VIETNAM CEMENT INDUSTRY REPORT Q1/2018 1
Content Summary 5 2.1.7 Current status of consumption and production in ASEAN 35 1. Business environment 7 2.1.8 Leading enterprises in the industry 36 1.1 Macroeconomic situation 7 2.2 Vietnam cement industry 38 1.2 Legal framework 13 2.2.1 History of Vietnam cement industry 38 1.3 Trade agreements 22 2.2.2 Definition and Classification 39 2. Industry overview 25 2.2.3 Basic production process 40 2.1 World cement industry 25 2.2.4 Scale and market share 42 2.1.1 Production 25 2.2.5 Input materials 44 2.1.2 Consumption 28 2.2.6 Production technology 52 2.1.3 Export 29 2.2.7 Supply-Demand 62 2.1.4 Import 31 2.2.8 Production of Clinker and Cement 63 2.1.5 Price movement 32 2.2.9 Consumption 65 2.1.6 Current status of consumption and production in some typical countries 33 2.2.10 Cement and clinker export 68 2
Content 2.2.11 Inventories 74 2.5.2 Driving forces of output industry development 101 2.2.12 Price movement 75 2.5.3 World forecast 102 2.2.13 Distribution method 78 2.5.4 Domestic forecast 104 2.2.14 Transport method (logistic warehouse, seaport, specialized ship,...) 79 3. Enterprise analysis 108 2.3 Industry risk 81 3.1 Profitability 120 2.3.1 Main risks 82 3.2 Performance efficiency 123 2.3.2 SWOT analysis 87 3.3 Financial strength 126 2.3.3 5-forces analysis 89 3.4 Return on investment 129 2.4 Industry planning 91 4. Appendix 131 2.4.1 Cement industry planning 91 4.1 Update of projects invested in the period 2011-2030 131 2.4.2 Construction and real estate industry planning 94 4.2 Portfolio of infrastructure projects in the period 2010-2030 136 2.5 Outlook and forecast 99 4.3 Financial statements 143 2.5.1 Driving forces of industry development 100 3
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
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
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
Content 1. Business environment 1.1 Macroeconomic situation 1.2 Legal framework 1.3 Trade agreements 7
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, 2015-2017 Sources: VIRAC, GSO GDP by current price and GDP per capita, 2013-2017 GDP per capita has increased strongly over the past few years. Sources: VIRAC, GSO 8
1. Business environment 1.1. Macroeconomic situation % Industrial production index of the manufacturing, 2012-2017 Source: VIRAC, GSO VND/USD exchange rate, 2013-2017 In 2017, the VND / USD exchange rate was quite stable around VND 22,400. Source: VIRAC, SBV 9
1. Business environment 1.1 Macroeconomic situation State revenues and expenditures VND trillion State revenues, 2017. VND trillion Government expenditures, 2017 Source: VIRAC, GSO Source: VIRAC, GSO 10
1. Business environment 1.1 Macroeconomic situation The rate of development of social investment capital increasing at current prices, 2013-2017 The investment capital for society development by current prices for economic sectors, 2010 2016e Sources: VIRAC, GSO 11
1. Business environment 1.1 Macroeconomic situation Billion USD FDI capital, 2015-2017 Foreign direct investment FDI attraction by sector, 2017 Sources: VIRAC, FIA Sources: VIRAC, FIA 12
Content 1. Business environment 1.1 Macroeconomic situation 1.2 Legal framework 1.3 Trade agreements 13
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
1. Business environment 1.2 Legal framework - Group of general regulations WHRPG system: Advantages Disadvantages WHRPG Funds: 15
1. Business environment 1.2 Legal framework - Group of price regulations Decree No. 177/2013 / ND-CP 16
1. Business environment 1.2 Legal framework - Group of price regulations Tax policy: 17
1. Business environment 1.2 Legal framework - Group of price regulations 18
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
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
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
Content 1. Business environment 1.1 Macroeconomic situation 1.2 Legal framework 1.3 Trade agreements 22
1. Business environment 1.3 Trade agreements Impact from the WTO EVFTA - Vietnam EU Free Trade Agreement signed in early 2016 23
1. Business environment 1.3 Trade agreements RCEP - Regional Comprehensive Economic Partnership 24
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
2.1 World cement industry 2.1.1 Production Million tons Global Cement Production, 2011 2076e Cement production by region 2015e Source: VIRAC, Statista Cement production in Asia is leading the world, 26
