Ha Tien 1 Cement Joint Stock Company BALANCE SHEET Unit: VND million A. CURRENT ASSETS I. Cash and cash equivalents II. Short-term financial investments III. Short-term receivables 1. Receivables from customers IV. Inventories B. LONG-TERM ASSETS I. Long-term receivables II. Fixed assets 1. Tangible fixed assets 2. Intangible fixed assets INCOME STATEMENT Unit: VND billion Net Revenue from Sales and services provided Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses Administrative expenses Net profit from operating activities Total Accounting Profit Before Tax Current Corporate Income Tax Expenses Deferred Corporate Income Tax Expenses Profit After Enterprise Income Tax TOTAL ASSETS CASH FLOW STATEMENT Unit: VND billion A. LIABILITIES I. Short-term Liabilities 1. Short-term Borrowings and Liabilities 2. Taxes and other payables to the State budget II. Long-term liabilities 1. Long-term borrowings and liabilities 2. Long-term provisions for payables B. OWNER'S EQUITY TOTAL LIABILITIES AND OWNER'S EQUITY I. Cash Flow From Operating activities Depreciation of fixed assets Unrealized gain/loss from exchange rate differences Net Cash Flow From Operating activities II. Cash Flow From Investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net Cash Flow From Investing activities III. Cash Flow From Financial activities Net Cash Flow From Financial activities Effect of exchange rate fluctuations Net cash flow during the fiscal year 144

145 4. Appendix 4.3 Financial statements Vissai Ninh Binh Cement Corporation BALANCE SHEET Unit: VND million A. CURRENT ASSETS I. Cash and cash equivalents II. Short-term financial investments III. Short-term receivables 1. Receivables from customers IV. Inventories B. LONG-TERM ASSETS I. Long-term receivables II. Fixed assets 1. Tangible fixed assets 2. Intangible fixed assets INCOME STATEMENT Unit: VND billion Net Revenue from Sales and services provided Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses Administrative expenses Net profit from operating activities Total Accounting Profit Before Tax Current Corporate Income Tax Expenses Deferred Corporate Income Tax Expenses Profit After Enterprise Income Tax TOTAL ASSETS CASH FLOW STATEMENT Unit: VND billion A. LIABILITIES I. Short-term Liabilities 1. Short-term Borrowings and Liabilities 2. Taxes and other payables to the State budget II. Long-term liabilities 1. Long-term borrowings and liabilities 2. Long-term provisions for payables B. OWNER'S EQUITY TOTAL LIABILITIES AND OWNER'S EQUITY I. Cash Flow From Operating activities Depreciation of fixed assets Unrealized gain/loss from exchange rate differences Net Cash Flow From Operating activities II. Cash Flow From Investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net Cash Flow From Investing activities III. Cash Flow From Financial activities Net Cash Flow From Financial activities Effect of exchange rate fluctuations Net cash flow during the fiscal year 145

146 4. Appendix 4.3 Financial statements - Nghi Son Cement Company BALANCE SHEET Unit: VND million A. CURRENT ASSETS I. Cash and cash equivalents II. Short-term financial investments III. Short-term receivables 1. Receivables from customers IV. Inventories B. LONG-TERM ASSETS I. Long-term receivables II. Fixed assets 1. Tangible fixed assets 2. Intangible fixed assets INCOME STATEMENT Unit: VND billion Net Revenue from Sales and services provided Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses Administrative expenses Net profit from operating activities Total Accounting Profit Before Tax Current Corporate Income Tax Expenses Deferred Corporate Income Tax Expenses Profit After Enterprise Income Tax TOTAL ASSETS CASH FLOW STATEMENT Unit: VND billion A. LIABILITIES I. Short-term Liabilities 1. Short-term Borrowings and Liabilities 2. Taxes and other payables to the State budget II. Long-term liabilities 1. Long-term borrowings and liabilities 2. Long-term provisions for payables B. OWNER'S EQUITY TOTAL LIABILITIES AND OWNER'S EQUITY I. Cash Flow From Operating activities Depreciation of fixed assets Unrealized gain/loss from exchange rate differences Net Cash Flow From Operating activities II. Cash Flow From Investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net Cash Flow From Investing activities III. Cash Flow From Financial activities Net Cash Flow From Financial activities Effect of exchange rate fluctuations Net cash flow during the fiscal year 146

