Vietnam Cement Market Report 2022: Ready for a modest recovery ahead

‹#›
Ready for a modest recovery ahead
Date of the report: July 2022
Part of FiinGroup’s Industry Report Series for Vietnam

2
Date: July 2022
Dear Our Value Clients,
Re: The publication of Vietnam Cement Market Report 2022
FiinGroup has been issuing the annually updated Vietnam Cement
Market Report for eleven years, providing the most comprehensive
report on this sector. Based on the feedback from our clients, in
addition to the comprehensive analysis of the market, we updated
Vietnam Cement Market Report this year with an emphasis on demand
from the domestic market and key export destinations as well as a
detailed projection until 2030. In addition, we also included in this issue
the analysis of retail bagged cement prices for PCB30 and PCB40 by
region and key brands in each region. The report cover industry data &
operational information up to the first five months of 2022.
The purpose of the research work is to support readers to have an in-
depth understanding of the Vietnam cement market at present and
assess the growth potential of the market and how to penetrate the
market efficiently for new players. To assess the cement outlook in
2030, key growth drivers from both domestic markets such as
infrastructure construction, real estate market and export markets are
also covered.
In addition to our experience in this industry, we have conducted
various discussions and interviews with industry experts, VNCA, and
cement manufacturing executives to grasp local insights, key market
movements, and prominent trends in the sector in Vietnam.
We understand that this is a targeted but also an open study. We would be
happy to provide any further information to address any questions that you
may have for specific aspects of the cement sector in Vietnam.
Should you have any questions, please contact me or our Director, Mr. Hai
Khieu at +84 (24) 3562 6962 (ext. 121) or his email:
hai.khieu@fiingroup.vn.
Yours sincerely,
Le Xuan Dong, CFA
Managing Director, Head of Market Research & Consulting (“FiinResearch”)
FiinGroup Joint Stock Company
FiinGroup Joint Stock Company
Head Office
10th Floor, Peakview Tower
36 Hoang Cau, Dong Da
Hanoi, Vietnam
telephone: +84 (24) 3562 6962
www.FiinGroup.com
Ho Chi Minh City Branch
46th Floor, Bitexco Financial Tower
2 Hai Trieu Street, District 1
Ho Chi Minh City, Vietnam
telephone: +84 (28) 3823 3485

3
Table of Contents
Part Content Page
What’s New? 5 - 7
1 Section 1: Supply and Demand Analysis 8 – 23
1.1 Demand Analysis 8 – 14
1.2 Supply Analysis 15 – 18
1.3 Forecast Analysis 19 – 23
2 Section 2: Competition landscape 24 – 36
2.1 Market Share 24 – 28
2.2 Retail Cement Price Analysis 29 – 36
3 Section 3: Sector Financial Performance 37 – 42
4 Section 4: Market Outlook 43 – 52
Appendices 53 - 67
Appendix 1: Clinker Facilities in Vietnam 53 - 56
Appendix 2: Clinker & Cement Export Activities 57 - 63
Appendix 1: Selective Listed Cement Companies’ Factsheet 64 - 67

4
Abbreviation
No. Abb. Stand for No. Abb. Stand for
1 bn billion 15 MTPA Million tons per annum
2 CAGR Compound Annual Growth Rate 16 PPP Public-Private Partnership
3 CFO Cash flow from operating activities 17 q-o-q Quarter on Quarter
4 COGS Cost of goods sold 18 SBV State Bank of Vietnam
5 D/E Debt to Equity 19 SG&A Selling, general and administration cost
6 DTI Department of Trade and Industry 20 SOEs State-owned Enterprises
7 EBITDA
Earnings before interest, tax, depreciation and
amortization
21 ST Short-term
8 EVN Vietnam Electricity Corporation 22 TKV
Vietnam National Coal - Mineral Industries
Holding Corporation Limited
9 FOB Free on board 23 US United States
10 GSO General Statistics Office of Vietnam 24 US$ United State Dollar
11 HCMC Ho Chi Minh City 25 VICEM Vietnam National Cement Corporation
12 MLT Medium- and long-term 26 VNCA Vietnam Cement Association
13 MOF Vietnam Ministry of Finance 27 yoy Year on Year
14 MSRP Manufacturer’s Suggested Retail Price

