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Vietnam Plastic Packaging
Sector Report
Issue Date: 30 July 2013
Part of StoxPlus’s Market Research Reports for Vietnam
@ 2013 StoxPlus Corporation.
All rights reserved. All information contained in this publication is copyrighted in the name of StoxPlus, and as such no part of this
publication may be reproduced, repackaged, redistributed, resold in whole or in any part, or used in any form or by any means
graphic, electronic or mechanical, including photocopying, recording, taping, or by information storage or retrieval, or by any other
means, without the express written consent of the publisher.
‹#›
Table of Contents
Our research contacts for
this report are:
Thuan Nguyen, FCCA
CEO & Head of Research
[email protected]
+84 98 389 0000
Harry Hoan Tran, CFA
Senior Analyst
[email protected]
+75 1597 1532
Trang Truong
Senior Manager
Institutional Data Clients
[email protected]
+84 98 342 2985
Duy Nguyen
Associate
Research Division
[email protected]
+84 90 326 2010
Part
Content
Page
Executive Summary
4–5
1
Analysis of the Vietnam Plastic Container Market
6 – 11
2
Regulation on Disposal and Recycling of Plastic Containers
3
Plastic Packaging from Major Beverage Players
15
3.1
Overall market analysis of Soft-Drinks Market
16
3.2
Summary of Major Players
17
3.2.1
Tan Hiep Phat
18 – 20
3.2.2
PepsiCo (Vietnam)
21 – 23
3.2.3
Coca Cola (Vietnam)
24 – 25
3.2.4
Universal Robina Corporation (Vietnam)
26 – 27
3.2.5
Nestle (Vietnam)
28 – 29
3.2.6
Vinamilk
30 – 32
4
Plastic Packaging from Major Food Players
33
4.1
34
4.2
Tuong An Vegetable Oil
35 – 37
4.3
Cai Lan Oils & Fats
38 – 39
12 – 14
DISCLAIMER
All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time of
publishing. However, in view of the natural scope for human and/or mechanical error, either at source or during production, StoxPlus , its Directors
and employees accept no liability whatsoever for any loss or damage resulting from errors, inaccuracies or omissions affecting any part of the
publication. All information is provided without warranty, and StoxPlus makes no representation of warranty of any kind as to the accuracy or
completeness of any information hereto contained.
2
Table of Contents
Our research contacts for
this report are:
Thuan Nguyen, FCCA
CEO & Head of Research
[email protected]
+84 98 389 0000
Harry Hoan Tran, CFA
Senior Analyst
[email protected]
+75 1597 1532
Trang Truong
Senior Manager
Institutional Data Clients
[email protected]
+84 98 342 2985
Duy Nguyen
Associate
Research Division
[email protected]
+84 90 326 2010
Part
Content
Page
4.4
Ajinomoto Vietnam
40 – 41
4.5
Masan Consumer
42 – 44
4.6
Unilever Vietnam
45 – 46
4.7
Miko Foods
47
5
Analysis of Major Plastic Container Manufacturers
48
5.1
49
5.2
Key Player Analysis
6
Appendices
64
Appendix 1: Key Figures on Soft Drink Market in Vietnam
65
Appendix 2: Soft Drink Brands: Sales Volume and Market Shares, 2008-2011
66
Appendix 3: Key Figures on Packed Food Market in Vietnam
67
Appendix 4: Packed Foods: Sales Value and Market Shares, 2009-2012
68
Appendix 5: List of interviews conducted
69
51 – 55
DISCLAIMER
All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time of
publishing. However, in view of the natural scope for human and/or mechanical error, either at source or during production, StoxPlus , its Directors
and employees accept no liability whatsoever for any loss or damage resulting from errors, inaccuracies or omissions affecting any part of the
publication. All information is provided without warranty, and StoxPlus makes no representation of warranty of any kind as to the accuracy or
completeness of any information hereto contained.
3
Part 1: Analysis of the Vietnam Plastic Container Market
4
Plastic packaging market is estimated at US$2.4bn in 2012. Two segments enjoying a high growth are flexible
packaging (mainly for foods) and PET plastic containers (mainly for beverages)
Figure 1: Description of Packaging Industry in Vietnam
Packaging
Industry in
Vietnam
Plastic Packaging
Size: US$2.4bn
[1]
Flexible Packaging
Size: US$410mn
[2]
PET bottles
Size: US$282mn
[3]
Plastic Containers
Glass Packaging
Closures
Cardboard and
Papers
Rigid
Metal Packaging
Other
PE and PP
containers [4]
[1] Plastic packaging is a subsector of plastic industry in Vietnam. Data on total
market size is not available but statistics from Vietnam Customs Office
shows that total plastic resin imported to Vietnam in 2012 is 2.56 million
tons valuing US$4.36 billion. Almost all 100% plastic resin materials
demand in Vietnam are imported and our general understanding that resin
materials accounting for 70% of total sales. As such, total market size of
plastic industry in Vietnam is estimated at US$6.2bn in 2012.
According to Ministry of Industrial & Trade, plastic packaging segment
accounted for 39% of total production output of the plastic industry.
Therefore, the plastic packaging would be estimated at US$2.4bn in 2012.
According to Vietnam Packaging Association, Vietnamese plastic
packaging has been growing sharply recently with the annual growth rate of
around 20%-25% over the last 5 years mainly in flexible and PET
segments.
Figure 3: Vietnam Plastic Production Output (million tons)
3.80
3.20
Others
[2] Flexible packaging in Vietnam, by our own calculation, is estimated at US$410mn in 2012
by StoxPlus. The sector is rather fragmented with many small companies. The major local
players is Tan Tien Plastics JSC (17.49%), Saigon Plastics (4.55%) and Saigon Trapaco
(4.78%).
