10 sectors factsheet

4. KEY FEATURES

4.9 4.8

7.2

8.2

6.3 7.4

8.9

10.4

7%

5%

8%8%

5.2% 5.2%

6.0%6.6%

8%

7%7%

6%

4.7%

5.3% 5.4% 5.3%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

-

2

4

6

8

10

12

Dec-07 Sep-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Aug-14

Consumer Loans Balance in USDbn % Consumer Loans/GDP % Consumer Loans/Loan Book

Source: StoxPlus from SBV and StoxPlus

3. MARKET SIZEConsumer Loan Balance (USDbn) and %GDP, %Total Loans

2. KEY FINANCIALS OFTOP 6 NON-BANK PLAYERS

Source: StoxPlus from NFSC and SBV

38%

13%2%

30%

6%7% 4%

49%

3% 10% 1%

37%

1. MARKET SEGMENTATION

Breakdown of Vietnam Consumer Loans, as of 30/08/2014

SOCBs

JSCBs

Foreign Banks

Finance Companies

Others

Source: StoxPlus from NFSC and SBV

Breakdown of Vietnam Consumer Loans by players, as of 30/08/2014

Housing loans / Home improvement loans(without collaterals)

Vehicle loans (two-wheelers and automobiles)

Education and medical loans

Home appliances and furniture loans

Personal overdraft account

Loans for other purposes - cultural sports,and travelling

Credit card outstandingSource: StoxPlus from NFSC

Consumer Finance FACT SHEET

Dated September 25th 2015

Vietnam consumer loan has reached US$10.4bn as of August 2014 and is expected to continue its fast-growing trajectory in 2015: Finance companies have the fastest growth in consumer loans compared to other types of players. This result is due to the easy credit (quick loan processing) business model, so finance companies can charge the highest interest rate in the market (ranging from 30-80% APR depend-ing on products).

Finance companies have the fastest growth in consumer loans compared to other types of player, accounting for 10% of total consumer loans. According to data of loan outstanding of finance companies, PPF is still the market leader with the highest growth rate of 23.1% in 2014 compared to 2013. VP Finance Company (i.e. FE Credit) ranked second among finance companies in terms of loan outstanding as reported to the SBV. However, according to our own analysis, the actual loan outstanding of FE Credit is much larger, and that they should be ranked as CF market leader.

CF customers tend to be Mass – Upper Mass individuals. Their monthly income mostly ranges from VND3-7mn (US$150-350): In our sample size of 500 CF users, more than 70% of participants have monthly income ranging from VND3-7mn (or US$150-350) with the mean of the population at VND6.44 million.

Cash loan and e-wallet are expected to continue as emerging product trends and gain momentum reshape the industry: as the rise of ecommerce, e-wallet would be an essential infrastructure for the online/mobile consumer finance. The appearance of MobiVi and MoMo could serve as a loan distribution as well as payment channel.

If you want to have further information, please contact person below:

ResearchMs. Lan NguyenSenior [email protected]+84(4) 35626962 (ext.109)

Business Information Ms. Hue VuongManaging [email protected]+84(8) 38233485 (ext.802)

Financial Information Ms.Trang Truong Managing [email protected]+84(4) 35626962 (ext.114)

% MarketShare

Total Assets (US$

million)

Net Revenue

(US$million)

ROA ROE

Home Credit 33% 7,883.60 2,196.4 0.28% 1.40%

Prudential Finance 20% 3,507.90 482.3 0.14% 0.67%

Toyota Finance 8% 1,685.10 68.7 0.04% 0.12%

HD Saison 14% 1,713.10 315.5 0.18% 0.60%

Jaccs 3% 573.6 90.4 0.16% 0.19%

FE Credit 21% 5.867 189.945 32% 156%

Research Business Information Financial InformationResearch Business Information Financial Information

