vietnam corn market report q1/2018 · 2018. 5. 30. · vietnam corn market report q1/2018. 2...

1

VIETNAM CORN MARKET REPORT Q1/2018

2

Content

3

Abbreviations

4

Executive summary

Maize is one of the five major food crops of the

world.

Asia is the world's largest consumer of corn

with total corn consumption volume in

2016/2017

In Vietnam, maize is the second largest food

crop after rice. Compared to other countries,

maize yields are relatively low.

Canned sweet corn and corn starch are

currently two main corn products produced

domestically.

Content is intentionally removed for demo purpose

5

Executive summary

Corn production in the country does not meet

the demand of domestic consumption leading

to the situation that Vietnam still imports a

large amount of corn grains.

In 2016 and 2017, the grain stockpiles in the

whole country have been reduced and

maintained at a stable level thanks to demand

that does not spike as in previous years.

Domestic corn prices in recent years always

follow the fluctuation of world prices.


Content

6

1. Business environment

1.1 Macroeconomic situation

1.2 Legal framework

1.3 Free trade agreements


1.1. Macroeconomic situation

7

Source: VIRAC, GSO

Source: VIRAC, GSO

GDP in 2017 was estimated to increase by 6.81% compared to 2016,

in which increasing by 5.15% in Q1, 6.28% in Q2, 7.46% in Q3 and

7.65% in Q4.

GDP growth, 2011 - 2017

GDP structure at current prices, 2017




8

Source: VIRAC, GSO

Gross output of agriculture, forestry and fishery, Q4/2015 – Q4/2017




9

Source: VIRAC, MARD

Source: VIRAC, MARD

USD million

In 2017, cattle feed and animal feed ingredients continue to be the most

imported commodities for the domestic agricultural sector,

Import structure of main agricultural products

Maize import and import structure of major agricultural products, 2011-2017e




10

Source: VIRAC, SBV

VND/USD exchange rate in 2017 remained quite stable around 22,400.

Source: VIRAC, Nielsen

Consumer Confidence Index, 2014 – Q3/2017

VND/USD exchange rate, 2016-2017


Content

11



1.2 Legal framework



1.2. Legal framework

12

On 4/16/2012, the Ministry of Agriculture and Rural Development issued Decision No. 824/QD-BNN-TT approving the project of developing cultivation till

2020 with a vision to 2030.




13

On July 31, 2014, the Ministry of Agriculture and Rural Development issued Decision No. 3367/QD-BNN-TT approving the plan on restructuring the rice crop in

the period 2014-2020.




14

On 5/27/2016, the Prime Minister issued Decision 915 / QD-TTg on support policy for conversion from rice cultivation to maize in the midland, mountainous

area, north, north central, delta Mekong River, South Central Coast and Central Highlands.




15

National standards




16

National standards

10 TCN 577:2004: STANDARDS FOR SWEET CORN MATERIALS USED IN PROCESSING

Indicator Requirement

Quality criteria




17

Weight criteria

Food hygiene and safety criteria


Content

18



1.2 Legal framework



1.3. Free trade agreements

19

1995

ACFTA

1998

2000

2002

2006

2007

2008

2009

2011 2015

Vietnam's integration process since 1995 to date

By the end of 2016, Vietnam has signed, implemented, and has been negotiating a total of 16 free trade agreements (FTAs). Accession to international

trade agreements brings opportunities and challenges for domestic firms.

2016




20

Trans-Pacific Partnership Agreement TPP




21

RCEP


Content

22

2. World corn market

2.1 Value chain of production

2.2 Production

2.3 Consumption

2.4 Import Export

2.5 Inventory

2.6 Price movement

2.7 Current status in some typical countries



23

Global corn processing chain

Source: VIRAC, Hiệp hội Tinh chế ngô


Content

24



2.2 Production

2.3 Consumption

2.4 Import Export

2.5 Inventory

2.6 Price movement



2.2 Production

25

N Maize is one of the five major food crops of the world.

Currently, five Chinese, American, Brazilian, Indian and Mexican

populations now have the largest maize area in the world.

Corn harvesting area by season, 2011/2012 - 2016/2017

Top 5 countries with the largest maize crop area, 2011/2012 – 2016/2017

Million ha

Source: VIRAC, USDA

Million ha

Source: VIRAC, USDA



2.2 Production

26

World corn production has been fluctuating for many years.

