vietnam cement industry report q3/2018...2.2 vietnam cement industry 2.3 swot analysis 2.4 industry...
TRANSCRIPT
VIETNAM CEMENT INDUSTRY REPORT Q3/2018
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Content
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Summary 4
1. Business environment 6
1.1 Macroeconomic situation 6
1.2 Legal framework 12
2. Industry overview 20
2.1 World cement industry 20
2.1.1 Production 21
2.1.2 Consumption 24
2.2 Vietnam cement industry 25
2.2.1 History of Vietnam cement industry 25
2.2.2 Definition and Classification 26
2.2.3 Basic production process 27
2.2.4 Scale and market share 29
2.2.5 Supply-Demand 31
2.2.6 Cement and clinker export 32
2.2.7 Price movement 38
2.3 SWOT analysis 42
2.4 Industry planning 45
2.5 Outlook and forecast 48
2.5.1 Driving forces of industry development 49
2.5.2 Driving forces of output industry development 50
3. Enterprise analysis 51
3.1 Profitability 63
3.2 Performance efficiency 67
3.3 Financial strength 70
3.4 Return on investment 72
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ADB Asian Development Bank
BOT Build – Operate - Transfer
EVN Vietnam Electricity Corporation
FDI Foreign Direct Investment
FIA Foreign Investment Agency
ICR International Cement Review
Abbreviations
PPP Public – Private Partner
GDVC General Department of Vietnam Customs
GSO General Statistics Office of Vietnam
TKVVietnam National Coal and Mineral Industries Holding
Corporation Limited
VICEM Vietnam Cement Industry Corporation
VIRAC VIRAC Joint Stock Company
VNCA Vietnam National Cement Association
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Summary
Content is intentionally removed for demo purposeVietnam cement market continues to have
excess supply
In 6M/2018, the number of produced
cement was estimated about xx.xx million
tons.
The quantity of exported cement and clinker
in 6M/2018 reached xx.xx million tons
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Summary
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Selling products directly to projects and
industrial customers will be a new trend in this
sector in few next years
In 2017, cement industry experienced
difficulties with decrease in revenue and high
inventory quantity.
The demand is projected to gradually increase
by x-x% between 2016 - 2020
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1. Business environment
1.1 Macroeconomic situation
1.2 Legal framework
Content
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Sources: VIRAC, GSO
Sources: VIRAC, GSO
Total gross domestic product in 6M/2018 is estimated to increase by x.xx%
compared to the same period in 2017
GDP per capita has increased strongly over the past few years.GDP by current price and GDP per capita, 2013-6M/2018
GDP growth rate by quarter, 2015- Q2/2018
1. Business environment
1.1 Macroeconomic situation
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1. Business environment
1.1. Macroeconomic situation
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Source: VIRAC, SBV
Source: VIRAC, GSO
%
Industrial production index of the manufacturing, 2012 – 6M/2018
VND/USD exchange rate, 2013-6M/2018
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The VND/USD exchange rate was quite stable and still supported
by a plentiful supply of foreign currencies.
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Source: VIRAC, GSO
Source: VIRAC, GSO
trillion VND
trillion VND
1. Business environment
1.1 Macroeconomic situation
State revenues, 6M/2018
Government expenditures, 6M/2018
State revenues and expenditures
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Sources: VIRAC, GSO
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1. Business environment
1.1 Macroeconomic situation
Structure of social investment capital, 6M/2018
The rate of development of social investment capital in the first
six months, 2015 - 2018
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Sources: VIRAC, FIA
Sources: VIRAC, FIA
FDI attraction by sector, Q1/2018
FDI capital, 2014 – 6M/2018Billion USD
Foreign direct investment
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1. Business environment
1.1 Macroeconomic situation
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1. Business environment
1.1 Macroeconomic situation
1.2 Legal framework
Content
1. Business environment
1.2 Legal framework - Group of general regulations
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Decision No.1488/QD-TTg established stricter conditions for new entrants by establishing different technical requirements:
Regulations on WHRPG (according to Decision No.1488/QĐ-TTg):
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1. Business environment
1.2 Legal framework - Group of general regulations
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Advantages Disadvantages
WHRPG system:
WHRPG Funds:
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Decree No. 177/2013 / ND-CP
1. Business environment
1.2 Legal framework - Group of price regulations
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1. Business environment
1.2 Legal framework - Group of price regulations
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Tax policy:
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1. Business environment
1.2 Legal framework - Group of environmental and resources regulations
No Parameter
Concentration C (mg/m³)
A B1 B2
Type of resourceTaxation
(%)
Applicable tax
rate (%)
Taxable
Items
Unit Tax rate raised by
National Assembly
(VND/unit)
Tax rate raised
by the Standing
Committee
Environmental Protection Tax (EPT)
Natural Resources Tax (NRT)
Environmental Protection Tax applied since 1/2012
Natural Resources Tax applied since 2/1/2014
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However, the tax rate on the resources has been reacted strongly by the business
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1. Business environment
1.2 Legal framework - Group of environmental and resources regulations
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1. Business environment
