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제목 | 베트남 비금속 물질 시장동향(2013.4) | ||||
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게시일 | 2016-02-26 | 국가 | 베트남 | 작성자 | 김주선(하노이무역관) |
품목 | 기타 | ||||
품목코드 | 690290 | ||||
작성일자: 2013.4.16 작성자: 하노이 무역관 Ms Nguyen Quynh Chi(nqchi.kotra@gmail.com)
1. Economic Trends / Investment Environment
□ Overview of Vietnam Economic in 2012
○ Vietnam, after reaching a high growth rate in 2010 with GDP growth of around6.78percentage, was expecting strong economic growth in 2011. However, that hope was rapidly transformed into concerns due to slower than expected growth along with high inflation. Overall, Vietnam’s economic growth in 2011 was slower than that of 2010, with GDP growth down to 5.89% and in 2012 even got deeper to 5.03%.
Tab1. Some key indicators in 2012 compared to 2011 and 2011 to 2010 Unit: % Source: General Statistical Office
○ The year 2012 continued to be a difficult year for the world economy in general, and for Vietnam in particular. The Gross Domestic Product(GDP) growth in 2012 was slow compared to 2010, at 5.03%, out of which, of which it increased by 4.64% in 1st Quarter; by 4.80%in 2nd Quarter; by 5.05% in 3rd Quarter and by 5.44% in 4th Quarter. Of 5.03% general pace of the whole economy, the sector of agriculture, forestry and fishery rose 2.72%, contributed 0.44 %; the industry and construction by 4.52%, contributed 1.89 points percent; and the service by 6.42%, contributed 2.70 points percent.
○ December’s Industrial Production Index(IPI) was estimated to rise 5.0% from November and by 5.9% from the same period last year. 2012’s IPI rose 4.8% from 2011, of which mining and quarrying rose 3.5%; manufacturing by 4.5%; power and gas by 12.3%; water supply and waste management by 8.4%.The consumption index for the manufacturing in 11 months of this year rose 3.6% from last year’ same period. The stock index as of 01/12/2012 for the whole manufacturing sector rose 20.1% from last year’ same period.
○ Imports and exports were one of the good performances of 2012. Total import-export turnover reached 228.9 billion USD: the total export value of exports reached 114.6 billion USD, a growth of 18.3%, of which the domestic economic sector gained 42.3 billion USD, increased by 1.3% and the FDI sector(including crude oil) 72.3 billion USD. Imports were at 114.3 billion USD, rose 7.1% from 2011, of which the domestic economic sector gained 54 billion USD, decreased by 6.7%; the FDI sector reached 60.3 billion USD, and increased by 23.5%. The increase in export turnovers this year mainly lay in the FDI sector with such exported goods as electronics, computers and components; telephones of all kinds and components, textile, footwear... All these items belong to the group of goods with high processing proportion; this reflects low export effectiveness and real revenue of foreign currency. 2012’s trade surplus was 284 million USD and this was the first year Viet Nam had trade surplus since1993, of which the FDI sector had trade surplus of about 12 billion USD, focusing on assembled goods. Contrarily, the domestic sector had trade deficit of 11.7 billion USD.
Table 2: Merchandise trade deficit during 2007 - 2012 period Source: General Statistical Office
○ Inflation got a positive sign with the very lower indicator in 2012. CPI in 2011 increased by 9.21% compared with 2011, showing the level effort targeted by the government at the beginning of the year. Looking back in 2012, December’s CPI rose 6.81% from the same period in 2011, which was close to 2009’s 6.52% pace, and much lower than 2010’s 11.75% pace and 2011’s 18.13% pace but this was a year of many unusual changes. Concretely, CPI did not rise too highly in the two beginning months of the year(by 1.0% in January and by 1.37% in January) but it jumped to the peak in September with 2.20% pace, mainly due to the impact of groups of medicine and medical service and education. CPI has increased slowly in late months of the year; this showed the timeliness and effectiveness of implementation of the Instruction No. 25/CT-TTg dated 26/9/2012 by the Prime Minister on strengthening the management and stabilization of prices. Another unusual thing of the domestic price market this year was that CPI did not decrease in the month immediately after the Lunar Tet holidays but in the two-midyear months(June and July).