Source: VIRAC, USDA

Ton/ha

Thousand tons

World corn production by crop, 2011/2012 - 2016/2017

Source: VIRAC, USDA

World maize yield by crop, 2010/2011 - 2016/2017



2.2 Production

27

Source: VIRAC, USDA

Rank CountryVolume

(Thousand tons)Share

Top the world's largest producer of corn, 2016/2017

Source: VIRAC, USDA

Although South America's maize production is just one-third of North

America, half of Asia, South America also has a number of countries in the

world's top corn producing nations, such as Brazil and Argentina.

World corn production structure by region, 2016/2017


Content

28



2.2 Production

2.3 Consumption

2.4 Import Export

2.5 Inventory

2.6 Price movement



2.3 Consumption

29

Source: VIRAC, USDA

World corn consumption by crop, 2011/2012 - 2016/2017

Thousand tons



2.3 Consumption

30

Rank CountryVolume

(Thousand tons)Share

Source: VIRAC, USDA

World’s top corn consuming countries, 2016/2017

Source: VIRAC, USDA

Asia is the world's largest consumer of corn with total corn sales in 2016/2017 World corn consumption structure by region, 2016/2017


Content

31



2.2 Production

2.3 Consumption

2.4 Import Export

2.5 Inventory

2.6 Price movement



2.4 Import Export – 2.4.1. Export

32

Source: VIRAC, USDA

Total output of world corn exports has been fluctuating in recent years.

Source: VIRAC, USDA

Thousand tons

World corn exports by crop, 2013/2014 - 2016/2017

World’s top corn exporting countries, 2016/2017

Thousand tons



2.4 Import Export – 2.4.2. Import

33

Source: VIRAC, USDA

Source: VIRAC, USDA

Maize is widely consumed in many countries around the world for the

animal feed industry and consumer food, the world corn import volume

has continuously increased in recent years.

World corn imports by crop, 2013/2014 - 2016/2017

World corn import structure by region, 2016/2017

Thousand tons



2.4 Import Export – 2.4.2. Import

34

Source: VIRAC, USDA

World’s top corn importing countries, 2016/2017Thousand tons


Content

35



2.2 Production

2.3 Consumption

2.4 Import Export

2.5 Inventory

2.6 Price movement



2.5 Inventory

36

Source: VIRAC, USDA

World’s top countries with the largest corn stockpiles, 2016/2017

Structure of world maize stocks by region, 2016/2017Source: VIRAC, USDA

Thousand tons


Content

37



2.2 Production

2.3 Consumption

2.4 Import Export

2.5 Inventory

2.6 Price movement



2.6 Price movement

38

Source: VIRAC, USDA, FAO

World corn prices, 10/2013 - 9/2017

USD/ton


Content

39



2.2 Production

2.3 Consumption

2.4 Import Export

2.5 Inventory

2.6 Price movement




40

The United States

Corn production, consumption and exports in the US,

2013/2014-2016/2017

Source: VIRAC, USDA

Thousand tons




41

China

Source: VIRAC, USDA, StatistaSource: VIRAC, USDA

China's corn production structure by region, 2016Corn production, consumption and imports in China,

2013/2014-2016/2017Thousand tons




42

Brazil

Corn production, consumption and exports in Brazil,

2013/2014-2016/2017Thousand tons

Source: VIRAC, USDA


3. Vietnam corn market

3.1 Definition and classification


3.3 Production process and technology

3.4 Production

3.5 Consumption

3.6 Import Export

3.7 Inventory

3.8 Price movement

Content

43



44

Classification of maize in Vietnam

Corn for grains




45

Corn for food processing

Corn for feed processing Content is intentionally removed for demo purpose

46


3.4 Production

Corn growing area

Source: VIRAC

Distribution of maize growing areas throughout the country






3.4 Production

3.5 Consumption

3.6 Import Export

3.7 Inventory

3.8 Price movement

Content

47



48

Value chain of production

Activities

Factors






3.4 Production

3.5 Consumption

3.6 Import Export

3.7 Inventory

3.8 Price movement

Content

49



50

Production process of canned sweet corn


51



Corn starch production process


52








3.4 Production

3.5 Consumption

3.6 Import Export

3.7 Inventory

3.8 Price movement

Content

53


3.4 Production

54

Thousand ha

Source: VIRAC, MARD

Source: VIRAC, MARD

Area of corn harvest, 2011-2017e

Structure of maize harvest area by area, 2017e


55


3.4 Production

Quintal/ha

Quintal/ha

Source: VIRAC, MARD

Source: VIRAC, MARD

Although the area of corn harvest in the country in 2017 decreased

compared to 2016, but the yield of corn continues to achieve stable

growth.

