Vietnam ranks third in the world in terms of cement production capacity

As of December 2018, China became the world's largest cement producer with an annual installed capacity of 14.84 million tons, followed by India and Vietnam with 分别为4.37 and 148 million tons per year,

according to Global Cement.

While China's cement industry is producing less, the world's most populous nation is still expected to produce 200 million tons more than nine other countries combined.

According to statistics, there are 74 cement plants in Vietnam, most of which are directly or indirectly controlled or owned by the state. In fact, factories are not running at full capacity, but cement production in Vietnam is still high, and there has been a glut in the past few years. Major countries with

installed capacity (million tons/year). Source: Global Cement, VDSC < br/>

Vietnam's cement production and the number of companies joining the industry are growing rapidly. In terms of actual output, Vietnam produced 78 million tons in 2017, which increased to 83 million tons in 2018, and the total output of Vietnam's factories is expected to reach about 90 million tons in 2019.

Production increases, while demand is low, pushing the industry to oversupply. According to the Vietnam Cement Association (VNCA), the country will face a surplus of 26 million tonnes of cement in 2017. The solution to the over

supply problem was exports, and the biggest market was China, when the country decided to cut domestic cement production by 10% in 2018. In the first 10 months of 2018

alone, the value of Vietnam's cement exports reached its highest level in the past four years, reaching $1.1 billion, and will continue to increase in the last two months of 2018. Value of

clinker and cement exports (billions of dollars) and value of Clniker & Cement exports. Source: General Administration of Customs, VDSC < br/>

As of mid-November 2018, China was the largest importer of cement from Vietnam, weighing more than 7.6 million tons and valued at more than 2.76 billion. Bangladesh ranks second with a weight of nearly 6 million tons.

In Southeast Asia, the Philippines imported 5.5 million tons of Vietnamese cement in the first 10 months of 2018. The average selling price of cement in

Vietnam varies from partner country to partner country. Southeast Asian countries import cement at the highest price. Specifically, Cambodia imports cement from Vietnam 51.6 US $/ton and 菲律宾每吨进口需支付46.4 US $. China, which had negotiating power, paid 36.3 dollars to import a ton of cement from Vietnam. Output and export values by

country and average export prices by country ( $/ton). Source: General Administration of Customs, VDSC < br/>

Previously, in March 2017, China considered cutting coal, steel and cement production by 10% to control air pollution. In addition, China has proposed a plan to ban the expansion of heavy industry capacity, including cement, until 2018. Therefore, Vietnam's cement products have increased sales opportunities in the Chinese market.