Since the beginning of this year, China has insisted on deepening structural capacity reduction, and the past era of output reduction has passed. All regions and departments have insisted on using market-oriented and legalized means to strictly implement environmental protection, quality, safety and other regulations and standards to reduce excess capacity and eliminate those backward capacity.
In the cement industry, there are not a few cement enterprises forced to stop production due to overcapacity. Some small and medium-sized enterprises have closed down in turn because they can not adapt to the changes in the market environment. Most of the reasons for the collapse are that these small and medium-sized enterprises can not afford the high cost of environmental protection equipment. This time, China's cement production capacity has led to a substantial reduction in the supply of international cement, while the demand for cement in some regions of the country has not been met. The Vietnamese have been coveting this opportunity for a long time.
In the first seven months of 2018, Vietnam's cement exports are expected to reach 17.84 million tons, up 55% year-on-year and close to the annual target of 18 million to 19 million tons, according to the Ministry of Construction. In 2018, Vietnam's cement enterprises got a big bargain. Vietnam's domestic sales are considerable because the weather in Vietnam is very good, which is conducive to construction. In the international market, because of China's phased shutdown, Vietnam's cement exports are also rising.
Vietnam's profitable enterprises in the international market are not satisfied, aiming at the "cement shortage" and " clinker shortage" in some regions of China, and continue to build new cement plants in Vietnam to increase the domestic inventory of cement, hoping to open up the huge Chinese market.
Some entrepreneurs in Vietnam may be confused by the immediate interests, and the unrestrained expansion of cement production will do great harm to Vietnam's environment, not to mention whether excessive cement production will lead to excess problems. Some Vietnamese experts have warned that foreign investors are trying to transfer polluting industries to Vietnam by setting up cement plants in Vietnam. However, it is estimated that the Vietnamese are counting the money in their hands and do not anticipate what will happen in the future.