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News Vietnam to address cement oversupply by resuming sector planning

Vietnam to address cement oversupply by resuming sector planning

Written by Global Cement staff 10 July 2024
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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."

Last modified on 10 July 2024
Published in Global Cement News
Tagged under
  • Vietnam
  • Ministry of Construction
  • Vietnam National Cement Asociation
  • oversupply
  • Capacity
  • Consumption
  • data
  • statistics
  • VICEM
  • GCW667
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