Displaying items by tag: Vietnam

Vietnam: Several Vietnamese cement producers have reported losses in the first half of 2024, attributing the downturn to reduced domestic demand and competitive pricing pressures, reports Vietnam Investment Review. Vicem But Son recorded losses of US$1.5m in the second quarter of 2024, marking its seventh consecutive quarter of losses, with a 2024 first half revenue figure of US$50m, down by 10%, and total losses reaching US$3.83m. Vicem Hai Van also continued its decline, with a 43% drop in second quarter revenue to just over US$4m and losses of US$396,000. Vicem leaders said that challenges arose due to a reduced demand following limited civil engineering projects and a stagnant real estate market.

Despite the sector's overall downturn, firms like Vicem Ha Tien and Chinfon have recorded profits, with Ha Tien posting US$141m in revenue and US$875,000 in profits, and Chinfon doubling its yearly profit to US$25,250. However, the outlook for the remainder of 2024 remains bleak, with anticipated difficulties in market recovery and increasing input costs. Acoording to Vicem, the cost of electricity will continue increasing, while the demand for cement is not anticipated to recover before the end of 2024.

Taiwan: Taiwan will initiate an anti-dumping investigation into cement and clinker imports from Vietnam in August 2024, according to the Trade Remedies Authority of Vietnam (TRAV) under the Ministry of Industry and Trade. The TRAV has advised the Vietnam Cement Association to inform its members and coordinate with Taiwanese importers for market monitoring, reports the Vietnam News Brief Service. Companies must provide export data from 2021 to mid-2024 by 12 August 2024.

Vietnamese cement and clinker exports have seen a decline in recent years. In 2023, exports fell to 31.3Mt, valued at US$1.32bn, down by 1.2% year-on-year. From January to July 2024, exports decreased further to 18.3Mt, worth US$705m, a decline of 1% compared to the same period in 2023. The VNCA forecast continued challenges for cement and clinker exports due to China’s stagnant real estate market and surplus cement production.

Vietnam: The Vietnamese Ministry of Natural Resources and Environment has expressed environmental concerns about Duyen Ha's plan to convert 423,000m² of forest and and agricultural land into a quarry for its expansion of its Diep cement plant in Ninh Binh province. The expansion will increase limestone supply for a second production line at the plant, Vietnam News has reported. According to an environmental impact assessment report, the expansion will affect 382,000m² of forest and 41,000m² of agricultural land. The total project area will eventually reach 988,000m², capable of producing 2Mt/yr of limestone. The total investment is valued at US$8.8m.

Vietnam: Vietnam produced 104.1Mt of cement in the first seven months of 2024, marking a 1% increase year-on-year, as reported by the General Statistics Office (GSO). In July 2024, the country's cement output is estimated at 15.2Mt, a rise of 7% compared to July 2023.

Vietnam: State-owned Vietnam Cement Industry Corporation (Vicem) reported a loss of US$34m in the first half of 2024, a figure that has increased by 200% year-on-year.

The losses are attributed to a stagnant real estate market, rising material and fuel costs, exchange rate fluctuations and intense competition within the industry. Vicem produced 7.63Mt of clinker and 9.77Mt of cement during the period, experiencing over a 7% year-on-year decline in both. Its revenue also fell by 19.4% year-on-year to nearly US$520m. This is the second consecutive year the firm has recorded a loss, following a US$43m deficit in 2023.

Vietnam: The Ministry of Construction has proposed resuming cement sector planning to the prime minister, addressing the critical oversupply affecting the industry. Cement planning ceased six years ago, leading to unregulated project approvals. Vietnam now faces a surplus, with 92 production lines and a total capacity exceeding 120Mt/yr, while domestic consumption lags at under 60Mt/yr and exports are only 30Mt/yr. The construction slowdown exacerbates the issue, with redundant clinker production capacity at approximately 50Mt/yr, leading to risk of cement producers going bust, unless suitable measures are introduced. The latest figures from the Vietnam National Cement Association (VNCA) show that cement plants are running at just 70-75% of their designed capacity.

Deputy CEO of Vicem, Nguyen Thanh Tung, said "Several production lines belonging to our system have to temporarily halt operation, incurred by low consumption and dwindling incomes. Despite all this, we commit to not selling products below the production cost."

Vietnam: The average export value of Vietnamese cement and clinker has dropped sharply in 2023 due to falling prices, with the average price for clinker declining to US$31-32/t in May 2024, from US$46-48/t in 2022. The Vietnam News Brief Service reports that the Ministry of Construction (MoC) has identified an increase in export tax from 5% to 10% starting 1 January 2023, and additional anti-dumping duties imposed by the Philippines in March 2023, as barriers reducing the global competitiveness of Vietnamese clinker.

In response, the MoC has proposed eliminating the export tax on clinker and revising policies to allow for VAT refunds on clinker exports. According to the MoC, resolving these tax and VAT issues is key to the success of Vietnamese clinker exports, which currently lag 20% behind international competitors,

Vietnam: The Vietnamese cement industry persists in facing difficulties, with several plants operating at only 70 - 75% capacity and accumulating stockpiles of around 5Mt, according to the Vietnam Investment Review. The total production capacity is over 120Mt/yr, yet four new production lines with a combined 11Mt capacity remain inactive. At a recent conference, strategies were proposed to alleviate industry pressures, including fiscal policy adjustments and abolishing the current clinker export tariff, which currently sits at 10%. It was revealed that many cement producers are struggling due to borrowing, soaring production costs and slow consumption.

Chair of the Vietnam Cement Association Nguyen Quang Cung said "Never before has the cement industry been at such a critical stage. If the current predicament drags on, the possibility of domestic ownership transferring to foreign investors might occur, posing the threat of the cement sector falling into the hands of foreign businesses, thereby reducing the country's ability to deal with pricing and market moderation in the long term."

Vietnam: Siam Cement Group (SCG) has announced the launch of a new 20% reduced CO₂ cement in Vietnam. Việt Nam News has reported that SCG achieved the reduction through technical upgrades to its cement production, alternative fuels co-processing and waste heat recovery. The producer said the move is a response to growing demand for lower-carbon alternatives in the country’s cement market.

Deputy country director for Vietnam Tanakorn Theeramankong said "For the first time, SCG has introduced a new low carbon cement to the Vietnamese market, marking a significant step forward in our journey to achieve net-zero emissions. By pursuing advanced technologies to develop low carbon cement, we not only reduce our environmental impact but also set a new standard for Vietnam’s construction industry."

Vietnam: Export prices for clinker and cement in Vietnam have dropped significantly in May 2024, impacting the construction industry and raising concerns among exporters. This decline is due to decreased international demand, intense competition, and evolving trade policies, according to the Vietnam News Brief Service. The Ministry of Construction noted that after a decade of growth, export volumes have fallen sharply since 2022, with exports dropping to 10.9Mt in 2023 from 15.2Mt the previous year. Only 5.4Mt is expected to be exported in the first half of 2024.

The Vietnam Cement Association (VNCA) has highlighted ongoing challenges, particularly influenced by the downturn in China’s real estate market and competitive pressures from Chinese cement surpluses. The VNCA has urged Vietnamese exporters to explore new markets, improve product quality and increase production efficiency. Additionally, the VNCA recommends that the government consider eliminating export taxes on clinker to mitigate these challenges.