Vietnam to face cement shortage Of 6.5Mt In 2005

Vietnam expects to face a cement shortage of about 6.5Mt next year, as demand is increasing faster than domestic supply, a government executive said. Next year’s requirement is forecast at 29Mt against a domestic output of 22.5 million tons, the executive at the state-owned Vietnam Cement Corp said.

"To meet the demand, VCC will need to import several million tons of clinker for domestic plants," the executive, who declined to be named, said.

Vietnam plans to produce 7Mt of cement using imported clinker this year, VCC figures show.  The country is estimated to have produced 18.1Mt of cement in the first nine months of this year, up 7.3% on year, and about 22-23Mt for the whole year, government figures show.

The government has invested more than $1bn to build 10 large plants with a combined production capacity of 17.2Mt to boost production as the country’s urbanization continues to accelerate.

"Some of these plants will start operating from 2006, but because of a lack of investment funds, the operation of many of these cement plants will be delayed, and therefore, Vietnam will continue to import a large volume of cement in the coming years," the executive said.