Demand for cement and clinker is expected to rise marginally 4-5 percent to 101-103 million tonnes in 2020, according to the Ministry of Construction.
Maintaining exports would be critical for the cement industry amid rising production output and anticipated sluggish domestic sales this year.
The prospects of cement enterprises in the second half of the year will continue to improve, especially during the construction season at the end of the year, according to Chairman of the Vietnam Cement Association (VNCA) Nguyen Quang Cung.
VOV.VN - The cement industry needs capable investors and large-scale producers to navigate eco-friendly and high efficiency production and generate quality products at lower costs, Nguyen Van Cung, Chairman of the Vietnam Cement Association has suggested.
VOV.VN - The cement sector should combine waste-to-energy generation with its production to seek a more eco-friendly carbon dioxide footprint, lower costs, and increasing competitiveness, insiders have suggested.
The cement production industry may face increasing pressure from an anticipated excess of supply over demand, although the industry posted good sale results this year.
The country’s cement surplus this year could be 30 million tonnes and reach 35 million tonnes by 2020 if Vietnam does not export cement.
The imposition of 5% export tax on cement is weighing down the industry, which has been facing a severe surplus of supply over demand in the local market.
As the domestic cement supply has exceeded demand, exporting products is the only solution for cement manufacturers.
The nation is expected to see cement overcapacity from 2017 as production has increased strongly in recent times while Vietnamese cement has turned less competitive on the world market.
Vietnam could rake in US$1 billion from exporting 20-21 million tonnes of cement and clinker in 2014, up 15% in value compared to last year, according to the Vietnam Cement Association.