Vietnamplus

The cement industry is forecast to see a significant increase in domestic sales in 2021, driven by investment in infrastructure, foreign direct investment inflow and the recovery of the real estate market. However, exports are set to slow down.

Vietnam’s cement sector is facing oversupply and firms need flexible business strategies to overcome the difficulties.

Maintaining exports would be critical for the cement industry amid rising production output and anticipated sluggish domestic sales this year.

Vietnam sold more than 35 million tonnes of cement at home and abroad in the January-April period, up 8 percent year on year.

Production and sales of cement and clinkers of Vietnam have risen in recent years. But to maintain the growth, experts suggested that the industry should make comprehensive reforms, apply advanced technology to improve production and optimise the efficiency of natural resources.

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.

High demand, especially in global markets, have helped the cement industry surpass its annual sales target of 83-85 million tonnes in just ten months.

The Philippines notified Vietnam that it has initiated a preliminary safeguard investigation on the importation of cement from various countries, including Vietnam, according to the Ministry of Industry and Trade.

The domestic cement industry achieved impressive results in exports over the first eight months of this year to reach the target for the whole year.

Cement exports in the first seven months of the year registered impressive growth, posting a year-on-year increases of 63.2 percent in volume and 73.4 percent in value.

Cement exports in the first seven months of the year registered impressive growth, with 17.65 million tonnes sold for 656.3 million USD, year-on-year increases of 63.2 percent in volume and 73.4 percent in value.

Vietnam’s cement consumption continued to register strong growth in the first half of this year, especially cement exports, according to the Ministry of Construction.

Vietnam’s cement industry saw strong growth in cement exports in the first quarter of this year as many Chinese cement factories shut down due to pollution and power shortages.

Domestic cement consumption fell in March, while cement exports had growth against the same period last year, according to the Ministry of Construction.

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.

Vietnam’s cement and clinker export in 2016 is estimated at some 15 million tonnes worth 556 million USD.

Domestic cement companies would face stiffer competition in consumption in markets at home and abroad in the future, experts said.

Despite cement exports forecast to be lower than that of 2014, a supply-and-demand balance would be maintained thanks to increasing domestic demand.

While the cement industry was struggling with an excess of supply over demand, exports, which were considered a solution to boost consumption, failed to meet expectations.

The consumption of building materials is predicted to rise in the fourth quarter this year as the real estate sector is showing signs of recovery.