Figure 2: Major Players in Flexible Packaging Segment
Kim Cuong
2.33%
Rang Dong
3.50%
Others
18.25%
Tan Tien
17.49%
Thanh Phu
8.75%
Saplastic
4.55%
Saigon
Trapaco
4.78%
JS 5.25%
Tong Yuan
5.83%
Liksin
7.00%
Huktamaki
7.81%
Ngai mee
7.11%
Tin Thanh
7.35%
0.89
0.95
1.00
1.13
1.28
1.38
1.60
2000
2001
2002
2003
2004
2005
2006
1.88
2007
2.29
2008
2009
2010
Source: StoxPlus, Vietnam Plastic Association
[3] Plastic bottles in Vietnam were almost imported before 2000 and the pioneer in this sector
is Ngoc Nghia and Bao Van with their first plants established in early 2000. PET bottle
manufacturing are now mainly dominated by local companies including Bao Van Plastics
JSC and Ngoc Nghia Plastics whose combined market share up to 80%, as claimed by
company management. Total plastic revenue of Ngoc Nghia for 2012 at US$84.5mn their
30% market share would imply a total market size of US$282mn in 2012 (for independent
manufacturers only).
[4] PE and PP containers are mainly for agricultural products such as rice, sugar and coffee;
and chemical (fertilizers) etc. This market is significantly large because there are more
than 1.5 billion plastic sacks per year for this sector, according to VPA.
5
Plastic packaging is the largest sector within plastic industry in Vietnam and it has been increasing in recent years
Content in this slide is intentionally deleted in this demo report
6
Use of plastic container or the end-market segmentation
7
Export of Plastic Products and Materials from Vietnam amounting to about US$2bn in 2012
Figure 7: Export of plastic products and materials from Vietnam
Plastic Export
Figure 9: Plastic Products Export by Vietnam
2011
2012
Change
US$mn
US$mn
%
2500
1,982.0
2000
Plastic materials (PE, PET, PVC etc)
Total
1,355
1,585
17%
239
397
66%
1,594
1,982
24%
1,593.7
USDmn
Plastic finished products
1500
1000
Main export items are finished products and the plastic material export is very small
because the Vietnam petro-chemical has not yet developed.
500
750.0
336
930.0
1,049.0
808.0
485
0
2005
2006
2007
2008
2009
2010
2011
2012
Figure 8: Export of Finished Plastic Products: by category
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Bags
Plates, sheets and films
Delivery packaging and containers
Canvas
Plastic products for household goods
Plastic products for industrial
Flower pots and decorations
Plastic stationeries for office and schools
Plastic piles and accessories
Products for homecare and technical (car)
Closures, caps and valves
Plastics products for construction
Sanitary/toilet accessories
Cosmetic containers
Others
Total
2011
US$mn
387.2
256.6
157.5
129.2
79.7
102.0
74.2
35.4
31.0
7.2
0.4
0.2
0.2
0.2
93.8
1,354.7
2012
US$mn
458.1
267.9
204.5
160.1
96.7
103.0
74.5
55.5
36.5
26.9
0.4
0.3
0.3
0.2
100.3
1,585.0
Change
%
18.3%
4.4%
29.8%
23.9%
21.3%
1.0%
0.4%
56.8%
17.7%
273.7%
10.0%
45.0%
30.0%
20.0%
6.9%
17.0%
Figure 10: Export destination countries
1
2
3
4
5
6
7
8
9
10
Japan
US
Germany
Campuchia
UK
Netherland
Indonesia
Thailand
Malaysia
Philippines
Other
Total
2011
US$mn
288.0
126.1
99.7
78.8
77.1
82.8
56.0
35.7
37.6
38.3
434.6
1,354.7
2012
US$mn
357.1
161.2
105.9
102.7
90.1
88.5
72.7
55.3
45.8
37.9
467.9
1,585.0
Change
%
24.0%
27.8%
6.2%
30.3%
16.8%
6.9%
29.9%
54.7%
21.8%
-1.1%
7.7%
17.0%
Pre-forms are included in this category. Major exporters are Ngoc Nghia
(US$22.5mn in 2012) and Bao Van.
Source: StoxPlus, Vietnam Customs Office
8
Import of plastic resin in Vietnam
9
Part 2: Regulations on Disposal and Recycling of Plastic Containers in
Vietnam
10
Part 2: Regulations on Disposal and Recycling of Plastic Containers in Vietnam
Taxation regulations on plastic products are ambiguous causing many confusions for plastic manufacturers
11
Part 2: Regulations on Disposal and Recycling of Plastic Containers in Vietnam
About 20% of plastic wastes in HCMC are buried at landfills. Waste collection system in Vietnam has not yet been well
established
Collection, Disposal and Recycling of solid waste
•
Figure 13: The flow of plastic waste in Ho Chi Minh City
In Vietnam, the percentage of categorizing waste at sources is very low, for
example in 2011, the percentage at household is 7.32% and the percentage at
enterprises is 56.19%, according to the Natural Resources & Environment
Policy and Strategy Institute.
•
In pursuant with Decision 2149/QD-TTg, by 2015 the Government aims for
85% of urban solid waste to be collected, of which 60% has to be recycled.
•
In practice, average percentage of solid waste collection in Vietnam increased
from 72% in 2004 to around 80 - 82% in 2008 and 83 - 85% in 2010. Of those
collected solid waste, 80% will end up in landfills. However, 50% of landfill
solid waste is buried in unqualified manner that is hazardous to the
environment (according to Mr. Tang The Cuong and Mr. Luong Hoang Tung of
MONRE cited on local newspapers).