○ Realized social investment capital of 2012 at current prices was at an estimation of 989.3 trillion dongs, rose 7% from 2011 and equaled 33.5% of GDP. Of which state capital was 374.3 trillion dongs, rose by 9.6%; the non-state sector 385 trillion dongs, by 8.1%and the FDI sector 230 trillion dongs, by 1.4%. Of the state sector’s investment capital, fund from the state budget was 205 trillion dongs, rose 15% from 2011. Of which, capital under central management was 50.3 trillion dongs, rose by 15.4%; and capital under local management 154.7 trillion dongs, by 14.9%.
○ So, comparing to the growth of economic targeted around 6-6.5 for 2012, it is the second year, Vietnam continuously did not reach the target as planned. From other angle, the Government policy of controlling inflation and stabilizing the macro-economy seems to have effectiveness that was shown via the decreased inflation indicator and stabilization of macro-economy in short term. However, in the long term, the Vietnam economy still is implicating the unstable factors.
○ According to the assessment on Global Competitiveness 2011 - 2012 issued by the World Economic Forum(WEF), Vietnam ranked 75 out of a total of 142 countries surveyed: down 10 ranks against 2012. Compared to previous years, there was a change in the number of countries in the ranking table; therefore, Vietnam’s ranking was not significantly improved.
Table 3: Global Competitiveness Index of Vietnam Source: World Economic Forum
○ Vietnam’s downward ranking was due to a reduced score in 10 out of 12 indicators; Vietnam only made notable progress in market size higher education and training and Health and primary education(ranked 32, 96, and 64 up 3, 7 and 9 respectively ranks compared to 2011). Meanwhile, several indexes sharply declined such as “Macroeconomic environment” and “Business sophistication” which went down 41 and 13 ranks, while both “goods market efficiency” and “labor market efficiency” which moved down around 15 ranks.
Source: World Economic Forum
○ For Vietnam's economy in 2013 is forecast by many organizations and experts in the country and abroad. - In January 10/2012, published in the report of conference “Asian Development Prospects 2012” by the Asian Development Bank(ADB) Vietnam's economic growth was forecasted at around 5.7% in 2013, the inflation average 9.4% higher than in 2012(2012 respectively 5.4% and 9.1%), global food prices rising, increasing domestic demand and fiscal policy can be loosened. - HSBC’s assessment Quarterly Report on Asian economies(Asian Economics Quarterly) in 2013 is likely to be a difficult year for Vietnam's economy. Thus, HSBC has lowered the GDP growth forecast for Vietnam in 2013 to 5.3% from 5.8% previously forecast. Regarding inflation, HSBC said that the rising trend of inflation would remain next year, reaching a monthly average of 12.6% in the third quarter before falling to 11% in quarter 4/2013. - WB continues to update its report economic situation in East Asia - Pacific region, including the forecasts of Vietnam's GDP growth in 2013 will be about 5.7%. - IMF forecasts GDP growth in 2013 will recover the same level as in 2011(5.9%), higher than the figure forecast by ADB and WB. A noteworthy point, the IMF was quite optimistic about the inflation index of Vietnam in the next two years, even if only to 6.2%.
