VIETNAM PULP AND PAPER INDUSTRY REPORT Q2/2018

Transcription

1 VIETNAM PULP AND PAPER INDUSTRY REPORT Q2/2018 1

2 Table of contents Content Page Content Page Abbreviations Price movement of some types of pulp 32 Summary Paper Business environment Production Macroeconomic situation Consumption Legal framework Import - Export Impact of trade agreements Price movement of some types of paper The world pulp and paper industry The pulp and paper market in some countries Pulp The pulp and paper industry in Vietnam Production History of formation and development Consumption Value chain of the industry Import - Export Process of production 67 2

3 Table of contents Content Page Content Page 3.4. The scale and features of the industry Overview of the industry Pulp Risk analysis Input materials Competitiveness analysis Production Planning Consumption Forecasts Import Enterprise analysis Paper Introduction of enterprises Production Indicators of business results Consumption Indicators of finance Export Indicators of performance efficiency Import Appendix 140 3

4 Abbreviations Abbreviations AEC ASEAN Economic Community GDVC General Department of Vietnam Customs CAGR Compound Annual Growth Rate GSO General Statistics Office (of Vietnam) CEPI Confederation of European Paper Industry JPA Japan Paper Association CPA China Paper Association MFN Most Favored Nation CPTPP The Comprehensive and Progressive agreement for Trans-Pacific Partnership RISI Resource Information Systems Inc. (an information port of pulp and paper industry) FAO Food and Agriculture Organization SBV State Bank of Vietnam GDP Gross Domestic Product VPPA Vietnam Pulp and Paper Association 4

5 Summary Produced pulp volume in the world reached million tons in 2017 Produced paper volume in the world was nearly 432 million tons in 2017 In the 1 st quarter of 2018, export value of pulp and paper of Vietnam was million USD In 2017, the number of consumed pulp increased by 11.2% to 171,319 tons in comparison with that in 2016, Pulp import is forecast to be the main trend of manufacturers in the paper industry 5

6 Summary From 2011 to 2017, the production of paper grew at the CAGR of 6.62%. In the 1 st quarter of 2018, the quantity of produced paper reached approximately 889 thousand tons. Paper consumption in Vietnam market has been rapidly increasing at the average rate of 7.37% per year between 2011 and 2017 The number of exported paper of Vietnam in Q1/2018 was about 51 thousand tons which valued million USD, increasing by 48.2% compared with the same period of

7 Table of contents 1. Business environment 1.1 Macroeconomic situation 1.2 Legal framework 1.3 Impact of trade agreements 7

8 1. Business environment 1.1 Macroeconomic situation gross domestic product in the 1st quarter of 2018 was estimated to increase by 7.38% compared with the same period of 2017 GDP growth, Q1/2018 According to reports by General Statistics Office (GSO), the production index of processing and manufacturing industry in Q1/2018 increased by 113.8% in comparison with the same period of 2017 % Source: VIRAC, GSO Production index of processing and manufacturing industry, Q1/2018 Source: VIRAC, GSO 8

9 1. Business environment 1.1 Macroeconomic situation Average interest rate has tended to decrease since 2011 Average interest rate, Q1/2018 Source: VIRAC, NFSC Export value of Vietnam in Q1/2018 was estimated to reach 55 billion USD Proportion of the contribution of pulp and paper industry to Vietnam s export value, Q1/2018 Import Export value of Vietnam in Q1/2018 was about 52.8 billion USD Source: VIRAC collects 9

10 1. Business environment 1.1 Macroeconomic situation The VND/USD exchange rate is quite stable and still supported by a plentiful supply of foreign currencies The VND/USD exchange rate, 2015-Q1/2018 Source: VIRAC, NHNN The VND/CNY exchange rate, 2016-Q1/2018 Source: VIRAC collects 10

11 1. Business environment 1.1 Macroeconomic situation The young population structure creates a potential environment for the development of the paper industry million people Vietnam s population and population structure in workforce, Source: VIRAC, GSO Report on socio-economic situation in 2017 by the General Statistics Office revealed that total revenue of services and goods retails was about 3,934.2 trillion VND The current positive status of services and goods business has positively impacted the paper and pulp demand 11

