Vietnam producers request price adjustment

Vietnam producers request price adjustment
Published: 09 November 2006

The Ministry of Construction and the Vietnam Cement Corporation have asked the government to increase cement prices as coal prices are about to increase.

According to the Vietnam Cement Corporation, the cement industry is facing many difficulties and this moment is suitable for the adjustment of cement prices.

The corporation’s representative said that the negotiations between the corporation’s leaders and representatives of the Vietnam Coal and Minerals Corporation didn’t result in a final solution.

“However, we still have to accept the fact that the increase in the price of coal sold to cement, paper and fertiliser producers is unavoidable,” he said.

According to this official, if coal prices rise under the plan proposed by the Vietnam Coal and Minerals Corporation, the production cost for each tonne of cement would increase by around VND30,000. Thus, the Vietnam Cement Corporation would have to pay an additional VND200bn a year.