Vietnam's new Master Plan
Vietnam is having to rebalance its cement output with expected market demand. While there have been limitations on the creation of new plants, there is now strong evidence for the government to encourage the construction of larger plants while phasing out the less economical smaller units. By Hai Khieu, StoxPlus, Vietnam.
The overheated expansion of Vietnam’s cement capacity before 2013 continues to haunt the industry, which is strongly affected by the current supply surplus. Low capacity utilisation rates and cement prices are leading to low EBITDA and net profit margins.