12 Table of contents 1. Business environment 1.1 Macroeconomic situation 1.2 Legal framework 1.3 Impact of trade agreements 12

13 1. Business environment 1.2 Legal framework Group of regulations on pulp and paper business and production No. Scrap HS code 13

14 1. Business environment 1.2 Legal framework 14

15 1. Business environment 1.2 Legal framework 15

16 1. Business environment 1.2 Legal framework Allowable imported scrap Fee (thousand VND/ profile) 16

17 1. Business environment 1.2 Legal framework Energy rated consumption for paper products until the end of 2020 No Product Capacity (ton year) Rate (MJ/ton) 17

18 1. Business environment 1.2 Legal framework Group of regulations on import taxes of pulp and paper industry 18

19 Table of contents 1. Business environment 1.1 Macroeconomic situation 1.2 Legal framework 1.3 Impact of trade agreements 19

20 1. Business environment 1.3 Impact of trade agreements Vietnam s average tariff (%) in ACFTA Vietnam s tariff commitments (%) Commodity code Group/ Commodity MFN Tariff (%) ASEAN-China Free Trade Agreement (ACFTA) Source: VIRAC, GDVC 20

21 1. Business environment 1.3 Impact of trade agreements Tariff commitments in WTO No. Commodity MFN Tariff (%) Tariff commitments in WTO 2007 (%) Final (%) Implementation period (since2007) World Trade Agreement (WTO) Source: VIRAC, GDVC 21

22 1. Business environment 1.3 Impact of trade agreements ASEAN-Korea Free Trade Agreement (AKFTA) Vietnam s average tariff (%) in AKFTA Commodity code Group/ Commodity MFN tariff (%) Vietnam s tariff commitments (%) Lưu ý: đối với AKFTA, mức thuế cam kết chính là mức thuế thực hiện Source: VIRAC, GDVC 22

23 1. Business environment 1.3 Impact of trade agreements 23

24 1. Business environment 1.3 Impact of trade agreements The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP): 24

25 1. Business environment 1.3 Impact of trade agreements Challenges of integration to the paper industry: Unstable supply of raw materials and high production cost: Technical barriers: Fierce competitiveness, even in domestic market: Diversity of product packaging: 25

26 Table of contents 2. The world pulp and paper industry 2.1 Pulp Production Consumption Pulp trade Price movement of some types of pulp 2.2 Paper Production Consumption Paper trade Price movement of some types of paper 2.3 The pulp and paper market in some countries 26

27 2. The world pulp and paper industry 2.1 Pulp Production World pulp output quantity reached million tons in 2017, increasing by 3.1 million tons which was equal to 2.0% growth in comparison with the year 2016 million tons World pulp output quantity, f Structure of pulp production by country, 2017e The United States has the world s highest output quantity Source: VIRAC, FAO Source: VIRAC, FAO 27

28 Table of contents 2. The world pulp and paper industry 2.1 Pulp Production Consumption Import - Export Price movement of some types of pulp 2.2 Paper Production Consumption Import - Export Price movement of some types of paper 2.3 The pulp and paper market in some countries 28

29 2. The world pulp and paper industry 2.1 Pulp Consumption The number of pulp consumption over the world in 2017 was 178 million tons, decreasing by 1 million ton which was equal to 0.6% decline in comparison with the year 2016 million tons World pulp consumption by type, e Source: VIRAC, CEPI Structure of world consumption by region, 2016e Asia is the world s largest consumer of pulp with the consumption of 60.8 million tons (2016) Source: VIRAC, CEPI 29

30 Table of contents 2. The world pulp and paper industry 2.1 Pulp Production Consumption Pulp trade Price movement of some types of pulp 2.2 Paper Production Consumption Paper trade Price movement of some types of paper 2.3 The pulp and paper market in some countries 30

