VIETNAM BEVERAGE INDUSTRY REPORT 2017 1
Content Executive summary 3 2.3 Risk 90 1 Business environment 6 3.2.1 4.1 SWOT analysis 91 1.1 Macroeconomic context 6 2.3.2. Competitiveness analysis 92 1.2 Legal barriers 13 2.3.3. Business risk 95 1.3 Free trade agreements 18 2.4 Planning and development 99 2 Industry overview 24 2.5 Prospect and prediction 101 2.1 Global market 24 2.5.1. 2.1 Motivational factors 102 2.1.1. Beer 25 2.5.2 Prediction 104 2.1.2. Wine 36 3 Enterprise analysis 112 2.1.3 Soft Drink 45 3.1 Profitability 114 2.2 Local market 48 3.2 Operating capability 118 2.2.1. Beer 51 3.3 Financial strength 121 2.2.2. Wine 61 3.4 Return on investment 124 2.2.3 Soft Drink 75 4 Appendix 126 2
Executive summary The global beverage market has so far been on a positive trend but with lots of unexplored potentials. Vietnam beverage industry came into being years ago but just blossomed for the past decade. The local industry is capable of meeting domestic consumption needs, with less imports and more exports. 2017 witnessed a sharp downturn in the industry compared to the last year due to production setbacks. As of soft drinks, the industry has expanded on a large scale and rapid growth given adequate domestic supply. 3
Executive summary The wine market is on a small scale with falling production. The industry has low debt rate, high liquidity and high asset performance. As estimated, the beer, wine and soft drink segment will revenue 180 billion, 33 billion and 120 billion respectively by 2018. There exists a few large-scale and strong - branded enterprises in the industry such as Sabeco, Habeco and Tan Hiep that are capable of competing with FDI enterprises. 4
Abbreviation MOF Ministry of Finance GDVC General Department of Vietnam Customs CAGR Compounded Annual Growth Rate GSO General Statistics Office of Vietnam FI Foreign Investment SC Special Consumption EVFTA EU-Vietnam Bilateral Trade Agreement TPP Trans-Pacific Agreement TPP FAO Food and Agriculture Organization of the United Nations UNFPA United Nations Population Fund FDI Foreign Direct Investment UNWTO World Tourism Organization FTA Free Trade Agreements USDA U.S. Department of Agriculture VA Value Added VAT Value Added Tax IWSR International Wine & Spirit Research VBA Association Beer - Alcohol - Beverage Vietnam MFN Most Favoured Nation VIRAC VIRAC Joint Stock Company OIV International Organisation of Vine and Wine WTO World Trade Organization 5
Content 1 Business environment 1.1 Macroeconomic context 1.2 Legal barriers 6
1. Business environment 1.1 Macroeconomic context GDP growth, 2011-2017 Monthly CPI fluctuations, 2014-2017 Source: VIRAC, GSO Source: VIRAC, GSO 7
1. Business environment 1.1 Macroeconomic context The beverage and tobacco industry are among segments having positive CPI growth in 2017. CPI by item group, 2017 Vietnam s Consumer Confidence Index, Q1/2014 - Q1/2017 Source: VIRAC, GSO Vietnamese consumer confidence index fell by 1 point percent to 116 points in the third quarter of the year 2017. Source: VIRAC, GSO 8
1. Business environment 1.1 Macroeconomic context 2017 s FDI rose sharply to 35.88 billion dollars, up 47.05% compared to the same period in 2016. Billion USD FDI capital, 2015-2017 Thousand VND VND/USD exchange rate, 2013-2017 In 2017, the USD/VND exchange rate fluctuated around 22.400. Source: VIRAC, PVN Source: Synthesized by VIRAC, BCG 9
1. Business environment 1.1 Macroeconomic context The total im-export value reached 425.12 billion, up 21% corresponding to 73.74 billion compared to 2016. Billion USD Commodity import export, 2006-2017 Billion USD Source: VIRAC, GDVC Beverage industry s shares in GDP, the period 2010-2015 Source: VIRAC, GSO 10
