VVMI La Hien Cement Joint Stock Company. The cement industry must maintain exports this year with domestic sales anticipated to remain sluggish (Photo: VNA) Hanoi (VNS/VNA) -Maintaining exports would be critical for the cement industryamid rising production output and anticipated sluggish domestic salesthis year.
According to Nguyen Quang Cung, President of the Vietnam Cement Association,two new cement projects would go into operation this year, one in Tan Thangcommune, the central province of Nghe An with a capacity of 2-2.5 milliontonnes per year, and one in Bim Son commune, Thanh Hoa province with a capacityof 4.6 million tonnes.
This would give the domestic cement industry total production capacity of morethan 100 million tonnes, while local demand was estimated at around 70million tonnes.
“Maintaining exports would be critical for the cement industry this year,” Cungsaid.
The Ministry of Construction forecast that cement sales would increase byaround five percent to reach 103 million tonnes in 2020, around 70 milliontonnes of which would be sold to the domestic market.
According to Cung, domestic cement sales were anticipated to remain sluggishthis year due to stagnant construction of infrastructure projects and theslowdown of the property market.
The association also predicted a five percent growth rate for the cementindustry in 2020.
Regarding exports, Cung said that cement export volume would be around 34million tonnes this year but fall to 25 million tonnes in 2021.
“The lower cement export forecast in 2021 is based on expectation that domesticsales would increase,” Cung said, adding that reducing cement exports would beimportant in the long run because of the Government’s policy not toencourage exports of fully processed resources.
To cope with increasing pressure, Cung said cement producers should applyadvanced technologies in production to enhance quality and added valuewhile reducing environmental production, which would significantly help boostcompetitiveness.
Vietnamese cement was also facing rising pressure in international markets dueto increasing production in China and Thailand, according to the ministry.
The ministry urged domestic firms to monitor the cement market and adjust theirproduction plans accordingly to keep prices from falling. In addition, cementfirms should also work out long-term development strategies.
FiinGroup predicted that cement demand would increase by around five per centper year till 2030. An excess of supply over demand would continue until abalance was reached in 2028, the company forecast.
Statistics from the Import-Export Department under the Ministry ofIndustry and Trade showed that cement sales reached more than 99 million tonnesin 2019, up two percent over 2018. Domestic sales accounted for 66million tonnes.
Nearly 34 million tonnes were exported last year for nearly 1.4 billionUSD, 148 million USD higher than in 2018 and a record high. It wasthe second consecutive year Vietnam saw cement exports to hit a new record./.
VNA