31 2. The world pulp and paper industry 2.1 Pulp Pulp trade World pulp export - import, Top 10 countries that have the highest pulp import, Unit: million tons Growth Content is intentionally Source: VIRAC, Trademap removed for demo purpose Source: VIRAC, Uncomtrade The world pulp import value in 2017 experienced fairly marked growth main reasons: The world pulp import and export increased in 2017 thanks to 2 31

32 Table of contents 2. The world pulp and paper industry 2.1 Pulp Production Consumption Pulp trade Price movement of some types of pulp 2.2 Paper Production Consumption Paper trade Price movement of some types of paper 2.3 The pulp and paper market in some countries 32

33 2. The world pulp and paper industry 2.1 Pulp Price movement of some types of pulp % Monthly price index of pulp made from wood, /2018 Source: VIRAC, ALFRED 33

34 Table of contents 2. The world pulp and paper industry 2.1 Pulp Production Consumption Pulp trade Price movement of some types of pulp 2.2 Paper Production Consumption Paper trade Price movement of some types of paper 2.3 The pulp and paper market in some countries 34

35 2. The world pulp and paper industry 2.2 Paper Production World paper output quantity experienced a continuous increase with CAGR of 1.6% from 2012 to 2017 million tons World paper output quantity, e Top 10 leading countries in paper production output, 2016e Source: VIRAC, RISI, CEPI The world s largest paper manufacturer is China with paper output of million tons, followed by the United States with 77.7 million tons, and next by Japan with 26.1 million tons (2016) Source: VIRAC collects 35

36 2. The world pulp and paper industry 2.2 Paper Production Paperboard and packaging paper World output quantity of paperboard and packaging paper, e Source: VIRAC, RISI Structure of world production of paperboard and packaging paper, 2016e Source: VIRAC collects 36

37 2. The world pulp and paper industry 2.2 Paper Production Tissue paper Global tissue paper output quantity, e Global output quantity of tissue papers, by type, e Source: VIRAC collects Source: VIRAC collects 37

38 2. The world pulp and paper industry 2.2 Paper Production Market shares of the world supplies of tissue papers, 2016e Source: VIRAC, Papnews 38

39 2. The world pulp and paper industry 2.2 Paper Production Newspaper and printing paper 39

40 Table of contents 2. The world pulp and paper industry 2.1 Pulp Production Consumption Pulp trade Price movement of some types of pulp 2.2 Paper Production Consumption Paper trade Price movement of some types of paper 2.3 The pulp and paper market in some countries 40

41 2. The world pulp and paper industry 2.2 Paper Consumption The 5-year period between 2012 and 2016 witnessed a gradual growth of the global paper consumption. Global paper consumption by region, e Paper consumption was nearly 414 million tons in 2016, increasing 3 million tons in comparison with the year 2015 Global revenue from paper consumption, f Source: VIRAC, CEPI Source: VIRAC, Statistic 41

42 2. The world pulp and paper industry 2.2 Paper Consumption Some trends in 2018 impact the world paper: Retails: The development of the Internet: Health consciousness: Environmentally friendly products 42

43 Table of contents 2. The world pulp and paper industry 2.1 Pulp Production Consumption Pulp trade Price movement of some types of pulp 2.2 Paper Production Consumption Paper trade Price movement of some types of paper 2.3 The pulp and paper market in some countries 43

44 2. The world pulp and paper industry 2.2 Paper Paper trade billion USD World export value of paper, e in 2017, total export value of paper in the world increased to billion USD, by 5.3% compared to 2016 Structure of global paper export by type, 2017e Source: VIRAC, Trademap In 2017, paperboard and packaging paper were the most exported products, accounting for 52.5% of total paper export value over the world. Source: VIRAC, Trademap 44

45 2. The world pulp and paper industry 2.2 Paper Paper trade Top 10 countries that have the highest paper export value, 2017e Top 10 countries that have the highest paper import value, 2017e 2016 (billion USD) 2017 (billion USD) Growth 2016 (billion USD) 2017 (billion USD) Growth Source: VIRAC, Uncomtrade Source: VIRAC, Uncomtrade 45