1. Business environment 1.1 Macroeconomic context Beverage and tobacco sectors CPI compared to the previous month T4/2016-2017 Beverage consumption is one of the important driving factors behind consumer goods. Source: VIRAC, GSO The young population creates a potential market for the beverage industry. Million people Total population and working - age population structure, 2010-2017 Source: VIRAC, GSO 11
1. Business environment 1.1 Macroeconomic context The increasing disposable income has stimulated expenditures on beverage stuff. Total disposable income, 2010-2020f Billion USD Source: VIRAC, Economist Intelligence Unit Vietnam s retail sales 2011-2017 Source: VIRAC, GSO 12
Content I Business environment 1.1 Macroeconomic context 1.2 Legal barriers 13
1. Business environment 1.2. Legal framework 14
1. Business environment 1.2. Legal framework Legal framework s impact on the industry For state agencies Beverage export output 2010-2015 Thousand tons For businesses in the industry Source: VIRAC, GSO 15
1. Business environment 1.2. Legal framework Beer manufacturing enterprises 2010-2016 Profit margin before tax, 2010-2016 Beverage manufacturing growth 2011-2017 Unit: % Source: VIRAC, GSO Source: VIRAC, GSO Source: VIRAC, GSO 16
1. Business environment 1.2. Legal framework Circulars and decrees of the special consumption tax on alcoholic beverages SCT on alcoholic beverages are subject to the incremental roadmap as indicated in Law No. 70/QH13/2014 and will increase gradually to 65% in 3 years time, starting from January 1st, 2016. SCT roadmap applicable to liquor and beer since 2016 Commodity Date Tax rate (%) Source: Synthesized by VIRAC 17
1. Business environment 1.2. Legal framework New regulations on liquor imports. 18
Content 2. Industry overview 2.1 Global market 2.2 Local market 2.3 Risk 2.4 Planning and development 2.5 Prospect 19
2.1 Global market 2.1.1. Beer 2.1.1 Beer Input material: Malt, Hops Regarding malt Million tons Global barley production and consumption, 10/11-17/18e The UK s barley price developments 1/2012-2017 Unit: GBP/tonne Source: VIRAC, USDA Source: VIRAC, Indexmundi 20
2.1 Global market 2.1.1. Beer Market shares of 5 largest barley producers 2017/2018e Barley consumption for malt processing, 10/11-16/17 Million tons Source: VIRAC, USDA Source: VIRAC, International Grains Council 21
2.1 Global market 2.1.1. Beer The UK s malt price movements, 7/7/2011-2015 Unit: GBP/tonne Malt production situations in the world and Europe, 2010-2014 Million tons Source: VIRAC, Bloomberg Malt export production in the world and Europe, 2010-2015 Million tons There is a worldwide decline in malt exports, except for the European region, which is forecast to be on the upward trend given favorable weather conditions in some countries in the region: The UK and Spain. Source: VIRAC, Euromalt, United Nations Trade Statistics 22
2.1 Global market 2.1.1. Beer Regarding hops Global hops farming and production 2008-2017e Washington s hops price movements 1982-2016 $/lb (lb = pound = 0.45 kg) Source: VIRAC, E-Malt.com, the International Hop Growers ' Convention, Source: VIRAC, U.S.D. A National Agricultural Statistics Service Hops production has remained stable but prices hiked up in the period of 2005-2016. Market shares of 5 largest Hops producers 2017 Source: VIRAC, E-Malt.com, the International Hop Growers ' Convention, 23
2.1 Global market 2.1.1. Beer Million tons Hops export situation, 2011-2016 Million USD Market shares of 5 world's largest Hops exporters 2016 Source: VIRAC, Euromalt, United Nations Trade Statistics 24
2.1 Global market 2.1.1. Beer Global beer supply and demand Global production is of large scale with two major hubs, including Asia and Europe. Irregularities due to prolonged droughts blew a huge hit to malt production the main input material. Against this setback, the industry still met the world s consumption needs. Beer output and growth rate of 7 regions 2017e Global beer consumption and production 2010-2017e Billion liter Source: Synthesized by VIRAC Source: Synthesized by VIRAC 25
