Cement market in Vietnam prepares for uncertain times

Cement market in Vietnam prepares for uncertain times
Published: 14 September 2005

Experts have predicted that cement consumption from now till the end of this year will experience complicated fluctuations due to the soaring cost of goods and changes in the climate. Moreover, construction work, which is gaining momentum to fulfil the annual set targets, will also require a large volume of cement.  

In the third quarter of this year, the demand for cement is decreasing. However, the demand for cement is likely to hit a record high later in the year.  

According to Nguyen Anh Quan, head of the sales department of the Vietnam Cement Corporation (VNCC), the demand for cement from now to the end of this year will reach approximately 15Mt representing an increase of 10 percent over the same period last year. It’s worth noting that some cement products with prestigious trademarks such as Ha Tien 1, Ha Tien 2, Hoang Thach, But Son, Bim Son, Nghi Son and Chinfon will be consumed in large volumes.  

Currently, VNCC holds 50 per cent of the country’s total cement market share and the corporation is trying its best to meet the increasing demand from now to the end of this year. VNCC and cement joint ventures will have to reserve a large volume of cement (about 1.34 million tonnes) to keep up with the rising demand towards the end of this year, as well as the first quarter of next year, particularly in the two large markets of Hanoi and Ho Chi Minh City.  

According to VNCC, the corporation’s cement reserves, together with the current volume of cement produced by cement joint ventures, will be able to meet market demand. In the first half of this year, cement joint ventures produced approximately 3.78Mt of cement, accounting for more than 27 per cent of market share. VNCC also produced and sold 6.3Mt in the first six months of this year, accounting for nearly 50 per cent of the domestic market share.