Vietnam Cement Corp vows no price increases in ’05

Vietnam Cement Corp vows no price increases in ’05
Published: 24 February 2005

The Vietnam Cement Corporation will not increase cement prices this year in an effort to maintain market stability for the building material, said general director Nguyen Van Hanh. He said that the decision follows a recent directive by the Prime Minister calling upon industries to refrain from raising prices on major domestic commodities including cement. The corporation, the country’s largest cement producer, has asked its affiliated companies to further their cost-cutting in order to ensure ongoing profitability, Hanh added.

Vietnam Cement Association President Nguyen Van Thien forecasted that the domestic cement market was likely to remain calm thanks to the corporation’s gesture, despite recent price hikes by two rival joint-venture producers, Holcim and Nghi Son. The corporation has yet to conclude its negotiations with the country’s coal producers about prices, Thien added. Therefore, the price of this important raw material for cement production would not increase in the short run.

The association has not ruled out the possibility of a price hike in the future, said Thien, adding, "Cement is not subject to the Government’s price control. Under certain circumstances, enterprises will adjust the price accordingly."  About four new cement plants will be operational this year, increasing the nation’s overall cement output to 30Mt.