2.1 Global market 2.1.1. Beer Million tons Global beer output and exports, 2010-2016 Billion USD Top 10 countries having the highest beer im-export value 2016 Countries with highest beer im-export growth rates 2010-2015 Source: VIRAC, Euromalt, United Nations Trade Statistics Source: VIRAC, worldsrichestcountries.com 26
2.1 Global market 2.1.1. Beer The beer market has distinctly divided into two groups: Multinational companies with capital, branding and distribution channel advantages and indigenous manufacturers with a depth understanding of the local demand. Production market shares of 5 world s leading enterprises, 2016 Consumption market shares of 5 world s leading enterprises, 2016 Source: VIRAC, VBA Source: VIRAC, VBA 27
2.1 Global market 2.1.1. Beer 10 highest-value beer brands, 2016-2017 Rank Brand value (million USD) Brand ranking Logo Brand Entity Nation 2017 2016 2017 2016 2017 2016 Source: brandirectory.com 1. Bud Light 28
2.1 Global market 2.1.1. Beer 2. Budweiser 3. Heineken 4. Brahma 5. Skol 6. Asahi 29
2.1 Global market 2.1.1. Beer 7. Corona Extra 8. Guinness 9. Cyrillic 10. Miller Lite 30
2.1 Global market 2.1.2. Wine Wine Wine-producing vineyard area, 2005-2016 Source: VIRAC, THE OIV Top five European countries with the largest wine vineyard area Top five non- European countries with the largest wine vineyard area Source: VIRAC, THE OIV Source: VIRAC, THE OIV 31
2.1 Global market 2.1.2. Wine Million tons Grape production in General, 2010-2016e Total vine production by country in 2016 Unit: million Output Source: VIRAC, THE OIV Source: VIRAC, THE OIV 32
2.1 Global market 2.1.2. Wine Wine production presents lots of discernable fluctuations while the demand for consumption remained relatively stable during 2005-2016. Global wine production and consumption, 2005-2016e 100 million litres Source: VIRAC, THE OIV Top five largest wine producers in the world, 2014-2016 Market shares of five largest wine producers, 2016-2016 Source: VIRAC, THE OIV Source: VIRAC, THE OIV 33
2.1 Global market 2.1.2. Wine Top 5 largest wine consumers in the world, 2015-2016 Top 5 largest wine consumers in the world, 2016 Nation 2015 (billion liters) 2016 (billion liters) Changes during 2016/15 Source: VIRAC, THE OIV Source: VIRAC, THE OIV 34
2.1 Global market 2.1.2. Wine Wine export value and output 2000-2016e Largest wine exporters Nation Wine export output, 2012-2016 (billion liters) Export value (billion EUR) 2015 2016 2015 2016 Source: VIRAC, THE OIV Source: VIRAC OIV, GTA Wine exports tend to climb up in value and output with major importers within the EU. 35
2.1 Global market 2.1.2. Wine Largest wine importers Nation Import output, 2012-2016 (billion liters) Import value (billion EUR) 2015 2016 2015 2016 Source: VIRAC OIV, GTA 36
2.1 Global market 2.1.2. Wine 37
2.1 Global market 2.1.2. Wine Malt wine consumption 2009-2016 Billion USD Largest malt wine importers 2016 Source: VIRAC, UN COMTRADE statistics The consumption demand for malt wine is on the rise alongside a slight increase in export values. 38
2.1 Global market 2.1.2. Wine Most prevalent liquor types in the world 2016 World-class alcohol brands 2016 Rank Chan ge Type of wine Total point Total brand point Brand quantity of top 10 Rank Type of wine Total brand point Change Source: VIRAC, drinkspowerbrands.com Source: VIRAC, drinkspowerbrands.com 39
2.1 Global market 2.1.2. Wine World s largest wine traders and producers 2015 Rank Change Type of wine Total point Change Total brand point Change Brand quantity of top 10 Change Source: VIRAC, drinkspowerbrands.com World - famous wine exporters 2015 Rank Change Type of wine Total point Change Total brand point Change Brand quantity of top 10 Change - Source: VIRAC, drinkspowerbrands.com 40