5. KEY FEATURES

2. MARKET SIZE

4. KEY FINANCIALS OF TOP 10 PLAYERS(listed companies only)


Source: StoxPlus

Food Processing

Frozen Processed Food

Dried Processed Food

Chilled Processed Food

866.28 944.781,116.17

1,245.121,380.88

12.69%

9.06%

18.14%

11.55%10.90%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

0

200

400

600

800

1000

1200

1400

1600

2010 2011 2012 2013 2014

US$

mill

ion

Total sales value Growth Rate

Market sizing by total sales volume

Vietnam food processing industry sized at US$1.38bn, posting good performance with the CAGR of 12.4% yoy during the period 2010 – 2014. Of which, dried processed food accounted for a major part of the whole sector (over 85%). The sector witnesses fierce competition with the participation of many giants in each segment. Masan Group, Masan Consumer, Minh Phu Seafood and Hung Vuong Corporation are giants in their own sectors. However, as the sector is foreseen to expand aggressively in following years, the appearance of new comers is manifest. Food processing market is forecasted to grow by over 12% y-o-y in the next few years, especially with the sign of many FTA including Korean, Japan …. The new generation of FTAs that Vietnam has signed with key food exporting countries will remain the country’s position as one of the most attractive investment opportunities in the region during following years. Especially, frozen processed food will be invested remarkably as Japan, U.S, E.U, Eurasian are all major seafood import countries, representing over 60% of Vietnam total seafood export volume.

Source: StoxPlus from Euromonitor

CompanyTotal assets

(US$million)

Net Sales(US$

million)

EBITDA(US$

million)ROA ROE

Masan Group 2,469.24 750.05 248.26 2.17% 7.34%

Minh Phu Seafood Corp. 432.89 703.72 63.84 8.92% 44.79%

Hung Vuong Corporation 420.75 694.72 39.45 3.06% 12.36%

Masan Consumer 1,116.86 610.65 233.12 13.03% 23.58%

Vinh Hoan Corp. 209.42 293.35 34.79 12.47% 26.31%

STAPIMEX 61.62 251.27 3.67 2.64% 12.59%

Dabaco 196.75 238.64 23.21 5.00% 11.58%

Kinh Do Corporation 367.17 230.89 42.51 7.53% 9.69%

Viet Thang Feed 75.57 206.17 11.14 9.58% 16.14%

Nha Trang Seafoods F17 113.09 178.82 17.44 9.94% 38.73%

10%4%

86%

3. MARKET SHAREMarket share by sub-sectors

Frozen Processed Food

Chilled Processed Food

Dried Processed Food Source: StoxPlus







Food Processing FACT SHEET


5. KEY FEATURES

2. MARKET SIZE1. MARKET SEGMENTATION

Source: StoxPlus

Indust

rial

Tra

nsp

orta

tion

Delivery Services Forwarding

Marine Transportation Ocean Shipping

Railroads

Transportation Services

Distribution Center

Port Operation

Air Cargo Terminal

Project Cargo Transport

Trucking Inland Transport

100%

102%

104%

106%

108%

110%

112%

114%

0

200000

400000

600000

800000

1000000

1200000

2009 2010 2011 2012 2013 2014

Thou

sand

ton

s

Total volume of freight traffic Growth rate

Vietnam’s logistics market is currently worth US$60 billion. In total, there are around 1,000 logistics firms – 25 of which are foreign firms. Foreign firms of note are Maersk Logistics, APL Logistics, NYK Logistics and MOL Logistics. Most foreign firms can offer third or fourth party logistics (3PL or 4PL) services while Vietnam domestic firms can only handle 2PL services. Foreign firms currently hold 80 percent of the market share, worth US$48 billion. For ocean shipping, foreign players are totally dominating the market. Almost all global giant shipping lines have their own logistics companies in Vietnam i.e. APL has APL logistics, NYK has NYK logistics, OOCL has OOCL logistics. Many seaports and airports also lack supporting distribution centers, which can result in increased inventory and idle time for trucks, ships and planes. The average growth of Vietnam’s logistics sector is estimated at 20% yoy. There is an increasing number of multi-national corporations( e.g. Nike, Intel, Nokia, Samsung) investing in Vietnam showing large opportunity for local forwarding and warehousing development. The sector’s annual growth rate is expected to remain around 20-25% in the next 5 years.

