Vietnam seeks ways to develop cement industry

Vietnam seeks ways to develop cement industry
Published: 16 January 2007

Vietnam should be careful in approving new cement projects between 2006 and 2010, develop infrastructure in areas having cement facilities, and raise the cement industry’s competitiveness, said delegates at a seminar on the country’s cement development in the next four years. 
Relevant authorities should be cautious in approving additional projects which begin production between 2006 and 2010, because the country’s cement supply, based upon approved projects, will meet the demand in 2009 and surplus in 2010, said delegates at the one- day seminar co-organized by the International Finance Corporation and the Vietnam National Cement Association. 
It is necessary to develop transport and telecommunication in sync with cement projects, especially water transport, they said. The volume of cement and clinker transported by water ways in Vietnam is expected to rise to 5-6Mt in 2010 from some 3Mt in 2006. 
Vietnam should also pay more attention to raising the cement industry’s competitiveness by applying advanced technology, and using modern production equipment. 
In addition, relevant agencies should inspect operational projects’ implementation, their financial and management capacity, the seminar participants said, adding that weak enterprises should be merged with stronger ones. 
Vietnam’s cement demand is expected to annually increase by 11 per cent to 50Mt in 2010, while the industry’s capacity is estimated at 60Mt, up from 24.7Mt in May 2006. 
The country produced nearly 32.4Mt of cement in 2006, posting year-on-year rise of roughly 9.5 per cent, according to the Vietnamese Construction Ministry.