Corn yields by region, 2013-2017e

Corn yields, 2011-2017e


56


3.4 Production

Thousand tons

Source: VIRAC, MARD

Source: VIRAC, MARD

That area of cultivation decreases across the country has caused the

output of the harvest also from that decline.

Corn production structure by region, 2017e

Corn production, 2011-2017e


57


3.4 Production

Ton

Ton

Source: VIRAC, MARD

Source: VIRAC, MARD

Canned sweet corn and corn starch are currently two main corn

products produced domestically.

Corn starch production, 2010-2017

Canned sweet corn production, 2010-2017e






3.4 Production

3.5 Consumption

3.6 Import Export

3.7 Inventory

3.8 Price movement

Content

58

59


3.5 Consumption

Thousand tons

Source: VIRAC, USDA

Corn grain consumption, 2011/2012-2017/2018e


60

Thousand tons

Source: VIRAC, USDA

Source: VIRAC, USDA


3.5 Consumption

Corn grain consumption by intended use,

2011/2012-2017/2018e

Structure of corn grain consumption, 2017/2018e


61


3.5 Consumption

Ton

Ton VND million

VND million

Source: VIRAC, GSO

Source: VIRAC, GSO

Corn starch consumption, 2010-2017

Canned sweet corn consumption, 2010-2017






3.4 Production

3.5 Consumption

3.6 Import Export

3.7 Inventory

3.8 Price movement

Content

62

63


3.6 Import Export – Export

Thousand tons

Source: VIRAC, USDA

Corn grain exports, 2013-2017e


64


3.6 Import Export – Import

Thousand tons

Source: VIRAC, GDVC

Source: VIRAC, GDVC

Corn production in the country does not meet the demand of

domestic consumption leading to the situation that Vietnam still

imports a large amount of corn grains.

USD million

Corn grain import structure by country, 2017e

Corn grain imports, 2011-2017e






3.4 Production

3.5 Consumption

3.6 Import Export

3.7 Inventory

3.8 Price movement

Content

65

66

Thousand tons

Source: VIRAC, USDA


3.7 Inventory

Corn grain inventories, 2011-2017


67


3.7 Inventory

Ton

Ton

Source: VIRAC, GSO

Source: VIRAC, GSO

Inventory of canned sweet corn, 2011-2017

Inventory of corn starch, 2010-2017






3.4 Production

3.5 Consumption

3.6 Import Export

3.7 Inventory

3.8 Price movement

Content

68

69


3.8 Price movement

Source: VIRAC, US Grain Council

Domestic corn prices and import prices, 7/2014-1/2017


4. Risks

Content

70

71

4. Risks

Risk in production :

Risk in competing with new maize varieties:

Risks in corn prices :

Risk of exchange rate fluctuation :

Competitive risk of quality factor :

Risk from competitors :


5. Industry planning

Content

72

73

On December 28, 2016, the Ministry of Agriculture and Rural Development issued Decision No.5448/QD-BNN-TT approving "Master plan for national

corn production up to 2025 and orientation to 2030".

5. Industry planning


6. Outlook and forecast

6.1 Outlook

6.2 Forecast

Content

74

75


6.1 Outlook

Geographic Prospects:



6.1 Outlook

6.2 Forecast

Content

76

77

Thousand

tons

Source: VIRAC

Source: VIRAC

Thousand

tons


6.2 Forecast

Corn consumption, 2014/2015-2020-2021f

Corn production, 2014-2020f


Content

78

7 Enterprise analysis

7.1 Enterprise overview

7.2 Profitability

7.3 Solvency

7.4 Debt repayment capability

7.5 Performance efficiency

7.6 Profit ratio

79

7. Enterprise analysis


No Enterprise Revenue in 2016

1 QUOC DUNG COMPANY LIMITTED

2 MASCOPEX JOINT STOCK COMPANY

3 CBOT VIETNAM JOINT STOCK COMPANY

4 T & T AGRICULTURAL CO., LTD

5 HOANG LUAN TRADING - SERVICE CO., LTD

6 KHAI ANH - BINH THUAN IMPORT AND EXPORT CO., LTD

7 DUONG VAN DUNG COMPANY LIMITTED

8 INTIMEX DAKNONG JOINT STOCK COMPANY

9 TAN DONG TIEN JOINT STOCK COMPANY

10 TAN TAI AGRICULTURAL FOODS CO., LTD

Top corn wholesale businesses having the largest turnover in 2016


QUOC DUNG COMPANY LIMITTED

80

Enterprise introduction


MASCOPEX JOINT STOCK COMPANY

81



CBOT VIETNAM JOINT STOCK COMPANY

82



T & T AGRICULTURAL CO., LTD

83



HOANG LUAN TRADING - SERVICE CO., LTD

84



KHAI ANH - BINH THUAN IMPORT AND EXPORT CO., LTD

85



86


DUONG VAN DUNG COMPANY LIMITTED


INTIMEX DAKNONG JOINT STOCK COMPANY

87



TAN DONG TIEN JOINT STOCK COMPANY

88


YearVolume

(Ton)

Revenue

(USD)