147 4. Appendix 4.3 Financial statements - VICEM Hoang Thach Cement Company BALANCE SHEET Unit: VND million A. CURRENT ASSETS I. Cash and cash equivalents II. Short-term financial investments III. Short-term receivables 1. Receivables from customers IV. Inventories B. LONG-TERM ASSETS I. Long-term receivables II. Fixed assets 1. Tangible fixed assets 2. Intangible fixed assets INCOME STATEMENT Unit: VND billion Net Revenue from Sales and services provided Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses Administrative expenses Net profit from operating activities Total Accounting Profit Before Tax Current Corporate Income Tax Expenses Deferred Corporate Income Tax Expenses Profit After Enterprise Income Tax TOTAL ASSETS CASH FLOW STATEMENT Unit: VND billion A. LIABILITIES I. Short-term Liabilities 1. Short-term Borrowings and Liabilities 2. Taxes and other payables to the State budget II. Long-term liabilities 1. Long-term borrowings and liabilities 2. Long-term provisions for payables B. OWNER'S EQUITY TOTAL LIABILITIES AND OWNER'S EQUITY I. Cash Flow From Operating activities Depreciation of fixed assets Unrealized gain/loss from exchange rate differences Net Cash Flow From Operating activities II. Cash Flow From Investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net Cash Flow From Investing activities III. Cash Flow From Financial activities Net Cash Flow From Financial activities Effect of exchange rate fluctuations Net cash flow during the fiscal year 147

148 4. Appendix 4.3 Financial statements - Bim Son Cement Joint Stock Company BALANCE SHEET Unit: VND million A. CURRENT ASSETS I. Cash and cash equivalents II. Short-term financial investments III. Short-term receivables 1. Receivables from customers IV. Inventories B. LONG-TERM ASSETS I. Long-term receivables II. Fixed assets 1. Tangible fixed assets 2. Intangible fixed assets INCOME STATEMENT Unit: VND billion Net Revenue from Sales and services provided Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses Administrative expenses Net profit from operating activities Total Accounting Profit Before Tax Current Corporate Income Tax Expenses Deferred Corporate Income Tax Expenses Profit After Enterprise Income Tax TOTAL ASSETS CASH FLOW STATEMENT Unit: VND billion A. LIABILITIES I. Short-term Liabilities 1. Short-term Borrowings and Liabilities 2. Taxes and other payables to the State budget II. Long-term liabilities 1. Long-term borrowings and liabilities 2. Long-term provisions for payables B. OWNER'S EQUITY TOTAL LIABILITIES AND OWNER'S EQUITY I. Cash Flow From Operating activities Depreciation of fixed assets Unrealized gain/loss from exchange rate differences Net Cash Flow From Operating activities II. Cash Flow From Investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net Cash Flow From Investing activities III. Cash Flow From Financial activities Net Cash Flow From Financial activities Effect of exchange rate fluctuations Net cash flow during the fiscal year 148

149 4. Appendix 4.3 Financial statements - VICEM But Son Cement Joint Stock Company BALANCE SHEET Unit: VND million A. CURRENT ASSETS I. Cash and cash equivalents II. Short-term financial investments III. Short-term receivables 1. Receivables from customers IV. Inventories B. LONG-TERM ASSETS I. Long-term receivables II. Fixed assets 1. Tangible fixed assets 2. Intangible fixed assets INCOME STATEMENT Unit: VND billion Net Revenue from Sales and services provided Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses Administrative expenses Net profit from operating activities Total Accounting Profit Before Tax Current Corporate Income Tax Expenses Deferred Corporate Income Tax Expenses Profit After Enterprise Income Tax TOTAL ASSETS CASH FLOW STATEMENT Unit: VND billion A. LIABILITIES I. Short-term Liabilities 1. Short-term Borrowings and Liabilities 2. Taxes and other payables to the State budget II. Long-term liabilities 1. Long-term borrowings and liabilities 2. Long-term provisions for payables B. OWNER'S EQUITY TOTAL LIABILITIES AND OWNER'S EQUITY I. Cash Flow From Operating activities Depreciation of fixed assets Unrealized gain/loss from exchange rate differences Net Cash Flow From Operating activities II. Cash Flow From Investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net Cash Flow From Investing activities III. Cash Flow From Financial activities Net Cash Flow From Financial activities Effect of exchange rate fluctuations Net cash flow during the fiscal year 149

150 4. Appendix 4.3 Financial statements Thang Long Cement Joint Stock Company BALANCE SHEET Unit: VND million A. CURRENT ASSETS I. Cash and cash equivalents II. Short-term financial investments III. Short-term receivables 1. Receivables from customers IV. Inventories B. LONG-TERM ASSETS I. Long-term receivables II. Fixed assets 1. Tangible fixed assets 2. Intangible fixed assets INCOME STATEMENT Unit: VND billion Net Revenue from Sales and services provided Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses Administrative expenses Net profit from operating activities Total Accounting Profit Before Tax Current Corporate Income Tax Expenses Deferred Corporate Income Tax Expenses Profit After Enterprise Income Tax TOTAL ASSETS CASH FLOW STATEMENT Unit: VND billion A. LIABILITIES I. Short-term Liabilities 1. Short-term Borrowings and Liabilities 2. Taxes and other payables to the State budget II. Long-term liabilities 1. Long-term borrowings and liabilities 2. Long-term provisions for payables B. OWNER'S EQUITY TOTAL LIABILITIES AND OWNER'S EQUITY I. Cash Flow From Operating activities Depreciation of fixed assets Unrealized gain/loss from exchange rate differences Net Cash Flow From Operating activities II. Cash Flow From Investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net Cash Flow From Investing activities III. Cash Flow From Financial activities Net Cash Flow From Financial activities Effect of exchange rate fluctuations Net cash flow during the fiscal year 150

