Despite higher production costs caused by higher fuel prices, Vietnamese cement prices will be regulated by the government until year-end, when a price hike comes into effect. According to Deputy Minister of Construction Tong Van Nga, nearly all cement producers have committed to keeping cement prices stable until the end of 2005.
Quan Trong Dan, Deputy Director General of Holcim Cement Joint Ventures said that cement producers have been suffering losses due to oil price increases. More expensive imported material and higher transportation cost have all led to higher production costs. In response, Deputy Director General of the Ha Tien II Cement Company, Ly Tan Hue, said that it would be a burden to companies to keep prices artificially low.
The Ministry of Finance (MoF) has asked the Vietnam Coal Corporation (Vinacoal) to offer lower prices on coal to cement plants using vertical-kiln technology. Nguyen Van Thien, Chairman of the Vietnam Cement Association, said the plants have been suffering heavy losses, as coal tends to be costly. If the Government does not support the plants, it will fail to stabilise the cement market, he said.