VIETNAM CORN MARKET REPORT Q1/2018 - Market...

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VIETNAM CORN MARKET REPORT Q1/2018

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Content

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Abbreviations

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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

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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

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1. Business environment

1.1 Macroeconomic situation

1.2 Legal framework


1.1. Macroeconomic situation

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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, 6.46% in Q3 and

6.65% in Q4.

GDP growth, 2011 - 2017

GDP structure at current prices, 2017




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Source: VIRAC, GSO

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




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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




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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

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1.1 Macroeconomic situation

1.2 Legal framework


1.2. Legal framework

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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.




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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.




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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.




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National standards




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National standards

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

Indicator Requirement

Quality criteria




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Weight criteria

Food hygiene and safety criteria


Content

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2. World corn market

2.1 Value chain of production

2.2 Production

2.3 Consumption



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Global corn processing chain

Source: VIRAC, Hiệp hội Tinh chế ngô


Content

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2.2 Production

2.3 Consumption


2.2 Production

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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

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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

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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

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2.2 Production

2.3 Consumption


2.3 Consumption

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Source: VIRAC, USDA

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

Thousand tons



2.3 Consumption

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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


3. Vietnam corn market

3.1 Definition and classification


3.3 Production

3.4 Consumption

3.5 Import Export

3.6 Price movement

Content

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Classification of maize in Vietnam

Corn for grains




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Corn for food processing

Corn for feed processing Content is intentionally removed for demo purpose

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3.3 Production

Corn growing area

Source: VIRAC

Distribution of maize growing areas throughout the country





3.3 Production

3.4 Consumption

3.5 Import Export

3.6 Price movement

Content

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Value chain of production

Activities

Factors





3.3 Production

3.4 Consumption

3.5 Import Export

3.6 Price movement

Content

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3.3 Production

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Thousand ha

Source: VIRAC, MARD

Source: VIRAC, MARD

Area of corn harvest, 2011-2017e

Structure of maize harvest area by area, 2017e


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3.3 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


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3.3 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


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3.3 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





3.3 Production

3.4 Consumption

3.5 Import Export

3.6 Price movement

Content

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3.4 Consumption

Thousand tons

Source: VIRAC, USDA

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


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Thousand tons

Source: VIRAC, USDA

Source: VIRAC, USDA


3.4 Consumption

Corn grain consumption by intended use,

2011/2012-2017/2018e

Structure of corn grain consumption, 2017/2018e


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3.4 Consumption

Ton

Ton VND million

VND million

Source: VIRAC, GSO

Source: VIRAC, GSO

Corn starch consumption, 2010-2017

Canned sweet corn consumption, 2010-2017





3.3 Production

3.4 Consumption

3.5 Import Export

3.6 Price movement

Content

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3.5 Import Export – Export

Thousand tons

Source: VIRAC, USDA

Corn grain exports, 2013-2017e


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3.5 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





3.3 Production

3.4 Consumption

3.5 Import Export

3.6 Price movement

Content

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3.6 Price movement

Source: VIRAC, US Grain Council

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


4. Industry planning

Content

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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".

4. Industry planning


5. Outlook

Content

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5. Outlook

Geographic Prospects:


Content

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6 Enterprise analysis

6.1 Enterprise overview

6.2 Profitability

6.3 Solvency

6.4 Debt repayment capability

6.5 Performance efficiency

6.6 Profit ratio

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6. 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

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Enterprise introduction


MASCOPEX JOINT STOCK COMPANY

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CBOT VIETNAM JOINT STOCK COMPANY

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T & T AGRICULTURAL CO., LTD

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HOANG LUAN TRADING - SERVICE CO., LTD

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

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DUONG VAN DUNG COMPANY LIMITTED


INTIMEX DAKNONG JOINT STOCK COMPANY

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TAN DONG TIEN JOINT STOCK COMPANY

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YearVolume

(Ton)

Revenue

(USD)


TAN TAI AGRICULTURAL FOODS CO., LTD

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Content

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6.2 Profitability

6.3 Solvency



6.6 Profit ratio

64

Source: VIRAC

VND billion


6.2 Profitability

Net revenue growth, 2015-2016


65

VND billion

Source: VIRAC


6.2 Profitability

Gross profit growth, 2016


Content

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6.2 Profitability

6.3 Solvency



6.6 Profit ratio

67

Source: VIRAC


6.3 Solvency

Solvency, 2016


68

Source: VIRAC


6.3 Solvency

Roun

d

Account receivable turnover, 2016


Content

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6.2 Profitability

6.3 Solvency



6.6 Profit ratio

70

Source: VIRAC



TimeDebt service coverage, 2016


Content

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6.2 Profitability

6.3 Solvency



6.6 Profit ratio

72

Source: VIRAC

Source: VIRAC



Round

Round

Total asset turnover, 2016

Fixed asset turnover, 2016


73

Source: VIRAC

Source: VIRAC



VND billion

VND billion

Administrative expenses, 2016

Selling expenses, 2016


Content

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6.2 Profitability

6.3 Solvency



6.6 Profit ratio

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Source: VIRAC


6.6 Profit ratio

Profit ratio, 2016


REPORT DISCLAIMER

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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

redistribute it outside your organisation, or place it on a website for public access without the express wriNoen permission of VIRAC.

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6th Floor, Anh Minh Building, 36 Hoang Cau, O Cho Dua, Dong Da, Hanoi, Vietnam

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