vietnam export woodchip supply and outlook · 2017-02-15 · in 2016 1,200,000 bdt max acceptable...

VietnamExport Woodchip Supply and Outlook

International Woodfiber Resource and Trade Conference

Copyright © Sojitz Corporation 2017 2

TABLE OF CONTENTS

1. INTRODUCTIONDa Nang City / Sojitz / VIJACHIP

2. HISTORY OF WOODCHIP EXPORTExport data / CIF Transition / Port Information

3. PLANTATION OF VIETNAMPlantation data by area

4. OUTLOOK FOR WOODCHIP EXPORTExport Tax / Other Fiber Demand / Rising Standards of Living and Wages

5. Q&A


Takao at a glance

Takao has been assigned to Danang City as the General Director (President) of VIJACHIP since October 2014.

Takao graduated from Keio University in Tokyo, Japan and joined to Sojitz Corporation (former NISSHO IWAI Corporation) in 1988. He was assigned to the Pulp & Paper Division in 1990 in charge of paper import and export to overseas countries which include the Vietnam market.

In 1993 ～ 1994, Takao took part in the establishment works of QPFL, a joint venture company, the 100% Japanese investment by Oji Paper, Dai Nippon Printing and Sojitz for the plantation of pulp log in Binh Dinh Province, South Central of Vietnam.

1996～1999, Takao was stationed in NISSHO IWAI Representative Office in Ho Chi Minh City in charge of general merchandise trading including woodchip, Paper products, etc.

In 2004～2007, Takao had the 1st assignment of General Director of Japan – Vietnam Chip Corporation ( VIJACHIP : a joint venture company established in 1993 between 5 Vietnamese Forestry Companies in Central Vietnam and NISSHO IWAI COPORATION, for woodchip production and export ).


Danang at a glance

Location Key figures

Reference: DANANG INVESTMENT PROMOTION CENTER


Number of Branches & OfficesDomestic: 4Overseas: 83

Number of Subsidiaries & AffiliatesDomestic: 113Overseas: 283

Number of EmployeesNon-consolidated: 2,270Consolidated: 14,330

(As of March 31, 2016)

The Sojitz Group is a general trading company with a worldwide network comprising approximately 400 group companies and

operations in some 50 countries.

Sojitz Group's Global Network


Automotive Division Aerospace & IT Business Division Infrastructure & Environment Business Division

Foods & Agriculture Business Lifestyle Commodities & Materials Retail Division

Energy Division Metals & Coal Division Chemicals Division

Overview of Sojitz Operations

Copyright © Sojitz Corporation 2017

HANOI

HO CHI MINH

CAI LAN

VUNG ANG

DA NANG

DUNG QUAT

QUY NHON

7

SAWING LUMBERSojitz Yoshimoto (JPN)

AFFORESTATIONQPFL(VN) / GPFL(AU)

Upper Stream

PULP AND PAPER DISTRIBUTORNissho Iwai Paper and Pulp (JPN)

Down Stream

VIJACHIP Cai LanFoundation: 2004Export Capacity: 350,000 BDTLoading Port CailanPort Share(‘15) 17%

More about VIJACHIP

Middle Stream

WOODCHIP MILLVIJACHIP (VN)PLYWOOD AND PANEL

Sojitz Building Materials Corporation (JPN)

VIJACHIP Vung AngFoundation: 2001Export Capacity: 300,000 BDTLoading Port Vung AngPort Share(‘15) 49%

VIJACHIP Da NangFoundation: 1993Export Capacity: 250,000 BDTLoading Port Da NangPort Share(‘15) 76%

VIJACHIP Dung QuatFoundation: 2013Export Capacity: 250,000 BDTLoading Port Dung QuatPort Share(‘15) 4%

QPFLFoundation: 1995Loading Port Quy Nhon Planted Area (Oct, 16) 9,866ha

Forests Products Department


Woodchip Operation of Sojitz / VIJACHIP

VIJACHIP Export History

VIJACHIP Da NangMill relocation (2016)

VIJACHIP Dung QuatFoundation (2013)

VIJACHIP Cai LanFoundation (2004)

VIJACHIP Da NangFoundation (1993)

VIJACHIP Vung AngFoundation (2001)


Vietnam has been the biggest export country since 2011. Japan increased the import from Vietnam from 1.5mil BDT in 2012 to 2.7mil BDT in 2016.

Vietnam Woodchip Export History

Reference: RISI


Vietnam has been competitive in terms of CIF price. The price differential between Vietnam and others is gradually narrowing.

Comparison of CIF price transition in 2016

Reference: RISI


HANOI

HO CHI MINH

CAI LAN

VUNG ANG

DA NANG

DUNG QUAT

QUY NHON

11

Cai Lan portExport in 2013 1,000,000 BDT

in 2016 1,200,000 BDTMax Acceptable

Cubic Feet 4.7mil cft

Major Woodchip Export Ports in Vietnam

CHAN MAY

Chan May portExport in 2013 590,000 BDT

in 2016 450,000 BDTMax Acceptable


Vung Ang portExport in 2013 500,000 BDT



Da Nang portExport in 2013 380,000 BDT



PHU MYPhu My portExport in 2013 401,000 BDT

in 2016 N/A Max Acceptable


Dung Quat portExport in 2013 1,270,000 BDT

in 2016 1,700,000 BDTMax Acceptable


Quy Nhon portExport in 2013 700,000 BDT



Cam Ranh portExport in 2013 135,000 BDT

in 2016 N/AMax Acceptable


Nghi Son portExport in 2013 281,000 BDT

in 2016 N/AMax Acceptable


CAM RANH

NGHI SON


HANOI

DUNG QUAT

CAI LAN

VUNG ANG

HO CHI MINH

QUY NHON

DA NANG

12

Plantation in Vietnam

CHAN MAY

Vietnam (as of Dec.2015)

Natural Area 33.1mil ha

Forest Area 14.1mil ha

Natural Forest (10.2mil ha)Planted Forest (3.9mil ha)

Northern VietnamMajor Export Ports Cai Lan, Hai Phong

Planted Area 1.3mil haArea for Acacia Plantation 0.6mil haMain Species Acacia mangium

Annual Export Capacity 5.6mil BDT

Reference: Ministry of Agriculture and Rural Development (MARD)

Southern VietnamMajor Export Ports Phu My

Planted Area 0.1mil haArea for Acacia Plantation 0.05mil haMain Species Acacia auricaliformis


Central Vietnam

Major Export PortsNghi Son, Vung Ang, Chan May, Da Nang,

Dung Quat, Quy NhonPlanted Area 1.4mil haArea for Acacia Plantation 0.7mil haMain Species Acacia hybrid


PHU MY

Key figures


Outlook for Woodchip Exports

Other Fiber Demand• Ministry of Agriculture and Rural Development (MARD) is trying to shift the

forest industry toward more valuable products, such as plywood, MDF, and furniture by encouraging companies with subsidies.

Export Tax• Vietnamese government applied 2% of woodchip export tax in January 2016. • The tax has negative impact on the replantation of Acacia by farmers although

the government do not mention to additional measures against woodchip export.

Rising Standards of Living and Wages

• Rising standards of living and wages in Vietnam will be factors that increase the price of Vietnam woodchip in the long term.

Monthly average income per capita

Reference: GENERAL STATISTICS OFFICE of VIET NAM


The Sojitz Group creates value and prosperity by connecting the world with

a spirit of integrity.

Thank you for your attention!

vietnam export woodchip supply and outlook · 2017-02-15 · in 2016 1,200,000 bdt max acceptable...

Documents