Vietnam cement glut forecast at minimal 2Mt this year

Vietnam cement glut forecast at minimal 2Mt this year
Published: 28 July 2010

Vietnam is forecast to face a cement surplus of at least 2Mt this year due to the boom in new cement plants nationwide, the Ministry of Construction said.

The Southeast Asian nation will likely have additional 16 cement plants this year, which will help bring the national cement supply to 65.66Mt during the year versus estimated demand of between 50 and 52Mt, the Lao dong newspaper reported Tuesday, citing the ministry.

The country was warned of cement redundancy two years ago but investors still race to build new plants in the country, the ministry attributed.

The national total cement supply was 10Mt higher than the demand in the first half of this year while consumption increased by only 1.8Mt during the period, said Vietnam Cement Industry Corporation (Vicem).