□ Vietnam Investment Climate
○ Current Status - The most important mission to Vietnam in 2012 is to control the inflation and stabilize the macro economy, enhance the reasonable growth rate fitted to the innovation strategy of growth model and economic restructure in order to boost the quality, effectiveness and competitiveness of the economy and create a potential investment environment. - Some outstanding points in the macroeconomic affecting to investment climate: · The CPI – inflation decreased sharply comparing to 2011 · Exchange rate was rarely unchanged · Unstable gold market and fluctuated dramatically · Interest rate in the down trend · Trade surplus at the first time of 300 million USD · Labor, employment in the first nine months of 2012. It was resulted works for about 1165 thousand employees, an increase of 3.3% compared to the same period in 2011 and reached 72.8% of the plan in 2012. · Number of new businesses set up in the first 10 months of 2012 reached more than 46,000 businesses(about 12% compared to the same period in 2011). · Number of banned and ceased operations in the first nine months of 2012 was more than 35,483 businesses(up 7.1% compared to the same period in 2011). · State budget revenue by August 15, 2012 reached 418 trillion VND(56.5% of the estimate, an increase of 1.7% over the same period in 2011) · State budget expense by August 15, 2012 reached 534 trillion VND(59.1% of the estimate by 18.6% over the same period in 2011). · Total social investment estimated of 2012 reached 990 incredible billion, equal to 35.2% of GDP and 8.6% over the same period in 2011. · Remittances increased(up to $ 6 billion in the last 6 months) have created good conditions for the central bank to buy large amounts of foreign currency and then the banking measures to withdraw cash in circulation. Based on the exchange rate’s stability, Vietnam has also increased foreign currency reserves in a stable: the 2012 purchase of foreign currencies rose by almost $ 10 billion. Foreign exchange reserves reached the highest level in three years. - The balance of macro is keeping stability. Accumulation rates remain at a reasonable level, going with the decline of public investment and FDI, so the share of FDI / GDP fell by a systematic way. As a result, the growth rate was reduced reasonably about 5%, while the economies of the world have fallen sharply. Current account balance was improved due to remittance inflows remained stably while the trade deficit fell sharply. Overall balance was growth of $7-8 billion through positive external capital of $7-8 billion. However, recent changes of handling the frauds in banking activities reflect the unimproved weakness and mismanagement of the State currently. In particular, budget balance in 2012 got the big trouble when export income, taxes on production and business activities and income in real estate significantly reduced. Uncertainty over-income as the last years would be negligible;it makes difficulties to balance the budget at the state and provincial levels. - Economic restructuring has been just a startup, and focusing on three key stages of investment, monetary banks and SOEs. Restructuring investments focuses on public investment towards gradually volume reduce and effectiveness improvement. State has taken over the development of mechanism-oriented policies and created conditions to promote social investment activities, especially in the form of Public Private Partnership PPP. The local industries also focused on improving the quality and sustainability of foreign direct investment. Restructuring the financial markets is to focus on restructuring banking systems and financial institutions initially, but it still was confusing when commercial banks have been suffered under the huge bad debt situation. - As the assessment of Euro Charm’s Vice president, The Government continues to display an ambivalent attitude towards free market pricing, and in various sectors(such as energy) price changes now require approval. This type of price control is clearly worrying for investors who expect to be able to set prices themselves within the normal boundaries created by cost and competition. This creates uncertainty for investors. - It is estimated that 40% of the economy is in the hands of the State Sector, which in itself is not a problem. However, in those areas, state companies generally receive favorable treatment – through loans, access to land, limited profit targets and are inefficient. - Vietnam is currently competing internationally based on low labor cost. The Government has expressed the desire and need to move away from a labor intensive economy into technology and value added areas. However, unless there is real, implemented protection of intellectual property rights, investors are unlikely to bring their technology to Vietnam, and Vietnam will remain in the low labor cost trap.
○ Foreign Direct Investment in 2013 - Vietnam’s FDI continues to decline in 2012 by 15.3 percent to $13 billion from one year earlier, according to the Ministry of Planning and Investment’s(MPI) Foreign Investment Agency. The disbursement capital was also down 4.9 per cent year-on-year to $10.46 billion amid the domestic and global economic downturn. According to MPI, up to 1,287 new foreign-invested projects were granted licenses with a total registered capital of $8.6 billion in 2012 or equivalent to 71.2 per cent of the total figure. In another bright spot, 550 operating projects were allowed to increase their levels of capital by $7.7 billion, over doubled the figure of the previous year. - Manufacturing and processing attracted the share of FDI, reaching $11.7 billion or 72 per cent of the country's total registered capital. The real estate industry followed with $1.9 billion, 12.1 per cent of the country's total capital. - Japan remained as the Viet Nam's largest foreign investor with $5.59 billion, 34.2 per cent of the total FDI registered in the country, up next Taiwan($2.6 billion) and Singapore($1.9 billion). The country's other major sources of investment included South Korea, Samoa, British Virgin Islands and Hong Kong. - The southern province of Binh Duong was the most attractive destination to foreign investors last year with more than $2.79 billion, accounting for 17.1 per cent of the country's total registered capital. The central province of Ha Tinh, Ha Noi and HCM City followed with $2.14 billion and $1.3 billion, respectively.
