2024, Vietnam's cement industry was quite difficult. Vietnam's domestic real estate market is depressed, infrastructure investment projects are deployed slowly, consumption output is limited, and export markets are also affected.
First, Vietnam's cement overcapacity is serious, and dozens of production lines are suspended
. According to the Vietnam Cement Association, Vietnam's total cement output in the first six months of 2024 is expected to be 44 million tons. At present, the operating rate of the plant is only 70-75% of the total design capacity, and the cumulative inventory is as high as 5 million tons. According to the report of the Ministry of Construction of Vietnam in June 2024, Vietnam has 92 production lines with a total capacity of 12234 10000 tons per year (although four new production lines have been invested and completed, they have not been put into operation formally for fear of demand, with a total capacity of 11.4 million tons per year). In addition, Vietnam Chunshan Cement Plant Project (Peace), with a total investment of VND 5 trillion (about RMB 1.445 billion) and a production capacity of 2.3 million tons per year, is expected to be put into operation by the end of 2024. Industry insiders said that in 2024, Vietnam's cement sales declined, revenue decreased, most enterprises have been in a loss state, had to accept the price below the cost of production sales, financial difficulties, Vietnam has dozens of production lines had to suspend production.