2.1 Global market 2.1.3. Soft Drink The soft drink market has still maintained an intense growth of more than 8 percent with a CARG of 3.08% in the period of 2009-2015. Soft dink sales, 2010-2015 Unit: billion Thousand tons Soft drink value and output 2010-2016 Million USD Source: VIRAC, VBA, Datamonitor Source: VIRAC, Euromonitor 41
2.1 Global market 2.1.3. Soft Drink Fizzy drinks are still the most preferred but the demand for consumption is shifting to bottled water and fruit juice. Sales of soft drink lines 2015 10 highest-value soft drink brands, 2016-2017 Source: VIRAC, VBA Rank Brand value (million USD) Logo Brand Entity 2016 2017 2016 2017 Change Brand ranking Source: brandfinance 42
2.1 Global market 2.1.3. Soft Drink Coca-Cola and Pepsico has taken the lead in the industry, contributing 8 out of 10 largest - value brands. Coca-Cola is dubbed as the most expensive global brand, reaching 31.89 billion, up 6% compared to 2016. Fizzy soft drink supplemental and sports drink Fruit juice Bottled water Source: VIRAC, Bloomberg Intelligent, VBA 43
Content 2. Industry overview 2.1 Global market 2.2 Local market 2.3 Risk 2.4 Planning and development 2.5 Prospect 44
2.2 Local market The drinks industry has a large scale and high growth potential. Production is gradually meeting the demand, with increasing exports and falling imports. Billion liter Local soft drink production and consumption, 2010-2017 Billion VND Thousand tons Local soft drink im-export import, 2010-2016e Source: VIRAC, GDVC Source: VIRAC, UN COMTRADE statistics 45
2.2 Local market Segment structure and shifting during 2010-2017 recorded no significant change. Beer and soft drinks were still dominant while the wine segment only made up the small share. Production structure by segment 2010-2017 Source: VIRAC, GDVC 46
2.2 Local market 2.2.1. Beer 2.2.1. Beer The beer value chain Agriculture Malt Brewing Packaging Agency Consumer Source: Synthesized by VIRAC 47
2.2 Local market 2.2.1. Beer Input material The beer industry depend its input material on imports, mainly for malt. Malt and hops import 2010-2016 Source: VIRAC, Euromalt, United Nations Trade Statistics Million tons Vietnam s major malt export areas, 2016e Thousand kg Malt import situations, 2010-2016 Europe Source: VIRAC, Euromalt, United Nations Trade Statistics Source: VIRAC, Euromalt, United Nations Trade Statistics 48
2.2 Local market 2.2.1. Beer Hops import to Vietnam, 2010-2016e Vietnam s hops supply structure 2016 Thousand kg Source: VIRAC, Euromalt, United Nations Trade Statistics Source: VIRAC, Euromalt, United Nations Trade Statistics 49
2.2 Local market 2.2.1. Beer Production-consumption The domestic beer industry is in surplus due to production beyond consumption demand. However, there is much space for growth, particularly the high-end beer segment. Billion liter Local beer production and consumption, 2010 2017 Thousand billion VND Beer consumption structure, 2017 Source: VIRAC, GSO Source: VIRAC, GSO 50
2.2 Local market 2.2.1. Beer Inventories Million USD Beer inventories, 2011-2017 Source: VIRAC, GSO Beer inventory structure, 2011-2017 Source: VIRAC, GSO 51
2.2 Local market 2.2.1. Beer Internal competition The beer market has a discernable concentration with more than 90% of the value belong to such giant corporations as: Sabeco, Habeco, Heineken, Carlsberg, Tiger. Domestic consumption market shares, 2016 Top 10 Vietnam s beer brands, 2016 Source: VIRAC Source: VIRAC 52
2.2 Local market 2.2.1. Beer 53
2.2 Local market 2.2.1. Beer Other beer labels Masan Brewery Sapporo AB InBev 54
2.2 Local market 2.2.1. Beer Thousand tons Beer import export, 2010 2017 Million USD Vietnamese beer is gradually penetrating the world market, with increasing exports and falling imports, which contributes to boosting the production. Source: VIRAC, Euromalt, United Nations Trade Statistics Beer consumption market largest Vietnam 2017e Largest beer suppliers for Vietnam 2017e Source: VIRAC, GDVC Source: VIRAC, GDVC 55
2.2 Local market 2.2.1. Beer 56