○ Banking and finance - Since last year, significant progress has been made on several aspects of Vietnam’s macro-economic management. The stability of the currency has been impressive and the reduction in inflation has been more rapid than anticipated, and has occurred while interest rates have fallen. The trade balance has improved markedly, and has allowed an appreciable increase in foreign currency reserves. The Government’s appropriate policy focus on stability has yielded these good results, although the corollary has been a slowdown in overall GDP growth. Besides, there are some short-term stability measures implemented, such as how to apply more fairly and effectively some of the measures introduced last year under Resolution 11 and this year under Directive 1 to achieve price and currency stability. Many of the Government aims are closer to being fulfilled, which means that many of the temporary administrative restrictions can be removed, particularly as the banking sector is restructured.
○ Taxation Roadmap - Since the approval of the Taxation Roadmap for 2011-2020 last year there has been an increase in tax audits. In 2012, the Ministry of Finance approved the National Action Plan to administer a transfer pricing policy of foreign direct investment companies for 2012-2015. The tax reduction would make Vietnam more competitive, and the tax authorities will increase their efforts to demonstrate that Vietnam has a transparent tax system that adheres to international norms. Transfer pricing is currently covered under general tax audit procedures, but may lack the necessary depth required to identify aggressive transfer pricing tax schemes.
○ Public-Private Partnership - According to the Ministry of Planning and Investment, Vietnam needs about 150-160 billion USD worth of infrastructure investment in the next 10 years to achieve the level of growth targeted by the Government. The state budget can only cover about 60% of this needed investment. Decision 71/2010/QD-TTg on issuing the regulations on pilot implementation of Public-Private Partnership investment attracted the attention of the private sector but, as a comprehensive Public-Private Partnership regulation, it is generally recognized as falling short of investor expectations. Although there are some restricted and unspecific points and gaps in this decision, Government has some actions on simplifying PPP procedure and put more budget for attracting more PPP. In 2013, Government planned to fund 20,000 billion VND for around 10 PPP projects in Vietnam. Additionally, the legal framework and procedure regulation of PPP is expected to be completed in Q3, 2013.
2. Current State of Steel Industry
□ Domestic Consumption
○ Thanks to the economic growth rate of Vietnam held steady for several years, the demand for steel in the country has grown rapidly, attracting many domestic investors and foreign investors in the steel industry. Whereas, before the year of 2000, there were only state-owned steel company named State Vietnam Steel Corporation and 5 joint ventures between Steel Corporation with foreign countries. From 2000 by now, Vietnam had full economic sectors involving early into investment in the steel industry, including the state power company, private company, Joint Stock Company, joint venture companies with foreign countries and companies with 100% foreign capital. The scale of investment is growing gradually year-by-year.
○ The domestic consumption keeps a stable amount annually of around 10 million tons. 2010 was the top year of consumption for the high peak of construction development in Vietnam. However, from 2010, going with the common recession trend of global economy, and the real-estate crisis of Vietnam lasting untill now, the consumption is in the down trend on the real demand.
Tab 3. Steel Domestic Consumption of Vietnam Unit: Tons Source: Vietnam Steel Association 2013
□ Trends of Continuous Casting Steel Output(’07 ∼ ’12)
○ Thanks to the stable growth rate of Vietnam economy during several recent years, the demand on steel consumption has kept increasing rapidly, and attracting many the local and foreign investors joining into the industry. Since 2007 while Vietnam entered into WTO and in this same time, the master plan of steel industry was approved by Prime Minister for the full development of the industry, Vietnamese steel manufacturing industry reached a dramatically jump with the rapid expanse of production scale and volume.