Recycled
Waste
Collection
250,000
tons/ year
Sources
Waste
Collecti
on
82,000
tons/
year
48,000
tons/
year
Transfer
Stations
Landfills
Recycling of plastic waste
•
•
•
According to Ho Chi Minh City Waste Recycling Fund, it is estimated that
about 250,000 tons of plastic waste are generated in HCMC per year. Of
which, 48,000 tons (19.2%) are buried in landfill sites (the majority of those
buried in landfills are low value plastics). The remaining 200,000 tons of plastic
waste are collected for recycling purposes or directly discharged to the
environment.
Environment
Environm
ent
Source: Ho Chi Minh City Waste Recycling Fund
Currently, plastic recycling technology used in big cities of Vietnam is obsolete
with low efficiency, high costs and creating pollution, according to MONRE.
Besides, plastic waste recycling activities are unorganized, mostly carried out
by small businesses.
Ho Chi Minh city
Vietnam is planning to build two plastic recycling factories with capacity of
50,000 tons/factory. However, as the plastic waste collection system is
fragmented and ineffective. This makes the two factories in short of input
materials. For example in HCMC, average plastic waste collected for recycling
purpose is 6,000 - 7,000 tons/day, that is insufficient to the input demand of
recycling businesses.
Average landfill cost
VND300,000/ton
No. of plastic waste collecting business units
400
No. of plastic recycling business units
80
Average plastic waste collected for recycling
purpose
6,500 tons/day
Average plastic containers waste generated
2,200 tons/day
Source: StoxPlus, HCMC Plastic Association, Trade Press
12
Part 3: Soft-Drink and Major Players
13
Part 3: Soft-Drink and Major Players
Overall market analysis: RTD tea is currently the highest growing segment due to its healthy and wellness
characteristics
Market sizing
Segmentation
•
Figure 14: Soft drink market sizing and segmentation, 2011
Total soft drink market in Vietnam is estimated at US$1.7bn by 2011 end by
Euromonitor International. In which, on-trade market (hotels, bars, restaurants etc)
and off-trade market (off licenses such as supermarkets, corner shops etc) accounting
for 55% (US$929mn) and 45% (US$776mn), respectively.
The highest value segment is RTD tea amounting to US$877mn in 2011 which is
dominating by THP (Green Tea) and URC (C2).
•
The second largest segment is carbonated drinks amounting to US$426mn and in
which Coca-Cola and PepsiCo accounting for about 80% total market share.
•
The third largest is bottled water market with 3 biggest players: PepsiCo (Aquafina),
La Vie and Coca-Cola Vietnam (Dasani) which is about US$213mn total market size.
Off-trade
US$mn
•
1,000
900
800
700
600
500
400
300
200
100
-
On-trade
Total Value
877
426
213
93
5
56
1
33
Growth rate
For off-trade market, it historically achieved a growth rate of 25.8% for the 5 year
period 2006-2011. RTD tea is the highest growth segment with annual rate of 58.4%
for the same period.
Competition dynamics
•
•
•
Before 2005, soft drinks in Vietnam comprised mostly of carbonates, international
manufacturers such as PepsiCo Vietnam and Coca-Cola Beverages Vietnam
dominated due to their financial strength and global expertise. In 2006, Tan Hiep Phat
introduced Zero Green Degree Tea and since then, this product has totally changed
the competition landscape of soft drinks in Vietnam. In 2009, THP has officially
surpassed the two foreign giants and obtained the largest market share in soft drinks
in Vietnam.
In 2011, URC has overtook Coca-Cola’s position to become the third ranked player
with highest sales volume share from its brand namely C2 Cool & Clean products.
Figure 15: Breakdown of Off-trade soft drinks, 2011 and growth
Off-trade
US$mn
•
900
800
700
600
500
400
300
200
100
-
2011-2006 CAGR
Masan Consumer
has recently tapped
on this segment
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
774
58.4%
390
218
21.2% 21.9%
15.3%
59
12.0% 10.3%70
5
1
25.8%
32
6.2%
The high growth of RTD tea by THP thanks to the health and wellness trend and their
aggressive marketing. With improving living conditions, better access of information
and with increasing number of people suffering from diabetes and over-weights,
Nutrition intake became an important factor for consumer’s decision. Vinamilk, the
largest milk player, also tapped on this market by introducing its artichoke RTD tea,
Coca-Cola with Real Leaf (2011) and most recently in 13 June 2013, Masan
Consumers launched a RTD tea in summer season in Hanoi.
Source: StoxPlus, Euromonitor International
14
Part 3: Soft-Drinks and Major Players
Summary of 6 selected major soft-drink companies
No
Company
Major brands using PET bottles
3.1
Tan Hiep Phat Group
1.
2.
3.
Dr. Thanh
Zero Degree Green Tea
Number 1
Established in 1994, Tan Hiep Phat Group’s main business is the manufacturing and distribution
of RTD tea, sports and energy drinks, fruit/vegetable juice, bottled water and beer. Zero Degree
Green Tea and Number 1 are among the most popular non-alcoholic brands of the company,
being the leading brand in RTD tea and ranked second in energy drinks in retail volume terms.
3.2
PepsiCo Vietnam
1.
2.
3.
4.
Carbonates
Aquafina bottled water
Energy drinks
Juices
Entered into Vietnam in February 1994, PepsiCo set up a joint venture with International
Beverages Company (IBC) to manufacture and distribute Pepsi-Cola and 7Up products in
Vietnam right after the US Embargo to Vietnam was lifted. PepsiCo now has 10 portfolio items in
soft drinks. For carbonates only, PepsiCo is the largest player with 41% off-trade market share.
