Vietnam Plastic Packaging Market 2021 Preview.pdf

plastic packaging market in Vietnam

1. INDUSTRY PREVIEW
Vietnam Plastic Packaging Market 2021
February 2021
An Associate Company of
Nikkei Inc. and QUICK Corp.

2. 2
Content Page
1Market Structure & Description 3
2Market Size & Segmentation 4
3Competition Dynamics 5
4Sector Financial Performance 6
5Key Growth Drivers 7
6Profiling of Leading Manufacturers in Vietnam 8 -9
Content

3. 3
Paper & Corrugated
Boxes
Plastic Packaging
Glass Packaging
Flexible Packaging
Metal Packaging
Others
Rigid Packaging
Packaging Industry in Vietnam
Source: FiinResearch
Figure 1: The market is fragmented with many small and medium-sized family-run businesses
Vietnam Plastic Packaging Market Preview 2021
1. Market Structure & Description
Vietnam plastic packaging is very fragmented with the participation of over 740
manufacturers
Corrugated box mainly serves processing and manufacturing industries, particularly F&B,
FMCG, footwear and electronics appliances, of which 30 –50% for processed food, 20% for
electronics appliances and 5 –10% for cosmetic/pharmaceutical.
•Glass packaging in Vietnam is used mainly for the production of beer, liqueur,
beverages and tonics while canned and preserved food is the main source of consuming
steel packaging in Vietnam.
•Glass packaging market in Vietnam is concentrated within foreign-owned glass-
packaging companies namely OI-BJC Vietnam and San Miguel Yamamura Hai Phong.
Alike glass packaging, aluminum container market in Vietnam is also dominated by
foreign players such as Ball Corporation, Crowncork, Toyo (Asia Packing Industries) and
Baosteel, KJFC, Vinacan.
Vietnam flexible packagingmarket is fragmented with over
580manufacturers. Of which, the majority are medium and
small family-run businesses. Leading players include Tapack,
Liksin, Batico, Thanh Phu, Huhtamaki and Rang Dong.
There are over 160 manufacturers that engage in rigid
packaging business. Of which, big names include (i) local
companies such as Duy Tan, Bavico, Ngoc Nghia; and (ii)
foreign-owned firms such as Hon Chuan, VisyPak, Srithai, etc.

4. 4
Figure 2: Vietnam plastic packaging is expected to maintain its double-digit growth momentum in the next five years
Vietnam Plastic Packaging Market Preview 2021
2. Market Size & Segmentation
Both flexible and rigid packaging are expected to maintain its solid growth, however,
the growth momentum will slow down due to the impact of COVID-19 in short-term
period (i.e. reliance on imported materials, lower demand in export market, etc.)
Source: FiinResearch
Market size include domestic consumption and export value of plastic packaging.
0.0
2.4
4.8
7.2
9.6
12.0
2015 2016 2017 2018 2019 2020e 2021f 2022f 2023f 2024f
Flexible packagingRigid packaging
CAGR (Flexible) 2015-19= 12.6%
CAGR (Rigid) 2015-19= 12.3%
Unit: US$bn
FORECAST

5. 5
MULTILAYERED
PLASTIC PACKAGING
Top 16 key players dominate multi-layered flexible packaging market, accounting for
approximately 68.3% market share.
MONOLAYERED
PLASTIC PACKAGING
Mono-layered flexible packaging products are relatively low added-value and the
market is dominated by families business at small scale.
PET PLASTIC
PACKAGING
There are approximately over 80 PET independent manufacturers in Vietnam, of which
top 10 companies occupied approximately 60% of total market share
NON-PET PLASTIC
PACKAGING
Non-PET bottles are very popular packaging for chemical and pharmaceutical products
Vietnam Plastic Packaging Market Preview 2021
3. Competitive Landscape
Flexible packaging is dominated by foreign-owned players (penetrating local
market via M&A transactions in recent years) while rigid packaging is concentrated
amongst local private players such as Duy Tan, Tan Phu and Ngoc Nghia
Figure 3: Leading plastic packaging manufacturers by segment
FLEXIBLE PACKAGING
RIGID PACKAGING
Source: FiinResearch

6. 6
0%
3%
6%
9%
12%
15%
2016 2017 2018 2019
GPM EBIT NPM
Leading flexible packaging manufacturers recorded a remarkable decline in net
sales growth in 2019 due to the drop in mono-layered packaging export
Figure 4: Sector financial performance of plastic packaging manufacturers in Vietnam
Source: FiinResearch
Note: In-depth analysis on financial indicators of market and other key players are available in our paid report
Vietnam Plastic Packaging Market Preview 2021
4. Sector Financial Performance
4.8%
14.4%
19.6%
9.9%
0%
5%
10%
15%
20%
25%
2016 2017 2018 2019
Plastic packaging Rigid Flexible
Slowdown in net sales
growth of leading mono-
layered packaging
manufacturers such as Tan
Phong, Hung Yen, RKW in
2019 due to low demand in
EU market
Average net profit margin remained around
3% and is expected to increase in 2020
thanks to the decrease in plastic resin
price.
NET SALES GROWTH PROFITABILITY