1.2 Legal framework - Group of Export Tax Regulations
The Ministry of Finance issued Decree No.122/2016/ND/CP dated 1 September 2016
Materials:
Clinker and cement:
No Item Export tax rate (%) Import tax rate (%)
Decree No.122/2016/ND/CP
Import and Export Tariffs applied since 2016
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2. Industry overview
2.1 World cement industry
2.2 Vietnam cement industry
2.3 SWOT analysis
2.4 Industry planning
2.5 Outlook and forecast
Content
2. Industry overview
2.1 World cement industry – 2.1.1 Production
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Source: VIRAC, Statista
Cement production in Asia is leading the world,
Cement production by region 2017e
Global Cement Production, 2011 – 2017e
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Million tons
China is currently the largest cement producer in the world,
No CountryProduction volume
(million tons)
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Cement production output of some countries, 2017
Sources: VIRAC, Statista
Sources: VIRAC, Statista
Top largest cement producing countries, 2017e
2. Industry overview
2.1 World cement industry – 2.1.1 Production
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2. Industry overview
2.1 World cement industry – 2.1.2 Consumption
Source: VIRAC, Global Cement
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Source: VIRAC, International Cement Review
Global Cement Consumption, 2010 – 2018e
Consumption structure of cement worldwide, 2017e
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Million tons
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2. Industry overview
2.1 World cement industry
2.2 Vietnam cement industry
2.3 SWOT analysis
2.4 Industry planning
2.5 Outlook and forecast
Content
2. Industry overview
2.2 Vietnam cement industry – 2.2.1 History of Vietnam cement industry
Cement industry is one of the earliest established industries in
Vietnam (along with coal, textile, railway ...)
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2. Industry overview
2.2 Vietnam cement industry – 2.2.2 Definition and Classification
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Definition:
Clinker
Cement
Classification
Vietnam commonly used standards on cement today:
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2. Industry overview
2.2 Vietnam cement industry – 2.2.3 Basic production process
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2. Industry overview
2.2 Vietnam cement industry – 2.2.3 Basic production process
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2. Industry overview
2.2 Vietnam cement industry – 2.2.4 Scale and market share
Source: VIRAC, GSO
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Manufacturing enterprises allocation by region, 2016e
Chain allocation by area, 2017
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2. Industry overview
2.2 Vietnam cement industry – 2.2.4 Scale and market share
There are three main groups of cement suppliers in Vietnam:
Source: VIRAC, VNCA
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Consumption market share of key enterprises, 6M/2018e
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2. Industry overview
2.2 Vietnam cement industry – 2.2.5 Supply-Demand
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Source: VIRAC, VNCA
million tons
* Supply = total output of cement production; Demand = domestic cement consumption + export output of cement, clinker
Cement supply - demand, 2011 – 6M/2018e
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2. Industry overview
2.2 Vietnam cement industry – 2.2.6 Cement and clinker export
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World’s top largest cement exporting countries,
2016 – 2017e
Source: VIRAC, Uncomtrade
Country 2016 2017e
Average cement export price of Vietnam to some markets,
6M/2018e
Source: VIRAC, GDVC
2. Industry overview
2.2 Vietnam cement industry – 2.2.6 Cement and clinker export
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million tons
Source: VIRAC, VNCA
Cement clinker exports, 2010 –6M/2018e
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2. Industry overview
2.2 Vietnam cement industry – 2.2.6 Cement and clinker export
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Thousand tons
Source: VIRAC, GDVC
Cement clinker exports, 1/2015 – 6/2018e
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2. Industry overview
2.2 Vietnam cement industry – 2.2.6 Cement and clinker export
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Source: VIRAC, GDVC
In 2017, the main export markets for cement and clinker are Bangladesh and the Philippines.
Million tons
Export markets for cement and clinker, 2015 -6M/2018e
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The cement exporters of Vietnam are divided into 2 types:
Cement manufacturers:
Trading company :
Capacity of cement manufacturers for export in 2016
2. Industry overview
2.2 Vietnam cement industry – 2.2.6 Cement and clinker export
Source: VIRAC, VNCA
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Million tons/year
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In 6M/2018, for the export of cement directly, Nghi Son, Vincem Bim Son
and Thang Long are the three largest exporting enterprises,
Sources: VIRAC, VNCA
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Sources: VIRAC, VNCA
The enterprises export cement directly, 6M/2018e
Exporters of clinker directly, 6M/2018e
2. Industry overview
2.2 Vietnam cement industry – 2.2.6 Cement and clinker export
2. Industry overview
2.2 Vietnam cement industry – 2.2.7 Price movement
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thousand VND/ton
Sale price of cement at some cement companies, 6M/2018
thousand VND/ton
Retail price of cement in the areas, 6M/2018
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2. Industry overview
2.2 Vietnam cement industry – 2.2.7 Price movement
Cement price in Vietnam is much lower than that of other countries in the region and the world average price.
