Cement sector looks for sustainable export

Vietnam exported more than 21 million tonnes of cement in 2014, but this year is forecast to be full of difficulties as demand stalls at traditional markets while many regional cement producing countries plan to raise output remarkably.
Vietnam exported more than 21 million tonnes of cement in 2014, but thisyear is forecast to be full of difficulties as demand stalls attraditional markets while many regional cement producing countries planto raise output remarkably.

The Import-ExportDepartment under the Ministry of Industry and Trade reported at aworkshop on cement export on April 23 that the country has 106 cementplants with total design capacity of 82 million tonnes a year, whiledomestic demand stands at around only 50 million tonnes.

Representatives from the Vietnam Cement Industry Corporation (VICEM)said the sector hopes to boost export to reduce the amount of cementstockpile.

However, the corporation is worriedabout strong increases in cement production in regional markets such asJapan, the Republic of Korea, China and India, while demands forVietnam’s clinker show no sign of rising in traditional buyers likeBangladesh, Indonesia and the Philippines.

DeputyDirector of The Vissai Ninh Binh group Nguyen The Dat said it would bedifficult to export the same amount of cement as in 2014 from now on, asVietnam cannot compete against other cement exporters, including theRoK, China, Japan and Thailand in terms of prices, transport cost andlogistics service.

He added that unhealthy competition among domestic exporters also causes damages to the sector as a whole.

Dat suggested the ministry set up a special team to connect cementbusinesses and support the sector in terms of market information andforecast.

Deputy Minister of Industry and Trade TranTuan Anh stressed that domestic businesses should collaborate toimprove their competitive capacity.

He said theministry will work with the Construction Ministry to complete adevelopment master plan for the cement sector and coordinate withbusinesses to balance supply and demand. The ministry will alsocollaborate with related agencies and organisations to addressdifficulties facing cement exporters.

LeVan Toi, Director of the Construction Materials Department under theConstruction Ministry, called for investment in building special portsfor cement and clinker products.-VNA

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