VIETNAM: Cement consumption up

Domestic cement consumption has improved even as Vietnamese cement exports have been faced with competitive pressure from neighbouring countries.

Statistics from the construction ministry showed that in the first half of the year, the country's cement consumption was estimated at 34.16 million tonnes, posting a 6 per cent year-on-year rise and meeting 47 per cent of the whole year's target. Of this, domestic consumption was 5 per cent higher than the same period last year, reaching 25.97 million tonnes. Viet Nam shipped 8.19 million tonnes of cement to foreign markets, representing 8 per cent year-on-year increase.

Last month alone, cement consumption was estimated at 5.68 million tonnes, or 12 per cent higher than the corresponding period last year, including 4.63 million tonnes in local market and 1.05 million tonnes for exports.

The ministry said the exports of cement and clinker in H1 decreased in comparison with the previous years due to difficult conditions in some import markets, especially Bangladesh. However, domestic consumption has been on an increasing trend.

Nguyen Quang Cung, chairman of Viet Nam Cement Association, observed that there was no concern about the cement consumption in the 2015-16 period thanks to a rising domestic demand.

This year alone, domestic cement consumption was estimated to increase to 5 million tonnes, Cung said.

Cung said cement consumption in the domestic market has risen thanks to improvement in the real estate market, while rural infrastructures have been actively developed.

The ministry calculated that cement consumption this year will reach 72-74 million tonnes, increasing 1.5-2 per cent over last year. Of this, local consumption will be 53-54 million tonnes, while 19-20 tonnes will be exported.

This year, the country will have two new projects, including Song Lam 2, with the capacity of 0.6 million tonnes a year, and Cong Thanh Cement, with 3.6 million tonnes a year capacity. This will bring the country's total cement production lines to 76, with 81.56 million tonnes designed capacity.

Viet Nam's cement sector has been listed as one of top 5 in the world in terms of capacity, after China, India, Iran, and the US.

Cement supply next year is expected to meet domestic consumption demands and 15-16 million tonnes for exports each year, in addition to a reserve of 10-15 per cent to stabilise the market, especially the southern region.

He added there would not be any new cement project in 2016. However, a number of major projects would be carried out during the 2017-18 period.