Overview of the market situation of ceramic tiles in Vietnam

08:48 - 13/05/2021

The recovery of the real estate market helps the prospect of building materials industry in general and tiles in particular are relatively favorable. Along with that trend, the trend of using high-quality Granite tiles to replace Ceramic tiles is becoming more and more obvious and becoming a potential segment.

Overview of ceramic tiles products

Currently on the market there are 4 main types of ceramic tiles: Cotto tiles, Ceramic tiles, Porcelain tiles and Granite tiles. In particular, Cotto brick is an unglazed ceramic, the main material is clay and is fired at a high temperature of 1160~1200oC. The brick is terracotta red, often used for paving the garden, paving the floor for ancient architectural works. Due to the not very wide application, the demand for cotto tiles is the lowest among facing tiles. Three common types of tiles commonly used in construction today are Ceramic tiles, Porcelain tiles and Granite tiles. Ceramic tile is a traditional type of ceramic tile, which has been used in Vietnam for decades. Granite tiles have just begun to appear over the past 10 years. Considered an artificial stone, Granite tiles have superior durability compared to Ceramic tiles. Porcelain tile (semi-porcelain bone) is a product that stands between Ceramic and Granite.

Market of ceramic tiles in Vietnam

Regional scale: The production of ceramic tiles in Vietnam is one of the few industries that has risen to the regional and world level. The total capacity now reaches 500 million m2/year, ranking first in Southeast Asia and sixth in the world. Particularly, granite production bricks currently have a modest capacity, over 60 million m2/year.

Concentrated mainly in the North, near the raw material area. Tile factories are located all over the country, but most of them are in the North because this is an area with a large reserve of raw materials for brick production such as clay, terracotta, and favorable conditions. advantage to import yeast materials and additives from China and Taiwan.

Participation of many businesses. In addition to domestic enterprises such as Viglacera, Dong Tam, Thach Ban, CMC, etc., there are also the participation of foreign enterprises such as Taicera, Bach Ma, Prime, .. along with newly established private companies. was established not long ago but has very large production capacity such as Catalan (18 million m2/year), Toko (15 million m2/year), Vitto (36 million m2/year), Tasa (24 million m2/year), .. Although the types of low-cost ceramic tiles imported from China have decreased compared to previous years, they still have great competitiveness.

The level of competition is more focused on the Ceramic tile segment. In the period of 2014 - 2015, most of the ceramic tile companies invested heavily, increasing their capacity by tens of millions of m2/year, in order to anticipate the recovery of the real estate market. Therefore, from 2016 and the coming years, the level of competition in the ceramic tile industry will be very fierce, especially in the Ceramic tile segment.

Domestic enterprises are still standing thanks to good protection and investment in technology. In the Vietnamese market, Chinese bricks are directly competing with domestic goods. In addition, ceramic tiles from Malaysia, Indonesia, India, etc. are also imported in small quantities, mainly with domestic models not available. However, at present, domestic bricks are dominant thanks to the use of advanced production lines from Europe to ensure product quality, geographical advantages to help reduce costs and meet the needs of orders from small to large. big. Besides, the industry is still under great protection. Imported brick products are still subject to high import tax rates, reducing their competitiveness with domestic products.

Recently signed trade agreements such as Vietnam - EU or TPP do not threaten the ceramic tile industry but can also open up some new export markets.

Market demand is forecasted to continue to grow well. The real estate and construction market is forecasted to continue recovering from 2014 with an annual growth rate of over 6.5% as the main driving force for the ceramic tile industry. According to the forecast of the Ministry of Construction, the demand for tiles by 2020 will be about 570 million m2.

The trend of using Granite tiles instead of Ceramic is becoming more and more popular. With outstanding features of durability and aesthetics, Granite tiles are increasingly favored by consumers. Currently, most large-scale projects, with large areas such as apartments, offices, and hotels, use granite tiles. Many personal civil works also switched to using Granite bricks. Industry experts said that the demand for Granite tiles is currently growing quite well with an increase of 15-20% per year.

The planning of the Ministry of Construction advocates not investing in new production of Ceramic tiles, giving priority to the development of Granite tiles. The forecast of the Ministry of Construction shows that the demand for Granite bricks in 2020 will reach about 140 million m2/year (exported 42 million m2). Vietnam's domestic Granite production capacity is about 60 million m2/year. With the current capacity, in the coming years, Vietnam's production capacity needs to increase by an average of over 20% to ensure consumption demand.

In Vietnam, there are not many companies producing Granite tiles, leading in terms of quality are Taiwanese enterprises such as Taicera, Bach Ma in the high-end segment. Following are units such as Viglacera Tien Son, Toko, Thach Ban. There are 2 types of Granite tiles on the market: unglazed Granite tiles and digitally printed enameled Granite tiles. In addition, because the standard system is not clear, consumers do not have enough knowledge to distinguish, a lot of Porcelain bricks (semi-porcelain bones) are also sold under the name of Granite tiles, competing.

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