The Ministry of Construction has asked the people’s committee in five cities not to approve any more cement plants until 2020 because of ample supplies.
Vietnam had 97 cement plants in December with capacity of producing 57.4Mta. Another 13 plants with a total 11.7Mt capacity will open this year exceeding demand by an estimated 2Mt.
More cement projects have already been approved for the following years with 12 with total capacity of 9.35Mt in 2011, and seven in 2012 adding an additional 6.72Mt capacity, and seven more in 2015.
The ministry predicts there will be an oversupply even if there are no new approvals.
In late 2009, the ministry reported to the Prime Minister about the forecast and gained approval to stop approvals for new cement plant projects in Ha Noi, HCM City, Hai Phong, Da Nang and Can Tho.