46 Table of contents 2. The world pulp and paper industry 2.1 Pulp Production Consumption Pulp trade Price movement of some types of pulp 2.2 Paper Production Consumption Paper trade Price movement of some types of paper 2.3 The pulp and paper market in some countries 46

47 2. The world pulp and paper industry Price movement of some types of pulp Global average price of tissue paper, e % Price index of paper, /2018 Source: VIRAC collects Source: VIRAC, ALFRED Paper prices has significantly fluctuated since the end of 2016, influenced by Chinese policies of scrap paper import and a sudden increase in demand. 47

48 Table of contents 2. The world pulp and paper industry 2.1 Pulp Production Consumption Pulp trade Price movement of some types of pulp 2.2 Paper Production Consumption Paper trade Price movement of some types of paper 2.3 The pulp and paper market in some countries 48

49 2. The world pulp and paper industry 2.3 The pulp and paper market in some countries China China Area Area of woods Population (2016) GDP (2016) 49

50 2. The world pulp and paper industry 2.3 The pulp and paper market in some countries China s pulp output quantity by input materials, e Paper production and consumption in China, 2016e Source: VIRAC, VPPA Source: VIRAC, VPPA 50

51 2. The world pulp and paper industry 2.3 The pulp and paper market in some countries billion USD China s pulp import-export, e Source: VIRAC, Trademap billion USD China s paper import-export, e Structure of China s pulp import, 2017 Source: VIRAC, Trademap Source: VIRAC, Uncometrade 51

52 2. The world pulp and paper industry 2.3 The pulp and paper market in some countries The United States ranked 2 nd in terms of paper output quantity with million tons The United States Area Area of woods Population (2016) GDP (2016) 52

53 2. The world pulp and paper industry 2.3 The pulp and paper market in some countries The US pulp production, e million tons The US paper output quantity, e Source: VIRAC, FAO Source: VIRAC, FAO 53

54 2. The world pulp and paper industry 2.3 The pulp and paper market in some countries billion USD The US import-export value of pulp, e Top 10 countries that have the highest pulp export value to the US, 2017e Unit: USD Structure of the US pulp export by value, 2017e Source: VIRAC, Uncomtrade Growth Source: VIRAC, Uncomtrade Source: VIRAC, Uncomtrade 54

55 2. The world pulp and paper industry 2.3 The pulp and paper market in some countries Paper trade in the US, e Source: VIRAC collects 55

56 2. The world pulp and paper industry 2.3 The pulp and paper market in some countries Japan is the third largest paper producer and the 4 th largest wood pulp producer over the world Japan Area Area of woods Population (2016) GDP (2016) Output quantity of paper and paperboard in Japan, e Source: VIRAC, JPA 56

57 2. The world pulp and paper industry 2.3 The pulp and paper market in some countries billion USD Japan s pulp import-export, e thousand USD Japan s recycled paper export-import, e Source: VIRAC, Trademap Source: VIRAC, Uncomtrade 57

58 2. The world pulp and paper industry 2.3 The pulp and paper market in some countries Japan s trade of paper and paperboard, e Source: VIRAC, JPA Structure of Japan s paper import, 2017e Structure of Japan s paper export, 2017e Source: VIRAC, JPA Source: VIRAC, JPA 58

59 2. The world pulp and paper industry 2.3 The pulp and paper market in some countries Top 10 largest paper companies over the world, 2016 Year of Establishment Headquarter Revenue,2016 (billion USD) Logo Source: VIRAC collects 59

60 2. The world pulp and paper industry 2.3 The pulp and paper market in some countries 60

61 2. The world pulp and paper industry 2.3 The pulp and paper market in some countries 61

62 Table of contents 3. The pulp and paper industry in Vietnam 3.1 History of formation and development Consumption 3.2 Value chain of the industry Import 3.3 Process of production 3.6 Paper 3.4 The scale and features of the industry Production 3.5 Pulp Consumption Input materials Export Production Import 62

63 3. The pulp and paper industry in Vietnam 3.1 History of formation and development History of formation and development of paper industry Source: VIRAC collects 63