Carbonated Cokes
Dasani bottled water
Energy drinks
Juices
Entered into Vietnam in Aug 1995, the first joint-venture between Coca Cola and Vietnam Food
Im-export Corporation established at Thuong Tin dist., Hanoi. In 09/ 1995, the 2nd JV between
Coca Cola and Chuong Duong also was built in Binh Duong. In 01/1998, the 3rd Plant Non Nuoc
in Da Nang established. In 10/1998, three joint ventures was merged into one. Currently, Coca
Cola has 10 brands in Vietnam namely Coca - Cola, Coke Light, Sprite, Fanta, Real Leaf, Minute
Maid Nutriboost, Minute Maid Teppy, Schweppes, Samurai and Dasani. In carbonates, Coca Cola
holds 33% off-trade market share.
1.
2.
C2
Red Dragon
Universal Robina Corporation (Vietnam) was set up in 2003 in VSIP, Binh Duong province. URC
(Vietnam) currently has 2 factories in Binh Duong and Ha Noi. It portfolio in Vietnam includes:
Confectionary: CreamO, Magic, Dynamite; Snack: Funbite, Piattos; and RTD Tea: C2, Red
Dragon. Its most well-known brand is C2. This RTD tea brand only ranked after THP’s RTD
brands.
1.
2.
La Vie
Maggi
Nestle Vietnam engages in various products including: Confectionary: KitKat; Cereals/Nutrition
foods: Milo, KoKo Krunch; Coffee: NesCafe; Mineral water: La Vie; and Dressings, Sauces:
Maggi. Its most well-known products in Vietnam are La Vie and Maggi which are both using PET
bottles.
Vfresh
The leading the dairy industry in Vietnam with more than 40% market shares and a production
capacity far beyond that of other competitors. Vinamilk dominates some segments such as
condensed milk (85% market shares) and yogurt (90% market shares). Vinamilk recently
introduced various soft drinks under Vfresh brand including Soy bean, ICY water and many other.
3.3
Coca-Cola Vietnam
3.4
3.5
3.6
1.
2.
3.
4.
Universal Robina
Nestle Vietnam
Vinamilk
1.
Business Profile
15
Tan Hiep Phat – General Information
BUSINESS PROFILE
• Registered name: Tan Hiep Phat Manufacturing & Services Company Ltd
• Head office: No 219, 13 National Highway, VinhPhu Village, Thuan An District,
Binh Duong Province, Vietnam
• Company type: private/family business & company limited
PRODUCT CATEGORIES AND BRANDS
Soft Drink Category
RTD Tea
Sports & Energy Drinks
• Year of establishment: 1994
• Principal businesses: Tan Hiep Phat Group’s main business is the
manufacturing and distribution of RTD tea, sports and energy drinks,
fruit/vegetable juice, bottled water and beer.
Fruit/Vegetable Juices
• Founder and Chairman/CEO: Mr. Tran Quy Thanh. THP is a family business.
His daughter Ms. Tran Phuong Uyen is Deputy General Director, a Harvard
University graduate and in charge of R&D and product development.
Carbonated Tea
Bottled Water
Beer
• Number of employees: 5000, in 2000
COMPANY BACKGROUND
• The company was founded on 15 October 1994, under the name Ben Thanh
Beer & Beverages Co Ltd.
• 1996 - 2002: The company started its beer manufacturing with two brands Gold
Ben Thanh and Laser.
THP's Brand
Dr Thanh
Winter Melon Tea
Number 1
Number 1 - Vitamin
Number 1 - Lemon
Number 1 - Strawberry
Active
Soya
Juicie
ikun
Number 1
Ben Thanh Beer
Gold Beer
2011 Sales Volume
(million litres)
24.3
207.4
Very insignificant
8.1
Very insignificant
Source: Management interview
PRODUCTION SITES
• Main office and plants: Tan Hiep Phat’s head office and factory are located in
ThuanAn District, Binh Duong Province, spanning over 110,000 sqm (office: 6.037m2;
plants: 77.511m2; and warehousing: 45.552m2) with total capacity of 1 billion litres
per annum.
• In 2004, THP launched soy bean soft drink namely Number 1 Soya with Japan
made technology and Ben Thanh Beer & Beverages Co Ltd changed its name
to Tan Hiep Phat Manufacturing and Trading Co Ltd.
• Chu Lai Plant: May 2012: kicked off a US$91mn Number One plant covering 27
hectares in Chu Lai Economic Zone in Quang Nam province. The plant aims at
supplying RTD tea and energy drinks to Da Nang market and central-western
highland provinces.
• In 2005: THP extended its product portfolio by introducing Zero Degree Green
Tea with aseptic technology and Number 1 which are among the most popular
non-alcoholic brands of the company, being the leading brand in RTD tea and
ranked second in energy drinks in retail volume terms.
• Ha Nam Plant: Sep 2012: kicked off a US$71mn Number One plant in Ha Nam
province with expected annual capacity of 600 million litres per year. The first phase
expected to be operational from early 2014. The plant aims at supplying RTD tea and
energy drinks to northern provinces including Hanoi.
• 2012: kicked off construction of Chu Lai and Ha Nam Plants.