Market sizing by volume of freight traffic, 2009 - 2014


3. MARKET SHARE

Company Total assets(US$ million)

Net Revenue(US$ million)

EBITDA(US$ million) ROA ROE

PVTrans 113.54 175.77 40.24 14.06% 25.55%

Vietnam Sun 381.34 140.45 50.41 6.72% 11.34%

Gemadept 262.59 127.77 20.20 0.56% 7.48%

Mai Linh Group 14.40 105.46 1.03 4.10% 6.57%

Vinalines Logistics Viet Nam 237.36 94.97 26.62 1.36% 5.63%

Vietnam Ocean Shipping 23.38 79.36 2.67 9.35% 22.91%

VINAFREIGHT 20.57 75.72 7.49 22.46% 69.92%

Saigon Beer Transportation 98.31 71.15 18.05 2.41% 5.00%

Vitaco - Vietnam Tanker 17.72 61.44 2.95 11.96% 32.27%

Viettel Post 113.54 175.77 40.24 14.06% 25.55%

60

43

37

24 23 2320 20 20

96 5 4

0

10

20

30

40

50

60

70

Thou

sand

s

Capacity of key players in Cold Storage Sector

Source: StoxPlus






Logistics FACT SHEET


5. KEY FEATURES


Source: StoxPlus

13.3%

1.1% 1.0%

4.2% 4.0%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

0

2000

4000

6000

8000

10000

12000

2010 2011 2012 2013 2014 2015

1000

MT

Market size Growth Rate

Fertilizer Market

Single nutrient fertilizer

Potassium

SA

Urea

DAP

Multi nutrient fertilizer NPK

Organic fertilizer

Total fertilizer consumption reached approximately 10.8 million tons in 2014 with the growth rate of 4.2%. Main findings from our interviews with industry experts and sector analysts are concerned with the over-surplus situation of the market, as well as lowering prices due to the pervasion of cheap smuggled fertilizer from China. Since 2012, consumption of NPK in Vietnam has occupied the largest share of total fertilizer consumption in Vietnam market (more or less 37% of total fertilizer consumption at all types). From a country that has to import fertilizer, Vietnam has been able to supply domestic consumption of ferti-lizers: By establishing new factories and expanding current scale production, there is a significant increase in fertilizer production from approximately VND 5,370 thousand tons in 2009 to over 9 thousand tons in 2014. Meanwhile, total imported fertilizer is in a downward trend leading to a supply surplus for Urea, phosphate and NPK. However, SA and potassium still depend on imports entirely. Distribution system for fertilizer in Vietnam is very fragmented and regional-based: Fertilizer is distributed through a complicated and overlapping distribution system consisting of 4 major groups of players (fertilizer manufacturers, trading companies, distributors, and agents level 1,2 and 3). No players have a distribution network by themselves. Rather, they connect with different agents to distribute fertilizer products.

Source: StoxPlus

Market sizing by total consumption, 2010 – 2015F


Vinachem50%

Baconco

5%Fivestar

8%

Can Tho fertilizer &

Chemical JSC

5%

General materials

biochemical Fertilizer JSC

9%

Song Gianh Corporation

8%

Quang Binh Agricultural Corporation

2%

Apromaco

4%

JVF9%

3. MARKET SHARE

Source: StoxPlus consolidated

Market share of NPK Fertilizer sector by capacity of local manufacturers, as of 31/12/2014(thousand MT/year)

Company Total assets(US$ million)



