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."