64 3. The pulp and paper industry in Vietnam 3.1 History of formation and development 64

65 Table of contents 3. The pulp and paper industry in Vietnam 3.1 History of formation and development Consumption 3.2 Value chain of the industry Import 3.3 Process of production 3.6 Paper 3.4 The scale and features of the industry Production 3.5 Pulp Consumption Input materials Export Production Import 65

66 3. The pulp and paper industry in Vietnam 3.2 Value chain of the industry Value chain of the paper industry (*) (*) (*) Source: VIRAC collects 66

67 Table of contents 3. The pulp and paper industry in Vietnam 3.1 History of formation and development Consumption 3.2 Value chain of the industry Import 3.3 Process of production 3.6 Paper 3.4 The scale and features of the industry Production 3.5 Pulp Consumption Input materials Export Production Import 67

68 3. The pulp and paper industry in Vietnam 3.3 Process of production 68

69 3. The pulp and paper industry in Vietnam 3.3 Process of production Input materials Some type of wood suitable for making paper Conifers (softwood) Broadleaved trees (hardwood) Source: VIRAC collects Process of making pulp from wood Pulp production Source: VIRAC collects 69

70 3. The pulp and paper industry in Vietnam 3.3 Process of production Method Chemical treatment Efficiency(%) Source: VIRAC collects. 70

71 3. The pulp and paper industry in Vietnam 3.3 Process of production Paper pproduction from recycled paper Paper production from recycled paper Source: VIRAC collects 71

72 3. The pulp and paper industry in Vietnam 3.3 Process of production Paper Production: Problems of environmental pollution caused by process of paper production 72

73 Table of contents 3. The pulp and paper industry in Vietnam 3.1 History of formation and development Consumption 3.2 Value chain of the industry Import 3.3 Process of production 3.6 Paper 3.4 The scale and features of the industry Production 3.5 Pulp Consumption Input materials Export Production Import 73

74 3. The pulp and paper industry in Vietnam 3.4 The scale and features of the industry The number of enterprises in paper industry has been increasing at the rate of 5.96% Number of enterprises in paper industry, Source: VIRAC, GSO Number of labors in paper industry, people Source: VIRAC, GSO 74

75 3. The pulp and paper industry in Vietnam 3.4 The scale and features of the industry Revenue of paper industry, Contribution of paper industry to GDP, million VND Source: VIRAC, GSO Source: VIRAC, GSO In 2016, revenue of Vietnam paper industry reached 129,112 trillion VND, increasing by 15% compared to the year 2014 However, the contribution of paper industry to GDP accounts for a tiny proportion 75

76 3. The pulp and paper industry in Vietnam 3.4 The scale and features of the industry Paper and pulp plants that have capacity of over 100,000 tons/year No. Plant Capacity (tons/year) Address Products Distribution of paper plants (capacity of over 100,000 tons/year) and projects Pulp Paper Dự án Nhà máy công suất trên 100,000 tons/năm Source: VIRAC collects 76

77 3. The pulp and paper industry in Vietnam 3.4 The scale and features of the industry Important investment projects in paper industry No. Project Investors Country Capital of investment Capacity (tons/year) Address Status Source: VIRAC collects 77

78 Table of contents 3. The pulp and paper industry in Vietnam 3.1 History of formation and development Consumption 3.2 Value chain of the industry Import 3.3 Process of production 3.6 Paper 3.4 The scale and features of the industry Production 3.5 Pulp Consumption Input materials Export Production Import 78

79 3. The pulp and paper industry in Vietnam 3.5 Pulp Input materials thousand tons Recycled paper, e Top 10 countries that have the highest volume of recycled paper imported by Vietnam, e Unit: tons e Growth Source: VIRAC, ITC Source: VIRAC, ITC 79

80 3. The pulp and paper industry in Vietnam 3.5 Pulp Input materials Woodchips thousand tons Output quantity of woodchips, M/2018e Source: VIRAC, GSO 80