Phu My Fertilizer 472.37 446.10 72.71 10.48% 12.09%

Petrolimex Petrochemical 167.17 318.06 19.85 8.08% 23.90%

Binh Dien Fertilizer 139.50 297.93 23.52 7.77% 30.33%

PetroVietnam Camau Fertilizer 772.89 282.37 118.45 5.32% 18.23%

Lam Thao Fertilizers 123.81 232.89 31.21 16.15% 30.25%

SouthEast PVFC 12.72 131.81 2.08 9.63% 18.34%

Quang Binh Import And Export 72.89 124.04 4.63 6.48% 25.39%

Petro Viet Nam Fertilizer and Chemical Southern West

12.55 119.05 2.12 12.68% 14.94%

Central Petrovietnam Fertilizer and Chemicals 12.49 109.69 2.78 16.90% 27.55%

The Southern Fertilizer 73.75 104.55 9.36 5.59% 17.15%

Source: StoxPlus






Fertilizer FACT SHEET


5. KEY FEATURES

2. MARKET SIZE

4. FINANCIAL INDICATORS OF TOP 10 PLAYERS(listed companies only)


Source: StoxPlus from VNCA

Building Materials in

Vietnam

Cement

PC30, PC40

PCB30, PCB40

Superior Cement Products

Glass

Metal

Wood adn timber

Others

Total Domestic Cement Consumption in VietnamVietnam Cement Sector Structure

Source: StoxPlus

Supply surplus remains the main challenge for Vietnam cement industry in the next few years. Despite strong growth of domestic consumption and export activities, Vietnam cement market continues to experience the supply surplus with consi-derably low utilization rate of 60% in 2014 if excluding export sale volume. According to StoxPlus’ analysis, under the base case, cement consumption would expanse by 7% y-o-y until 2025. Meanwhile, supply capacity will increase remarkably in the same period with the construction of many “mega” cement factories in the North and the South. As such, the market will not reach equilibrium until 2022 at our base case scenario. In terms of competition, Vietnam Cement Industry Corporation (“VICEM”) is still the market leader with 35% of total sale volume in 2014, followed by foreign-own cement manufacturers (31%) including LafargeHolcim, Nghi Son, Chinfon, and Song Gianh. The 34% remaining market share are occupied by Viettel and other local privates which consist of 28 low production capacity companies. In 2014, the sector witnessed an active consolidation process, recording 4 M&A deals with the participation of both foreign-owned and domestic companies. Beside, cement manufacturers started to promote direct sale to retailers as well as to use renewable energies and materials in order to improve their operational efficiency. The pioneers for this trend include LafargeHolcim and TopCement.

Source: StoxPlus

VICEM35%

Foreign-owned

31%

Local Private

30%

Viettel(Cam Pha, Ha Long)

4%

Market share of Vietnam cement sector by sale revenue 2014

Source: StoxPlus from VNCA

3. MARKET SHARE

50.20 49.20 45.81 46.31

50.82

31.21

10.3%

-2.0%

-6.9%

1.1%

9.7% 10.0%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

0

10

20

30

40

50

60

2010 2011 2012 2013 2014 8M2015

mill

ion

tons

Cement Domestic Consumption Growth rate

Company % marketshare

Total Assets(US$mn)

Net Revenue(US$mn)

EBITDA(US$mn) ROA ROE

VICEM Ha Tien 8.75% 591.54 315.72 72.76 4.79% 16.18%

VICEM Bim Son 6.30% 262.23 202.47 35.37 2.84% 12.60%

VICEM But Son 4.55% 208.25 136.90 29.07 2.57% 12.14%

Quang Ninh Construction & Cement 1.43% 96.96 60.19 9.54 0.54% 5.49%

VICEM Hai Van 1.40% 50.53 42.78 4.42 0.65% 2.34%

Cong Thanh Cement 0.74% 465.49 55.93 7.38 0.24% 2.95%

Yen Binh Cement 0.62% 41.63 31.18 6.08 2.75% 36.48%

La Hien Cement 0.43% 28.76 26.88 5.01 3.45% 21.74%

Sai Son Cement 0.39% 26.17 15.99 3.00 3.93% 7.73%

Can Tho Cement 0.15% 10.41 13.13 0.76 1.38% 2.63%






Cement FACT SHEET


5. KEY FEATURES


Source: StoxPlusSource: StoxPlus

Plas

tic

Pack

agin

g(U

S$3.

9bn)

Flexible Packaging(US834mn)

Flexible packaging for Beverage

Flexible packaging for Packaged food

Flexible packaging for Pharmaceuticals

Flexible packaging for Seafood

Flexible packaging for Others

Rigid Packaging

PET containers(US$652mn)

Caps & Closure

Vietnam Flexible Packaging Structure

445.8 532.2

612.0

718.4

834.7

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

-100

0

100

200

300

400

500

600

700

800

900

2010 2011 2012 2013 2014

US$

mn

Flexible packaging Flexible growth

Market Sizing and Growth of Vietnam Flexible Packaging

According to StoxPlus’ estimation, Vietnam flexible packaging sized at US$834mn by 2014 end, posting an impressive CAGR of 16.3% in the period 2010 – 2014. The market size valued at US$718mn and US$612mn in 2013 and 2012, respectively. In term of competitive landscaping, Tan Tien packaging is the market leader in Vietnam flexible packaging with around 9% of total market share in 2014. The market is quite fragments with large firms mainly located in the South as end-users of flexible packaging also situate here (including beverage, food and pharmaceuticals companies). The competition becomes fiercer between two main groups of players: (i) domestic players including Tan Tien, Thanh Phu, Liksin, and Rang Dong; and (ii) foreign-owned players including Tin Thanh (SCG Thailand), Huhtamaki, Ngai Mee, Tong Yuan, and J.S Packaging.

