PLASTICS RESIN AND SYNTHETIC RUBBER INDUSTRY ......Part II. Global market 4. Synthetic rubber –4.1 Production and consumption Thousand tons Global synthetic rubber production and

1

PLASTICS RESIN AND SYNTHETIC RUBBER INDUSTRY REPORT Q2/2018

TABLE OF CONTENTS

2

Abbreviations 3 1.. Industry scale 34

Executive summary 4 2. Raw plastic resins 36

I. Business environment 6 3. Synthetic rubber 47

1. Macroeconomic situation 6 4. Price-affecting factors 51

2. Legal framework 10 IV. SWOT analysis 53

II. Global market 14 V. Industry trend and planning 55

1. Definition and classification 14 1. Industry development trend 55

2. Value chain of the industry 18 2. Industry development planning 57

3. Raw plastic resins 21 VI. Enterprise analysis 60

4. Synthetic rubber 29 1. Enterprise introduction 60

III. Vietnam market 34 2. Financial analysis 63

Abbreviations

3

Abbreviation Full Name Abbreviation Name

BR Butadien Rubber PET Polyethylene Terephthalate

CIS Commonwealth of independent states PP Polypropylene

ISRG International Rubber study group PS Polystyrene

HIPS High Impact Polystyrene PVC Poly Vinyl Chloride

HPE High Density Polyethylene SBR Styrene Butadien Rubber

LLDPE Low Density Polyethylene TPP Trans-Pacific partnership

NAFTA North America Free Trade Area VPA Vietnam plastic association

PE Polyethyelene

Executive summary

4

• Primeval plastics and synthetic rubber are important input materials

for many industries, especially plastics and automobile industry.

• China takes the lead in thermoplastic production, with an output of

92.1 tons in 2016.

• In 2016, global sales of polymer-based products reached 851 billion

USD, up 6.2% compared to 2015.

• Global synthetic rubber production and consumption has been on the

upward trend in recent years, much greater than those of natural

rubber.

Content is intentionally removed for demo purpose

Executive summary

5

• Production of plastic materials and additives in Q1/2018 was

estimated at 208 thousand tons, of which main products are Poly

Acetal, polyethers and epoxy resins; polycarbonate, polyalkylether and

other polyesters, primary forms, etc.

• Imports of synthetic rubber in Q1/2018 was estimated at USD 146.7

million, up 5% over the same period in 2016, while synthetic rubber

exports reached USD 5.5 million.Content is intentionally removed for demo purpose

TABLE OF CONTENTS

Part I. Business environment

1. Macroeconomic situation

2. Legal framework

6



7

Source: VIRAC, GDVC

Source: VIRAC, GSO

USD billion

Imports of plastic raw materials and percentage contribution to total turnover,

2010 – Q1/2018

GDP growth rate by quarter, 2015 - Q1/2018


8



Source: VIRAC, SBV

USD/VND exchange rate, 2013 – 3/2018

Source: VIRAC, SBV

CNY/VND exchange rate, 1/2016-3/2018


9

M&A activities in plastics industry

Source: VIRAC



Source: VIRAC, FIA

Vietnamese plastic enterprise’s SCG ownership, 2017

FDI attraction by sector, Q1/2018


10

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2. Legal framework

11


2. Legal framework

• The Ministry of Finance issued Circular No. 159/2012/TT-BTC regulating the application of the Law on Environmental Protection,

• Circular No. 107/2013/TT-BTC issued by the Ministry of Finance revises the preferential import tax rate for some commodities in the preferential import

tariff, which has been applied since 9/26/2013.


12


2. Legal framework


13


2. Legal framework


TABLE OF CONTENTS

Part II. Global market

1. Definition and classification

2. Value chain of the industry

3. Raw plastic resins

4. Synthetic rubber

14

15


1. Definition and classification – 1.1 Raw plastic resins

Classification by polymer effect with temperature


Thermoplastic production share, 2015

Thermoset plastic production share, 2015

Source: VIRAC, ICIS

Source: VIRAC, ICIS


1. Definition and classification – 1.1. Plastic resins

Polymer usage structure, 2015

Source: VIRAC, ICIS

16


Source: VIRAC, Rubbernews

Synthetic rubber production structure, 2015


1. Definition and classification – 1.2. Synthetic rubber

17


• Synthetic rubber is a compound made from chemical reactions which is mainly

comprised of oil and gas.

• Synthetic rubber is classified via multiple ways.

