----Interview with Nguyen Duy Hung
Vice President
VQB Mineral and Trading J.S. Co.
VQB Mining Trading Group Co., Ltd. was established in 2005 and is primarily engaged in the mining, processing, and import/export of mineral resources, with a focus on tin and antimony metals. Over the years, through the continuous efforts and collaboration of its strong team, VQB has solidified its brand presence both domestically and internationally. The company’s guiding philosophy over the past decade, "Creativity - Professionalism - Efficiency - Sustainability," has been the foundation of its achievements. VQB remains committed to enhancing product quality and striving to become a reputable enterprise, not only in Vietnam but also in the global market.
Asian Metal: Welcome, Mr. Nguyen, and thank you for joining us today for this exclusive interview. Could you please start by introducing your company?
Mr. Nguyen: VQB Group is one of Vietnam's leading enterprises with nearly 20 years of experience in mining, processing, and the import/export of minerals and metals, particularly tin. Currently, we focus on the production and trade of raw tin ingots, with an annual supply ranging from 1,100 to 1,500 tons. Our smelting plant produces tin ingots with a minimum purity of 99.95% Sn and a maximum lead content of 0.005% Pb, meeting the highest quality standards for our customers. We supply not only the domestic market but also export to regions such as Japan, South Korea, the Philippines, Singapore, and the EU.
Asian Metal: Could you provide an overview of the current tin ingot production situation in Vietnam?
Mr. Nguyen: Due to the increasing scarcity of raw materials, Vietnam’s tin production capacity has been declining year by year. It is estimated that Vietnam produces less than 600 tons of finished tin ingots annually. The key tin mining and processing regions include provinces such as Lang Son, Nghe An, Cao Bang, and Thai Nguyen. The primary product specifications are crude tin 99.75%min and tin ingot 99.95%min.
Asian Metal: With China's industrial transfer, Vietnam’s related industrial chain has become increasingly more complete. Could you discuss the current situation of domestic tin ingot consumption in Vietnam?
Mr. Nguyen: The domestic consumption market for tin ingots in Vietnam is currently showing a steady growth trend, driven by the development of the processing and manufacturing sectors, as well as applications in industries such as electronics, automotive, and packaging. Specifically, domestic tin consumption primarily serves industries like electronics, soldering, and tin plating, with the highest demand coming from the electronics and automotive sectors. Large industrial zones in Bac Ninh, Binh Duong, Hai Phong, and Ho Chi Minh City have a high demand for tin or tin-based products, primarily supporting the manufacturing of electronic components.
Asian Metal: Where do the main raw materials for tin ingot production in Vietnam come from? What is the supply and demand situation?
Mr. Nguyen: The main raw material for tin ingot production in Vietnam is tin concentrate. Vietnam has tin mines in provinces such as Lang Son, Nghe An, Cao Bang, and Thai Nguyen. According to a report by the Institute of Mining and Metallurgical Science and Technology (VIMLUKI), preliminary investigations estimate Vietnam’s tin reserves at around 86,000 tons, with an average tin content of 0.18% in raw ore samples. However, domestic production can only meet part of the local demand, so raw materials must be supplemented by imports. Myanmar, Laos, and Malaysia are Vietnam's major sources of tin ore imports. Domestic demand for tin is increasing, especially in industries like electronics, metal plating, and lead-free solder alloys. The growth of high-tech and electronics industries has driven the need for high-quality tin resources, prompting Vietnam to enhance its technology and increase production. In 2024, Vietnam’s demand for tin ore is expected to range from 1,500 to 1,800 tons, a significant increase compared to 2023. Forecasts indicate that the demand for tin ore in Vietnam will grow at a compound annual growth rate (CAGR) of 2.37% until 2032. However, since 2022, Vietnam's annual tin ore imports have been around 350 tons, primarily from Laos. In the past two years, tin ore imports have shown a declining trend. Due to the limited supply of raw materials, Vietnam's demand for tin resources has long been unmet.
Asian Metal: In addition to the raw material constraints, what other challenges does Vietnam face in tin ingot production, and how are these challenges being addressed?
Mr. Nguyen: As I mentioned earlier, the primary issue is the unstable supply of raw materials. Domestic tin resources are limited, and Vietnam imports some tin from neighboring countries such as Laos and Myanmar. Secondly, the tin production facilities in Vietnam still rely on outdated technologies, which result in high costs and lower recovery rates. Currently, the average recovery rate for processing tin concentrate with a minimum tin content of 65% in Vietnam is 96%, while China’s recovery rate for processing tin concentrates with a minimum tin content of 60% is 98%. Lastly, there is intense international market competition. Vietnam faces stiff competition from major tin producers such as China, Malaysia, and Indonesia, which have modern technologies and ample raw materials, allowing them to reduce production costs. Our current main strategy is to import tin ingots directly from abroad. China, India, and Peru are our major sources of imports.
Asian Metal: Can you provide a forecast for tin ingot prices in Vietnam in Q1 2025?
Mr. Nguyen: We expect tin prices to rise and stabilize above VND760 million per ton (approximately USD30,000/t) in the first quarter of 2025. This price increase is driven by several key factors. First, in the context of a weak global economy, most countries are implementing measures to support economic recovery, which in turn is driving demand for tin in the industrial sector. Additionally, after inventory drawdowns at the end of 2024, producers may increase raw material purchases in Q1 2025 to meet production schedules. Demand for tin is further boosted by the growth of the electric vehicle industry and the manufacturing of new electronic devices, both of which heavily rely on tin as a key material. At the same time, supply from Myanmar, a major global supplier of tin, has not yet recovered due to ongoing mining restrictions, adding pressure to the global supply chain. Considering these factors, tin prices are likely to maintain an upward trend in the first quarter of 2025.
Asian Metal: What is your business outlook for the new year?
Mr. Nguyen: We aim to achieve stable revenue growth, targeting a 20-30% increase compared to last year. This will be driven by expanding our customer base, introducing new products and services, and optimizing our existing offerings. We also plan to strengthen our market position by improving customer satisfaction and leveraging our competitive advantages. This includes increasing brand awareness and exploring new opportunities in emerging markets. Additionally, we are focusing on streamlining our operations to improve efficiency and reduce costs. This includes investing in technology, improving workflows, and training our team to be more agile and innovative.
Asian Metal: Thank you, Mr. Nguyen, for taking the time to participate in this interview. We wish your company continued success in the future.
Mr. Nguyen: Thank you to Asian Metal for the opportunity.
