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Imports of Chinese sanitary products increase by 60-70% annually, Vietnam plans to formulate countermeasures

According to Vietnamese media reports, the value of Vietnam’s imports of ceramic tiles and sanitary products from China has increased by 60-70% annually. Many local companies have reduced their production scale. The Vietnamese authorities have instructed the Ministry of Construction to formulate countermeasures. Vietnam tightened imports of Chinese-made sanitary products due to the same problem last year, but the effect is not obvious at present.

Chinese-made sanitary ware has grown rapidly, and some Vietnamese companies have reduced production by 20%

According to a recent report by Vietnam’s Young People, reporters from the newspaper visited furniture stores and retail stores in cities such as Hanoi and Ho Chi Minh City and found that a large number of tiles and sanitary products imported from China were sold in the stores. Brands include Korest, Rangos, Joto, and Kobesi. , Karassa, etc.

Most of these products claim to be produced in accordance with Korean and Japanese process standards, but the price is very cheap. For example, the “combo” sanitary products made in China sell for less than 4 million VND (about 1,200 yuan), while other common brands such as INAX and TOTO The price of similar products of Viglacera is 6-8 million VND (approximately RMB 1800-2500).

It is reported that many sanitary ware brands in Vietnam are imported from China by local distributors and then sold under the trademarks registered locally. For example, a staff member of a ceramic tile and bathroom products distributor in Ha Dong County, Hanoi, said that all products sold in the store have the company’s trademark, but all products are imported from China. “You can understand that this is a product produced locally in China. , We paid for the trademark”.

Fan Wenbei, director of the Materials Construction Department of the Ministry of Construction of Vietnam, said that in the past few years, Vietnam’s imports of ceramic tiles and sanitary products from China have increased by 60-70% annually. Some local distributors believe that the continuous increase in China’s imports of ceramic tiles and sanitary products is related to the Sino-US trade war. Because the United States raised tariffs on China’s imported ceramics and sanitary products to 250%, Chinese sanitary ware companies turned to Southeast Asia to export products.

As China’s imports of ceramic tiles and sanitary products continue to increase, some Vietnamese companies have to actively reduce production. The relevant person in charge of Viglacera in Binh Duong, Vietnam said that in the face of pressure from Chinese products, the company has reduced its production capacity by about 20% in 2019. In response to this situation, the Vietnamese authorities are asking the Ministry of Construction of the country to take charge of the work and propose solutions. The Ministry of Construction is currently collecting and collating opinions.

Not the first time to “tighten” imports of Chinese sanitary products

In fact, before the Vietnamese media reported the threat of Chinese sanitary products, Vietnam had taken precautions against sanitary products imported from China. In October 2019, the General Administration of Customs of Vietnam issued a document instructing the customs of various provinces and cities to strengthen inspections of sanitary products, especially sanitary products originating from China, and at the same time require all units to strengthen patrol, control and supervision of construction materials at border ports. The document pointed out that Vietnam Customs has received letters from many companies, reflecting that a large number of imported sanitary products, especially sanitary products imported from China, have affected the production and business activities of local Vietnamese enterprises. Therefore, this regulation has been introduced.

According to statistics from Vietnam Customs, Vietnam imported US$100 million worth of ceramic tiles and US$52 million worth of bathroom products from China in 2019. However, there may be deviations in this data. For example, the Vietnam Building Ceramic Association revealed that the value of imported Chinese ceramic tile products in 2019 is US$200-250 million, and the value of sanitary products is US$100-120 million.

Vietnam’s attraction to sanitary ware companies is manifested in various aspects. In the past ten years, Vietnam’s GDP has increased by 145.3%. This year, affected by the epidemic, the GDP growth rate is expected to slow to 2.7%, but this may still be the world’s fastest growth rate. In addition, the process of urbanization in Vietnam is also proceeding at a high speed. According to the authorities, as the population increases, Vietnam must build about 100 million square meters of new housing every month, which is rare for sanitary ware or other building materials companies. Development Opportunities.

At present, a large number of domestic sanitary ware companies have successively deployed in the Vietnamese market. For example, Jiumu, Huida Sanitary Ware, Seagull Residential, Emperor Sanitary Ware, Luda International, Promite and other companies have operations in Vietnam and neighboring countries. There are also many companies that enter the Vietnamese market by way of OEM. As reported by the Youth Daily, these companies produce products in China and sell them to Vietnamese distributors, who sell them in the local market after OEM.

International brands increase investment and competition further intensifies

According to a report from the United Market Research, the market size of Vietnam’s sanitary ware and bathroom accessories is expected to reach US$690 million by 2025. At present, Vietnam has concentrated a number of well-known brands including TOTO, LIXIL, Jies, and Caesars, many of which have increased their investment in the Vietnamese market in recent years.

In the part of TOTO’s financial report involving the Southeast Asian market, only Vietnam was mentioned separately. In fiscal year 2019, TOTO’s sales in the Vietnamese market reached 4,256 billion VND (approximately RMB 1.3 billion), an increase of 16% year-on-year, and operating profit also increased by 25% to 655 billion VND (approximately RMB 200 million). In addition, TOTO also announced last year that it will invest 14.6 billion yen (approximately RMB 970 million) in Vietnam to build a fourth local factory, which will promote local product sales after the start of production.

Gessi is an Italian sanitary ware company that pioneered the Vietnamese market earlier, and its products are sold in Vietnam as Vietceramics. In 2018, Gian Luca Gessi, CEO of Jesse, and Cecilia Piccioni, the Italian ambassador to Vietnam, attended the opening ceremony of Vietceramics’ new exhibition hall covering an area of ​​1,200 square meters, showing the importance of the Vietnamese market and reflecting the Vietnamese market’s demand for high-end bathroom products. Growing.

In addition to foreign brands, as the largest ceramic sanitary ware manufacturer in ASEAN countries, a number of local Vietnamese brands such as Viglacera, Thien Thanh, Hao Canh, JSC Ceravi, etc. also occupy a considerable market share, and have gradually penetrated into other ASEAN countries. These local companies compete with companies from China, Japan, Italy and other countries to form the sanitary ware industry pattern in Vietnam and even Southeast Asia. It is believed that as the local residents’ demand for mid-to-high-end products continues to increase, low-end products will continue to decrease, replaced by high-standard competitions among international brands.

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