18

TABLE OF CONTENTS





4. Synthetic rubber

19

Source: VIRAC, ICIS





2. Chain value of the industry

20


• Oil refinery plants:

• The oil refinery technology with various raw material combination alters chemical features to generate desirable products.

21

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4. Synthetic rubber

22

Source: VIRAC, Europe Plastic Source: VIRAC, Europe Plastic


3. Raw plastic resins – 3.1 Production

Million tons

Global plastic materials production, 2009 – 2016ePlastic materials production structure by region, 2016


23




24



Global polymer production capacity, 2016

Source: VIRAC, Cefic Chemdata International 2016

Million tons

Million tons


Plastic resin production capacity by region, 2016


25


3. Raw plastic resins – 3.2 Consumption

Global polymer sales, 2006 - 2016

USD billion


Polymer sales by region, 2016



26

Source: VIRAC, VPA

Source: VIRAC, Statista

• Plastic resins have a wide variety of use cases for multiple sectors.



Kg/person

Polymer consumption structure by sector 2015


Global per capita plastic material consumption by region, 2015

27

Source: VIRAC, ICIS

Source: VIRAC, AMI



Million tons

Global polymer consumption demand, 2010 – 2016e

Polymer consumption demand by region, 2016


28

Source: VIRAC, Platts

Source: VIRAC, IHS



Source: VIRAC, ICIS

PE demand by region, 2016

PE consumption by type, 2016

PE consumption by use case, 2016

29

TABLE OF CONTENTS





4. Synthetic rubber

30

Source: VIRAC, IRSG

Source: VIRAC, IRSG

Source: VIRAC, IRSG


4. Synthetic rubber – 4.1 Production and consumption

Thousand tonsGlobal rubber production and consumption, 2010 – 9M/2017 Rubber production structure in the world, 2010- 9M/2017

Global rubber consumption structure, 2010 – 9M/2017


31

Source: VIRAC, IRSG

Source: VIRAC, IRSG



Thousand tons

Global synthetic rubber production and consumption, 2010 - 9M/2017

The structure of synthetic rubber consumption by product, 2015


32

Source: VIRAC, IRSG



Thousand tonsGlobal synthetic rubber production, 2013 – 9M/2017

* EMEA: EU, Middle East and Africa

Global synthetic rubber production market share, 9M/2017

Source: VIRAC, IRSG


33

Source: VIRAC, IRSG

Source: VIRAC, IRSG



Thousand tonsSynthetic rubber consumption, 2013 – 9M/2017

Synthetic rubber consumption market, 9M/2017


TABLE OF CONTENTS

Part III. Vietnam market

1. Industry scale


3. Synthetic rubber

4. Price-affecting factors

34

35

No Product

Capacity

(ton/year) Producer

Source: VIRAC

Plastic resin and additives production capacity, 2015


1. Industry scale


TABLE OF CONTENTS

36


1. Industry scale


3. Synthetic rubber


37

Source: VIRAC, BSR

Source: VIRAC, VPA

Raw plastic resins production, 2010 – Q1/2018e

Thousand tons

Thousand tons

Raw plastic resins and additives production in some

provinces/cities, Q1/2018

Source: VIRAC, VITIC

Polypropylene supply - demand in Vietnam, 2010 – Q1/2018e




No. Company Sales (ton/year) Market share

LLDPE, LDPE, HDPE, PP distribution figures in the northern market,

2014-2015



Source: VIRAC, HCD

Source: VIRAC, HCD Source: VIRAC, GSO

PP production and consumption of Binh Son Oil

Refinery, 2013 - 6M/2017


39

Source: VIRAC, MOIT, GSO

Source: VIRAC, MOIT, GSO

Thousand

tons



Polymer consumption in Vietnam, 2010 – Q1/2018e

Market share of plastic additives, 2017


40

Source: VIRAC, GDVC

Source: VIRAC, GDVC

Thousand

tons

USD

million

Plastic resins imports, 2010 – Q1/2018


2. Raw plastic resins – 2.3 Import export

Plastic material importing market, Q1/2018


41

Source: VIRAC, GDVC



Source: VIRAC, GDVC

Top largest raw plastic resins importing enterprises, Q1/2018

Plastic material import structure by type, Q1/2018


42



Source: VIRAC, GDVC

Imports of some polymer types, 2012 – Q1/2018e

Polymer

type

2012 2013 2014 2015 2016 2017 Q1/2018

Volume

(ton)

Value

(USD

thousand)

Volume

(ton)

Value

(USD

thousand)

Volume

(ton)

Value

(USD

thousand)