2.2 Local market 2.2.1. Beer Purchasing method: Payment methods of beer export enterprises 2017 Beer export delivery conditions 2017 Source: VIRAC, GDVC 57
2.2 Local market 2.2.1. Beer 10 Vietnam s biggest beer exporters 2017e 10 Vietnam s biggest beer importers 2017e Main Vietnam beer import partners, 2017e Source: VIRAC, GDVC Main beer export partners to Vietnam, 2017e Source: VIRAC, GDVC Source: VIRAC, GDVC Source: VIRAC, GDVC 58
2.2 Local market 2.2.1. Beer Distribution system Beer consumption by distribution channels, 2011-2016 Source: VIRAC, Euromonitor End-user beer price structure Source: VIRAC, Euromonitor 59
2.2 Local market 2.2.2. Wine The wine value chain Regarding wine Agriculture Vine Squeezed grape juice Fermentation Pressing, filtering and smoothing Wine brewing Mixing Packaging Agency Consumer Source: Synthesized by VIRAC 60
2.2 Local market 2.2.2. Wine Regarding malt wine Agriculture Grapes, cereals, sugar cane Fermentation Distillation Wine brewing Mixing Packaging Agency Consumer Source: Synthesized by VIRAC 61
2.2 Local market 2.2.2. Wine Input material Rice and other cereals Vine 62
2.2 Local market 2.2.2. Wine 63
2.2 Local market 2.2.2. Wine Production-consumption The wine market is on a small scale with falling consumption. Domestic liquor production and consumption 2010-2017e Million litres Source: VIRAC, GDVC 64
2.2 Local market 2.2.2. Wine Consumer trends shifted from ordinary wines to vine and high-end ones. The local vine market has a great potential for growth while the malt wine segment is gloomy, with a shortage of high-quality products. Billion VND Sales of vine and malt wines 2010-2017 Wine inventories, 2010-2017 Source: VIRAC, GSO Million litres Source: VIRAC, GSO 65
2.2 Local market 2.2.2. Wine Internal competition As of the malt wine segment, Halico occupies the largest consumption share with 2 prevalent brands, including Hanoi Vodka and Hanoi New Rice. Malt wine consumption of production enterprises, 2016 Malt wine consumption market share, 2016 Avinaa Source: VIRAC Source: VIRAC 66
2.2 Local market 2.2.2. Wine The local vine wine market is distinctly and Thang Long wine contributes a large share to the market. In addition, local enterprises produce only lowcost wine lines. Vine wine consumption of production enterprises, 2016 Vine wine consumption market share by output, 2016 Source: VIRAC Source: VIRAC 67
2.2 Local market 2.2.2. Wine Import export Alcohol import and export 2010-2017e Domestic wine is exported in small and low-value quantities, while high-end imports are worth 30 times higher. Thousand tons Million USD Thousand tons Vine wine import and export 2010-2017e Million USD Source: VIRAC, United Nations Trade Statistics, GDVC Source: VIRAC, United Nations Trade Statistics, GDVC 68
2.2 Local market 2.2.2. Wine Thousand tons Malt wine import and export 2010-2017e Million USD Source: VIRAC, United Nations Trade Statistics, GDVC Major wine suppliers to Vietnam, 2017e Source: VIRAC, United Nations Trade Statistics, GDVC 69
2.2 Local market 2.2.2. Wine In 2017, wine imports from Laos also rose sharply to due the fact that glutinous rice wine and white wine with an alcoholic concentration of under 39% are much favored. Vietnam s major wine exports 2017e Source: VIRAC, United Nations Trade Statistics, GDVC 70
2.2 Local market 2.2.2. Wine Asia has maintained a key malt wine supplier and consumer of Vietnam Vietnam s larges malt wine consumers 2017e Vietnam s larges malt wine suppliers 2017e Source: VIRAC, GDVC Source: VIRAC, GDVC 71
2.2 Local market 2.2.2. Wine 10 Vietnam s biggest malt wine importers 20107e 10 Vietnam s biggest malt wine exporters 20107e Source: VIRAC, GDVC Source: VIRAC, GDVC Top 10 malt wine exporters to Vietnam 2017e Top 10 Vietnam s malt wine importers 2017e Source: VIRAC, GDVC Source: VIRAC, GDVC 72