5
What’s New?
We have completed the annual review of the cement
market in Vietnam. In addition to the comprehensive
analysis of the market, we updated Vietnam Cement
Market Report this year with an emphasis on demand
from the domestic market and key export
destinations as well as a detailed projection until
2030. In addition, we also included in this issue the
analysis of retail bagged cement prices for PCB30 and
PCB40 by region and key brands in each region. The
report cover industry data & operational information
up to the first five months of 2022.
Below are the most critical findings that could be of
importance to your consideration.
1) Clinker and cement demand weakened in both
domestic and export markets during the first five
months of 2022
Total clinker and cement sales in Vietnam followed
an upward trend with a CAGR 2017-21 of xx%, mainly
driven by buoyant export activities. In 2021, the
market edged up by xx% (yoy) to reach xxmn tons. Of
which, domestic cement consumption improved by
xx% to xxmn tons while clinker and cement export
activities expanded strongly by xx% to xxmn tons in
2021. In particular, domestic cement consumption
remained stable thanks to the strong recovery in the
4th quarter of 2021, despite the negative effects of
the COVID-19 pandemic's fourth wave in Vietnam.
Meanwhile, clinker and cement export continued to
expand strongly thanks to the high demand from
China and the Philippines in 2021.
in 2021, driven by the far lower price than domestic
cement products.
In the first five months of 2022, the market recorded
a contraction by xx% (yoy) and xx% (yoy),
respectively, for domestic and export markets.
Sales Volume of Clinker and Cement in Vietnam,
mn tons
2) … the deceleration in domestic sales volume in
both the South and the North resulted from the
stagnant construction market…
In 2021, there was an apparent divergence in growth
momentum of domestic market across the country,
with a fall by xx% (yoy) & xx% (yoy) in the South and
the North, respectively, while sales volume in the
Central increased sharply by xx%. The remarkable rise
of Central cement sales can be attributed to an
increase in demand for rebuilding and reconstruction
as a result of the destruction of the heavy storms in
the summer. In addition, a boost in construction of
industrial parks, mainly focused on the provinces of
the Central region, despite the downward trend
across the real estate segments also contributed to
the region’s significant increase.
3) … clinker and cement export fell due to
weakened demand from Chinese buyers in the first
five months of 2022 …
Clinker & cement export activities followed an
upward trend with CAGR 2017-21 of xx%. In 2021,
total clinker & cement export volume from Vietnam
increased by xx% (yoy) to reach xxmn tons, with
major demand coming from key markets including
China, the Philippines, South Africa and the United
States.
Annual Clinker & Cement Export Volume, mn tons
2017 2018 2019 2020 2021 5M21 5M22
Domestic cement sales Clinker & cement export
A slump by xx%
driven by the
significant
decrease in export
2017 2018 2019 2020 2021 5M21 5M22
clinker cement

6
Executive Summary – What’s New?
4) Cement export price remained stable while
clinker export price followed an upward
trend since 2021, driven by rising production
costs in Vietnam
5) Clinker and cement production capacities
of Vietnam reached xxmn and xxmn tons per
year in 2021, respectively, with major
facilities located in the North
Clinker and Cement Production Capacity (mn
tons), 2017 – 2021
6) Designed capacity for clinker & cement in
Vietnam is forecasted to surge in the next
five years with new facilities by private
cement manufacturers
Forecasted Cement Designed Capacity to 2026
in Vietnam
7) Leveraging the leading position, VICEM
achieved a relatively high avg. utilization
rate of xx% when foreign-owned players’
figure slumped to xx% in 2021
Particularly, VICEM group achieved a relatively
high utilization rate in 2021 with an average of
xx%. Notably, VICEM But Son remained the star
performer with the utilization rate of over xx%.
An explanation for VICEM But Son’s outstanding
rate is that VICEM’s members with weak brand
positions can be selected as outsourcing
manufacturers for well-branded members.
Meanwhile, the utilization rate of the foreign-
owned group ended on a humbler note,
rounding up to xx%. Amongst foreign-owned
groups, Nghi Son and SCC-VN posted a strong
performance with a cultivation rate of xx% and
xx%, respectively.
8) In the first five months of 2022, cement
manufacturers continued to increase MSRP in
all regions to assure their bottom line…
Jan-19
Mar-19
May-19
Jul-19
Sep-19
Nov-19
Jan-20
Mar-20
May-20
Jul-20
Sep-20
Nov-20
Jan-21
Mar-21
May-21
Jul-21
Sep-21
Nov-21
Jan-22
Mar-22
May-22
FOB Cam Pha - clinker FOB Nghi Son - clinker
FOB Hon Gai - cement FOB Cua Lo - cement
2021 2022f 2023f 2024f 2025f 2026f
Dec-17
Aug-18
Jan-19
Feb-19
Mar-19
May-…
Jul-19
Nov-19
Dec-19
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
May-…
North Central South

