It is reported that in order to alleviate domestic overcapacity, low demand and severe market situation, Vietnamese cement producers will give priority to exports in 2014.
According to the latest data from Vietnam's Ministry of Construction, Vietnam's total cement production capacity exceeded 70 million tons in 2013, with sales in domestic and international markets reaching 61 million tons, an increase of 14% over the same period last year. According to the data released by Vietnam Statistics Bureau, the output of cement in January 2014 was 4.8 million tons, an increase of 3.2% over the same period last year. Meanwhile, by the second quarter of 2014, five new lines will be put into operation in Vietnam, with a total design capacity of 7 million tons, and the excess capacity is expected to reach 8-12 million tons in 2014.
Although the domestic building materials market has experienced two years of downturn, there are signs of recovery, but the purchasing power has not been greatly improved. Vietnam's cement producers still face big challenges, such as a slowing real estate market, rising costs, higher interest rates and rising exchange rate volatility.
Many cement producers are turning to exports to avoid fierce competition at home, said Dao Ngoc Binh, general manager of Hoang Thach Cement, a subsidiary of Vietnam Cement Corporation, and Tran Viet Thang, general manager of Vietnam Cement Corporation. In 2013, Vietnam's total cement export volume reached 14 million tons, and the two main export markets were Southeast Asia and the Middle East.
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