Vietnam's Investment Online reported on November 10 that Vietnam's FPTS Securities Company analyzed in a latest report on the cement industry that new projects in Vietnam's cement industry will be limited in the 2020-2030 period, and the scale will be more concentrated than in the previous period.
FPTS believes that under the Vietnam Cement Plan to 2030, only 17 new projects in the cement industry will be operational in the 2020-2030 period. Therefore, it is certain that the industry access threshold will be more stringent in terms of capital, approval procedures and production scale, and high-cost high-tech auxiliary investment will be increased to limit the entry of new competitors and stabilize the supply and demand of Vietnam's cement industry. During the period
from 2010 to 2019, the cement industry showed a trend of excess capacity compared with demand, and the pressure of competition among enterprises increased. At this stage, generally speaking, the demand for cement is greatly affected by the government's direct and indirect regulatory policies.
By 2019, the total production capacity of Vietnam's cement enterprises will reach 103 million tons per year, and the sales volume will be 98 million tons, accounting for 95% of the annual production capacity. Domestic cement sales amounted to 68 million tons, accounting for 68% of the total sales, and exports amounted to 31 million tons, accounting for 32% of the total sales.
As the cement industry has excess capacity compared with domestic demand, the government tends to restrict new cement plants, especially those not included in the previous plan.
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