7
Executive Summary – What’s New?
During the reviewed period, domestic cement
prices in all three regions followed the upward
trend despite the supply surplus situation. This
could be explained by a surge in production
costs, forcing cement manufacturers to partially
pass on the customers during this period.
9) Cement manufacturers in Vietnam
witnessed declining profitability with OPM
and NPM of xx% & xx%, respectively, in
2021…
Profitability of Vietnam Cement Industry
During the reviewed period, the profitability of
the Vietnam cement industry witnessed a
decline in 2021, mainly driven by the slow down
in cement demand and increasing production
costs, especially in the coal prices (i.e. an
increase by xx% (yoy) in the average imported
coal price in Vietnam).
10) FiinGroup’s - demand forecast
Based on our analysis of historical sales volume
during the period 2015-2021 and the
consultation with industry experts & major
cement manufacturers in Vietnam, FiinGroup
forecasts total clinker and cement sales volume
to expand by xx% in 2022. Of which, cement
domestic sales volume, clinker export and
cement export are forecasted to achieve annual
growth of xx% (yoy), xx% and xx%, respectively,
in 2022. In particular:
FiinGroup forecasts cement domestic sales
volume to expand by xx% yoy growth in 2022
and expand by xx% (yoy) from 2023 onwards
with the recovery of the construction market.
• Despite the solid long-term outlook of
infrastructure investments and the real
estate market in Vietnam, Vietnam’s
construction market has not yet recorded
any significant recovery in the first five
months due to the Gov’s low public
investment disbursements as well as real
estate developers’ reluctance/delay of new
real estate projects.
• In addition, rising construction material
prices (i.e. cement, brick, steel, etc.) &
labor costs would result in the slowdown of
Vietnam’s construction sector.
2017 2018 2019 2020 2021
EBITDA margin Operating margin
Net profit margin

8
Section 1: Supply & Demand Analysis
Page
Content

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Biinform® Portal
Clinker and cement demand weakened in both domestic and export markets during the
first five months of 2022
1.1 Demand Analysis
Source: FiinResearch from VNCA, General Customs Source: FiinResearch, General Customs
TOTAL SALES
Figure 2: Annual Sales Growth of Vietnam Cement Industry
Figure 1: Sales Volume of Clinker and Cement in Vietnam, mn tons
2017 2018 2019 2020 2021 5M21 5M22
Domestic cement sales Clinker & cement export
A slump by xx%
driven by the
significant decrease
in export volume in
5M2022

10
Biinform® Portal
Of which, the deceleration in domestic sales volume in both the South and the North
resulted from the stagnant construction market…
1.1 Demand Analysis
Source: FiinResearch, VNCA Source: FiinResearch, VNCA
DOMESTIC MARKET
Figure 3: Vietnam Domestic Cement Sales Volume by Region, mn tons Figure 4: Vietnam Domestic Cement Sales Growth by Region
-15%
-10%
-5%
0%
5%
10%
15%
20%
2017 2018 2019 2020 2021 5M22
North South Central
Deceleration
in the South
& the North
due to
stagnant
construction
market

11
clinker cement
…while clinker and cement export fell due to weakened demand from Chinese buyers in
the first five months of 2022
Source: FiinResearch, General Customs
EXPORT ACTIVITIES
Y-o-Y Growth Rate
1.1 Demand Analysis
Figure 5: Annual Clinker & Cement Export Volume, mn tons Figure 6: Monthly Cement & Clinker Export Volume, mn tons
Total export vol.
- clinker
- cement

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Biinform® Portal
EXPORT ACTIVITIES | CLINKER
2021 Growth
(y-o-y)
5M2022 Growth
(y-o-y
China
Bangladesh
Taiwan
Papua New Guinea
Others
TOTAL
Clinker export volume hit the record low during the first five years of 2022 as Chinese
buyers’ demand weakened…
Clinker Volume Export to Major Markets, thousand tons
1.1 Demand Analysis
Figure 7: Vietnam Monthly Clinker Export Volume to Major Markets, mn tons

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Jan-20
Mar-20
May-20
Jul-20
Sep-20
Nov-20
Jan-21
Mar-21
May-21
Jul-21
Sep-21
Nov-21
Jan-22
Mar-22
May-22
Philippines China United States of America South Africa Others
… while cement export experienced sustainable growth thanks to strong demand from the
Philippines
2021 Growth
(y-o-y)
5M2022 Growth
(y-o-y
Philippines
China
Others
TOTAL
EXPORT ACTIVITIES | CEMENT
Cement Volume Export To Major Markets, thousand tons
1.1 Demand Analysis
Figure 8: Vietnam Monthly Cement Export Volume to Major Markets, mn tons

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FOB Cam Pha - clinker FOB Nghi Son - clinker FOB Hon Gai - cement FOB Cua Lo - cement
Biinform® Portal
Cement export price remained stable while clinker export price followed upward trend
since 2021, driven by rising production cost in Vietnam
Source: FiinResearch from General Customs
EXPORT PRICE
1.1 Demand Analysis
Figure 9: Monthly Average Clinker and Cement Export Price, US$ per ton
Rising clinker export price due to surging
production cost in Vietnam

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Content
Page

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Clinker and cement production capacities of Vietnam reached xxmn and xxmn tons per
year in 2021, respectively, with major facilities located in the North
Source: FiinResearch
1.2 Supply Analysis
Clinker and Cement Production Capacity by Region, 2021
Clinker capacity No. of facilities Cement capacity
North Central South
Figure 10: Clinker and Cement Production Capacity (mn tons), 2017 - 2021