2.2 Local market 2.2.2. Wine Top 10 Vietnam s largest malt wine importing enterprises 2017e Top 10 Vietnam s largest malt wine exporting enterprises 2017e Top 10 largest malt wine exporters to Vietnam 2017e Source: VIRAC, GDVC Top 10 Vietnam s largest malt wine importers 2017e Source: VIRAC, GDVC Source: VIRAC, GDVC Source: VIRAC, GDVC 73
2.2 Local market 2.2.3. Soft Drink The soft drink industry Pure water/mineral water Mineral water sources Filtration Cooling Bacterial filtration Bottling Consumer Agency Source: Synthesized by VIRAC Fizzy soft drink Synthesized by VIRAC Industrial water Soft drink Cooling CO2 loading Lidding Heat treatment Bottling Agency Consume r Source: Synthesized by VIRAC 74
2.2 Local market 2.2.3. Soft Drink Fruit juice Agriculture Fruit. Pressing Manual filtration Fruit gel Purifying Crystal filtration Processing Filling Agency Consumer Source: Synthesized by VIRAC 75
2.2 Local market 2.2.3. Soft Drink Input material Sugar Mineral water Green tea leaves 76
2.2 Local market 2.2.3. Soft Drink Fruit Flavorings 77
2.2 Local market 2.2.3. Soft Drink 78
2.2 Local market 2.2.3. Soft Drink Production - consumption The soft drink market runs on a large scale and high growth rate that gradually meets the local consumption. Billion liter Domestic soft drink production and consumption 2010-2017e Thousand billion VND Source: VIRAC, GSO Soft drink consumption structure (by volume) 2017e Source: VIRAC, GSO 79
2.2 Local market 2.2.3. Soft Drink Inventories The soft drink market has a high level of inventories compared to beer and wine, increasing sharply in the period of 2015-2017 Soft drink inventories 2010 2017 Unit: million liters Source: VIRAC, GSO Inventory structure by product lines 2010-2017 2010 2017 Source: VIRAC, GSO 80
2.2 Local market 2.2.3. Soft Drink Internal competition The soft drink market has a high concentration level and great growth potentials which are very much attractive to investors. The domestic enterprises remain weak with inadequate production capacity compared to foreign businesses. Total soft drink enterprises 2010-2016 Source: VIRAC, TCKT 81
2.2 Local market 2.2.3. Soft Drink Vietnam s soft drink market shares, 2016 Soft drink line market shares, 2016 Source: VIRAC Source: VIRAC 82
2.2 Local market 2.2.3. Soft Drink Import export Exports have exceeded imports but with lower values. Soft drink export and import, 2010-2017e Thousand tons Thousand kg Source: VIRAC, United Nations Trade Statistics, GDVC 83
2.2 Local market 2.2.3. Soft Drink Fruit juice exports are potential, bringing about high revenue for the country due to abundant raw material sources. Thousand tons Fruit juice export and import, 2010-2017e Thousand kg Soft beverage export and import, 2010-2017e Source: VIRAC, United Nations Trade Statistics, GDVC Thousand tons Thousand kg Source: VIRAC, United Nations Trade Statistics, GDVC 84
2.2 Local market 2.2.3. Soft Drink The Asia is a main fruit juice consumer and supplier Vietnam. Vietnam s fruit juice consumer structure 2017e Vietnam s fruit juice supplier structure 2017e Source: VIRAC, United Nations Trade Statistics, GDVC Source: VIRAC, United Nations Trade Statistics, GDVC 85
2.2 Local market 2.2.3. Soft Drink Similar to the fruit juice segment, Vietnam s soft drink also deals with the Asia as a major im-exporter. Vietnam s soft drink consumer structure 2017e Vietnam s soft drink supplier structure 2017e Source: VIRAC, United Nations Trade Statistics Source: VIRAC, Euromalt, United Nations Trade Statistics 86
2.2 Local market 2.2.3. Soft Drink 10 Vietnam s biggest soft drink importing enterprises 2017e 10 Vietnam s biggest soft drink exporting enterprises 2017e Source: VIRAC, GDVC Source: VIRAC, GDVC Top largest fresh drink exporters Vietnam 2017e Top Vietnam s largest fresh drink importers 2017e Source: VIRAC, GDVC Source: VIRAC, GDVC 87
