The Vietnam Cement Association has asked the Ministry of Industry and Trade to suspend licensing new cement projects, as the country is facing an oversupply, state media said Monday.
"Vietnam may have a cement excess of 10 million tons by 2010, if all the plants operate at full capacity," association Chairman Nguyen Van Thien was quoted as saying in the Dau Tu newspaper.
Vietnam now has 105 cement plants with combined capacity of 61Mta, while the country’s cement consumption is expected to rise to 45Mt this year from 40.1Mt last year, the association was cited as saying.
Cement consumption in 2010 is expected to be 50 Mt, far below existing plants’ designed capacity, the report said.
It’s difficult for Vietnam to export the excess cement due to high transport costs, it said.