Vietnam revokes Chinfon Cement license

Vietnam revokes Chinfon Cement license
Published: 25 August 2010

The Management Board of Dung Quat Economic Zone in Vietnam’s central province of Quang Ngai has decided to revoke an investment license of Chinfon cement project invested by a Vietnamese-Taiwanese joint venture.

Chinfon Cement Corporation has not yet started construction of Dung Quat-Chinfon clinker grinding project which was licensed two years ago due to slow site clearance and poor financial capacity caused by the global economic crisis, Nguyen Xuan Thuy, head of the board said.

The board will revoke more licenses of stagnant projects if their investors have no capability to continue implementing them, Thuy was cited by the Thoi bao Kinh te Saigon online newspaper as saying Tuesday.

The Ministry of Construction forecast Vietnam will face a cement surplus of at least two million tons this year due to the boom of new cement plants nationwide while its cement export plans are facing difficulties.

The ministry plans to submit a new development planning draft for the cement industry until 2015 and with a vision for future developments through 2025 to the Prime Minister in the fourth quarter of this year.

The move is aimed to tackle the country’s foreseeable huge cement surplus, which will come earlier than the forecast of the latest approved planning until 2010 and a vision through 2020.