2.2 Local market 2.2.3. Soft Drink 10 Vietnam s biggest fruit juice exporting enterprises 2017e 10 Vietnam s biggest fruit juice importing enterprises 2017e Source: VIRAC, GDVC Source: VIRAC, GDVC Top 10 fruit juice exporters to Vietnam 2017e Top 10 fruit juice importers to Vietnam 2017e Source: VIRAC, GDVC Source: VIRAC, GDVC 88
Content 2. Industry overview 2.1 Global market 2.2 Local market 2.3 Risk 2.4 Planning and development 2.5 Prospect 89
2.3 Risks - 2.3.1 SWOT analysis Strength: Weakness: Opportunities: Challenges: 90
2.3 Risks -2.3.2 Competitiveness analysis (5-forces) 5 4 3 2 1 0 5 Customer power Source: Synthesized by VIRAC 3 1-1 Source: Synthesized by VIRAC 91
2.3 Risks -2.3.2 Competitiveness analysis (5-forces) Supplier power 5 4 3 2 1 0 5 4 3 2 1 0 Potential competitors Source: Synthesized by VIRAC Nguồn: VIRAC tổng hợp 92
2.3 Risks -2.3.2 Competitiveness analysis (5-forces) Subsitute product risks 5 4 3 2 1 0 Source: Synthesized by VIRAC Internal competition 5 4 3 2 1 0 Source: Synthesized by VIRAC 93
2.3 Risks - 2.3.3 Operating risks 3.1 Production risks Input material risks: Food safety risks: 94
2.3 Risks - 2.3.3 Operating risks Production policy risks: Supply chain risks: Consumption policy risks: 95
2.3 Risks - 2.3.3 Operating risks Competitiveness risks: Consumer taste risks: 96
2.3 Risks - 2.3.3 Operating risks Media communication risks: M&A risks: 97
Content 2. Industry overview 2.1 Global market 2.2 Local market 2.3 Risk 2.4 Planning and development 2.5 Prospect 98
2.4 Planning and development Target Beer Wine Soft Drink Product planning: Source: VIRAC Production area planning and capital investment Region Production capacity by region (million litres) 2015 2025 Capital investment 2011-2015 (billion VND) Source: VIRAC 99
Content 2. Industry overview 2.1 Global market 2.2 Local market 2.3 Risk 2.4 Planning and development 2.5 Prospect 100
2.5 Prospect -2.5.1 Motivations Population: Income: Lifestyle and consumer habits: 101
2.5 Prospect -2.5.1 Motivations FTAs positive impacts Other factors 102
Content 3 Enterprise analysis 3.1 Profitability 3.2 Operating capability 3.3 Financial strength 3.4 Return on investment 103
3. Enterprise analysis List of major beverage enterprises, 2015 List of 13 major beverage enterprises 2016 No. FDI enterprise Net revenue (billion) OWNER S EQUITY (billion VND) State ownership Total assets (billion VND) 1 2 3 4 5 6 7 8 9 10 Source: Synthesized by VIRAC 104
Content 3 Enterprise analysis 3.1 Profitability 3.2 Operating capability 3.3 Financial strength 3.4 Return on investment 105
3. Enterprise analysis 3.1 Profitability Billion VND Rate of turnover, 2015-2016 Source: Synthesized by VIRAC 106
3. Enterprise analysis 3.1 Profitability 107
3. Enterprise analysis 3.1 Profitability Billion VND Gross profit and gross profit margin, 2016 Source: Synthesized by VIRAC 108
Content 3 Enterprise analysis 3.1 Profitability 3.2 Operating capability 3.3 Financial strength 3.4 Return on investment 109
3. Enterprise analysis 3.2 Operating capability Turnover of receivables 2016 Corporate inventory turnover 2016 Unit: times Source: Synthesized by VIRAC Source: Synthesized by VIRAC 110
3. Enterprise analysis 3.2 Operating capability Asset performance, 2016 Unit: times Source: Synthesized by VIRAC 111
Content 3 Enterprise analysis 3.1 Profitability 3.2 Operating capability 3.3 Financial strength 3.4 Return on investment 112
3. Enterprise analysis 3.3 Financial strength Tan Hiep Phat and Vang Thang Long have debt/equity as well as debt/total assets many times higher than the industry average. Solvency capacity, 2016 Source: Synthesized by VIRAC 113
3. Enterprise analysis 3.3 Financial strength Payment capacity, 2016 Source: Synthesized by VIRAC 114
Content 3 Enterprise analysis 3.1 Profitability 3.2 Operating capability 3.3 Financial strength 3.4 Gross profit margin 2015 115
3. Enterprise analysis 3.4 Gross profit margin ROA and ROE 2015-2016 Source: Synthesized by VIRAC 116
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