Vietnam flexible packaging is forecasted to expanse by 15 – 20% y-o-y until 2020 thanks to increasing domestic demandfrom beverage and packaged foods. In 2014, total soft drink market valued at US$3.59bn, posting an increase by 20% com-pared to 2013 while packaged food market sized at US$8.88bn. With the recovery in economics and increased westernization in lifestyle, beverages and packaged food in Vietnam would perform well in the next few year, creating potentials for plastic packaging manufacturers.

Source: StoxPlus

Tan Tien Plastic

Packaging8,48%

Liksin6,25%

Rang Dong Plastic

6,20%Tin Thanh

5,44%

Huhta-maki 4,49%

Saigon Plastic Packaging

4,17%

Saigon Trapaco

2,85%

Source: StoxPlus

3. MARKET SHARE 4. KEY FINANCIALS OF TOP 6 PLAYERS(listed companies only)Market share of top 7 players by total sale

in the South of Vietnam, 2014

Company Total Assets(US$ million)



An Phat Plastic 66.42 72.91 6.47 3.65% 7.11%

Tan Tien Plastic Packaging 55.06 70.75 6.63 2.96% 6.32%

Rang Dong Plastic 34.85 50.44 3.82 3.40% 10.06%

Saigon Plastic Packaging 34.55 34.83 3.75 1.16% 3.71%

Tan Dai Hung Plastic 30.37 34.66 1.57 1.79% 3.77%

Tan Phu Plastic 14.81 31.28 2.44 3.93% 15.60%






Flexible Packaging FACT SHEET


5. KEY FEATURES

2. MARKET SIZE

3. MARKET SHARE

Source: StoxPlus from BMI


Vietnam's pharmaceutical market was valued at VND80,679bn (USS3.90bn) at YE2014, an increasing of 16.0% compared to the previous year. Up to 2018, pharmaceutical consumption is expected to reach VND139,832bn (USS7.06bn), equivalent to a compound annual growth rate (CAGR) of 15.1%. In the period of 2019- 2023, the CAGR may be slightly lower, but will remain in double-digit figures. Vietnamese pharmaceuticals firms face with a high competitions from foreign competitors. Currently, because of outdated technology infrastructure and the domestic population have strong preference for foreign drugs, medicine imports account for more than 50% of the domestic demand. Domestic production meets 50% of total domestic demand, however the of which was 38% of total demand only. For domestic production, 90% raw materials are imported. Vietnam has to import at least 300 APIs each year from the international market. Pharmaceuticals landscape is teeming with potentials for future growth. Vietnam’s expanding population in combination with consumers become better educated and heightened health awareness.

47%53%

Domestic ForeignSource: StoxPlus

39316

50082

59214

69298

80680

93549

25%27%

18% 17% 16% 16%

0%

5%

10%

15%

20%

25%

30%

0100002000030000400005000060000700008000090000

100000

2010 2011 2012 2013 2014 2015f

Value (VND bn) Growth rate

Market sizing by total sales, 2010 – 2015F

Source: StoxPlus


Company Total assets (VNDbn)

Net Revenue (VND bn)

EBITDA(VND bn) ROA ROE Market

share

Vimedimex Medi - Pharma 5815 11746 120 0.55% 16.57% 14.60%

PHYTOPHARMA 9120 6098 37 0.32% 19.61% 7.60%

DHG Pharmaceutical JSC 3483 3959 806 16.25% 25.05% 4.90%

Danang Pharmaceutical Medical Equipment 880 1984 35 1.84% 18.36% 2.50%

Traphaco 1132 1660 241 13.14% 19.80% 2.10%

DOMESCO Medical 932 1658 209 13.56% 19.60% 2.10%

Binh Dinh Pharmaceutical 796 1242 73 5.73% 15.72% 1.50%

Pymepharco 1160 1172 226 13.22% 18.47% 1.50%

Mekophar Pharmaceutical 764 1146 233 22.89% 30.75% 1.40%

Imexpharm Pharmaceutical 1030 907 148 9.03% 11.27% 1.10%

Ha Tay Pharmaceutical 368 823 62 7.59% 18.67% 1.00%






Pharmaceutical FACT SHEET


5. KEY FEATURES


Source: StoxPlusSource: StoxPlus

Vietnam Plastic Packaging Market Size and Growth

Source: StoxPlus

Plastic Packaging

(US$3.9bn)

