Exclusive Disclosure! Ceramics tiles and market analysis in Vietnam
From 30 October to 5 November, 2019, Foshan Uniceramics Development Co., Ltd visited several ceramics enterprises in Hanoi and Ho Chi Minh City, Vietnam. The delegation participated in International Conference on Building Materials 2019 and visited Vietnam Ceramics Association. Uniceramics Expo 2020 is about to be held, it is hoped that more Vietnamese ceramics companies will be attracted to exhibit and visit the exhibition next year. At the same time, it is also hoped to further expand China-Vietnam ceramics exchanges and cooperation and promote the development of ceramics industry of the two countries through the annual "China-Vietnam Ceramics Summit".
Note: This article mainly introduces Vietnam's ceramics tiles and market to domestic ceramics peers, for reference only.
1、Ceramics tile production and consumption in Vietnam
According to ACIMAC in Italy, Vietnam’s ceramics tile production in 2003 was 134 million square meters, and Vietnam’s ceramic tile production in 2018 was 602 million square meters. Vietnam’s ceramics tile production has increased by about five times in the past 15 years.
According to data released by Ceramic Word Review, Vietnam's ceramics tile output ranks fourth in the world, after China, India and Brazil, surpassing Spain, Italy and Indonesia. Vietnam's ceramics tile production accounted for 4.6% of the world in 2018, increased 7.5% compared to 2017. Vietnam's domestic tile consumption in 2018 was 542 million square meters, accounting for 4.2% of the global total consumption, decreased 6.6%. Vietnam’s tiles are mainly consumed by the domestic market, and exports about 30 million square meters to foreign market.
Table 1. Ceramics tile production and consumption in Vietnam (2014-2018)
Unit: million square meters
2、Data of ceramics tile industry in Vietnam
In the early stage of Vietnam, roller kiln for ceramics tile production mainly came from Italy and Germany, but in recent years, from China instead, including press kiln glaze line and inkjet printing equipment. Frit and glaze for tile production in Vietnam also mainly rely on imports. In recent years, the import of frit and glaze from China has increased. ACV, the first frit company that was jointly invested by China and Vietnam, was formally put into production in the first half of 2019. Its products are not only used in ceramics tile enterprises in Vietnam, but also export to Asian countries, Middle East and Africa, becoming a model for Chinese ceramics raw material enterprises to go global.
▲ACV glaze
3、Ceramics tiles and market analysis in Vietnam
⑴ Ceramics exterior wall tiles/boards have development potential
Generally, coatings are used on the exterior walls of buildings in Vietnam. Vietnam has a long coastline, a maritime climate, and a lot of salt in the air, which corrode the exterior walls of the building. Therefore, ceramics exterior wall tiles which have certain resistance to acid and alkali may be favored by the market. In this regard, they can learn from Japan's successful experience.
▲Coatings are widely used on the exterior walls of buildings in Vietnam
⑵ The market for red floor tile is big
The weather in Vietnam is humid, rainy, and hot and the red unglazed floor tiles with a certain water absorption rate are well used in Vietnamese residential and public buildings. The consumption of tile products must meet the local climate and environment.
▲Red floor tiles are widely used in Vietnam
⑶ Ceramics slab/sintered stone remain blank in Vietnam
There is no ceramics slab/sintered stone production line in Vietnam, which is an opportunity for Chinese enterprises. On the one hand, it can help Vietnam build ceramics slab/sintered stone production line and some Vietnamese companies have planned to launch the project. On the other hand, the production of ceramics slab/sintered stone can also be exported to Vietnam.
⑷ Tile installation accessories market is optimistic in Vietnam
There is a certain market for Vietnamese tile grouts and beauty joints, which is worth exploring by Chinese companies, because Vietnam has widely promoted to leave seams when install tiles.
⑸ Polished crystal tile has a certain market in Vietnam
Vietnamese people like to use gold for decoration, and most of daily porcelains are outlined by gold, which is similar to Chinese consumption habits. Vietnam doesn’t produce polished crystal tile but import from China. High-end products with imitating gold decoration are popular among Vietnamese, and many rich people build villas using Chinese polished crystal tile.
⑹ Ceramics plate from Vietnam
Vietnamese extrusion molding ceramics plate is produced in the country and the red texture is good.
▲ Ceramics plate produced in Vietnam
⑺ Ceramics roof tiles in Vietnam
There are many varieties of ceramics roof tiles produced in Vietnam, and the products are widely used in urban and rural buildings in Vietnam.