2.1 World cement industry 2.1.1 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
2.1 World cement industry 2.1.2 Consumption Million tons Global Cement Consumption, 2010 2018e Consumption structure of cement worldwide, 2016 Source: VIRAC, Global Cement Source: VIRAC, International Cement Review 28
2.1 World cement industry 2.1.3 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, 2012-6M/2017e USD billion Source: VIRAC, Uncomtrade, ITC Export structure of cement worldwide by type, 2016 Source: VIRAC, World s top exports 29
2.1 World cement industry 2.1.3 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
2.1 World cement industry 2.1.4 Import Global cement imports, 2010 2016e 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
2.1 World cement industry 2.1.5 Price movement USD/ton Average cement price movement worldwide, 2000-2016e Source: VIRAC, Bloomberg 32
2.1 World cement industry 2.1.6 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, 2012 - Thousand tons 2017e Source: VIRAC, USGS 33
2.1 World cement industry 2.1.6 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
2.1 World cement industry 2.1.7 Current status of consumption and production in ASEAN D Sources:VIRAC, Cemtech 35
2.1 World cement industry 2.1.8 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
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
2.2 Vietnam cement industry 2.2.1 History of Vietnam cement industry Cement industry is one of the earliest established industries in Vietnam (along with coal, textile, railway...) 38
2.2 Vietnam cement industry 2.2.2 Definition and Classification Definition: Clinker Cement Classification Vietnam commonly used standards on cement today: 39
2.2 Vietnam cement industry 2.2.3 Basic production process 40
2.2 Vietnam cement industry 2.2.3 Basic production process 41
2.2 Vietnam cement industry 2.2.4 Scale and market share Manufacturing enterprises allocation by region, 2016e Source: VIRAC, GSO Chain allocation by area, 2016 42
2.2 Vietnam cement industry 2.2.4 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
2.2 Vietnam cement industry 2.2.5 Input materials Original production expenses (This division is based on clinker price structure of some leading companies) VND/ton Source: VIRAC 44
2.2 Vietnam cement industry 2.2.5 Input materials Current status of the electricity industry Billion kwh Supply-Demand and Power loss, 2011-2017e Source: VIRAC, EVN 45
2.2 Vietnam cement industry 2.2.5 Input materials Structure of electricity consumption 8/2017e Structure of electricity consumption for 4 major industries, 2016 Source: VIRAC, EVN Source: VIRAC, EVN 46
2.2 Vietnam cement industry 2.2.5 Input materials Electricity prices in Vietnam are quite low compared to those in other countries in the Asia-Pacific region. Average electricity price, 1/2007 12/2017 Source: VIRAC, EVN Average electricity price in some countries, 2016 Country Average electricity price (VND/kwh) (* Prices are in VND) Source: VIRAC, Eurocham 47
2.2 Vietnam cement industry 2.2.5 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 2015-2030f million tons 48
2.2 Vietnam cement industry 2.2.5 Input materials Coal reserves are becoming less and more difficult to exploit : Industry profit declines: 49
2.2 Vietnam cement industry 2.2.5 Input materials Status of limestone resources in Vietnam Type Unit 2010 2015 2020 Source: VIRAC, TKV 50
2.2 Vietnam cement industry 2.2.5 Input materials Effect of limestone quality on clinker and cement quality Some good limestone areas in the North and Central Mine Content(%) 51
2.2 Vietnam cement industry 2.2.6 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
2.2 Vietnam cement industry 2.2.6 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
2.2 Vietnam cement industry 2.2.6 Production technology Notes: 54
2.2 Vietnam cement industry 2.2.6 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
2.2 Vietnam cement industry 2.2.6 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
2.2 Vietnam cement industry 2.2.6 Production technology 57
2.2 Vietnam cement industry 2.2.6 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
2.2 Vietnam cement industry 2.2.6 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
2.2 Vietnam cement industry 2.2.6 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
2.2 Vietnam cement industry 2.2.6 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