Source: VIRAC, ICR
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USD/ton Cement price, 2012 – 2018e
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Export price
2. Industry overview
2.2 Vietnam cement industry – 2.2.7 Price movement
Source: VIRAC, Department of
Price Management
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USD/tonExport price of cement and clinker, 6/2015 – 6/2018
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2. Industry overview
2.1 World cement industry
2.2 Vietnam cement industry
2.3 SWOT analysis
2.4 Industry planning
2.5 Outlook and forecast
Content
Strength:
Weakness:
2. Industry overview
2.3 SWOT analysis
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Opportunities:
Threats:
2. Industry overview
2.3 SWOT analysis
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2. Industry overview
2.1 World cement industry
2.2 Vietnam cement industry
2.3 SWOT analysis
2.4 Industry planning
2.5 Outlook and forecast
Content
2. Industry overview
2.4 Industry planning – 2.4.1 Cement industry planning
Decision No. 1488/QD-TTg of the Prime Minister approving the planning on development of Vietnam cement industry.
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2. Industry overview
2.4 Industry planning – 2.4.1 Cement industry planning
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2. Industry overview
2.1 World cement industry
2.2 Vietnam cement industry
2.3 SWOT analysis
2.4 Industry planning
2.5 Outlook and forecast
Content
2. Industry overview
2.5 Outlook and forecast – 2.5.1 Driving forces of industry development
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2. Industry overview
2.5 Outlook and forecast – 2.5.2 Driving forces of output industry development
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Population growth, 2011 – 2017e
Forecast for value of construction and infrastructure,
2010 – 2022f
Source: VIRAC
Source: VIRAC, GSO
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Content
3. Enterprise analysis
3.1 Profitability
3.2 Performance efficiency
3.3 Financial strength
3.4 Return on investment
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3. Enterprise analysis
3.1 Typical enterprises in 2017
Name of enterprise Classification Address
Charter
capital
(million
VND)
Revenue in 2016
(million VND)
1 Ha Tien 1 Cement Joint Stock Company
2 Nghi Son Cement Company
3 The Vissai Cement Corporation
4 VICEM Hoang Thach Cement Company Limited
5 Bim Son Cement Joint Stock Company
6 VICEM But Son Cement Joint Stock Company
7 Thang Long Cement Joint Stock Company
8VICEM Hoang Mai Cement Joint Stock
Company
9Quang Ninh Cement and Construction Joint
Stock Company
10 Sai Son Cement Joint Stock Company
Top 10 cement enterprises with the highest revenue in 2017
Source: VIRAC
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3. Enterprise analysis
Ha Tien 1 Cement Joint Stock Company
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Ha Tien 1 Cement Joint Stock Company
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3. Enterprise analysis
The Vissai Cement Corporation
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The Vissai Cement Corporation
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3. Enterprise analysis
Nghi Son Cement Company
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Nghi Son Cement Company
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3. Enterprise analysis
VICEM Hoang Thach Cement Company Limited
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VICEM Hoang Thach Cement Company Limited
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3. Enterprise analysis
Bim Son Cement Joint Stock Company
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Bim Son Cement Joint Stock Company
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3. Enterprise analysis
VICEM But Son Cement Joint Stock Company
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VICEM But Son Cement Joint Stock Company
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3. Enterprise analysis
Thang Long Cement Joint Stock Company
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Thang Long Cement Joint Stock Company
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3. Enterprise analysis
VICEM Hoang Mai Cement Joint Stock Company
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VICEM Hoang Mai Cement Joint Stock Company
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3. Enterprise analysis
Quang Ninh Cement and Construction Joint Stock Company
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Quang Ninh Cement and Construction Joint Stock Company
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3. Enterprise analysis
Ha Tien 1 Cement Joint Stock Company
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Sai Son Cement Joint Stock Company
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3. Enterprise analysis
3.1 Profitability
3.2 Performance efficiency
3.3 Financial strength
3.4 Return on investment
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3. Enterprise analysis
3.1. Profitability
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Source: VIRAC
Million VND Net revenue, 2016 - 2017
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3. Enterprise analysis
3.1. Profitability
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3. Enterprise analysis
3.1. Profitability
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Source: VIRAC
Million VNDGross profit, 2016 - 2017
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3. Enterprise analysis
3.1 Profitability
3.2 Performance efficiency
3.3 Financial strength
3.4 Return on investment
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3. Enterprise analysis
3.2 Performance efficiency
Source: VIRAC
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Source: VIRAC
Unit: times Unit: times
Fixed asset turnover, 2016 - 2017Total asset turnover, 2016 - 2017
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3. Enterprise analysis
3.2 Performance efficiency
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Source: VIRAC
Unit: timesInventory turnover, 2016 - 2017
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Content
3. Enterprise analysis
3.1 Profitability
3.2 Performance efficiency
3.3 Financial strength
3.4 Return on investment
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3. Enterprise analysis
3.3. Financial strength
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Source: VIRAC
Payment ratio, 2016 - 2017
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3. Enterprise analysis
3.3. Financial strength
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Source: VIRAC
Solvency, 2016 - 2017
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3. Enterprise analysis
3.1 Profitability
3.2 Performance efficiency
3.3 Financial strength
3.4 Return on investment
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3. Enterprise analysis
3.4 Return on investment
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Source: VIRAC
%Profit ratio, 2016 - 2017
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