Vietnam’s cement industry will fully meet the national demand by 2010 with supply expected to reach 60Mt against 50Mt for the national demand volume, an industry official said.
Nguyen Van Thien, head of the Vietnam Cement Association, made the confirmation at a workshop held in Hanoi on Jan. 16 in association with the International Financial Corporation (IFC).
He pointed out the need to boost investment in transport systems, especially land roads and water-way, along with the expansion of cement production projects.
Experts voiced concerns over the fact that small projects are booming while strong investment has appeared to be very rare, making investment risky.
They warned that a situation where a large number of businesses operate separately may lead to an unhealthy competition such as dumping products.
The industry has, therefore, called for a faster pace in equitising State-owned enterprises (SOEs) and setting up a national cement consortium with advanced technology and financially strong enough to compete in the international market.
These targets are high on the industry’s strategies for 2010 and 2020, said the cement sector chief.
For his part, IFC country director Sin Foong Wong said the cement industry in Vietnam has a great potential for development as the country is developing fast like a huge construction site.
The national demand for cement reached 32.5Mt in 2006.
Since 1992, IFC itself has poured over US$500 million into 25 companies in Vietnam, mostly in cement, steel, wood product, hotel sector and garment-textile industries.