TAN TAI AGRICULTURAL FOODS CO., LTD

89



Content

90



7.2 Profitability

7.3 Solvency



7.6 Profit ratio

91

Source: VIRAC

VND billion


7.2 Profitability

Net revenue growth, 2015-2016


92

VND billion

Source: VIRAC


7.2 Profitability

Gross profit growth, 2016


Content

93



7.2 Profitability

7.3 Solvency



7.6 Profit ratio

94

Source: VIRAC


7.3 Solvency

Solvency, 2016


95

Source: VIRAC


7.3 Solvency

Roun

d

Account receivable turnover, 2016


Content

96



7.2 Profitability

7.3 Solvency



7.6 Profit ratio

97

Source: VIRAC



TimeDebt service coverage, 2016


Content

98



7.2 Profitability

7.3 Solvency



7.6 Profit ratio

99

Source: VIRAC

Source: VIRAC



Round

Round

Total asset turnover, 2016

Fixed asset turnover, 2016


100

Source: VIRAC

Source: VIRAC



VND billion

VND billion

Administrative expenses, 2016

Selling expenses, 2016


Content

101



7.2 Profitability

7.3 Solvency



7.6 Profit ratio

102

Source: VIRAC


7.6 Profit ratio

Profit ratio, 2016


103

Appendix

Content

104

Appendix

Financial Statements

QUOC DUNG COMPANY LIMITTED

BALANCE SHEET

Unit: VND 2015 2016

A. CURRENT ASSETS

I. Cash and cash equivalents

II. Short-term Investments

III. Short-term Receivables

1. Short-term trade receivables

IV. Inventories

B. NON-CURRENT ASSETS

TOTAL ASSETS

A. LIABILITIES

I. Short-term Liabilities

1. short-term borrowings and finance lease liabilities

2. taxes and other payables to government budget

II. Long-term Liabilities

1. long- term borrowings and finance lease liabilities

2. long-term provisions

B. OWNER’S EQUITY

TOTAL LIABILITIES AND OWNERS’EQUITY

INCOME STATEMENT

Unit: VND 2015 2016

Net Revenue from Sales and services rendered

Cost of goods sold

Gross Profit from sales and services rendered

Financing income

Financial expenses

In which: Interest Expenses

Selling Expenses

General & adminitrative expenses

Net profits from operating activities

Total Net Profit Before Tax

Current Corporate Income Tax Expenses

Deferred Corporate Income Tax Expense

Profit After Enterprise Income Tax

CASH FLOW STATEMENT

Unit: VND 2015 2016

I. Cash Flow From Operating activities

Depreciation of fixed assets

Gains (losses) on unrealized exchange rate

Net Cash Flow From Operating Activities

II. Cash Flow From Investing activities

Expenditures on purchase and construction of fixed assets

and long-term assets

Net Cash Flows from Investing activities

III. Cash Flow From Financial activities

Proceeds from the issue of shares, capital contribution of

the owner

Net cash Flow From Financial activities

Net Cash Flow during the fiscal period


105

Appendix


MASCOPEX JOINT STOCK COMPANY

BALANCE SHEET

Unit: VND 2015 2016

A. CURRENT ASSETS





IV. Inventories


TOTAL ASSETS

A. LIABILITIES







B. OWNER’S EQUITY


INCOME STATEMENT

Unit: VND 2015 2016


Cost of goods sold


Financing income

Financial expenses


Selling Expenses







CASH FLOW STATEMENT

Unit: VND 2015 2016











the owner




106

Appendix


CBOT VIETNAM JOINT STOCK COMPANY

BALANCE SHEET

Unit: VND 2015 2016

A. CURRENT ASSETS





IV. Inventories


TOTAL ASSETS

A. LIABILITIES







B. OWNER’S EQUITY


INCOME STATEMENT

Unit: VND 2015 2016


Cost of goods sold


Financing income

Financial expenses


Selling Expenses







CASH FLOW STATEMENT

Unit: VND 2015 2016











the owner




107

Appendix


T & T AGRICULTURAL CO., LTD

BALANCE SHEET

Unit: VND 2015 2016

A. CURRENT ASSETS





IV. Inventories


TOTAL ASSETS

A. LIABILITIES







B. OWNER’S EQUITY


INCOME STATEMENT

Unit: VND 2015 2016


Cost of goods sold


Financing income

Financial expenses


Selling Expenses







CASH FLOW STATEMENT

Unit: VND 2015 2016











the owner




108

Appendix


HOANG LUAN TRADING - SERVICE CO., LTD

BALANCE SHEET

Unit: VND 2015 2016

A. CURRENT ASSETS





IV. Inventories


TOTAL ASSETS

A. LIABILITIES







B. OWNER’S EQUITY


INCOME STATEMENT

Unit: VND 2015 2016


Cost of goods sold


Financing income

Financial expenses


Selling Expenses







CASH FLOW STATEMENT

Unit: VND 2015 2016











the owner




109

Appendix


KHAI ANH - BINH THUAN IMPORT AND EXPORT CO., LTD

BALANCE SHEET

Unit: VND 2015 2016

A. CURRENT ASSETS





IV. Inventories


TOTAL ASSETS

A. LIABILITIES







B. OWNER’S EQUITY


INCOME STATEMENT

Unit: VND 2015 2016


Cost of goods sold


Financing income

Financial expenses


Selling Expenses







CASH FLOW STATEMENT

Unit: VND 2015 2016











the owner




110

Appendix


DUONG VAN DUNG COMPANY LIMITTED

BALANCE SHEET

Unit: VND 2015 2016

A. CURRENT ASSETS





IV. Inventories


TOTAL ASSETS

A. LIABILITIES







B. OWNER’S EQUITY


INCOME STATEMENT

Unit: VND 2015 2016


Cost of goods sold


Financing income

Financial expenses


Selling Expenses







CASH FLOW STATEMENT

Unit: VND 2015 2016











the owner




111

Appendix


INTIMEX DAKNONG JOINT STOCK COMPANY

BALANCE SHEET

Unit: VND 2015 2016

A. CURRENT ASSETS





IV. Inventories


TOTAL ASSETS

A. LIABILITIES







B. OWNER’S EQUITY


INCOME STATEMENT

Unit: VND 2015 2016


Cost of goods sold


Financing income

Financial expenses


Selling Expenses







CASH FLOW STATEMENT

Unit: VND 2015 2016











the owner




112

Appendix


TAN DONG TIEN JOINT STOCK COMPANY

BALANCE SHEET

Unit: VND 2015 2016

A. CURRENT ASSETS





IV. Inventories


TOTAL ASSETS

A. LIABILITIES







B. OWNER’S EQUITY


INCOME STATEMENT

Unit: VND 2015 2016


Cost of goods sold


Financing income

Financial expenses


Selling Expenses







CASH FLOW STATEMENT

Unit: VND 2015 2016











the owner




113

Appendix


TAN TAI AGRICULTURAL FOODS CO., LTD

BALANCE SHEET

Unit: VND 2015 2016

A. CURRENT ASSETS





IV. Inventories


TOTAL ASSETS

A. LIABILITIES







B. OWNER’S EQUITY


INCOME STATEMENT

Unit: VND 2015 2016


Cost of goods sold


Financing income

Financial expenses


Selling Expenses







CASH FLOW STATEMENT

Unit: VND 2015 2016











the owner




REPORT DISCLAIMER

114

REPORT DISCLAIMER

This document has been prepared in good faith on the basis of information available at the date of publication without any independent verification.

VIRAC has produced this report for private circulation to professional clients only. All information and statistical data herein have been obtained from

sources we believe to be reliable and made to ensure the accuracy of the contents of the pages of the report at the time of preparation. Such information

has not been independently verified and VIRAC makes no representation or warranty, whether express or implied, of any kind with respect to the

document and its contents, information and materials. The content found in this report is proprietary to VIRAC and is provided solely for your personal

and non-commercial use. You agree that you will not use this report for any purpose that is unlawful and that you will not reproduce the report or

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Email: [email protected] | Tel: +84 463289520

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vietnam corn market report q1/2018 · 2018. 5. 30. · vietnam corn market report q1/2018. 2...

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