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Vietnam Plastics Packaging Market 2018: Industry Preview
Vietnam Plastics Packaging Market 2018: Industry Preview
No Contents Page
1.5 Hindrances 10 – 11
2 StoxPlus Introduction 15 – 25
Page 2
Market Structure & Description
Plastic Packaging is the intersection between Plastics & Packaging sector
Technical
Mono-layered
PLASTICS
FLEXIBLE
Household
Multi-layered
Construction Plates
Mold tubes
RIGID HDPE products
PLASTIC PACKAGING
PET
Others
small family businesses, mostly used for low value products while
Glass Packaging
the later serves increasing demand from food & beverage with
market size 2017 estimated at US$33 bn, contributing 15% to GDP
in 2017.
Metal Packaging
• Rigid packaging includes companies that manufacture PET/ non
PET (HDPE, LDPE) bottles, preforms, trays and tubes used for
packaging.
Others
Source: StoxPlus
Page 3
Size & Segmentation
Plastic Packaging is the largest segment with total size of over US$5bn in 2017
6.00
Metal Packaging
5.00
Glass Packaging
4.00
3.00
Plastic
Paper & packaging
Corrugated
Boxes 2.00
1.00
-
2010 2011 2012 2013 2014 2015 2016 2017
Source: StoxPlus
• Amongst packaging sectors, plastic packaging is the largest segment with total size of over US5 bn in 2017, registering 2012-2017 CAGR of
10.9%. In particular:
➢ FLEXIBLE PACKAGING: Food sector and non-food sectors registered 2012-2017 CAGR of 13.4% in average, boosting the high demand for
flexible packaging. Highlighted sectors include Instant coffee (2012-2017 CAGR of 16.5%), Skincare (15.1%) and Laundry care (13.0%). In
food sector, instant coffee performed well driven by the active export activities and Vietnamese consumers’ growing preference for
convenient products. Meanwhile, in non-food sector, skincare healthy growth reflected rising health-consciousness trendline and
laundry care grew thanks to the expansion of fabric softener.
➢ RIGID PACKAGING: PET sector outperformed the market with registered CAGR of 15.9% driven by beverage sector. Notably, ready-to-
drink tea is the largest PET packaging end-user segment, accounting for around 30% domestic demand. Recovering from the scandals
related to the top players in 2016, RTD tea is expected to regain its popularity due to the rising health-awareness trendline
Page 4
Competition Dynamics | Overview
Key players in Vietnam plastic packaging market
Top 14 key players dominate multi-layered flexible There are approximately over 80 PET independent
packaging market, accounting for approximately 42% manufacturers in Vietnam, of which top 10 companies
market share. occupied approximately 60% of total market share
KEY PLAYERS KEY PLAYERS
Source: StoxPlus
Page 5
Competition Dynamics | Sample
Vietnam flexible packaging market is mostly dominated by the top 14 players, accounting for
41.9% market share
Figure 4: Multi-layered flexible packaging competition landscape, 2017
TIER 1
• The market is dominated by the top 14 players,
Tapack
accounting for 41.9% of the total flexible packaging
Batico market. 67 other companies share the remaining 58.1%.
Big names in Vietnam flexible packaging are Tapack,
Liksin Batico, Liksinn, J.S Packaging and Huhmataki.
• Foreign flexible packaging companies such as Huhtamaki
J.S Packaging
(Finland), J.S Packaging (South Korea), Tong Yuan
(Taiwan), and Ngai Mee (Singapore) entered into Vietnam
Huhtamaki since 1996. These are all subsidiaries of major global
flexible packaging companies who have served
Thanh Phu
multinational end-users like Unilever for a long time.
Other
They are aggressively competing with local companies,
Ngai Mee leveraging their modern machinery and equipment, as
well as expertise on flexible packaging.