Tab 4: Steel Output Statistic in Vietnam(2007~2012) Unit: Tons Source: VSA – Vietnam Steel Association
○ For above production capacity of internal steel manufacturers, this volume can meet 100% of full consumption demand from domestic market for rebar, wire f6-f8 mmm, small-sized shaped steel, welded steel pipe, galvanized metal steel and color coated steel, cold rolled steel as the materials for metal plating and coating plants in Vietnam. The inventories amount annually is at 4 million tons, occupying nearly 50% of real demand. However, since 2010, the growth rate of the industry was in the slower trends. The years of 2009 and 2010 were noted as the extremely outstanding raising times with the growth rate from 5% to 20% in 2009 and 41.3% in 2010. However, just one year later, this rate was down to 4% of growth and more deeply in 2012 with the growth rate of 2.5%.
Fig 1: Growth rate of Steel manufacturing industry
○ The reasons of this down trend are: - Global economy’s instability in the big economic zones such as USA, EU, Japan, which caused to slow down the growth worldwide and to reduce the demand of goods consumption including steel products - The price of materials changed complicatedly with the main increasing trend, especially the fuel price. - The demand of steel in global market declined, mainly in the large market like USA, EU - The domestic economic situation also faced to huge challenges, GDP’s growth rate in 2012 was only 5.03%, down trend in the growth rate of industrial development also made the negative influence to steel consumption. Beside of cutting public investments, the interest rate of commercial loans up to 18-20% / year in 2011 and 2012 gradually down to 14-15% / year had a great impact on production of many economic sectors, including the steel industry. With an output of about 6 million tones, construction steel is a major product segment that gathers many top producers. This is also the most active segment in terms of production and investment. According to VSA’s report, 11 biggest companies dominate over 80% production of construction steel. Below are five biggest companies, which accounts for more than 58% of construction steel supply:
Figure 2: Vietnam biggest steel manufacturers
○ As can be seen from the chart, Pomina is keeping first place(16.6%), and 3rd place is for HoaPhat(12.0%). Two VN steel’s companies TISCO and Southern Steel Corporation shares are 12.6% and 7/6% respectively. Vinakyoei is the sole joint venture company among top 5 with 8.7 % of market share.
○ In the meanwhile, many private producers participate in tube and galvanized sheet segments. Ten large VSA producers account for about 70% market share in each segment. There is a big gap of market share in the galvanized steel sector as share of Lotus Group is 30%, followed by Sunsteel(15%) and Phuong Nam(10.1%). This segment also attracts many foreign manufacturers such as Sunsteel(Taiwan), Blue Scope steel(7.9%). These market positions are expected not to change in the future.
○ Despite of the hard economic situation in the country in 2012, but many steel projects have been invested from the year before, from 2012 they were officially put into production. Due to down steel consumption in 2012 of the country, the projects of steel production and steel roll bars faced many difficulties, just as long as limited production to reduce inventories of steel. Integrated steel project of Formosa Ha Tinh in the ongoing construction of the port and leveling. The groundbreaking ceremony for Phase I construction of blast furnace 4300 m3 was conducted on Dec,2012. This project of steel complex with more than 22 million tons / year in VungAng Industrial Zone(Ha Tinh) with stage I capacity of 7.5 million tons / year, invested with the scale off billions dollars have gone into process and is expected to be completed in 2015. With the projects already done and going into operation from 2012, it also the hard burden for the domestic steel industry because of over-inventory volume. This forecasts the huge hard competiveness in this industry in coming time
Tab 5: Projects into operation from 2012
□ Import – Export Situation
○ So far, the steel industry of Vietnam has still produced only a few products such mainly steel materials for construction industry(steel bar, steel roll, steel mid-size), welded pipe, galvanized metals(Al, Zn, Sn), color coated steel, cold rolled steel. The other categories such as steel coil, alloy steel, engineering steel fabrication have been also imported from overseas because local production has not provided yet
○ Besides, since Vietnam joined WTO, the trade mission and economic co-operation have rose up. Thanks to the multilateral and bilateral economic agreements signed with the descending schedule of import tariff, simplified administrating procedures, the import volume of steel into Vietnam keeps increasing gradually.