Flexible Packaging

(US$834mn)

Rigid Packaging

PET containers(US$652mn)

Caps & Closure

2,331.3

2,939.9 2,947.9

3,534.8 3,924.1

33.4%

26.1%

0.3%

19.9%

11.0%

0%

10%

20%

30%

40%

50%

0

1,000

2,000

3,000

4,000

5,000

2010 2011 2012 2013 2014

US$

mill

ion

Market size Growth rate (%)

According to StoxPlus’ estimation, Vietnam plastic packaging sized at US$3.9bn by 2014 end, posting an impressive CAGR of 13.9% in the period 2010 – 2014. Of which, flexible packaging and PET bottles are the highest value segments, accounting for 21% (US$834mn) and 17% (US$652mn), respectively. In addition, the export value of plastic packaging products reached US$ 2.1 billion. In term of competitive landscaping, Vietnam plastic packaging is very fragmented with more than 700 firms in 2014 which are mainly located in the South. PET bottles segment is dominated by local players namely Ngoc Nghia and Bao Van. Mean-while, flexible packaging witnesses the fierce competition between two main groups of players: (i) domestic players including Tan Tien, Thanh Phu, Liksin, and Rang Dong; and (ii) foreign-owned players including Tin Thanh (SCG Thailand), Huhtamaki, Ngai Mee, Tong Yuan, and J.S Packaging. Vietnam plastic packaging is forecasted to expanse by 15 – 20% y-o-y until 2020 thanks to increasing domestic demand from beverage and packaged foods. In 2014, total soft drink market valued at US$3.59bn, posting an increase by 20% compared to 2013 while packaged food market sized at US$8.88bn. With the recovery in economics and increased westernization in life-style, beverages and packaged food in Vietnam would perform well in the next few year, creating potentials for plastic packaging manufacturers.

Vietnam Plastic Packaging Structure

Flexible packaging

21%

PET bottles

17%Other62%

Market Share of Plastic Packaging Sector by Segment, 2014

3. MARKET SHARE 4. KEY FINANCIALS OF TOP 10 PLAYERS(listed companies only)

Source: StoxPlus

Company % MarketShare

Total Assets(US$ Million)

Net Revenue(US$ Million)

EBITDA(US$ Million) ROA ROE

Ngoc Nghia Industry - Service -Trading 2.28% 87.56 89.32 12.35 1.12% 3.45%

An Phat Plastic 1.86% 66.42 72.91 6.47 3.65% 7.11%

Tan Tien Plastic Packaging 1.80% 55.06 70.75 6.63 2.96% 6.32%

Dong A Plastic 1.32% 37.12 51.76 3.80 3.97% 16.10%

Rang Dong Plastic 1.29% 34.85 50.44 3.82 3.40% 10.06%

Saigon Plastic Packaging 0.89% 34.55 34.83 3.75 1.16% 3.71%

Tan Dai Hung Plastic 0.88% 30.37 34.66 1.57 1.79% 3.77%

Tan Phu Plastic 0.80% 14.81 31.28 2.44 3.93% 15.60%

Vegetable Oil Packing 0.36% 11.01 13.94 1.83 10.39% 14.09%

Do Thanh Technology Corp. 0.13% 6.91 5.02 0.59 2.30% 2.88%






Plastic Packaging FACT SHEET


4. KEY FEATURES

2. MARKET SIZE

3. KEY FINANCIALS OF TOP 10 PLAYERS (listed companies only)


Source: StoxPlus from GSO

Source: StoxPlus

Source: StoxPlus

They are subcontractors to companies in the three groups above

Large State-Owned

Construction Corporations

Large private

construction companies

Foreign contractors

Small local construction companies

They may be private companies or privatized

companies where the State is no longer big shareholders

Foreign contractor companies usually act as lead contractor and subcontract easier work to local companies

Civil works

They are civil and industrial construction groups belonging to the Ministry of Construction. These companies have diversified resources to engage in big & complicated construction projects