Saplastic
Tong Yuan TIER 2 & TIER 3
Saigon Trapaco
Minh Viet • Tier 2 (8 companies) are medium ones with net sale of
Namkuyng Vina about US$3–5 mn while Tier 3 (35 firms) are small flexible
Sapaco
Rang Dong manufacturers (US$1mn net sales).
Up-to-date information about the competition dynamics,
Source: StoxPlus
operational and financial indicators of key players are
Note: Revenue takes into account ALL BUSINESS LINE featured in our comprehensive standard report - Vietnam
Flexible Packaging Market 2018
Page 6
Competition Dynamics | Financial Indicators
Our Biinform portal provides ~ 1 million available company reports ready to purchase
OWNER’S
COMPANY Type SALES RANGE COGS NPAT TOTAL ASSET
EQUITY
Source: StoxPlus
Revenue takes into account ALL BUSINESS LINE
Page 7
Prospects| Growth opportunities
Food sectors drove up demand for plastics packaging, especially from the consumption
growth in RTD tea (14.7%), instant coffee (16.5%) and Seafood export (10.4%)
SIZE 2017 2012-2017 IMPLICATION
SECTOR SEGMENT COMMENT
US$mn CAGR FOR SEGMENTS
Flexible packaging
Seafood ➢ The stable rise in seafood export will increase the demand for
8.3 10.4% (multi-layered)
Export flexible packaging
Prospects| Growth opportunities
A strong growth of many items in non-food sector especially from Skin care (15.1%), Laundry
care (13.0%) and Surface care (12.2%)
SIZE 2017 2012-2017 IMPLICATION
SECTOR SEGMENT COMMENT
US$mn CAGR FOR SEGMENTS
Rigid packaging
➢ Key strategy for boosting sales is to raise brand profiles through
(PET)
aggressive promotional and advertising campaigns, especially on
Flexible packaging
Laundry care 1,401.5 16.7% social medias. In addition, as laundry care is maturing in urban
(multi-layered for
areas, players are reaching out to low-income segments in rural
label)
areas. Notably, big-package size is highly-favored in this area.
HOME ➢ Improved living standard with higher awareness of health issues
CARE raises demand for surface care, especially in middle and high-
Rigid packaging
(PET) income households. Surface care sector is expected to expand
Surface care 103.9 12.7% Flexible packaging healthily in near term future.
(multi-layered for ➢ Eye-catching packaging design and television advertising
label) campaigns are believed to be the key drivers to boost up
manufacturers’ total sales
Rigid packaging ➢ International brand names have occupied mostly total market
(PET) share with diversified product ranges, while domestic players or
Skin care 329.6 16.7%
Flexible packaging private labels remained blurred in Vietnam market due to its low
(multi-layered) quality.
➢ The hair care sector has healthy growth potential as new
Rigid packaging products have been developed in line with customers'’ demands.
PERSONAL (PET) Particularly, demand for styling products has become greater as
CARE Hair care 240.5 9.5% Flexible packaging the popularity of men’s grooming products rises. In shampoo
(multi-layered) segment, key players have launched innovative products that
provides new benefits such as hair fall control, fights pollution,
intensive repair, etc.
Rigid packaging
(PET) ➢ Bath and shower market is expected to grow at a slower pace as
Bath & Shower 151.5 10.5%
Flexible packaging the market is reaching its maturity stage.
(multi-layered)
Hindrances | Plastic Resin
Limited domestic supply for increasing plastic resin demand in Vietnam
• Total annual demand is around 5.463 million tons while domestic supply only satisfied 0.570 million tons.