▲Ceramics roof tiles in Vietnam
⑻ “Color glazed tiles" in Vietnam
For a period of time, Vietnamese tile companies also produced color glazed tiles. At present a lot of places are installed with color glazed tiles.
▲"Color glazed tiles" are still wildly used on the floors of buildings in Vietnam
⑼ Porcelain polished glazed tile is also popular in Vietnam
Similar to China, many ceramics tile companies in Vietnam produce and promote porcelain polished glazed tiles, and the usa is also increasing. Of course, ceramics interior wall tiles are also produced and sold.
▲Porcelain wall tiles and floor tiles produced by Vietnamese ceramics companies
⑽ Woodgrain tile and showroom in Vietnam
▲Woodgrain tile produced by Vietnamese tile enterprises
⑾ Hexagon and floral pattern tiles in Vietnam
Many interior decorations in Vietnam are also rich in art and sentiment. Hexagonal tiles and floral pattern tiles are well used in personalized restaurants.
▲The floor of a restaurant in Ho Chi Minh City is decorated with stylish hexagon tiles and floral pattern tiles
⑿ There is a massive shortage of "rustic tiles" in Vietnam
800/900 size porcelain glazed tiles are very scarce in the Vietnamese market. Chinese companies can explore the mid- to high-end market in this area, which has an advantage over Italy and Spain.
⒀ Ceramics enterprises in Taiwan, China explore Vietnam tile market profoundly
What is worthy of recognition is that ceramics enterprises in Taiwan, China entered the Vietnamese market in an early phase, which built factories in Vietnam, promoting the technical progress of Vietnamese ceramics tile.
TAICERA has accumulated rich experience in development Vietnamese market for 25 years, which adheres to quality and technology, is committed to product development and innovation, and does not pursue blind expansion of production capacity, and insists on the production of various types of porcelain polished tiles. The “cement bricks” developed and produced by TAICERA are of high quality, and the tiles are excellent in the Vietnamese market. Due to market influence, there is also an overcapacity phenomenon in TAICERA, and the existing production lines have not been operated fully.
▲ Products of TAICERA
⒁ Thailand SCG Group in Vietnam
Thailand SCG Group is optimistic about the Vietnamese ceramics tile market. In the past few years, it has acquired Vietnamese ceramics tile enterprises. After continuous renovation and construction, the company has now become the largest ceramics tile production enterprise in Vietnam. Since its sales are controlled by the Thailand headquarters, the company is selling well.
▲Thailand SCG Group Vietnam Tile Enterprise PRlME
Generally speaking, Vietnamese ceramics tile products are rich in variety, have formed their own systems, and the output has also increased rapidly. However, since 2018 and 2019, Vietnamese domestic ceramics tile market demand has declined, resulting in enterprises cannot operate fully and manufacturing costs increase.
Concluding remarks：
Vietnam ceramics tile industry has developed rapidly and become the fourth largest ceramics tile producer in the world, thanks to the Vietnamese government's innovation and opening policy, thanks to the efforts of Vietnamese ceramics tile enterprises. Some enterprises already have a history of 40-60 years, from small to large, who keep making progress and development!
In recent years, many Chinese ceramics machinery and glaze enterprises, kiln enterprises, inkjet printing equipment enterprises, gas engineering enterprises, etc. have entered the Vietnamese market to provide equipment services for Vietnamese enterprises. KEDA, Xintai, HEHE, NKT, Modena, Aosibo, etc. have all worked hard for the development of the ceramics tile industry in Vietnam and build up a friendship bridge for Sino-Vietnamese ceramics industry cooperation, but so far there is no wholly-owned and joint-venture ceramics tile company in mainland China producing tiles in Vietnam. Affected by the United States' high tariffs on Chinese tiles, many Chinese tile companies are going to Vietnam to find cooperative companies. Because it is duty-free to export ceramics tiles in ASEAN countries, it is attractive to Chinese ceramics tile enterprises, but how to cooperate with Vietnamese enterprises is worthy of exchange and in-depth discussion. In short, there must be a win-win cooperation model.
Let us look forward to the successful holding of “China-Vietnam Ceramics Cooperation and Exchange Summit” at Uniceramics Expo on 17-20 April, 2020! It is hoped that Sino-Vietnamese ceramics can continue to strengthen cooperation, carry out strategic cooperation in product design, showroom design, mechanical equipment, technical services, cost reduction, market development, etc., and work together in the new historical period to write a new chapter of Sino-Vietnamese ceramics cooperation and jointly promote Asian tile development!