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Local private is the leading group of players in Vietnam cement market as of 2021,
accounting for xx% of total cement production capacity
1.2 Supply Analysis
Figure 11: Cement Production Capacity by Group of Players,
2021
Local private
Foreign-owned
VICEM
Other SOEs
Total designed capacity: xxmn tons per year
Vissai Thanh Thang Cong Thanh Long Son ThaiGroup Duyen Ha Dong Lam POMIHOA
New production line with a total designed capacity
of xxmn tons in Dec 20201
CEMENT

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2021 2022f 2023f 2024f 2025f 2026f
Biinform® Portal
Designed capacity for clinker & cement in Vietnam is forecasted to surge in the next five
years with new facilities by private cement manufacturers
CLINKER
CEMENT
FORECAST
New facilities in 2022 - 2026
FORECAST
1.2 Supply Analysis
Figure 12: Forecasted Clinker and Cement Designed Capacity to
2026 in Vietnam
2021 2022f 2023f 2024f 2025f 2026f

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Content
Page

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Section 1: Supply & Demand Forecast Analysis
1.3 Forecast Analysis
Our methodology to forecast cement & clinker demand and supply
CEMENT - DEMAND SIDE CEMENT - SUPPLY SIDE
CLINKER - DEMAND SIDE CLINKER - SUPPLY SIDE

21
Vietnam Cement Industry is forecasted to face with continuous supply surplus situation
until 2030 with the market being driven by improved domestic demand led by the post-
epidemic economic growth
Source: FiinResearch’s estimated
Note: Utilization rate is calculated based on existing & certain projects with detailed timelines only
CEMENT
xx existing
facilities & xx
certain
projects with
detailed
timelines
Utilization rate
Figure 13: Forecast of Cement Designed Capacity and Cement Sales Volume in Vietnam, mn tons
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Supply Demand FORECAST ANALYSIS
HISTORICAL DATA

22
Vietnam cement industry is forecasted to face supply surplus situation until 2030 and
the clinker market is mostly driven by export activities to China
Source: FiinResearch’s estimated
Note: Utilization rate is calculated based on existing & certain projects with detailed timelines only
CLINKER
• FiinGroup forecasts domestic clinker demand to expand by xx% in 2022-2023 and avg. xx% p.a. for the period 2024-2030 thanks to the improved
demand led by post-epidemic economic growth along with strong fundamental of infrastructure development needs; residential (housing) demand.
Utilization rate
Figure 14: Forecast of Clinker Designed Capacity and Clinker Demand in Vietnam, mn tons

23
Average utilization rate of Vietnam cement industry keeps declining below international
industry practice of xx%, resulting from private players’ newly developed facilities
Figure 15: Utilization Rate of Cement Industry in Vietnam

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Section 2: Competition Landscape
Content
Page

25
Local private manufacturers continued to dominate the market in 2021, accounting for
over xx% of market share by domestic cement sales volume
2.1 Market Share DOMESTIC MARKET
Figure 16: Market Share by Domestic Sales Volume of Key Groups of Players, 2021
2020
2021
VICEM

26
Leveraging the leading position, VICEM achieved relatively high avg. utilization rate of
xx% when foreign-owned players’ figure slumped to xx% in 2021
2.1 Market Share
Source: FiinResearch, VNCA
DOMESTIC CEMENT MARKET
Figure 17: Domestic Cement Sales Volume of Selected of Players, 2021
Domestic sales vol. (mn. tons) Utilization rate (%)
Foreign-owned
VICEM
Phuc Son
He Duong
TLCC
Luks
SCG
Chinfon
SCC-VN
Nghi Son
VICEM Tam Diep
VICEM Hoang Mai
VICEM Ha Long
VICEM Hai Phong
VICEM But Son
VICEM Bim Son
VICEM Hoang Thach
VICEM Ha Tien

27
Traders
Local private
Foreign-owned
Manufacturers
Cement manufacturer players dominated clinker export market, accounting for xx% of
total clinker export volume from Vietnam in 2021
2.1 Market Share CLINKER EXPORT
Figure 18: Market Share by Clinker Export Volume, 2021
Market Share
2021
Traders
Market Share
2021
Market Share
2021
VICEM
VICEM Hoang Thach
Cam Pha
Ha Long
VICEM

28
Trader Local private
VICEM
Manufacturers
Local private manufacturers dominated the cement export market with xx% of market
share by cement export volume in 2021
2.1 Market Share CEMENT EXPORT
Figure 19: Market Share by Cement Export Volume, 2021

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Content
Page

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2.2 Retail Cement Price Analysis | Domestic Cement Price
In the first five months of 2022, cement manufacturers continued to increase MSRP in all
regions to assure their bottom line…
Source: FiinResearch, Provincial Department Of Construction
Manufacturer’s Suggested Retail Price (MSRP) included 10% VAT.
Figure 20: Average Manufacturer’s Suggested Retail Price of Bagged Cement by Region (US$ per ton)
Cement
manufacturers
have increased
MSRP in all
regions,
especially in
the South in
2022 to pass
on the rising
production
costs to
customers and
assure the
bottom line