7. 7
Food and beverage sectors drive the solid growth of plastic packaging market in
Vietnam
Vietnam Plastic Packaging Market Preview 2021
5. Key Growth Drivers
Figure 5: Vietnam plastic packaging market is mainly driven by rising F&B sector
10.5%
9.6% 9.3%
4.8%
7.4%
5.4%
8.1%
2.3%
11.0%
7.7%
13.3% 13.5%
9.3%
0%
3%
6%
9%
12%
15%
0
800
1,600
2,400
3,200
4,000
Dairy
Confectionery
Noodles
Baby Food
Sauces & Condiments
Edible Oils
Other packaged foods
RTD Tea
Energy Drinks
Carbonates
Juice
Bottled Water
Other soft drinks
Sales val.(US$mn) CAGR 2015-19 (RHS)
PACKAGED FOODS
Source: FiinResearch
SOFT DRINKS
Other drivers
include home care
& personal care,
pharmaceutical &
agribusiness, etc.
▪US$3.5bn
▪CAGR 2015-19 = 8.5%
▪High potential thanks to
awareness on sanitation
& rising disposable
income
▪US$6.9bn
▪CAGR 2015-19 = 12.0%
▪Driven by high economic
growth, rising income per
capita, higher urban
population as well as ageing
population

8. 8
Batico is the 7
th
largest flexible packaging manufacturer in Vietnam by net sales in
2019
COMPANY PROFILING BUSINESS STRATEGY
•Registered name: Tin Thanh Packaging Joint Stock Company
•Head office: Lot C20, Duc Hoa Ha Plastic Industrial Cluster,
Binh Tien Hamlet, Duc Hoa Ha Commune, Duc Hoa District,
Long An Province, Viet Nam.
•Company overview: Tin Thanh Packaging JSC (BATICO) is a
subsidiary of SGC Packaging –part of the cement and building
material company in Thailand, Siam Cement Group. SCG
followed the acquisition and finally successfully acquired 80%
of share holding in BATICO in 2015. With key business line in
flexible packaging, BATICO serves a wide range of customers
from multinational firms like Nestle, Bayer to major
Vietnamese partners such as King Do, Vifon, etc.
•Positioning: BATICO is one of the largest flexible packaging
company with key products known as printed rolls and plastic
pouches for food and non-food products. By sales, BATICO
followed Tan Tien and recorded net sales of US$68mn in
2019.
•Key business lines
•Product portfolio for flexible packaging
•Ownership structure:
•Management team:
OWNERSHIP STRUCTURE AND MANAGEMENT TEAM
Name Percentage of share
TC Flexible Packaging Company (SCG) 90.0%
Nguyen Xuan Tung 10.0%
Total 100.0%
Name Position
Mr. Dinh Quang Hung Chairman of BOD/CEO
Business line Details
Food Packaging ‐Multilayered flexible packaging for
packaged food (i.e. confectionery, frozen
food, tea, etc.)
Non-food Packaging‐Specialized products for packaging of
detergents, pharmaceuticals, stationery,
etc.
Product Description
Printed rolls ‐Rolls for food products
Pouches ‐Refill Pouch, Flower Pouch, 3-Sided Seal
Pouch, Quad-Sided Seal Pouch, Center Seal
Pouch, Cutting Seal Pouch, Stand up Pouch
with orwithoutzipper,Fruit & Vegetable
Pouch
Vietnam Plastic Packaging Market Preview 2021
6. Profiling of Leading Manufacturers in Vietnam | Flexible Packaging: Batico
KEY FINANCIAL HIGHLIGHT
2017 2018 2019
US$mn US$mn US$mn
Net sales 56.89 63.09 68.18
Gross profit 7.11 6.76 9.95
EBIT 3.63 2.54 4.95
Net profit after tax 2.34 1.16 4.06
Total assets 38.55 39.54 49.14
Total liabilities 25.32 25.90 31.88
Owner’s equity 13.23 13.64 17.26