2.2 Vietnam cement industry 2.2.7 Supply-Demand million tons Cement supply - demand, 2011-2017e * Supply = total output of cement production; Demand = domestic cement consumption + export output of cement, clinker Source: VIRAC, VNCA 62
2.2 Vietnam cement industry 2.2.8 Production of Clinker and Cement million tons Cement production volume, 2011-2017e 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
2.2 Vietnam cement industry 2.2.8 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
2.2 Vietnam cement industry 2.2.9 Consumption million tons Consumption structure by region, 2011-2017e Source: VIRAC, VNCA 65
2.2 Vietnam cement industry 2.2.9 Consumption million tons Production - Consumption of the North, 2011-2017e Source: VIRAC, VNCA million tons Production - Consumption of the Central, 2011-2017e million tons Production - Consumption of the South, 2011-2017e Source: VIRAC, VNCA Source: VIRAC, VNCA 66
2.2 Vietnam cement industry 2.2.9 Consumption million tons Monthly cement consumption, 1/2016-12/2017 % Cement consumption growth by region, 2010-2017 Source: VIRAC, VNCA Source: VIRAC, VNCA 67
2.2 Vietnam cement industry 2.2.10 Cement and clinker export World s top 6 largest cement exporting countries 2016e million tons Source: VIRAC, VNCA, Uncomtrade 68
2.2 Vietnam cement industry 2.2.10 Cement and clinker export million tons Cement clinker exports, 2010-2017e Source: VIRAC, VNCA 69
2.2 Vietnam cement industry 2.2.10 Cement and clinker export Thousand tons Cement clinker exports, 1/2015-12/2017e 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
2.2 Vietnam cement industry 2.2.10 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, 2015-2017e million tons Source: VIRAC, GDVC 71
2.2 Vietnam cement industry 2.2.10 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
2.2 Vietnam cement industry 2.2.10 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
2.2 Vietnam cement industry 2.2.11 Inventories million tons Stock of cement, 2010-2017e Source: VIRAC, GSO, VNCA Inventories in the period 2010 2017 increased sharply. 74
2.2 Vietnam cement industry 2.2.12 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
2.2 Vietnam cement industry 2.2.12 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
2.2 Vietnam cement industry 2.2.12 Price movement USD/ton Export price of cement and clinker, 6/2015-12/2017 Export price Source: VIRAC, Department of Price Management 77
2.2 Vietnam cement industry 2.2.13 Distribution method Sales through the main distributor Sales through the project distributor Source: VIRAC 78
2.2 Vietnam cement industry 2.2.14 Transport method Source: VIRAC 79
2.2 Vietnam cement industry 2.2.14 Transport method List of seaports belonging to cement plants No. Harbor Seaport Company Challenges: Source: VIRAC, Bộ GTVT 80
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
2.3 Industry risk 2.3.1 Main risks - Supply exceeds demand - Input materials - Coal subsidies no longer have preferential prices 82
2.3 Industry risk 2.3.1 Main risks - The government no longer provides loan guarantees to cement producers - Tightening of road tonnage increases transportation costs 83
2.3 Industry risk 2.3.1 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
2.3 Industry risk 2.3.1 Main risks - Impact from the progress of the construction industry in Vietnam Progress structure of construction projects 2010-2015 Source: VIRAC 85
2.3 Industry risk 2.3.1 Main risks Internal causes of construction industry: Delay and increase costs in construction works in Vietnam 86
2.3 Industry risk 2.3.2 SWOT analysis Advantage: Limitation: 87
2.3 Industry risk 2.3.2 SWOT analysis Opportunities: Challenges: 88
2.3 Industry risk 2.3.3 5-forces analysis 89
2.3 Industry risk 2.3.3 5-forces analysis No Main enterpri ses Product distinguish Valuation Target markets Distribution channel Supply Ability The intention of the sales strategy 90
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
2.4 Industry planning 2.4.1 Cement industry planning Decision No. 1488/QD-TTg of the Prime Minister approving the planning on development of Vietnam cement industry. 92
2.4 Industry planning 2.4.1 Cement industry planning Year Cement demand (million tons) 93
2.4 Industry planning 2.4.2 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 2030 94
2.4 Industry planning 2.4.2 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 2050 95
