Cement exports record surge amid decline in domestic consumption
VOV.VN - Vietnam's cement export volume during the eight-month period saw an annual surge of 12% to reach 27.23 million tonnes, with China, the Philippines, and Bangladesh representing the country’s three largest export markets for cement and clinker, according to the Ministry of Construction.
Despite this rise in exports, domestic cement consumption throughout the reviewed period decreased 5% to roughly 43.54 million tonnes compared to the same period from last year.
Most notably, the total cement consumption in the COVID-19 hotspot of Ho Chi Minh City plunged by 55.8% compared to July.
The decline has been attributed to the impact of the fourth wave of the COVID-19 pandemic, especially social distancing measures applied in Hanoi, Ho Chi Minh City, and other localities which has caused several construction works to come to a grinding halt.
Meanwhile, Dr. Luong Duc Long, general secretary of the Vietnam Cement Association (VNCA), said the increase in cement exports represents a positive sign as major markets such as the European Union, Canada, the United States, and China have regularly resumed normal operations, fuelling their cement consumption demand.
In addition, Vietnamese cement and clinker exports have enjoyed robust growth thanks to competitive advantages in terms of sea transportation routes.
The domestic cement market is expected to pick up in the fourth quarter of this year as the ongoing COVID-19 outbreak is likely to be brought under control, giving investors the chance to kick-start their real estate and infrastructure development projects.
Experts have therefore advised local cement businesses to devise a suitable development strategy aimed at stimulating domestic cement consumption by reducing costs, optimising logistics infrastructure, and applying Industry 4.0 technologies in controlling price, distribution channels, and electronic invoices.
Moreover, the businesses have also been advised to meet the requirements regarding low CO2 content in cement production when exporting to developed countries by 2023, with a primary focus on green and sustainable production.