31
…and pass on the rising production cost, especially coal price, to end-use customers
2.2 Retail Cement Price Analysis | Domestic cement price
Figure 21: Average Import Coal Price to Vietnam, US$ per ton
+xx% (YTD)
Figure 22: Cement Production Cost Structure, 2021 & 5M2022
2021 5M2022
xx% (YTD) increase in coal price results in xx%
increase in cement production cost in 5M2022
Source: FiinResearch. Note: Other production cost elements are asummed to remain unchanged in 5M2022.
xx% increase in
production cost
xx% increase in
coal price

32
Electricity tariffs remained unchanged to support the country’s post-pandemic economic
development
electricity tariff for cement manufacturers
2.2 Retail Cement Price Analysis | Domestic cement price
Figure 23: EVN’s Electricity Tariff for Manufacturing Sectors in Vietnam, VND/kWh
Remained unchanged
Source: FiinResearch, EVN

33
Biinform® Portal
The highest cement PCB30 price was recorded at US$xx per ton in both the North and the
Central while the average price stayed at US$xx per ton
2.2 Retail Cement Price Analysis | Average PCB30 Price by Region and Economic Zone
Methodology
Figure 24: Average Retail Price of PCB30 Bagged Cement by Region (US$ per ton), June 2022
PCB30
North Central Nation wide North Central
Coast
Red River Delta Northern
Midlands &
Mountainous
South Central
Coast
PCB30 price analysis by region PCB30 price analysis by economic zone
Highest
Average
Lowest

34
Biinform® Portal
Cement PCB 30 price of key players in each region
2.2 Retail Cement Price Analysis | Average PCB30 Price of Major Cement Manufacturers
Vissai Vicem
Hoang
Thach
Chinfon Hoang
Long
Vicem
But Son
Vicem
Bim Son
Vicem Bim
Son
Dong Lam Kim Dinh Long Tho Song Gianh
NORTH
Hai Duong
Thua Thien Hue
Hai Phong Da Nang
Nghe An
Ninh Binh
Ha Nam
Hanoi
CENTRAL

35
Biinform® Portal
The highest cement PCB40 price was recorded at US$xx per ton in the South, particularly
in the South East for Vicem Ha Tien
2.2 Retail Cement Price Analysis | Average PCB40 Price by Region and Economice Zone
Figure 25: Average Retail Price of PCB40 Bagged Cement by Region (US$ per ton), June 2022
PCB40
PCB40 price analysis by region PCB40 price analysis by economic zone

36
Biinform® Portal
Cement PCB 40 price of key players in each region
2.2 Retail Cement Price Analysis | Average PCB40 price of major cement manufacturers
Vicem
Hoang Mai
Cam Pha Vicem
Hoang
Thach
Nghi Son Long Son
Nghi Son Vicem Hoang Mai Vicem Hoang Thach
Thang
Long
Nghi Son Insee Vicem Ha
Tien
Long Son Ha Long
NORTH CENTRAL SOUTH
Hanoi Nghe An HCMC
Hai Duong Quang Binh Binh Duong
Quang Ninh Tay Ninh
Thanh Hoa
Ninh Binh Da Nang Can Tho
Hai Phong Khanh Hoa Binh Phuoc
PCB40

37
Section 3: Sector Financial Performance
Content
Page
3 Sector Financial Performance 37 - 42

38
• Our analysis of listed cement companies’ financial performance is empowered by the most comprehensive and insightful
financial database for Vietnam – our FiinPro Platform along with the comprehensive database of all enterprises in Vietnam.
• The annual analysis is conducted based on the financial data of xx cement companies, which account for approximately xx% of
total cement designed capacity in 2022.
• The quarterly analysis is conducted based on the financial data of xxx listed cement companies (including …), which account for
xx% of total cement designed capacity in 2022.
Methodology
3.1 Sector Financial Performance
Methodology

39
Cement manufacturers’ profit margin declined in 2021 & Q1.2022 due to rising production
cost, especially in coal prices
Management ratios Unit 2017 2018 2019 2020 2021
Account receivable turnover Time
Inventory turnover Time
Account payable turnover Time
Profitability Unit 2017 2018 2019 2020 2021
Operating margin %
Net profit margin %
EBITDA margin %
Cost Analysis Unit 2017 2018 2019 2020 2021
% COGS %
% SG&A %
% Financial expense %
Capital Structure & Liquidity Unit 2017 2018 2019 2020 2021
D/E Time
Current ratio Time
Quick ratio Time
Coverage Ratio Unit 2017 2018 2019 2020 2021
EBITDA/Interest Time
CFO/ Debt %
Figure 26: Key Financial Ratios – Sector Average
Q1.2021 Q2.2021 Q3.2021 Q4.2021 Q1.2022
Q1.2021 Q2.2021 Q3.2021 Q4.2021 Q1.2022
Q1.2021 Q2.2021 Q3.2021 Q4.2021 Q1.2022
Q1.2021 Q2.2021 Q3.2021 Q4.2021 Q1.2022
Q1.2021 Q2.2021 Q3.2021 Q4.2021 Q1.2022
LISTED COMPANY
Declining
profitability
due to rising
production
cost/ COGS
and SG&A

