Vietnam's cement production has surpassed domestic demand since 2012because of declining consumption resulting from economic recession.
Inthis difficult situation, exports are believed to be the solution thatwill enable cement producers to reduce their inventories. Nguyen QuangCung, president of the Vietnam Cement Association, spoke to Vietnam NewsAgency about measures to boost cement exports.
*With cement supply exceeding domestic demand, many companies opt to export. What are your opinions?
Acountry must boost exports of all kinds of products and services togain advantages offered by foreign currency earnings for itsdevelopment.
Regarding the cement industry, some are of theopinion that exporting is just a band-aid solution. However, in myopinon, cement exports, indeed, help to bring long-term benefits to bothproducers and workers.
Vietnam has advantages in cementproduction and exports thanks to abundant raw materials, with mountainsthat make up three-fourths of the country's total area and longcoastlines with port systems, which are convenient for exports.
Localcement companies also invest in advanced production lines andtechnology, turning Vietnam into one of the leading cement producers inthe region.
Cement exports will be a good choice from now till 2025 or even 2030.
*Arecement export prices competitive in comparison with that of othercountries in the region? Do you think there is unhealthy competitionamong domestic producers?
Currently, many countries in Asia havebeen exporting huge volumes of cement for a good number of years. Amongthem, Thailand and Japan have been exporting cement for decades.
Thecompetition in cement exports is not only in market shares but also inpricing. Many of Vietnam's exports are priced lower than that of othercountries, such as rice, which is lower than that of Thailand.
Currentcement export prices fluctuate around 50-55 USD per tonne, and arelower than that of several countries in the region but not much, atbelow 10 percent.
To boost exports, product quality must beenhanced along with brand name building among customers, and theseprocesses require time, effort and a long-term strategy.
Inaddition, unhealthy competition is a factor that hampers exports. Inorder to raise export prices, co-ordination among the Ministries ofConstruction and Industry and Trade, Association of Building Materialsand other concerned authorities are essential to harmonise the benefitsof domestic producers and exporters and prevent unhealthy pricecompetition.
*What long-term measures should be carried out to ensure the efficiency of cement exports?
Developmentplanning for the cement industry, which has been amended several times,stresses the goal of meeting both domestic and export market demand.However, the cement industry currently lacks a long-term exportstrategy.
This export strategy is very essential in clearlydefining which products from which plants should be exported, and whichproducts from which plants should serve domestic demand.
Forexample, plants located near ports with good raw material sources, largecapacity and high-technology equipment should prioritise exporting, tobenefit from well-know brands and low production costs.
It willbe unreasonable to export products of plants which are far from ports,as the transportation cost alone is already high.
In fact, manycement companies in Vietnam currently focus on domestic demand whileexports are still reliant on importing markets. Gaining export marketshare is also a problem for the cement industry.
Therefore, a long-term cement export strategy which is appropriate to reality is indispensable.-VNA
Inthis difficult situation, exports are believed to be the solution thatwill enable cement producers to reduce their inventories. Nguyen QuangCung, president of the Vietnam Cement Association, spoke to Vietnam NewsAgency about measures to boost cement exports.
*With cement supply exceeding domestic demand, many companies opt to export. What are your opinions?
Acountry must boost exports of all kinds of products and services togain advantages offered by foreign currency earnings for itsdevelopment.
Regarding the cement industry, some are of theopinion that exporting is just a band-aid solution. However, in myopinon, cement exports, indeed, help to bring long-term benefits to bothproducers and workers.
Vietnam has advantages in cementproduction and exports thanks to abundant raw materials, with mountainsthat make up three-fourths of the country's total area and longcoastlines with port systems, which are convenient for exports.
Localcement companies also invest in advanced production lines andtechnology, turning Vietnam into one of the leading cement producers inthe region.
Cement exports will be a good choice from now till 2025 or even 2030.
*Arecement export prices competitive in comparison with that of othercountries in the region? Do you think there is unhealthy competitionamong domestic producers?
Currently, many countries in Asia havebeen exporting huge volumes of cement for a good number of years. Amongthem, Thailand and Japan have been exporting cement for decades.
Thecompetition in cement exports is not only in market shares but also inpricing. Many of Vietnam's exports are priced lower than that of othercountries, such as rice, which is lower than that of Thailand.
Currentcement export prices fluctuate around 50-55 USD per tonne, and arelower than that of several countries in the region but not much, atbelow 10 percent.
To boost exports, product quality must beenhanced along with brand name building among customers, and theseprocesses require time, effort and a long-term strategy.
Inaddition, unhealthy competition is a factor that hampers exports. Inorder to raise export prices, co-ordination among the Ministries ofConstruction and Industry and Trade, Association of Building Materialsand other concerned authorities are essential to harmonise the benefitsof domestic producers and exporters and prevent unhealthy pricecompetition.
*What long-term measures should be carried out to ensure the efficiency of cement exports?
Developmentplanning for the cement industry, which has been amended several times,stresses the goal of meeting both domestic and export market demand.However, the cement industry currently lacks a long-term exportstrategy.
This export strategy is very essential in clearlydefining which products from which plants should be exported, and whichproducts from which plants should serve domestic demand.
Forexample, plants located near ports with good raw material sources, largecapacity and high-technology equipment should prioritise exporting, tobenefit from well-know brands and low production costs.
It willbe unreasonable to export products of plants which are far from ports,as the transportation cost alone is already high.
In fact, manycement companies in Vietnam currently focus on domestic demand whileexports are still reliant on importing markets. Gaining export marketshare is also a problem for the cement industry.
Therefore, a long-term cement export strategy which is appropriate to reality is indispensable.-VNA