2.4 Industry planning 2.4.2 Construction and real estate industry planning 96
2.4 Industry planning 2.4.2 Construction and real estate industry planning Decision No. 2127/QD-TTg approving National housing development strategy up to 2020 with vision to 2030: 97
2.4 Industry planning 2.4.2 Construction and real estate industry planning Outlook of the construction and real estate industry: 98
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
2.5 Outlook and forecast 2.5.1 Driving forces of industry development 100
2.5 Outlook and forecast 2.5.2 Driving forces of output industry development Forecast for value of construction and infrastructure, 2010 2022f Source: VIRAC Population growth, 2011 2017e Source: VIRAC, GSO 101
2.5 Outlook and forecast 2.5.3 World forecast Ministry of Industry and Trade 102
2.5 Outlook and forecast 2.5.3 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 - 2022e Source: VIRAC, IMARC 103
2.5 Outlook and forecast 2.5.4 Domestic forecast Forecast for supply and demand, domestic prices 104
2.5 Outlook and forecast 2.5.4 Domestic forecast million tons Forecast for cement industry, 2017e - 2020e Source: VIRAC 105
2.5 Outlook and forecast 2.5.4 Domestic forecast Forecast for M&A trend: 106
2.5 Outlook and forecast 2.5.4 Domestic forecast M&A activities of cement industry in 2017: 107
Content 3. Enterprise analysis 3.1 Profitability 3.2 Performance efficiency 3.3 Financial strength 3.4 Return on investment 108
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
3. Enterprise analysis Ha Tien 1 Cement Joint Stock Company Ha Tien 1 Cement Joint Stock Company 110
3. Enterprise analysis The Vissai Cement Corporation The Vissai Cement Corporation 111
3. Enterprise analysis Nghi Son Cement Company Nghi Son Cement Company 112
3. Enterprise analysis VICEM Hoang Thach Cement Company Limited VICEM Hoang Thach Cement Company Limited 113
3. Enterprise analysis Bim Son Cement Joint Stock Company Bim Son Cement Joint Stock Company 114
3. Enterprise analysis VICEM But Son Cement Joint Stock Company VICEM But Son Cement Joint Stock Company 115
3. Enterprise analysis Thang Long Cement Joint Stock Company Thang Long Cement Joint Stock Company 116
3. Enterprise analysis VICEM Hoang Mai Cement Joint Stock Company VICEM Hoang Mai Cement Joint Stock Company 117
3. Enterprise analysis Quang Ninh Cement and Construction Joint Stock Company Quang Ninh Cement and Construction Joint Stock Company 118
3. Enterprise analysis Ha Tien 1 Cement Joint Stock Company Sai Son Cement Joint Stock Company 119
Content 3. Enterprise analysis 3.1 Profitability 3.2 Performance efficiency 3.3 Financial strength 3.4 Return on investment 120
3. Enterprise analysis 3.1. Profitability VND million Net revenue growth, 2015-2016 Source: VIRAC 121
3. Enterprise analysis 3.1. Profitability VND million Gross profit growth, 2015-2016 Source: VIRAC 122
Content 3. Enterprise analysis 3.1 Profitability 3.2 Performance efficiency 3.3 Financial strength 3.4 Return on investment 123
3. Enterprise analysis 3.2 Performance efficiency Total asset turnover, 2015-2016 Unit: times Fixed asset turnover, 2015-2016 Unit: times Source: VIRAC Source: VIRAC 124
3. Enterprise analysis 3.2 Performance efficiency Inventory turnover, 2015-2016 Unit: times Source: VIRAC 125
Content 3. Enterprise analysis 3.1 Profitability 3.2 Performance efficiency 3.3 Financial strength 3.4 Return on investment 126
3. Enterprise analysis 3.3. Financial strength Payment ratio, 2015-2016 Source: VIRAC 127
3. Enterprise analysis 3.3. Financial strength Solvency, 2015-2016 Source: VIRAC 128
Content 3. Enterprise analysis 3.1 Profitability 3.2 Performance efficiency 3.3 Financial strength 3.4 Return on investment 129
3. Enterprise analysis 3.4 Return on investment % Profit ratio, 2015-2016 Source: VIRAC 130
Content 4. Appendix 4.1 Update of projects invested in the period 2011-2030 4.2 Portfolio of infrastructure projects in the period 2010-2030 4.3 Financial statements 131
4. Appendix 4.1 Update of projects invested in the period 2011-2030 No Project Address Investor Capacity (ton/year) (only rotary kiln) Progress 132
4. Appendix 4.1 Update of projects invested in the period 2011-2030 No Project Address Investor Capacity (ton/year) (only rotary kiln) Progress 133
4. Appendix 4.1 Update of projects invested in the period 2011-2030 No Project Address Investor Capacity (ton/year) (only rotary kiln) Progress 134
