The Ministry of Construction has received a slew of proposals from cement makers requesting permission to build new plants.
Holcim is proposing to establish a plant with annual capacity of 3.5Mt, while Bac Can is proposing producing 900,000tpa. Luksvaxi, Phuc Son, Hoa Phat and Nam Dong are each seeking to build plants with annual capacity of 1.8Mt.
According to an industry development plan, cement consumption on average will grow 9% annually from 2011-2015 and 4.5% from 2016-2020. Vietnam will consume 35.8Mt of cement this year, 49.5Mta by 2010, 76Mt by 2015 and 94Mt by 2020.
The Ministry of Construction estimates that for every US$1bn invested in infrastructure, the demand for cement will increase by 1.5Mt as a result. Therefore, the demand for cement has the potential to grow strongly in the years ahead.
In regards to supply, domestic cement manufacturers are capable of producing 57Mt by 2010, which is 7.5Mt greater than the estimated demand. However, by 2015, the surplus will narrow to 2.6Mt, and by 2020, supply will fall behind demand.
The ministry has proposed several measures to the Government to facilitate the cement industries development. The ministry has encouraged the Government to complete all road and seaport projects in areas where cement plants will converge, assign shipbuilders to build vessels specialising in carrying clinker from north to south and allow for cement paved roads.
Vietnam Cement Corp. will test out cement paved roads on the Ninh Binh-Bai Vot expressway.