○ In addition, Vietnam still has to import the main input materials for the local production such as scrub(70%); billet(the volume for this goods is in reducing trend for Vietnam has built many steel electric furnaces, and the furnaces of coking and coking coal.
Tab 6: Import of Steel into Vietnam Unit: Tons Source: Ministry of Trade and Industry and Vietnam Steel Association
○ As such the great annual import volume, the volume of foreign currency for imports of steel and steel raw materials has expanded largely. In 2011, the steel industry has imported a total of 9.847 million tons of steel and steelmaking raw materials valued 7.52 billion USD while exports and re-exports of steel and raw materials only got about 2 million tons of the total and export turnover was approximately $ 2.3 billion. Likewise, the trade deficit of the steel industry in 2011 was $ 5.2 billion. In 2012, import volume of steel and materials still kept the big amount of 11 million tons and trade deficit was even higher with the volume of $ 5.5 billion.
○ To explain this situation is the result of the massive development of Vietnam steel industry during recent years. A storm of investment projects on some types of steel products causes the huge imports for local production; but the outputs from local production was over the real domestic demand. Therefore, Vietnam steel manufacturers have to find overseas large but competitive export markets such as USA, EU. This also explains to the current redundancy of inventory and trade deficit.
Tab 7: Steel Export Volume of Vietnam Unit: tons Source: Ministry of Trade and Industry and Vietnam Steel Association
○ The figure below shows the current hard situation of Vietnam Steel Industry. With the capacity of more than 14 million tons per year, the inventories of 4 million tons and near 30% of the capacity, while the import volume is usually double of exports averagely. In the recession, the export is in the deeper downtrend. This situation marked out a bad shadow for one of the big and focused industry of Vietnam.
Fig 3: Import – export trend of Vietnam Steel Industry
□ Industry Prospect
○ Hard issues - For the unrealistic implementation of industrial master plan and unbalance in the production scheming, the Vietnam steel industry is showing the notable weaknesses and paradoxes: over production, large inventories, high redundancy over the real demand, meanwhile increasingly high import volume but slow export trend. - Domestic steel production capacity of some construction products such as steel, steel pipes, metal plating and coating steel, cold rolled steel is over domestic demand, while the domestic economy faced difficulties, steel consumption decreased, high inventory to cut production. - The export of steel products faced also barriers of many countries’ protectionist policies, import restrictions and antidumping duties to Vietnam's steel exports - The free trade agreement between Vietnam signed with other countries when Vietnam joined the WTO with a reduced import tariffs to 0% makes the competition between domestic steel and imports from other countries(especially steel imported from China) become more and more fierce and commercial fraud will increasingly common. - For the above constraints, the domestic steel industry is forecasted in 2013 to be maintained with production and consumption in 2012 or a slight increase compared with 2012. Some investment projects of foreign investors in the country still keep processing, but extended due to the lack of funds or a concern of investors on initiative problems make restricting construction.
○ Review from Master plan of Vietnam Steel Industry - The Master plan on the development of Vietnam Steel Industry for the period 2007-2015 and with the vision 2025 was approved by the Prime Minister under the Decision No.145/2007/QD-TTg. Its overall objective is to meet the demand of the economy and to boost export, specifically as below:
- According to the Master Plan, major projects are divided into 2 following investment periods. - For the period of 2007 – 2015, there are 5 core projects, including: · HaTinh Steel complex using iron ore from ThachKhe mine: estimated capacity of 4.5 million ton/year, of which 2 – 2.5 million ton for the first phase of 2011-2012. Investment form is proposed under a joint venture contract. · Dung Quat(QuangNghi) Steel complex with a capacity of 5 million ton/year, using local and imported iron ore. Investment form is 100% FOE. Second phase is tentatively under operation by 2015. · A project on production of hot and cold-rolled steel coil and zinc-plated steel with a capacity of 3 million tons/year. Investor is Posco Group(Korean). · A project of hot-rolled steel coils and sheets with a capacity of 2 million tons/year. Investment is done under the joint venture form between ESSA group(India) and local companies. · Lao Cai Steel Complex using iron ore from QuyXa mine - For the period of 2016 – 2025, it will focus on a steel producing project using electric-arc-furnace(Midrex non-coke metallurgy technology or HYL using natural gases), with a capacity of 1.5 million tons of flat ingot steel/year(option 1) or 1.5 million tons of hot-rolled steel sheets/year(option 2). For option 1, the investment period is planned during 2016-2020, and the factory is located in Ba Ria –Vung Tau to supply flat ingot steel for hot-rolling mills in the southern economic zones. Additionally, investment for option 2 is planned during 2016-2025 with a factory located in BinhThuan in order to make use of natural gases exploited from PhuKhanh gas reservoir and the northern area of Cuu Long gas reservoir.
