Vietnam: The Vietnamese Prime Minister Nguyen Tan Dung has approved a proposal of the Vietnam Building Material Association to cancel nine cement plant projects in order to keep in line with market demand.

The nine projects, Ha Tien-Kien Giang, Truong Son- Ro Li, Hop Son, Ngoc Ha, Vinafuji Lao Cai, Thanh Truong, Son Duong, Quang Minh and Cao Bang, will be removed from the country's master plan for cement industry. The prime minister also agreed to extend the deadline for the construction of seven other projects - He Duong II, My Duc, Thanh Son, Tan Thang, Do Luong, Tan Phu Xuan and Nam Dong - to after 2015.

The prime minister, however, added Xuan Thanh 2 cement plant in the northern province of Ha Nam to the list of projects slated for operation before 2015. The government leader asked the Ministry of Construction to cooperate with other ministries and agencies to ensure a balance between the cement supply and demand. He also asked the Ministries of Construction, Finance, Industry and trade, Vietnam Cement Association and Vietnam Cement Industry Corporation (Vicem) to facilitate cement exports, which Vietnam is already heavily involved in.

Local cement makers currently face difficulties due to huge inventory and low domestic demand caused by the frozen real estate market. In addition, high production costs, high lending interest rates and rising input costs have also put a heavy burden on local cement producers. The country is predicted to have a cement inventory of 14-15Mt by 2015, when the country's cement output will reach 90Mt/yr.