209,441.80

261,577.00 288,133.80

312,542.20 325,981.51

163,900.00

43.39%

24.89%

10.15% 8.47%4.30% 4.33%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2010 2011 2012 2013 2014 6M2015

Value (VND bn) Growth ratio

Industry growth slowed from 43.9% in 2010 to 4.3% in 2014 and 4.33% in 1H2015, due to a slump in the property market, a banking system characterized by non-performing loans (NPLs) and a sluggish real estate sector. Overall, the Vietnamese housing builder industry recorded a compound annual growth rate (CAGR) of only 12% during the period 2010–2014. Never-theless, the industry prospect is positive given the government’s focus on industrial and residential construction. House building in Vietnam is a very fragmented business. Majority of houses in Vietnam are developed by individual families. In most of cases, Vietnamese families contract only a small team of builders to build their houses. Larger and established construction companies do not tap this market. They focus on high-rise apartment building or residential projects of real-estate development companies. High potential to grow in urban areas. Vietnam’s population exceeds 90 millions and 80% of the total population in working age and is projected to reach 100 millions by 2030. Big population will require a high supply for accommodation, especially in urban areas as many young labors will try to become residents of big cities. Along with increasing income per capita of Vietnamese, the demand for upgrading or renewing their accommodation will go in parallel.

Company Total assets (VNDbn)

Net Revenue EBITDA(VND bn) ROA ROE

(VND bn)

Vinaconex Group 22,822 8,348 1,029 1% 5%

COTEC construction 4,863 7,634 499 7% 14%

Hoa Binh Real Estates 5,803 3,568 264 1% 7%

Hancorp 6,670 3,566 58 0.05% 0.33%

Idico Urban & House Development 397 1,701 54 7% 15%

Construction No. 5 2,190 1,392 84 2% 10%

HUD1.,JSC 742 727 19 1% 5%

Hong Ha Vietnam 846 576 27 0 0

Phuc Hung Holdings 686 529 31 1% 3%

Viet Nam Construction No.1 629 457 27 2% 5%

Total amount of housing investment disbursed 2010 – 1H2015






Housing Builder FACT SHEET


4. KEY FEATURES

2. MARKET SHARE

3. MARKET SIZE



Source: StoxPlus from General Statistics Office

of Vietnam

Total retail sales of goods and services increased 11.12%, earning VND2,145,470bn in the first nine months of 2014. Accord-ing to Ministry of Industry and Trade and the Association of Vietnam Retailers, by the end of 2013, retailing contributed 15% to Vietnam GDP. Vietnam’s retail sales continued the high growth trajectory in recent years, and is characterized as one of the most dynamic markets in the region. Vietnam’s Consumer Confidence Index has improved steadily after the recession and remained above the average global level. Furthermore, despite the economy is still in trouble, consumers are experienced a better living standard with the presence of global movements. CF companies can help Vietnamese consumers to purchase qualified products rather than cheap ones with lower lending rate. In 2014, there are many large retailers such as Lotte (South Korea) and Aeon (Japan) making strong presence in Vietnamese market. Following the trend, a number of retail groups are researching and seeking investment opportunities like Walmart, Auchan, Robinson starting their retail operations in Vietnam. Vietnam is a potential retail market in terms of distribution service market, which is the particularly attractive sectors, and retailing service, which is considered to be one of most tempting parts with remarkable growth rate. Admittedly, this has been regarded as the characteristic throughout almost all of Vietnam’s commitment to open distribution and retailing channels in Vietnam so far.

Wholesale6% Retail Podium

3%

Department Store14%

Supermarket46%

Shopping Centre31%

Vietnam Total Retail Sales (Value in VNDbn)

18%

15%

14%13%

12%

7%

6%

3% 3%3% 2%

4%FoocoMart- Vissan

Shop&Go

B's mart

Co.op

Circle K

Family mart

Satrafoods

Guardian

Hapro

Co.op Food

G7 Mart Ministop

Others


Market share of players by # of outlets

465,381580,710726,113968,067

1,197,4801,561,480

2,004,3602,324,443

2,617,9632,945,277

3,987,680

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3.500,000

4,000,000

4,500,000

Vietnam Total Retail Sales (Value in VNDbn)






Retails FACT SHEET


10 sectors factsheet

Documents