Volume

(ton)

Value

(USD

thousand)

Volume

(ton)

Value

(USD

thousand)

Volume

(ton)

Value

(USD

thousand)

Volume

(ton)

Value

(USD

thousand)

PE

PP

PVC

PET

EVA

PS


43



Source: VIRAC, GDVC

Source: VIRAC, GDVC

Top largest PE importing enterprises, Q1/2018

Top largest PP importing enterprises, Q1/2018


44

Source: VIRAC, GDVC



USD

million

Source: VIRAC, GDVC

Polymer exporting value, 2012 – Q1/2018

Polymer importing market structure by value, Q1/2018

Source: VIRAC, GDVC

Polymer importing market structure by volume, Q1/2018


45

Source: VIRAC, GDVC

USD millionPP & PE export value, 2012 – Q1/2018

Source: VIRAC, GDVC



Source: VIRAC, GDVC

Top 10 largest plastic materials importing enterprises, Q1/2018

Plastic resins export structure by type, Q1/2018


46

Source: VIRAC, GDVC

Source: VIRAC, GDVC



Top largest PP importing enterprises, Q1/2018

Top largest PP exporting enterprises, Q1/2018


47

TABLE OF CONTENTS


1. Industry scale


3. Synthetic rubber


48

Source: VIRAC, UN Comtrade, GDVC


3. Synthetic rubber – 3.1 Import export

USD million

Synthetic rubber import and export, 2011 – Q1/2018e


49



Source: VIRAC, GDVC

Source: VIRAC, GDVC

Export market structure of synthetic rubber, 2017e

Import market structure of synthetic rubber, 2017e


50



Source: VIRAC, GDVC

Source: VIRAC, GDVC

Top 10 largest synthetic rubber exporters

Top 10 largest synthetic rubber importers


51

TABLE OF CONTENTS


1. Industry scale


3. Synthetic rubber


52



Source: VIRAC, Indexmundi

USD/barrel USD/mmbtu

Source: VIRAC, Plastic Europe

USD/ton

World crude oil average price, 2014 -4/2018

Monomer price volatility, 5/2017 - 4/2018Content is intentionally removed for demo purpose

TABLE OF CONTENTS

Part IV. SWOT analysis

53

Strengths Weaknesses

Opportunities Challenges

54

Part IV. SWOT analysis


55

TABLE OF CONTENTS

Part V. Industry trend and planning

1. Industry development trend

2. Industry development planning

Source: VIRAC, European Bioplastic


1. Industry trend

Bioplastic production capacity in the world,

2012 - 2018F

56


57

TABLE OF CONTENTS


1. Industry development trend


58




59



Source: VIRAC, MOIT

No. Project name Location

Investment information

Capacity (1.000

ton/year)

Capital (USD

million)Investment time

Oil refinery projects, 2011 - 2020


TABLE OF CONTENTS

Part VI. Enterprise analysis

1. Enterprise introduction

2. Financial analysis

60


6.1 Enterprise introduction

61

Company Logo

Total asset

(VND

billion)

Revenue

(VND billion)General information

Tpc Vina Plastics

and Chemicals Co.,

Ltd

AGC Vietnam

Chemicals Co., Ltd

Polysterene

Vietnam Co., Ltd

Tin Kim Plastics JSC

Toyo Ink

Compounds

Vietnam Co., Ltd



6.1 Enterprise introduction

62

Company Logo

Total asset

(VND

billion)

Revenue

(VND billion)General information

Resinoplast

Vietnam Co., Ltd

Dainichi Color

Vietnam Co., Ltd

Viet Thai

PLASTCHEM Joint

Venture Co., Ltd


63

TABLE OF CONTENTS


1. Enterprise introduction

2. Financial analysis

Net revenue, 2015 - 2016

Part VI. Business analysis

6.2 Financial analysis – Business performance

64


Gross profit, 2015 - 2016



65


Self-financing rate, 2015 - 2016



66


Financial expenses, 2015 - 2016



67


Total assets ratio, 2015 - 2016


6.2 Financial analysis – Financial indicators

68


Fixed assets ratio, 2015 - 2016



69


Total debt / equity, 2015 - 2016



70


Profit ratio, 2015 - 2016



71


Payment indicators of enterprises, 2015 - 2016


6.2 Financial analysis – Payment indicators

72


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PLASTICS RESIN AND SYNTHETIC RUBBER INDUSTRY ......Part II. Global market 4. Synthetic rubber –4.1 Production and consumption Thousand tons Global synthetic rubber production and