Ministry to put restrictions on new cement projects

Ministry to put restrictions on new cement projects
Published: 05 September 2006

Licensing conditions for the expansion of operational cement projects in Vietnam will be softer, while new projects will face harsh restrictions, said a senior official of the Ministry of Construction.

Nguyen Quang Cung, head of the ministry’s Department of Building Materials, told the Daily operational investors in Vietnam would gain an upper hand when seeking to expand production, as the ministry would give successful investors more priorities.

“It will be quicker and easier for operational factories to expand production, and thus the efficiency will be higher,?Cung told the Daily in a recent talk.

The door is closing down for new cement projects in Vietnam as production is seen increasing quickly which will result in a surplus by 2009, according to a report by the ministry.

Despite this fact, many foreign investors are sounding out new opportunities in the country’s cement industry. An investor from the Czech Republic is proceeding with procedures to build a cement factory in northern Hoa Binh Province, while a few German investors are also planning new projects in Vietnam.

Cung said investors would hardly find opportunities in new cement projects, but they could form joint ventures with local manufacturers to expand existing facilities and introduce new production technology.

In fact, many operational cement factories have recently obtained the Prime Minister’s approval to expand production, including Luckvaxi in Thua Thien-Hue Province, which was licensed to install one more line with annual capacity of one million tons. Other cement companies that have been allowed to set up new production lines include Nghi Son, Chinfon, Phu Son and Holcim.