81 3. The pulp and paper industry in Vietnam 3.5 Pulp Production tons Output quantity of Pulp, 2010 Q1/2018 Source: VIRAC, GSO 81

82 3. The pulp and paper industry in Vietnam 3.5 Pulp Consumption Pulp consumption by volume, 2010 Q1/2018 Revenue of pulp consumption, 2010 Q1/2018 tons million VND Source: VIRAC, GSO Source: VIRAC, GSO Domestic pulp consumption fluctuates depending on trend of pulp production. 82

83 3. The pulp and paper industry in Vietnam 3.5. Pulp Import thousand USD Pulp import, Vietnam s pulp import has continuously risen for 2 current years, increasing to151,720 thousand USD (2017), by 18.6% compared to the year Source: VIRAC, ITC, TRADEMAP In 2017, the US was the major pulp supplier for Vietnam market with market share of 42.3% Top 10 countries that have the highest volume of pulp imported by Vietnam, Growth Source: VIRAC, UNCOMTRADE 83

84 Table of contents 3. The pulp and paper industry in Vietnam 3.1 History of formation and development Consumption 3.2 Value chain of the industry Import 3.3 Process of production 3.6 Paper 3.4 The scale and features of the industry Production 3.5 Pulp Consumption Input materials Export Production Import 84

85 3. The pulp and paper industry in Vietnam 3.6 Paper Production Paper production by type, 2011 Q1/2018 tons Source: VIRAC, VPPA Between 2011 and 2017, paper production grew at CAGR of 6.6.2% Structure of paper production by type, Q1/2018 Source: VIRAC, VPPA 85

86 3. The pulp and paper industry in Vietnam 3.6 Paper Production Packaging paper: Paper for printing and writing: Tissue paper: Joss paper: Paper for newspaper printing: 86

87 3. The pulp and paper industry in Vietnam 3.6 Paper Consumption tons Domestically produced paper consumption, 2011 Q1/2018 Paper consumption in Vietnam market rapidly increases at the rate of 7.37% per year from 2011 to 2017 Source: VIRAC, VPPA Average paper consumption per capita in Vietnam, kg per capita Average paper consumption per capita in some countries, 2016 kg per capita Source: VIRAC, VPPA Source: paperonweb 87

88 3. The pulp and paper industry in Vietnam 3.6 Paper Consumption million VND Revenue from paper industry, 2010 Q1/2018 Source: VIRAC, GSO Structure of paper consumption by type, Q1/2018 Source: VIRAC, VPPA 88

89 3. The pulp and paper industry in Vietnam 3.6 Paper Consumption Structure of tissue paper consumption by type, 2016 Source: VIRAC collects 89

90 3. The pulp and paper industry in Vietnam 3.6 Paper Consumption tons Inventories of some paper products, 2010 Q1/2018 Source: VIRAC, GSO As a feature of paper industry, paper products should not be stored for a long time due to the risk of fire, mold and rottenness that reduce product quality and enterprise s activities 90

91 3. The pulp and paper industry in Vietnam 3.6 Paper Export Paper export, 2011 Q1/2018 tons million USD Vietnam s paper export in Q1/2018 reached nearly 51 thousand tons, which valued million USD, increasing by 48.2% compared to the same period in Source: VIRAC, VPPA, GDVC In Q1/2018, China is still Vietnam s major importer with value of 37.4 million USD Top 10 countries that are Vietnam s major paper importers, by value Q1/2018 Source: VIRAC, GDVC 91

92 3. The pulp and paper industry in Vietnam 3.6 Paper Export Contribution of FDI businesses to paper export, Source: VIRAC, GDVC 92

93 3. The pulp and paper industry in Vietnam 3.6 Paper Export Export of some paper products, tons Source: VIRAC, VPPA, GDVC 93

94 3. The pulp and paper industry in Vietnam 3.6 Paper Import Paper import, 2011 Q1/2018 million USD Import of paper products, 2011 Q1/2018 Source: VIRAC, VPPA, GDVC Structure of import paper and paper products by value, Q1/2018 Source: VIRAC, VPPA, GDVC According to General Department of Vietnam Customs (GDVC), in Q1/2018, Vietnam imported 480 thousand tons of papers, which value 437 million USD Vietnam China is the largest exporter of paper and paper products to Source: VIRAC, GDVC 94