9. 9
Srithai is the 4
th
largest rigid packaging manufacturer in Vietnam, occupying 4.6%
market share by net sales in 2019
Vietnam Plastic Packaging Market Preview 2021
6. Profiling of Leading Manufacturers in Vietnam | Rigid Packaging: Srithai
COMPANY PROFILING BUSINESS STRATEGY
•Registered name: Srithai Vietnam Co., Ltd
•Head office: 9 Street 2, Song Than 1 Industrial Park, Di An,
Binh Duong
•Company type: LimitedCompany –Unlisted
•Company overview: Established in 1997, Srithai Vietnam
Co., Ltd is a subsidiary of Srithai Superware Joint Stock
Company, specializing in the manufacturing and distribution
of plastic and melamine products. The company currently
has around 500 employees, equipped with 46 injection
machines and 20 compression machines to serve their
production.
•Incorporated in 1963, Srithai Superware Public Company
Limited is Thailand’s largest manufacturer of melamine
tableware distributed under the brand names Ektra,
Flowerware, Melamineware, Superware, UNICA, and VANDA.
It alsomanufactures other plastic products, including auto
parts, bottle crates, furniture,garbage bins,and pallets.
•Product portfolio for rigid plasticpackaging
OWNERSHIP STRUCTURE
Business line Details
Rigid Plastic PackagingSpecializing in PET manufacturing:
pre-forms, bottles and caps
Houseware Plastic Food box, helmet, IML products,
melamine utensil, tray, plate, etc.
Industrial Plastic Pallet
Product Description
Cap CSD, NCB PET caps with various colors and logo
options
Preform CSD, NCB preforms with various capacities
Name Percentage of share
Srithai Superware Public Company Limited 100.0%
Total 100.0%
KEY FINANCIAL HIGHLIGHT
2017 2018 2019
US$mn US$mn US$mn
Net sales 56.73 71.98 79.55
Gross profit 4.78 5.59 8.77
EBIT 0.87 1.42 2.88
Net profit after tax -1.07 -0.24 1.25
Total assets 70.49 71.1 60.0
Total liabilities 37.21 38.8 25.26
Owner’s equity 33.28 32.29 34.74

10. 10
FiinGroup
ATAGLANCE
▪Corporate Profile
▪Business Portfolio
▪Senior Management

11. 11
FiinGroup At A Glance: Corporate Profile
Established in March 2008, FiinGroup has become a market
leader in providing financial data, business information,
industry research and other data-driven analytics services in
Vietnam.
In September 2014, our company entered a strategic capital
and business alliance with Nikkei Inc. & QUICK Corp (Japan)
under which the Japanese partners hold 35.1% equity stake in
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Management and Others: 64.9%
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Data Analysts, Business Analysts,
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IT Engineers & Client Advisors
Legal representative: Mr. Nguyen Quang Thuan
Date of establishment: March 11, 2008
As a Vietnam's leader in financial data & analytics, we commit to provide information, insights and technology
that drive the financial markets.
Auditor: PricewaterhouseCoopers
Strategic Partners:

12. 12
FiinGroup At A Glance: Business Portfolio
FiinGroup provides financial data, business information, industry research and other data-driven analytics
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13. 13
FiinGroup At A Glance: Senior Management
Our management team is made up of dedicated, focused and expert professionals who previously worked in
the world’s largest consulting firms, banks, investment companies in the UK, Australia and Vietnam.
Board of Directors
Thuan Nguyen, FCCA
Chairman and CEO
Co-founder of FiinGroup
previously working as an
Investment Manager of Vietnam
Holding Asset Management Ltd
and Manager at PwC Vietnam &
Sydney
Hieu Nguyen, MBA
Vice Chairman
Co-founder of FiinGroup
previously working as a
specialist at the Department for
International Development of
UK (DFID) in Vietnam. and
Consulting Manager at PwC
Vietnam
Yoichi Noor Iwamoto
Board Member
(Non-Executive)
The representative of NIKKEI
Inc. at FiinGroup. He is
currently Managing Director of
NIKKEI CHINA (Hong Kong)
Ltd.
Chiharu Kawai
Board Member
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Corp at FiinGroup. He is
currently General Manager of
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Bolat Duisenov
Board Member (Non-
Executive)
CEO of Kusto Group Vietnam –
a private equity fund with AUM
of US$300M operating in
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Huy Mac, CPA, FCCA
Board Member (Non-
Executive)
A well-known financier with
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Recently he was CEO of KB
Securities (Vietnam) and ex-
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Dong Le, CFA
Managing Director,
Market Research
Managing Research
division. Previously Senior
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Investment Management
with AUM $100m and
before that a Manager at
Deloitte Vietnam
Trang Truong, MBA
Sr. Managing Director,
Financial Information
Managing financial
product innovation and
oversight data
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start of the company
Tu Nguyen, MBA
Managing Director,
Business Information
Managing risk product
innovation and
overseeing credit report
services. Previously
Senior Auditor at KPMG
and Team Lead at IB at
TPBank
Executive Team
Trung Bui,
Deputy CTO
Managing IT and Project
Innovation. He designs
and develops the data
system and products at
FiinGroup. Trung joined
as a junior Developer
since the start of the
Company

14. 14
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15. 15
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16. 16
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Food &Beverages
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ConsumerRetail
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Utilities
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▪Cement
▪Additives andConcrete
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IndustrialGoods
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▪FlexiblePackaging
Transportation
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Healthcare
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17. 17
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18. 18
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18
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