40
Cement manufactuerers in Vietnam witnessed a declining profitability with OPM and NPM
of xx% & xx%, respectively, in 2021…
Figure 27: Profitability of Vietnam Cement Industry
Q1.2021 Q2.2021 Q3.2021 Q4.2021 Q1.2022
EBITDA margin
Operating margin
Net profit margin
Profitability of Listed Cement Companies

41
…which could be explained by high COGS and SG&A in 2021
Figure 28: Cost Structure of Vietnam Cement Industry
Cost Structure of Listed Cement Companies

42
3.1 Sector Financial Performance – Listed Cement Companies
VICEM group recorded lower debt-to-equity ratio than the sector average of xx in 2021
Figure 29: EBITDA Margin of 10 Listed Cement Companies in Vietnam
Figure 30: Debt-to-Equity Ratio of 10 Listed Cement Companies in Vietnam

43
Section 4: Market Outlook
Content
Page
4 Market Outlook 43 - 52

44
Domestic cement market in Vietnam is forecasted to have a moderate outlook in 2022
while cement and clinker export is projected at negative outlook due to weak demand
from Chinese buyers
KEY MARKET TRENDS IMPLICATION ON CEMENT INDUSTRY
Domestic
Export
markets
4.1 Summary

45
Total construction value growth in Vietnam starts recovering in Q4.2021, however,
growth momentum remains weak with heightened downside risks for cement demand
Source: FiinResearch, BMI, GSO
4.2 Domestic Market
CONSTRUCTION
Figure 31: Total Construction Value Growth in Vietnam
Sharp contraction in Q3.2021 due to
the imposition of strict lockdowns in
Vietnam's largest cities and provinces
Recovering trends thanks
to relaxation of lockdown
restrictions & Gov’s focus
on infrastructure
investment

46
4.2 Domestic Market
There is a strong need to develop infrastructure in Vietnam and a keen interest from the
Gov to facilitate a sustainable recovery for the country after the COVID-19 pandemic…
Source: FiinResearch, Global Infrastructure Outlook
INFRASTRUCTURE DEMAND
Figure 32: Increasing Infrastructure Investment in Vietnam (US$bn)

47
4.2 Domestic Market
…however, public investment disbursement slowdown remained the key headwind for
cement demand from infrastructure projects in Vietnam
Source: FiinResearch, MOF, GSO Source: FiinResearch, MOF
INFRASTRUCTURE | Public investment disbursement
Disbursement
Plan
Figure 33: Slow Public Investment Disbursement in Vietnam Figure 34: The Gov’t has been improving public debt management
Gov’ public investment: Disbursement vs. Plan (US$bn)
Vietnam to cap Public debts/GDP and Government Debt/GDP at xx%
and xx%, respectively, through 2030

48
Residential real estate segment in 2022 is expected to support domestic cement demand,
however, Q1.2022 performance remained weak…
RESIDENTIAL
Source: FiinResearch, CBRE
4.2 Domestic Market
Figure 35: New Supply for Condominium in Hanoi & HCMC, Units
Limit new supply of
condominium in both
Hanoi and HCMC in
Q1.2022

49
4.2 Domestic Market
Figure 37: Corporate bond issuance value in the first 5 months of 2022
has decreased by xx% over the same period
Figure 36: Outstanding Credit to Real Estate (VNDtrn) and Growth
Source: FiinResearch from SBV. Note: credit to real estate sector includes customer loans
and real estate C-bonds held by commercial banks. Source: FiinResearch from FiinRatings
…however, SBV’s credit restriction to real estate along with less active C-bonds issuance
activities may limit the financing mobilization of real estate developers
0
30
60
90
120
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5
2020 2021 2022
The market is
gradually getting
used to the new
regulations in
Decree
153/2020/ND-CP
and
155/2020/ND-CP
– coming in to
force on January
1, 2021.
Circular
16 took
effect in
January
2022
The
cancellation
of 9 THM
bond
issuances

50
Clinker & cement export activities from Vietnam to China projected to decrease in 2022
due to the slowdown of Chinese construction industry
EXPORT | CHINA
4.3 Clinker & Cement Export
Monthly Clinker Export Volume (mn tons) & Price (US$ per ton) Monthly Cement Export Volume (mn tons) & Price (US$ per ton)
Figure 38: Clinker & Cement Export Activities from Vietnam to China, Jan 2020 – May 2022
25
30
35
40
45
50
0.0
0.7
1.4
2.1
2.8
3.5
China Other markets avg. clinker export price - RHS
A shinkage in clinker export
to China since Feb 2022

