[Original] Vietnam Will Increase Exports to Ease Domestic Overcapacity

2014-02-14 14:24:12

In order to alleviate domestic overcapacity, sluggish demand and severe market situation, Vietnam's cement producers will give priority to exports in 2014. It is estimated that the excess capacity will reach 8 to 12 million tons in 2014.

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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In order to alleviate domestic overcapacity, sluggish demand and severe market situation, Vietnam's cement producers will give priority to exports in 2014. It is estimated that the excess capacity will reach 8 to 12 million tons in 2014.

2014-02-14 14:24:12

In the past 11 months of 2013, Vietnam exported 12.45 million tons of cement and clinker, accounting for nearly 63% of the year-on-year growth.

2013-12-20 13:45:23

On November 11, the Economic and Credit Department of Hubei Province issued the Announcement on the Replacement Scheme of Supplementary Capacity for the 6166-ton Cement Clinker Production Line Project of Gezhouba Songzi Cement Co., Ltd. According to the Announcement, the 4000t/d clinker production line of Gezhouba Songzi Cement Co., Ltd. will supplement the production capacity of 1666t/d + 500t/d, totaling 2166t/d. After the supplement, the total production capacity of the production line will reach 6166 t/d.