16
Tan Hiep Phat – Product Categories
SALES VOLUME
Dr Thanh
Number 1 / Vitamin/ Lemon/ Arrange/ Strawberry/ Active
Number 1 (Normal)
MARKET SHARE OF THP’S MAJOR BRAND
Strawberry
THP’S BRANDS IN OFF-TRADERTD TEA
17
Tan Hiep Phat – It is their strategy to self-serving their bottling and packaging demand
18
PepsiCo (Vietnam) – General Information
BUSINESS PROFILE IN VIETNAM
PRODUCTION SITES
PEPSICO VIETNAM AND CARBONATES
19
PepsiCo (Vietnam) – Product Categories and Sales Volume
SALES VOLUME BY PRODUCT CATEGORIES
MARKET SHARE OF PEPSICO’S MAJOR BRANDS
20
PET bottles at PepsiCo (Vietnam) will be increasing but it seems that they tend to self-serving
21
Coca Cola (Vietnam) – General Information
BUSINESS PROFILE IN VIETNAM
SALES VOLUME BY PRODUCT CATEGORY
22
Coca Cola (Vietnam) – Key Notes
23
Universal Robina Corporation (Vietnam) – General Information
24
Universal Robina Corporation (Vietnam) – Key Notes from meeting with URC (Vietnam)
25
Nestle Vietnam – General Information
26
Nestle Vietnam – La Vie is the top bottled water brand in Vietnam
27
Vinamilk – General Information
28
Vinamilk – Product Categories
29
Vinamilk – Key Notes
30
Part 4: Packed Foods and Major Players
31
Overview of the 6 selected packed food companies
No
4.1
Company
Major brands using PET bottles
Tuong An Oil JSC
1.
Tuong An
Business Profile
Tuong An is the second largest manufacturer of edible oils and fats in Vietnam. It also
involves in instant packaged foods such as instant noodles and porridge. In packed foods,
Tuong An holds 4% value share and ranked the 7th.
4.2
Calofic JV
1.
2.
3.
4.
Neptune
Meizan
Cai Lan
Kiddy
4.3
Ajinomoto Vietnam
1.
2.
3.
4.
Umani seasoning: Ajinomoto, Ajinomoto Plus
Flavor seasoning: Aji-ngon, Aji quick
Liquid seasoning: Lisa, Mayonaise Aji-Mayo,
Phu Sy
Beverage: Birdy (canned coffee)
Established since 1991, Ajinomoto Vietnam is a 100% foreign-owned company - a member
of Ajinomoto Group. Brand Ajinomoto ranks no. 2 in sauces, dressings and condiments
market, following Nam Ngu of Masan consumers. Brand Ajinomoto is used for Umani
seasoning products only.
1.
2.
3.
4.
Fish Sauce
Soya Sauce
Chilli Sauce
Vinh Hao bottled water
Masan Consumer provides a wide range of packed food products including Fish sauce,
Soya Source, Chili Source, Instant Noodles, Coffee and Instant Cereal. Fish Sauce and
Soy Sauce of Masan Consumer each dominates 80% total market share while Chilli Sauce
holds 40% total market share in Vietnam. Most recently, it diversified into bottled water by
acquisition of Vinh Hao Mineral Water JSC.
4.4
Masan Consumer
4.5
Unilever Vietnam
1.
2.
4.6
Knorr
Lipton IceTea
Miko Foods JSC
1.
Ong Tay Fish Sauce
Cai Lan Oils and Fats Industries Company (CALOFIC) is a joint venture between Vietnam
Vegetable Oils Industry Corporation (Vocarimex - under Ministry of Industry and Trade) and
Wilmar Group, Singapore. Cai Lan Oils & Fats Industries Co continued to lead sales in
2012 with a 37% value share. The key product is Neptune oil which has a very high-quality
image built over the years through various marketing activities.
Unilever Vietnam is the largest player in personal and home care products. It also engages
in food businesses with well branded names such as Knorr (dressings), Lipton Tea (hot and
RTD tea) and Wall (ice cream). Total revenue of Unilever in Vietnam is about US$1bn.
They have demand for PET bottles in Sunlight - a brand of home care. For Lipton tea, it
needs PET bottles but currently this brand is manufactured by PepsiCo under their joint
venture cooperation.
Mikofood is established by the same owners of Micoem. While Micoem has been produced
instant noodles in Vietnam in the past 20 years (its well known brands for instant noodles
include Micoem, Cung Dinh, etc.), Mikofood is established to operate in sauces, dressing
and condiments sector. So far Mikofood has had only one brand in sauces, namely Ong
Tay fish sauce.
32
Tuong An Vegetable Oil JSC – General Information
COMPANY PROFILE
PRODUCTION SITES
33
Tuong An Vegetable Oil JSC – General Information
Company facts & figures
Sales Volume and Peers
34
Tuong An Vegetable Oil JSC – Key Notes
35
Cai Lan Oils & Fats Industries Company Ltd (Calofic)
BUSINES PROFILE
SALES VOLUME AND CAPACITY
Brand
• Cai Lan Oils and Fats Industries Company (CALOFIC) is a joint venture
between Vietnam Vegetable Oils Industry Corporation (Vocarimex - under
Ministry of Industry and Trade) and Wilmar Group, Singapore.
• Vietnam Vegetable Oils Industry Corporation (VOCARIMEX) is a state-owned
company, a leading company in processing and trading vegetable oils, aromas
and cosmetics in Vietnam. VOCARIMEX has 4 subsidiary units including:
Tuong An Vegetable Oil Joint Stock Company, Tan Binh Vegetable Oil Joint
Stock Company, Vegetable Oil Extraction Joint Stock Company (VOE) and
Vegetable Oil Trading Joint Stock Company (VOT) as well as 4 associated
companies Golden Hope - Nha Be Edible Oil Co. Ltd, Cai Lan Oils & Fats
Industries Co. Ltd, LG VINA Cosmetic Co. Ltd and Vegetable Oil Packing Joint
Stock Company.
Type
1 Ha Long, Quang Ninh prov.
2 HCMC
2 HCMC
No. of production
lines
2
2
2
Average Price
'000/litre
42
1 Neptune
Edible Oil
95,000
2 Simply
Edible Oil
77,500
45
38
4 Cai Lan
Edible Oil
Edible Oil
30,000
40,000
30
5 Kiddy
Edible Oil
2,000
147
6 Olivoila
Edible Oil
100,000
252
3 Meizan
PRODUCTION SITES
Plant
Sales Volume
tons/year
OILS AND FAT: MARKET SHARE
Capacity No of employee
tons/day
500
800
800
• Total capacity is 2100 tons per day, in equivalent to 700,000 tons per year.