51
-10%
-5%
0%
5%
10%
15%
20%
25%
0
9
18
27
36
45
2016 2017 2018 2019 2020 2021
Clinker export volume to Bangladesh is expected to increase strongly in 2022 due to the
development of local infrastructure projects throughout the country
Source: FiinResearch, BCMA, EBL Securities
EXPORT | BANGLADESH
Figure 39: Cement Demand Volume Growth in Bangladesh Figure 40: Monthly Clinker Export Vol. (mn tons) & Price (US$ per ton)

52
0.0%
2.0%
4.0%
6.0%
8.0%
1993 2000 05 10 15 2021
Source: FiinResearch, Philippines Statistics Authority Source: FiinResearch, General Customs
Cement export volume to the Philippines continued its strong momentum thank to robust
infrastructure development in this country
EXPORT | PHILLIPINES
Ferdinand
Marcos Jr
elected
president in
2022
Build, Build, Build program
remained as the key point of
Philippines construction sector
Figure 41: Infrastructure Outlays as % of GDP - Philippines Figure 42: Monthly Cement Export Vol. (mn tons) & Price (US$ per ton)

53
Appendices
Content
Appendix 1 Clinker Facilities in Vietnam
Appendix 2 Clinker & Cement Export Activities
Appendix 3 Listed Cement Companies’ Factsheet

54
Biinform® Portal
The majority of existing large-scaled cement manufacturing plants are located in the
North and the Central of Vietnam thanks to the availability of raw materials (i.e.
limestone and clay)
Please refer the following slide for further information on clinker production capacity by province
TRUONG SA ISLANDS
(VIET-M)
HOANG SA ISLANDS
(VIET-M)
CENTRAL
SOUTH
Appendix 1
Cement Facilities in Vietnam
Figure 43: Breakdown of Cement Production Capacity by Province, 2021
RED RIVER DELTA
NORTH
NORTHERN MIDLANDS &
MOUNTAINOUS
MEKONG RIVER DELTA
SOUTH EAST
Cement

55
Biinform® Portal
The majority of existing large-scaled cement manufacturing plants are located in the
North and the Central of Vietnam thanks to the availability of raw materials (i.e.
limestone and clay) (Cont’d)
TRUONG SA ISLANDS
(VIET-M)
HOANG SA ISLANDS
(VIET-M)
CENTRAL
Appendix 1
Clinker Facilities in Vietnam
Figure 44: Breakdown of Clinker Production Capacity by Province, 2021
Clinker
NORTH
RED RIVER DELTA
NORTHERN MIDLANDS &
MOUNTAINOUS
SOUTH
MEKONG RIVER DELTA
SOUTH EAST

56
Local private is the leading group of players in Vietnam cement market as of 2021,
accounting for xx% of total clinker production capacity
Figure 45: Clinker Production Capacity by Group of Players,
2021
Local private
VICEM
Foreign-owned
Other SOEs
Total designed capacity: xxmn tons per year
Vissai Long Son Thanh Thang ThaiGroup Cong Thanh Duyen Ha Dong Lam POMIHOA
CLINKER
New production line with a designed capacity
of xxmn tons in Dec 20201
Appendix 1
Clinker Facilities in Vietnam

57
Appendices
Appendix 3 Listed Cement Companies’ Factsheet
Content

58
Biinform® Portal
Top 10 importers of Vietnam clinker & cement in 2021
Appendix 2
Export Activities | Top 10 Clinker & Cement Buyers
Source: FiinResearch from Customs
In terms of clinker:
In terms of cement:
EXPORT ACTIVITIES
CLINKER
CEMENT
Figure 46: Top 10 Buyers’ Volume (mn tons), 2021

59
Local private players are actively participating in clinker & cement export
Appendix 2
Export Activities | Top Clinker & Cement Exporters
LOCAL
Volume
(mn
tons)
Price
(US$/ton)
CLINKER CEMENT
FOREIGN VICEM
EXPORT ACTIVITIES
Source: FiinResearch from Customs
Figure 47: Cement & Clinker Export Volume of Top Manufacturers, 2021
30.0
35.0
40.0
45.0
50.0
55.0
VCM Chinfon TLCC Phuc Son He
Duong
Unit: million tons

60
No. EXPORTERS VOLUME KEY DESTINATIONS KEY PARTNERS
1 China, Bangladesh,
Philippines, Papua New
Guinea
2
3
4
5
Top 10 exporters by clinker volume in 2021
Appendix 2
Export Activities | Top 10 Clinker & Cement Exporters EXPORT ACTIVITIES
Figure 48: Top 10 Exporters by Clinker Volume, 2021
Unit: million tons

61
Top 10 exporters by clinker volume in 2021 (cont’d)
Appendix 2
Export Activities | Top 10 Clinker & Cement Exporters
6
7
8
9
10
EXPORT ACTIVITIES
Figure 49: Top 10 Exporters by Clinker Volume, 2021 (cont’d)
Unit: million tons

62
Top 10 exporters by cement volume in 2021
Appendix 2
1
2
3
4
5
EXPORT ACTIVITIES
Figure 50: Top 10 Exporters by Cement Volume, 2021
Unit: million tons