[Demand vs. Production Capacity of in Vietnam]
[Imported Plastic Resin Volume (mn tons)]
Forecast plastic demand at 2018-2023 CAGR = 10% 5.6 5.7
4.5
Long Son Project
IMPORT 3.9
Nghi Son Project 3.5
3.2
2.7
72%
2012 2013 2014 2015 2016 2017 2018e
89% 90% 90% 85% 86% 87%
DOMESTIC
28% PRODUCTION
11% 10% 10% 15% 14% 13%
LONG SON
NGHI SON REFINERY &
PETROCHEMICAL
2,343
570 570 570 570 570 943 943 943
2013 2014 2015 2016 2017 2018e 2019f 2020f 2021f 2022f
Source: StoxPlus, Decision 676/QD-BCT dated on 6th Mar 2017, Decision 2412/QD-BCT dated on 17th May 2011
Data is consolidated from Master Plan on Development of Petrochemical Sector with update & validation from StoxPlus on these project’s status.
Page 11
Appendix| Key Players’ Profiles
• Registered name: Tan Tien Plastic Packaging No Plant Location Production lines
• Head office: Lot II, Group 4, Road 13, Tan Binh Industrial Park,
Tan Phu District, Ho Chi Minh City • Factory is located on an area of
• Establishment Year: 1966 50,000m2
• Equipment & capacity:
• Charter capital: US$6.6 mn (as of 2017) • Rotogravure printer:
Headquarter in Tan
• Principal businesses: Tapack is the leading flexible packaging firm Main 400m/minute
1 Phu District, Ho
in Vietnam, specializing in manufacture of high-end flexible factory • Engraving machines: 7,200
Chi Minh City
packaging. Its products serve many major players in beverage, cylinders/year
packaged food, seafood, and agri-business sector in Vietnam. • 5-layers tandem extrusion
Besides, the company engages in real estate business including laminator: 400,000,000m2/year
commercial building development.
Unit: US$mn
2014 2015 2016 2017
Net sales 70.8 62.0 61.9 64.2
CoGS 63.1 53.4 51.8 57.2
Gross Profit 7.7 8.6 10.1 7.0
% Gross Profit(*) 10.9% 13.9% 16.3% 10.9%
NPAT 2.0 3.7 5.9 4.1
% NPAT(*) 2.8% 5.9% 9.5% 6.3%
Total Assets 55.1 36.2 40.7 47.9
Total Liabilities 31.6 11.4 11.7 16.0
ROA (*) 3.6% 10.1% 14.4% 8.5%
ROE (*) 8.5% 14.8% 20.2% 12.7%
Appendix| Key Players’ Profiles
Unit: US$mn
2014 2015 2016 2017
Net sales 51.3
CoGS 45.2
Gross Profit 6.1
% Gross Profit(*) 11.9% Content to be
NPAT 3.6 removed for preview
% NPAT (*) 7.0% purpose
Total Assets 43.7
Total Liabilities 26.8
ROA (*) 8.1%
ROE (*) 21.0%
Appendix| Key Players’ Profiles
Unit: US$mn
2014 2015 2016 2017
Net sales 44.6
CoGS 39.1
Gross Profit 5.5
% Gross Profit(*) 12.4% Content to be
NPAT 1.6 removed for preview
% NPAT (*) 3.5% purpose
Total Assets 77.7
Total Liabilities 31.9
ROA (*) 2.0%
ROE (*) 3.4%
Table of Contents
No Contents Page
1.5 Hindrances 10 – 11
2 StoxPlus Introduction 15 – 25
Page 15
Overview
StoxPlus is a pioneer and a Vietnam’s leader in financial and business information services since 2008
Page 16
Board of Directors and Management
Our Management have extensive and diverse experiences in information, technologies & related
services
Thuan Nguyen, FCCA Hieu Nguyen, MBA Yoichi Noor Iwamoto
Chairman and CEO Vice Chairman Board Member
Co-founder of StoxPlus Co-founder of StoxPlus Representative of NIKKEI
previously working as an previously working as a Inc. at StoxPlus. He is
investment manager of specialist at the Department currently Managing
Vietnam Holding Asset for International Director of NIKKEI CHINA
Management Ltd and Development of UK (DFID) in (Hong Kong) Ltd.
manager at PwC Vietnam & Vietnam. and Consulting
Australia Manager at PwC Vietnam
Page 17
Research and Consulting Services
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