100%
80%
420
330
330
60%
40%
22%
21%
22%
23%
23%
20%
33%
34%
35%
36%
37%
2008
2009
2010
2011
2012
Others
Tuong An JSC
Calofic
0%
Source: StoxPlus, Company Management Interview, Euromonitor International
• Cai Lan Oils & Fats Industries Co continued to lead sales in 2012 with a 37%
value share. The key product is Neptune oil which has a very high-quality
image built over the years through various marketing activities. The company
offers a wide variety for both mass and premium markets, in different pack
sizes to satisfy different consumers’ needs.
• Tuong An Vegetable Oil JSC and Golden Hope Nha Be Edible Oils Company
follow with a 23% and 11% market share respectively.
36
Cai Lan Oils & Fats Industries Company Ltd (Calofic) – Key Meeting Notes
37
Ajinomoto Vietnam – General Information
38
Ajinomoto Vietnam – Key Notes
39
Masan Consumer – General Information
40
Masan Consumer – Key Notes
41
Masan Consumer – Key Notes
42
Unilever (Vietnam) Ltd – General Information
PROFILE & FACTS
PRODUCT CATEGORIES AND BRANDS
• Registered name: Unilever Vietnam International Limited
Foods & Drinks
• Home-base at HCMC: 156 Nguyen Luong Bang, Tan Phu Ward, District 7, Ho
Chi Minh City. Branches in: Hanoi, DaNang, Can Tho
• One factory at: Lot A 2-3, Tay Bac Cu Chi IZ, Cu Chi, HCMC
• Year of establishment: 1995
• Investment: To date, Unilever has invested more than USD 300 millions into
Vietnam.
• Principal group businesses: consumer products
Dressings & Condiments
RTD and hot Tea
Ice Cream
Home Care
• # of employees: 2,500 (including 2,000 workers at Cu Chi factory and 500 office
employees.
• Revenue: last year 2012 about US$1bn (of which US$3.5mn was spent on
plastic packaging costs).
Laundry Products
NATIONWIDE MARKET SHARE BY BRAND
Cleaning Products
%
80
70
71.5
70
60
53
49.7
47.7
50
40
Personal Care
63.9
34.2
32.9
30
20
2012
14.5
Tooth-paste
2013
10
0
Deodorant
Skin, face & hair care
43
Unilever Vietnam Ltd – Key Notes
44
Miko Foods JSC – General Information
45
Contents
Part 5: Analysis of Major Plastic Container Companies
46
Part 5: Analysis of Major Plastic Container Companies
Overall analysis of 4 selected PET bottle manufacturers in Vietnam
No
Company
5.1
Ngoc Nghia Industrial- Service-Trading
JSC
Business model
• PET plastic products (preforms, bottles, and caps) .
• Food businesses (sauces
and confectioneries)
2012 Plastic
Key notes
Sales (US$mn)
82.5
Ngoc Nghia JSC is a group of businesses in plastic packaging and food
manufacturing.
For plastic business, Ngoc Nghia is one of the leading PET bottle
manufacturers in Vietnam with an market share of about 30-35% for major
players in carbonated drinks such as PepsiCo, in edible oils & fats such as
Calofic and in bottled water such as Vinh Hao.
Recently the company diversified into food manufacturing (confectionery
and sauce) but it is not successful and it seems that the group is suffering
from the adverse impacts from the food business to the plastic business.
5.2
Visy Packaging Vietnam Ltd
5.3
Dynaplast Packaging Vietnam Ltd
5.4
Duy Tan Plastic Ltd
• PET preforms and bottles
6.0
Established in 1998 and in April 2009, it won major supply contracts in
Vietnam with a bottled water company (La Vie – a brand of Nestle) and a
major edible oil manufacturer (Neptune and Meizan brands of Calofic - a
joint venture between Vocarimex and Winmar (a Singapore Edible Oil
Manufacture). Currently, its plant at Binh Duong almost all operating at
100% capacity for these two major customers.
• Rigid PET containers
19.0
Established in 1959, PT Dynaplast Tbk. is the leading manufacturer of
high quality rigid plastic packaging in Indonesia catering to a diverse mix of
companies and industries. Dynaplast Packaging (Vietnam) Co., Ltd is one
of 14 production centers of Dynaplast PT Dynaplast Tbk in Indonesia,
Thailand and Vietnam. In Vietnam, Dynaplast has only one factory in Binh
Duong
• PET pre-forms and bottles
• Other plastic container
100.0
Duy Tan is one of the leading local plastic company (a 100% privateowned company), having one parent company and two subsidiaries, with 3
factories (1 in HCMC and 2 in Long An province).
47
Part 5.1: Ngoc Nghia Industry –
Service - Trading JSC
48
Part 5.1: Ngoc Nghia Industry – Service – Trading JSC
Ngoc Nghia Group - General Information
Company Profile
Ngoc Nghia Group’s Organisation Structure
• Registered name: Ngoc Nghia Industry - Service - Trading Joint Stock Company
(formerly known as Ngoc Nghia Plastic Joint Stock Company).
Ngoc Nghia Industrial-ServiceTrading JSC
• Head office: IV-22 Tan Thanh, Tan Binh IZ, Tan Phu dist., HCMC
• Year of establishment: 1993. Current Charter Capital: VND522.5bn
(US$26mn). Type of company: Public but unlisted company
• Auditors: Financial statements are audited by KPMG
International
PET JSC (IPC):
98%
• Principal group businesses: (i) Manufacturing of plastic packaging; (ii)
Beverage manufacturing; (iii) Foods manufacturing & trading.