63
Top 10 exporters by cement volume in 2021 (cont’d)
Appendix 2
6
7
8
9
10
EXPORT ACTIVITIES
Figure 51: Top 10 Exporters by Cement Volume, 2021 (cont’d)
Unit: million tons

64
Appendices
Appendix 3 Selective Listed Cement Companies’ Factsheet
Content

65
Appendix 3
Selective Listed Cement Companies’ Factsheet
VICEM BIM SON
VND Billions 2016 2017 2018 2019 2020 2021
Net sales
Cost of Sales
Gross Profit
GP Margin %
Overhead Expenses
Sales & Marketing
S&M %
Administration
Admin %
EBIT
EBIT Margin %
EBITDA
EBITDA Margin %
Financial Expense
Interest Expense
Profit/(Loss) before tax
Net Profit/(Loss) after
tax
Net Profit Margin %
Cash Flow From
Operation
CFO/Sales %
Current Assets
Accounts receivable
Non-Current Assets
Total Assets
Current Liabilities
Accounts payable
Borrowings
Non-Current Liabilities
Borrowings
Total Liabilities
Net Assets
Debt/ Total Assets %
HA TIEN 1
VND Billions 2016 2017 2018 2019 2020 2021
Net sales
Cost of Sales
Gross Profit
GP Margin %
Overhead Expenses
Sales & Marketing
S&M %
Administration
Admin %
EBIT
EBIT Margin %
EBITDA
EBITDA Margin %
Financial Expense
Interest Expense
tax
Net Profit Margin %
Cash Flow From
Operation
CFO/Sales %
Current Assets
Accounts receivable
Non-Current Assets
Total Assets
Current Liabilities
Accounts payable
Borrowings
Borrowings
Total Liabilities
Net Assets

66
BUT SON CEMENT
VND Billions 2016 2017 2018 2019 2020 2021
Net sales
Cost of Sales
Gross Profit
GP Margin %
Overhead Expenses
Sales & Marketing
S&M %
Administration
Admin %
EBIT
EBIT Margin %
EBITDA
EBITDA Margin %
Financial Expense
Interest Expense
tax
Net Profit Margin %
Cash Flow From
Operation
CFO/Sales %
Current Assets
Accounts receivable
Non-Current Assets
Total Assets
Current Liabilities
Accounts payable
Borrowings
Borrowings
Total Liabilities
Net Assets
HOANG MAI CEMENT
VND Billions 2016 2017 2018 2019 2020 2021
Net sales
Cost of Sales
Gross Profit
GP Margin %
Overhead Expenses
Sales & Marketing
S&M %
Administration
Admin %
EBIT
EBIT Margin %
EBITDA
EBITDA Margin %
Financial Expense
Interest Expense
tax
Net Profit Margin %
Cash Flow From
Operation
CFO/Sales %
Current Assets
Accounts receivable
Non-Current Assets
Total Assets
Current Liabilities
Accounts payable
Borrowings
Borrowings
Total Liabilities
Net Assets
Appendix 3

67
VICEM HAI VAN
VND Billions 2016 2017 2018 2019 2020 2021
Net sales
Cost of Sales
Gross Profit
GP Margin %
Overhead Expenses
Sales & Marketing
S&M %
Administration
Admin %
EBIT
EBIT Margin %
EBITDA
EBITDA Margin %
Financial Expense
Interest Expense
tax
Net Profit Margin %
Cash Flow From
Operation
CFO/Sales %
Current Assets
Accounts receivable
Non-Current Assets
Total Assets
Current Liabilities
Accounts payable
Borrowings
Borrowings
Total Liabilities
Net Assets
Appendix 3
CAN THO CEMENT
VND Billions 2016 2017 2018 2019 2020 2021
Net sales
Cost of Sales
Gross Profit
GP Margin %
Overhead Expenses
Sales & Marketing
S&M %
Administration
Admin %
EBIT
EBIT Margin %
EBITDA
EBITDA Margin %
Financial Expense
Interest Expense
tax
Net Profit Margin %
Cash Flow From
Operation
CFO/Sales %
Current Assets
Accounts receivable
Non-Current Assets
Total Assets
Current Liabilities
Accounts payable
Borrowings
Borrowings
Total Liabilities
Net Assets

‹#›
Contact us
FiinResearch is part of FiinGroup, a Vietnam’s leading provider of financial data, business information, industry research and other data-
driven analytics services.
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E: info@fiingroup.vn
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District, Hanoi, Vietnam
T: +84 (024) 3562 6962
E: info@fiingroup.vn
W: https://fiingroup.vn
W: https://fiinresearch.vn
Dong Le, CFA
Managing Director, Head of Market Research and Consulting
T: +84 (024) 3562 6962 (ext. 110)
E: dong.le@fiingroup.vn
Hai Khieu
Director, Market Research and Consulting
T: +84 (024) 3562 6962 (ext.: 120)
E: hai.khieu@fiingroup.vn

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