Vietnam's cement surplus will reach 36 million tons in 2020

2019-09-20 10:43:36

By the current consumption level, the cement production industry will have a surplus of 36-47 million tons by 2020, according to the Vietnam Cement Association.

By the current consumption level, the cement production industry will have a surplus of 36-47 million tons by 2020,

according to the Vietnam Cement Association.

Vietnam Cement Association said that in the coming period, Vietnam's cement industry will put some projects into operation, such as Songlin Cement (Phase II), with a capacity of 3.8 million tons per year; Ha Tien Kaito Cement, with a capacity of 4.5 million tons per year; Tan Thang Cement, located in Hoang Mai (Nghe An), has a capacity of 1.8 million tons per year. The investment project is expected to increase the total design capacity of the whole industry to nearly 1.1 million tons per year, which may reach 1.2-1.3 million tons per year by 2020. The operation of these production lines will increase the pressure of product consumption in Vietnam's domestic and export markets.

With consumption in Vietnam increasing by about 5%/year today, total cement consumption is expected to reach about 82 million tons by 2020, resulting in an excess of more than 36 million tons.

According to the General Administration of Customs, in the first nine months of 2018, the country exported nearly 23.4 million tons of cement and clinker , with a total value of nearly $891 million, reaching 73.7%, 87% of the turnover in the same period last year. In the first 10 months of 2018, exports of cement and clinker were estimated at 25 million tonnes.

The Vietnam Cement Association also suggested that the government consider and guide the extension of the investment schedule of new cement projects from now to 2025; At the same time, we should promote investment in improving and increasing productivity and product quality, use new technologies to save fuel and mineral resources, use various industrial wastes to replace and use renewable energy to create, increase labor productivity, improve economic and environmental efficiency, and develop towards sustainable development. Recently, the Ministry of Construction completed the formulation and evaluation of Vietnam's cement industry development plan for 2017-2025, with a target of 2035, and submitted it to the Prime Minister for approval. Projects in areas with many cement plants, expansion of large capacity investment, modern technology, conservation of resources and environmental protection.

In addition, incentives and mandatory policies for the production and use of unburned building materials should be strengthened. These solutions help to control the increase in supply pressure, promote consumption, especially in the domestic market of Vietnam, and gradually reshape the development of the building materials industry, including the cement industry.

Despite the strong capacity development momentum, there are still many limitations in Vietnam's cement industry. Specifically, labor productivity is very low and uneven, ranging from 1000 tons/person/year to 8000 tons of cement/person/year, which is lower than many countries in the region.


All can be viewed after purchase
Correlation

By the current consumption level, the cement production industry will have a surplus of 36-47 million tons by 2020, according to the Vietnam Cement Association.

2019-09-20 10:43:36