95 3. The pulp and paper industry in Vietnam 3.6 Paper Import Structure of paper import by volume, 2017 Source: VIRAC, VPPA, GDVC 95

96 3. The pulp and paper industry in Vietnam 3.6 Paper Import Top largest paper import enterprises in Vietnam, Q1/2018 No. Enterprise Source: VIRAC, GDVC 96

97 Table of contents 4. Overview of the industry 4.1 Risk analysis 4.2 Competitiveness analysis 4.3 Planning 4.4 Forecasts 97

98 4. Overview of the industry 4.1. Risk analysis Economic risks Legal risks 98

99 4. Overview of the industry 4.1. Risk analysis Risks of the industry s specific features Environmental risks Risks of competitiveness 99

100 4. Overview of the industry 4.1. Risk analysis Risks of human resource Risks of interest rate Risks of exchange rates Other risks 100

101 Table of contents 4. Overview of the industry 4.1 Risk analysis 4.2 Competitiveness analysis 4.3 Planning 4.4 Forecasts 101

102 4. Overview of the industry 4.2. Competitiveness analysis 5-force analysis 102

103 4. Overview of the industry 4.2. Competitiveness analysis 103

104 4. Overview of the industry 4.2. Competitiveness analysis Strengths: Weaknesses: Opportunities: Threats: 104

105 Table of contents 4. Overview of the industry 4.1 Risk analysis 4.2 Competitiveness analysis 4.3 Planning 4.4 Forecasts 105

106 4. Overview of the industry 4.3. Planning Target of the paper industry development until 2025 Orientation of development 106

107 4. Overview of the industry 4.3. Planning Portfolio of investment projects by period No. Project s manager Region Designed capacity (tons/year) Pulp Paper Period 107

108 4. Overview of the industry 4.3. Planning Portfolio of investment projects by period No. Project s manager Region Designed capacity (tons/year) Pulp Paper Period Source: VIRAC, Development planning of Vietnam paper industry until

109 4. Overview of the industry 4.3. Planning Criteria of designed capacity Criteria of output quantity Criterion Unit Criterion Unit Source: VIRAC, Development planning of Vietnam paper industry until

110 4. Overview of the industry 4.3. Planning Regions of growing material trees for paper production Regions (Unit: ha) Period Northwest Northeast Central Northern Central Central Coast Northern Central Highlands Southern Central Highlands Southwest Source: VIRAC, Development planning of Vietnam paper industry until

111 Table of contents 4. Overview of the industry 4.1 Risk analysis 4.2 Competitiveness analysis 4.3 Planning 4.4 Forecasts 111

112 4. Overview of the industry 4.4. Forecasts Outlook and Forecasts of pulp industry Forecast pulp consumption, f tons Source: VIRAC collects 112

113 4. Overview of the industry 4.4. Forecasts Outlook and Forecasts of paper industry Forecast paper output quantity, f tons Source: VIRAC collects 113

114 4. Overview of the industry 4.4. Forecasts Outlook and Forecasts of paper industry 1000 tons Supply and Demand of testliner paper and wave layer paper, f Source: VIRAC, VPPA 114

115 Table of contents 5. Enterprise analysis 5.1 Introduction of enterprises 5.2 Indicators of business results 5.3 Indicators of finance 5.4 Indicators of performance efficiency 115

116 5. Enterprise analysis 5.1 Introduction of enterprises Typical enterprises in paper and pulp industry, 2016 Enterprise Address Tax code Net revenue (million VND) Total assets (million VND) 116

117 5. Enterprise analysis 5.1 Introduction of enterprises Diana Unicharm Joint Stock Company 117

118 5. Enterprise analysis 5.1 Introduction of enterprises An Hoa Paper Joint Stock Company 118

119 5. Enterprise analysis 5.1 Introduction of enterprises Viet Hung Packaging Ltd. 119

