Vietnam demand on the rise

Vietnam demand on the rise
Published: 19 May 2006

Domestic demand for cement is forecast to increase sharply to around 3.2-3.4Mt in May and June this year due to the peak in the construction season, according to the Ministry of Trade.  In April, many factories increased cement prices by between VND15,000 and VND30,000 per ton, the ministry said, adding that in the coming time, prices of the product are likely to continue rising under the State-owned Vietnam Cement Corporation’s cement price hike roadmap.  However, the Ministry of Trade said that it will make great efforts to stabilize cement prices during the May-June period to avoid the sudden price hike.  Vietnam now stockpiles about 1.25Mt of cement and clinker and sees a stable monthly output, which is expected to prevent a shortage of the product in coming months.
 
The second quarter demand for cement is forecast to reach 8.5Mt, up nine per cent on-year, of which Vietnam Cement Corporation will provide some 3.83Mt. According to the Ministry of Planning and Investment, Vietnam is predicted to consume 31.5-32Mt of cement this year, up 6.8-8.47 per cent against last year.  Analysts suggest that the country’s demand for cement is forecast to grow 8-10 per cent between now and 2010.