In 2014, Vietnam exported more than 21 million tons of cement, but this year, exports are facing greater difficulties due to stagnant demand in traditional markets and plans by many regional cement producers to significantly increase production.
According to the report of the cement import and export seminar held by the import and export department of the Ministry of Industry and Trade on April 23, there are 106 cement plants in China with a total annual design capacity of 82 million tons, while the domestic demand is only maintained at 50 million tons.
Representatives from the Vietnam Cement Industry Corporation said the industry hopes to reduce the amount of cement stocks by increasing exports.
However, the company is very concerned about the growth of cement production in regional markets such as Japan, Korea, China and India, while the demand for clinker in Vietnam shows that the demand in traditional markets such as Bangladesh, Indonesia and the Philippines has not increased.
Nguyen The Dat, deputy managing director of Vissai Ninh Binh Group, said it will be difficult for Vietnam to export cement to reach 2014 levels in the future, because Vietnam and other cement exporters, including South Korea, China, Japan and Thailand, can not compete on price, freight and logistics services. He stressed that the vicious competition among domestic exporters is also harmful to the industry.
Dat suggested that the Ministry of Industry and Trade should set up a special team to establish links with cement enterprises and support the industry in market information and forecasting. Tran Tuan Anh, Deputy Minister of Industry and Trade, said that domestic enterprises should improve their competitiveness.
He said that the Ministry of Industry and Trade, together with the Ministry of Construction, will complete the formulation of the Cement Industry Development Plan and guide and coordinate enterprises to balance supply and demand. In addition, the Ministry of Industry and Trade will work with relevant agencies and organizations to address the difficulties faced by cement exporters.
Le Van Toi, head of the Building Materials Department under the Ministry of Construction, called for investment in building specific ports for cement and clinker products.
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