Global Caps
JSC (GCC):
98%
Vietnam PET
Plastic JSC
(VNP): 99%
Hong Phu Foods
JSC (HPF):
98.5%
Dong A Foods
JSC (98%)
• Chairman& CEO: Mr. La Van Hoang. Age: 44. Founding shareholder with 30
years of experience in plastic packaging and 17 years of experience in PET
bottles.
Group of companies
• # of employees: 1192 (for Group) and 541 (parent company) by Dec 2011.
Main Product Categories (Group level)
1 PET Containers
2 Foods
3 Confectionery
PET bottles; PET preforms and PET caps
Sauces made by Hong Phu Foods JSC with major brands:
Kabin and Thai Long
Made by Dong A Foods JSC with brand: Deli Food. Major
product categories are chocolates, cakes, Cookies and
candy/sweets.
Parent & Subsidiary Companies of Ngoc Nghia Group
#
1
2
3
4
5
6
Subsidiary
Ngoc Nghia Plastics
VinaPET JSC
INTERPET JSC
Global Cap JSC
Dong A Foods JSC
Hong Phu Foods JSC
Business model
PET bottles
PET bottles
PET pre-forms & bottles
Caps & closures
Confectionery
Sauces
% owned
Parent co.
99.00%
98.00%
98.00%
95.05%
90.00%
Charter capital
(VNDbn)
522.5
23.62
80.00
30.00
55.00
90.00
Key notes: Ngoc Nghia is currently the largest PET bottle manufacturer in Vietnam. Comparing to its direct competitor, the size of Ngoc Nghia is almost double of Bao
Van Plastic JSC. Total plastic revenue of Ngoc Nghia in 2011 is a VND1714bn (US$85mn) while that of Bao Van is about US$40mn. The Company claims that they
have currently more than 1000 customer portfolio in beverage (mostly soft drinks), foods (mostly Oils & Fats, Seasonings & Dressings) and pesticides. Ngoc Nghia’s
largest customers are PepsiCo and Coca-Cola. It is released that 10% of total production volume by PepsiCo are bottled via integrated bottling system with Ngoc
Nghia.
Source: The Company’s Annual Report 2012, Interviews with company’s
representative, Trade sources, Assocation sources
49
Ngoc Nghia Group - General Information
Historical Developments
Shareholders
#
1
2
3
4
5
6
Shareholder
La Van Hoang
Bui Bich Hong
La Bui Ngoc Hong
La Bui Hoang Nghia
Red River Holding
Others
%
Chairman/CEO
Board member
Vice-chairman
Board member
Private equity fund
30.28%
18.65%
18.26%
8.80%
10.79%
13.22%
100.00%
Share (VNDbn)
158.21
97.45
95.41
45.98
56.38
69.07
522.50
There are three co-founders Le Van Hoang, Bui Bich Hong and La Bui Ngoc Hong.
This is a typical extended family business in Vietnam. Their senior management
team in key areas such as purchasing, finance, sales are mostly related persons.
• 1993 - 1999: Ngoc Nghia Manufacturing – Trading Company Ltd established in June
1993 and then in mid 1999: The first PET bottle factory established in Tan Binh IZ,
HCMC with total land area of 13.798m2.
• 2003: Ngoc Nghia Plastics Company Ltd established in June 2003 and in Aug 2003
the second factory (22.572m2) kicked off at Cu Chi West-North IZ, Cu Chi dist.,
HCMC for PET pre-forms, PET bottles and closures, including a well-equipped
laboratory. Being accepted as a supplier for PepsiCo and Coca Cola
• 2005: Ngoc Nghia’s PET bottling system officially integrated with PEPSI’s factory at
Hoc Mon, HCMC with a 10-year agreement. The production line technology
provided by SIDEL.
• May 2007: IPO and converted into Ngoc Nghia Plastics Joint stock Company.
• May 2009: Sign contract for PET bottle filling system with Vinamilk, similar with
PEPSI.
• Jul 2009: INTERPET JSC established as a 98% owned subsidiary with charter
capital of VND80bn (US$4m) to enhance PET bottle production capability. Factory
located at Linh Trung III IZ, Trang Bang dist., Tay Ninh.
• Oct 2009: Red River Holding, a foreign private equity fund , acquired 14.23% equity
stake in the company.
• June 2009: Dong A Food JSC, a confectionery manufacturer and 95% owned by
Ngoc Nghia, established in Trang Bang, Tay Ninh. Also, Hong Phu Foods JSC, a
sauce manufacturer, established in Binh Thuan province with charter capital of
VND90mn. Ngoc Nghia holds 90% ownership.
• Mar 2010: A PET bottle production line of INTERPET integrated with COCA-COLA
in its Da Nang factory.
• 2010: Acquired 99% stake of VinaPET (PET Plastics Vietnam JSC) for VND116bn
(US$6m).
• Jan 2011: bonus share issue to increase chapter capital to VND522.5bn (US$26m).
• Jul 2011: Change company name to Ngoc Nghia Industry- Service – Trading JSC
and operates as a holding structure.
• May 2012: Global Cap JSC, 99.4% owned by Ngoc Nghia,established with charter
capital of VND30bn and then increased to VND99bn in mid 2013.