120 5. Enterprise analysis 5.1 Introduction of enterprises Bien Hoa Packaging JSC 120

121 5. Enterprise analysis 5.1 Introduction of enterprises Sabeco Song Lam Packaging JSC 121

122 5. Enterprise analysis 5.1 Introduction of enterprises Viet Tri Paper JSC 122

123 5. Enterprise analysis 5.1 Introduction of enterprises An Binh Paper JSC 123

124 5. Enterprise analysis 5.1 Introduction of enterprises Hai Phong Stationery & Packaging Corporation 124

125 5. Enterprise analysis 5.1 Introduction of enterprises Dong Hai JSC of Ben Tre 125

126 5. Enterprise analysis 5.1 Introduction of enterprises Khatoco Printing and Packaging JSC 126

127 Table of contents 5. Enterprise analysis 5.1 Introduction of enterprises 5.2 Indicators of business results 5.3 Indicators of finance 5.4 Indicators of performance efficiency 127

128 5. Enterprise analysis 5.2 Indicators of business results billion VND Growth of net revenue, Source: VIRAC collects 128

129 5. Enterprise analysis 5.2 Indicators of business results 129

130 5. Enterprise analysis 5.2 Indicators of business results Gross profit margin, Source: VIRAC collects 130

131 5. Enterprise analysis 5.2 Indicators of business results 131

132 5. Enterprise analysis 5.2 Indicators of business results Sales expenses/ Net revenue, Source: VIRAC collects 132

133 5. Enterprise analysis 5.2 Indicators of business results Enterprise management expenses/ Net revenue, Source: VIRAC collects Financial expenses /Net revenue, Source: VIRAC collects 133

134 Table of contents 5. Enterprise analysis 5.1 Introduction of enterprises 5.2 Indicators of business results 5.3 Indicators of finance 5.4 Indicators of performance efficiency 134

135 5. Enterprise analysis 5.3 Indicators of finance Days of sales outstanding, days Source: VIRAC collects 135

136 5. Enterprise analysis 5.3 Indicators of finance Liquidity, 2016 Source: VIRAC collects Days' sales in inventory, 2016 days Source: VIRAC collects 136

137 5. Enterprise analysis 5.3 Indicators of finance Structure of Assets and Total assets turnover, 2016 Source: VIRAC collects Structure of debts and Debt/Equity ratio2016 Source: VIRAC collects 137

138 Table of contents 5. Enterprise analysis 5.1 Introduction of enterprises 5.2 Indicators of business results 5.3 Indicators of finance 5.4 Indicators of performance efficiency 138

139 5. Enterprise analysis 5.2 Indicators of performance efficiency Ratios of profitability on assets and equity, 2016 Source: VIRAC collects 139

140 Table of contents 6. Appendix 140

141 Appendix Financial statement Diana Unicharm BALANCE SHEET Unit: billion VND 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: billion VND 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: billion VND 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 141

142 Appendix Financial statement An Hoa BALANCE SHEET Unit: billion VND 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: billion VND 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: billion VND 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 142

143 Appendix Financial statement Viet Hung BALANCE SHEET Unit: billion VND 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: billion VND 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: billion VND 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 143

144 Appendix Financial statement SVI BALANCE SHEET Unit: billion VND 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: billion VND 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: billion VND 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 Appendix Financial statement Sabeco - Song Lam BALANCE SHEET Unit: billion VND 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: billion VND 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: billion VND 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 Appendix Financial statement Viet Tri BALANCE SHEET Unit: billion VND 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: billion VND 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: billion VND 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 Appendix Financial statement An Binh BALANCE SHEET Unit: billion VND 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: billion VND 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: billion VND 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 Appendix Financial statement HPS BALANCE SHEET Unit: billion VND 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: billion VND 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: billion VND 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 Appendix Financial statement DHC BALANCE SHEET Unit: billion VND 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: billion VND 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: billion VND 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 Appendix Financial statement Khatoco BALANCE SHEET Unit: billion VND 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: billion VND 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: billion VND 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

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