Export activities “are stated” to save Vietnam cement scenario in years to come
In 2017, domestic consumption sustained its growth at 1.4% while export activity drove the market with export volume surging up to 19.7 million tonnes, posting robust growth of 27.7% y-o-y. Of which, top 10 cement exporters contributed 69.4% and 65.2% of total export volume and value respectively in 2017.
To evaluate the effect of cement exporting activities, we would zoom-in the profitability of top 10 cement exporters (Data FY 2016), which is empowered by the most comprehensive and insightful financial database for Vietnam – our Biinform database. Among top 10 cement exporters, VICEM ranked the 1st place in terms of net sales, which was far higher than the second-up – Vissai Group (US$251 mn).
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Figure 1 Net Sales of Top 10 Cement Exporters in Vietnam (US$mn), 2016
PROFITABILITY RATIO OF TOP 10 CEMENT EXPORTERS IN VIETNAM
Figure 2 Operating Profit Margin (OPM) and Net Profit Margin (NPM) of Top 10 Cement Exporters, 2016
Regarding to profitability ratio, there are 04 companies posing higher OPM and Net profit margin NPM, of which Nghi Son and Phuc Son illustrated greatest NPM of 13.5% and 11.2% respectively, followed strictly by VICEM (11.1%). It is worth noting that all the top companies still concentrate on strengthening their presence in domestic market since 80% of total Vietnam cement demand derived from local market (2016). Meanwhile, other remaining companies showed under-average performance, especially Cong Thanh, VCM and Thang Long with negative figures due to its sluggish domestic consumption. In conclusion, export activities have shed the light on the gloomy scenario of Vietnam cement industry, however, it was not strong enough to lift up the market, which is indicated by the poor performance of majority top cement exporters.
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