4. Appendix 4.1 Update of projects invested in the period 2011-2030 No Project Address Investor Capacity (ton/year) (only rotary kiln) Progress 135
Content 4. Appendix 4.1 Update of projects invested in the period 2011-2030 4.2 Portfolio of infrastructure projects in the period 2010-2030 4.3 Financial statements 136
4. Appendix 4.2 Portfolio of infrastructure projects in the period 2010-2030 No Seaport City / Province Economic zone Value (USD Status million) Period 137
4. Appendix 4.2 Portfolio of infrastructure projects in the period 2010-2030 No Power plant and transmission grid City / Province Economic zone Value (USD million) Status Period 138
4. Appendix 4.2 Portfolio of infrastructure projects in the period 2010-2030 No Railway City / Province Economic zone Status Status Period 139
4. Appendix 4.2 Portfolio of infrastructure projects in the period 2010-2030 No Bridge and road City / Province Economic zone Value (USD million) Status Period 140
4. Appendix 4.2 Portfolio of infrastructure projects in the period 2010-2030 No Water supply and wastewater treatment City / Province Economic zone Value (USD million) Status Period 141
4. Appendix 4.2 Portfolio of infrastructure projects in the period 2010-2030 No Petroleum pipeline City / Province Economic zone Value (USD million) Status Period 142
Content 4. Appendix 4.1 Update of projects invested in the period 2011-2030 4.2 Portfolio of infrastructure projects in the period 2010-2030 4.3 Financial statements 143
4. Appendix 4.3 Financial statements - Ha Tien 1 Cement Joint Stock Company BALANCE SHEET Unit: VND million 2015 2016 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 2015 2016 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 2015 2016 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
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 2015 2016 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 2015 2016 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
4. Appendix 4.3 Financial statements - Nghi Son Cement Company BALANCE SHEET Unit: VND million 2015 2016 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 2015 2016 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 2015 2016 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
4. Appendix 4.3 Financial statements - VICEM Hoang Thach Cement Company BALANCE SHEET Unit: VND million 2015 2016 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 2015 2016 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 2015 2016 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
4. Appendix 4.3 Financial statements - Bim Son Cement Joint Stock Company BALANCE SHEET Unit: VND million 2015 2016 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 2015 2016 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 2015 2016 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
4. Appendix 4.3 Financial statements - VICEM But Son Cement Joint Stock Company BALANCE SHEET Unit: VND million 2015 2016 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 2015 2016 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 2015 2016 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
4. Appendix 4.3 Financial statements Thang Long Cement Joint Stock Company BALANCE SHEET Unit: VND million 2015 2016 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 2015 2016 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 2015 2016 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
4. Appendix 4.3 Financial statements - VICEM Hoang Mai Cement Joint Stock Company BALANCE SHEET Unit: VND million 2015 2016 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 2015 2016 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 2015 2016 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
4. Appendix 4.3 Financial statements - Quang Ninh Cement and Construction Joint Stock Company BALANCE SHEET Unit: VND million 2015 2016 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 2015 2016 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 2015 2016 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
4. Appendix 4.3 Financial statements - Sai Son Cement Joint Stock Company BALANCE SHEET Unit: VND million 2015 2016 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 2015 2016 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 2015 2016 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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