50
Ngoc Nghia Plastics - Financial Summary
Breakdown of Consolidated Revenue
2,000.0
Plastic
Ngoc Nghia Consolidated Results
Food
123.1
Net sales
140.6
VND billions
1,500.0
81.5
1,000.0
1,714.7
500.0
520.0
749.9
1,732.6
1,121.8
3500
3000
2500
2000
1500
1000
500
0
-500
32%
Net profit/(loss)
% gross margin
3,234.0
2,782.0
2,408.0
1,838.0
24%
1,203.3
48.6
1,873.0 28%
31%
28%
370.0
41.7
Actual
(110.5)
Actual
Actual
(27.1)
Forecast
Forecast
2010
2011
2012
2013
2014
40%
33% 35%
30%
25%
20%
503.9
15%
10%
5%
0%
Forecast
2008
2009
2010
2011
2012
Main revenue sources of Ngoc Nghia are still plastic PET. Investments in food
businesses started from mid 2009 and it generated revenues from 2010 and
enjoyed a moderate growth rate but still in large loss-making positions.
The company is forecasted to continue making loss in 2013 due to losses from food
businesses. As per our interview, the company will not make investment in new
factories by 2015 but rather increase the capacity utilisation from existing facilities.
Domestic Revenue vs. Export
Total Revenue
Domestic
Export
Total
2015
Breakdown of Profit Before Tax (PBT)
2008
2009
2010
2011
2012
2010
2011
2012
VNDbn
VNDbn
VNDbn
VNDbn
VNDbn
VNDbn
VNDbn
VNDbn
520
750
1,163
1,698
1,395
-
-
40
139
478
520
750
1,203
1,837
1,873
The company started exports pre-forms and caps from late 2009. Included in total
PET revenue of VND1732.6 (US$85mn) is VND473bn (US$22mn) export revenue,
accounting for 26.34% of total plastic revenue. Ngoc Nghia mainly exports PET preforms and caps to Japan, Thailand, Malaysia, Philippines, Laos, Campuchia, India
and Indonesia.
Plastic
147.0
176.5
283.6
% PBT margin
13.1%
10.3%
16.4%
Food
(67.9)
(258.2)
(201.2)
(9.4)
(1.2)
9.3
Reconciling items*
Other incomes, net
Business Income tax
Profit Before Tax
4.5
3.6
0.6
(25.7)
(31.0)
(51.1)
48.7
(110.1)
41.3
* Reconciling items are elimination of internal sales.
PET Plastic businesses at Ngoc Nghia are profitable while food businesses are
making large losses. As per our discussion with Ngoc Nghia’s representative, this is
because of the weak product research and development. Also, the food companies
invested heavily in marketing and distribution network.
51
Ngoc Nghia Plastics - Production Capability and Customers
52
Ngoc Nghia Plastics - Production Capability & Volume
53
Contents
Part 5.2: Dynaplastic Packaging
(Vietnam) Company Ltd
54
Part 5.2: Dynaplast Packaging Vietnam Co., Ltd
Dynaplast Packaging Vietnam - General Information
55
Part 5.2: Dynaplast Packaging Vietnam Co., Ltd
Dynaplast Packaging Vietnam – Key Notes From Meeting with Dynaplast
56
Contents
Part 5.3: VisyPak Packaging (Vietnam) Ltd
57
VisyPak Packaging Vietnam Ltd – General Infomation
58
VisyPak Packaging Vietnam Ltd – Key Notes
59
Contents
Part 5.4: Duy Tan Plastic Corporation
60
Part 5.4: Duy Tan Plastic Corporation
Duy Tan Plastics Corporation – General Information
61
Contents
Part 6: Appendices
62
Part 6: Appendices
Appendix 1: Key Figures on Soft Drinks Market in Vietnam
SOFT DRINKS: BREAKDOWN BY SALES VALUE, 2011
No
Product Type
1
Bottled Water
2
Carbonates
3
Concentrates
4
Fruit/Vegetable Juice
5
RTD Coffee
6
RTD Tea
7
Sports and Energy Drinks
8
Other
Total
SOFT DRINKS: BREAKDOWN BY SALES VOLUME, 2011
Off-trade
On-trade
Total Value
US$mn
US$mn
US$mn
No
Product Type
Off-trade
On-trade
Total Value
million litres
million litres
million litres
59
155
213
1
Bottled Water
225.7
325.7
551.4
218
208
426
2
Carbonates
270.0
202.6
472.6
5
-
5
3
Concentrates
0.2
-
0.2
70
24
93
4
60.7
12.1
72.8
1
0
1
5
RTD Coffee
0.7
0.2
0.9
390
487
877
6
RTD Tea
562.5
291.9
854.4
32
25
56
7
37.0
18.7
55.7
3
31
33
8
Other
1.2
12.4
14.2
776
929
1,706
1,158.0
863.6
2,022.2
Total
SOFT DRINKS: OFF-TRADE SALES VOLUME OVER YEARS
No
Product Type
2006
2007
2008
2009
2010
2011
million litres
million litres
million litres
million litres
million litres
million litres
1
Bottled Water
121.3
136.5
154.8
174.9
198.4
225.7
2
Carbonates
185.0
197.9
214.1
231.4
252.8
270.0
3
Concentrates
0.1
0.2
0.2
0.2
0.2
0.2
4
27.1
31.0
36.9
42.6
50.9
60.7
5
RTD Coffee
0.3
0.4
0.5
0.5
0.6
0.7
6
RTD Tea
59.4
102.9
184.0
302.6
417.1
562.5
7
28.4
29.6
31.0
33.1
35.1
37.0
8
Other
1.3
1.3
1.5
1.5
1.7
1.9
422.9
499.8
623.0
786.8
956.8
1,158.7
Total
63
Part 6: Appendices
Appendix 2: Soft Drink Brands: Sales Volume and Market Shares, 2008-2011
64
Part 6: Appendices
Appendix 3: Key Figures on Packed Food Market in Vietnam
65
Part 6: Appendices
Appendix 4: Packed Foods - Sales Value and Market Shares, 2009-2012
66
Contact us at StoxPlus
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