Hanoi (VNS/VNA) – High demand, especially in global markets, has helped the cement industry surpass its annual sales target of 83-85 milliontonnes in just 10 months.

According to the Ministry of Construction, the cement industry sold 85.23million tonnes of cement products in the first ten months of the year, amassive 51 percent increase against the same period last year.

Exports accounted for 26.05 million tonnes, surging sharply by 65 percentyear-on-year. The high growth helped the industry surpass the export target of18-19 million tonnes set for 2018.

Mainland China has become the largest importer of clinker and cement from Vietnam with6.56 million tonnes valued at 235 million USD in the first three quarters ofthe year. The Philippines, Bangladesh and Taiwan followed with 4.75 milliontonnes, 5.64 million tonnes and 1.23 million tonnes, respectively.

According to analysts from Saigon Securities Inc, Vietnam’s cement market couldbenefit from lower production in China in the wake of the country’s newpolicies. By the end of 2017, China had shifted from being a globalexporter of clinker — a semi-product used in the production of cement — to animporter of cement. The country closed a series of cement plants from November2017 to March 2018 because of environment pollution and a shortage ofelectricity during the winter.

China faces a shortage of electricity during the winter because the nationneeds more electricity for heating. Cement production is one of the industriesthat consume a large volume of energy.

Demand for cement imports in China had increased significantly, leading toan increase in Vietnam’s cement exports, the analysts said, noting that Chinais the world’s largest cement producer with an annual capacity of about 2.5billion tonnes, accounting for nearly 60 percent of the world’s capacity androughly 25 times higher the capacity of Vietnam.

In the domestic market, the consumption of cement products was also forecast tokeep rising from now to the year-end thanks to high demand from local propertydevelopers wanting to complete projects before Tet (Lunar New Year)and whilst the weather is favourable for construction.

The Ministry of Construction’s Building Material Department estimated thatthe industry would also reach its sales target of 65-66 million tonnes in thedomestic market set for 2018.

The product’s local consumption in the first ten months of the year stood at59.18 million tonnes. 

On top of Vietnam’s large cement capacity, the list of cement projectsthat are expected to come into operation after 2018 include some very largefactories. These include Song Lam Cement’s production lines 3 and 4 with atotal capacity of 3.8 million tonnes per year, Thai Nguyen Group’s Ha TienCement Project in Binh Phuoc with an annual capacity of 4.5 million tonnes andthe Tan Thang Cement Project in Nghe An province with an annual capacity of 1.8million tonnes.-VNS/VNA