151 4. Appendix 4.3 Financial statements - VICEM Hoang Mai Cement Joint Stock Company BALANCE SHEET Unit: VND million A. CURRENT ASSETS I. Cash and cash equivalents II. Short-term financial investments III. Short-term receivables 1. Receivables from customers IV. Inventories B. LONG-TERM ASSETS I. Long-term receivables II. Fixed assets 1. Tangible fixed assets 2. Intangible fixed assets INCOME STATEMENT Unit: VND billion Net Revenue from Sales and services provided Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses Administrative expenses Net profit from operating activities Total Accounting Profit Before Tax Current Corporate Income Tax Expenses Deferred Corporate Income Tax Expenses Profit After Enterprise Income Tax TOTAL ASSETS CASH FLOW STATEMENT Unit: VND billion A. LIABILITIES I. Short-term Liabilities 1. Short-term Borrowings and Liabilities 2. Taxes and other payables to the State budget II. Long-term liabilities 1. Long-term borrowings and liabilities 2. Long-term provisions for payables B. OWNER'S EQUITY TOTAL LIABILITIES AND OWNER'S EQUITY I. Cash Flow From Operating activities Depreciation of fixed assets Unrealized gain/loss from exchange rate differences Net Cash Flow From Operating activities II. Cash Flow From Investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net Cash Flow From Investing activities III. Cash Flow From Financial activities Net Cash Flow From Financial activities Effect of exchange rate fluctuations Net cash flow during the fiscal year 151

152 4. Appendix 4.3 Financial statements - Quang Ninh Cement and Construction Joint Stock Company BALANCE SHEET Unit: VND million A. CURRENT ASSETS I. Cash and cash equivalents II. Short-term financial investments III. Short-term receivables 1. Receivables from customers IV. Inventories B. LONG-TERM ASSETS I. Long-term receivables II. Fixed assets 1. Tangible fixed assets 2. Intangible fixed assets INCOME STATEMENT Unit: VND billion Net Revenue from Sales and services provided Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses Administrative expenses Net profit from operating activities Total Accounting Profit Before Tax Current Corporate Income Tax Expenses Deferred Corporate Income Tax Expenses Profit After Enterprise Income Tax TOTAL ASSETS CASH FLOW STATEMENT Unit: VND billion A. LIABILITIES I. Short-term Liabilities 1. Short-term Borrowings and Liabilities 2. Taxes and other payables to the State budget II. Long-term liabilities 1. Long-term borrowings and liabilities 2. Long-term provisions for payables B. OWNER'S EQUITY TOTAL LIABILITIES AND OWNER'S EQUITY I. Cash Flow From Operating activities Depreciation of fixed assets Unrealized gain/loss from exchange rate differences Net Cash Flow From Operating activities II. Cash Flow From Investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net Cash Flow From Investing activities III. Cash Flow From Financial activities Net Cash Flow From Financial activities Effect of exchange rate fluctuations Net cash flow during the fiscal year 152

153 4. Appendix 4.3 Financial statements - Sai Son Cement Joint Stock Company BALANCE SHEET Unit: VND million A. CURRENT ASSETS I. Cash and cash equivalents II. Short-term financial investments III. Short-term receivables 1. Receivables from customers IV. Inventories B. LONG-TERM ASSETS I. Long-term receivables II. Fixed assets 1. Tangible fixed assets 2. Intangible fixed assets INCOME STATEMENT Unit: VND billion Net Revenue from Sales and services provided Cost of goods sold and services provided Gross Profit from sales and services provided Financing income Financial expenses Interest expenses Sales expenses Administrative expenses Net profit from operating activities Total Accounting Profit Before Tax Current Corporate Income Tax Expenses Deferred Corporate Income Tax Expenses Profit After Enterprise Income Tax TOTAL ASSETS CASH FLOW STATEMENT Unit: VND billion A. LIABILITIES I. Short-term Liabilities 1. Short-term Borrowings and Liabilities 2. Taxes and other payables to the State budget II. Long-term liabilities 1. Long-term borrowings and liabilities 2. Long-term provisions for payables B. OWNER'S EQUITY TOTAL LIABILITIES AND OWNER'S EQUITY I. Cash Flow From Operating activities Depreciation of fixed assets Unrealized gain/loss from exchange rate differences Net Cash Flow From Operating activities II. Cash Flow From Investing activities Expenditures on purchase and construction of fixed assets and long-term assets Net Cash Flow From Investing activities III. Cash Flow From Financial activities Net Cash Flow From Financial activities Effect of exchange rate fluctuations Net cash flow during the fiscal year 153

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