3. The Progress Of Steel Projects
List of Large-scale steel projects in Vietnam Source: Large-scale steel projects in Vietnam from Vietnam Steel Association in 2008, Vietnam Steel Association already issued the most updated of ongoing and forthcoming projects in Vietnam. KOTRA is still contacting with Vietnam Steel Association to get these information and statistic. For some private reasons from Vietnam Steel Association and the limitation of time, at this report, reporter just can provide the above information. KOTRA will update these information to you whenever we get it from Vietnam Steel Association.
4. Trends of Refractory Industry
□ Overview
○ Refractory production in Vietnam was begun in late 1970s with the presence of three makers namely Cau Duong, Thai Nguyen and TuyenQuang factories. At that time, all producers had small capacity and applied production lines of the former Soviet Union and China. Their products were simple such as fireclay bricks and fireclay mortar with low quality.
○ Since the year 2000 Vietnamese refractory industry has been renovated under the state support. Until now there are 7 typical refractory makers in the country as: - Thai Nguyen Refractory Joint Stock Company - Vietnam Basic Refractory Factory belonging to Hoang Thach Cement Company - Tam Tang Refractory Factory belonging to Cau Duong Viglacera Refractory Joint Stock Company - Sao Do Refractory Co., Ltd - Hiep An Factory belonging to Lam Dong Minerals and Building Materials Joint Stock Company - Vietnam Institute for Building Materials
○ The following are common locally made refractory products:
○ Production line and technology, which have been applied at refractory companies, are mainly from China. In recent years, German production line has been seen in several factories. Therefore, production capacity has increased dramatically which has met over 50% local demand.
○ Vietnam has imported refractory products mainly form China, Taiwan, Malaysia, India, Japan and EU in order to satisfy fully domestic demand. These supplying countries have opened their own representative office in Vietnam for marketing.
○ Regarding basic production materials, Vietnam can provide kaolin, clay, etc. So, local refractory factories have been importing high quality materials mainly from EU and China.
□ Trends of Refractory Production(’07 ∼ ’12)
○ According to Vietnam Institute for Building Materials under Ministry of Construction, at the end of 2012 local refractory production reached about 154,000 tons of both shaped refectory and monolithic(around 114,000 tons from the above mentioned makers and 40,000 tons from local private companies). Around 60% of total amount has poured in steel and cement industries. ○ In fact, Vietnam has not formulated any master plan/development plan on refractory yet. Local demand of the sector has been still considered on domestic need of main industries as cement, steel, glass, ceramics, etc.
Yearly Refractory Demand for Cement Industry in Vietnam during 2000-2020 Unit: Ton Source: Statistical figure from Vietnam Institute for Building Materials
Yearly Refractory Demand for Steel/Metallurgy Industry in Vietnam during 2000-2010 Unit: Ton Source: Statistical figure from Vietnam Institute for Building Materials
○ Refractory are assessed to be necessary products for main industries in Vietnam. Therefore, local companies have kept improving their product quality. Big demand will be focused on products of Fireclay, High Alumina and MgO-C; MgO; Cr2O3-MgO which will be served mainly for cement and steel industries. |
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