The Vietnam Cement Industry Corporation (VICEM) will ship a total of 6 million tonnes of cement and clinker to the Philippines from 2023-2025, as its demand for construction materials of various kinds is huge.
A deal of this effect has been signed between VICEM and the Philippines’ Fenix (CEZA) Int’l Corporation and Golden Falcon Trading Corporation in the witness of Vietnamese Minister of Construction Nguyen Thanh Nghi, as part of the ongoing visit by National Assembly Chairman Vuong Dinh Hue from November 23-25.
Currently, VICEM has 10 cement factories with 16 production lines capable of producing 21 million tonnes of clinker and over 25 million tonnes of cement per year. It sells around 30 million tonnes annually, or about 33% of domestic market share and about 23% of export market share.
In recent years, supply has been greater than demand in the domestic cement market, thus making the export of the surplus a must.
The Philippines is now a big importer of cement and clinker with about 15-17 million tonnes per year, about 7 million tonnes of which is from Vietnam, with roughly 1.5 million tonnes from VICEM, or 21.5% of the total.
In the third quarter of this year, infrastructure construction accounted for 12% of the Philippines’ GDP growth.